The Change in Total Utility Derived When a Customer Consumes

question 167

Multiple Choice

The change in total utility derived when a customer consumes one more unit of a good or service is called

• A) total utility.
• B) marginal utility.
• C) average utility.
• D) final utility.

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Definitions:

Compensating Differentials

Salary differences that reflect the desirability of the job itself or the cost of living in the area where the job is located.

Wage Disparity

The difference in wages between groups of workers, often based on gender, age, or race.

Wage Differentials

The differences in wage rates due to the variations in the skill level, occupation, region, and other factors affecting compensation.

Diminishing Returns

The principle stating that as one factor of production is increased while others are held constant, a point will eventually be reached where additions of the factor yield progressively smaller increases in output.