Using the Utility-Optimizing Model, Which of the Following Would Induce

question 356

Multiple Choice

Using the utility-optimizing model, which of the following would induce a consumer to increase consumption of good x, a normal good?

• A) An increase in the marginal utility of x
• B) A decrease in the total utility of y
• C) An increase in the marginal utility of good y
• D) A decrease in income

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Definitions:

Investment Tax Credit

A tax credit offered to entities to encourage investment in certain assets, offering a reduction in tax liability.

Total Assets Ratio

A financial metric comparing the total assets of a company to another financial measure, used to evaluate the company's financial health.

Tax Deductions

Expenses that can be deducted from adjusted gross income to reduce the amount of taxable income.

Off-Balance-Sheet Financing

Financial obligations not recorded on the balance sheet, often used to keep debt-to-equity ratios low.