If the Cost Were Greater Than the Marginal Benefit of a Good

question 63

Multiple Choice

If the cost were greater than the marginal benefit of a good:

• A)consumers could increase their utility by buying more.
• B)consumers could increase their utility by buying less.
• C)producers should increase production.
• D)None of these is true.

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Definitions:

Consumption

The use of goods and services by households, constituting one of the primary components of aggregate demand in an economy.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

Permanent Income Hypothesis

A theory suggesting that an individual's consumption at a point in time is determined by their expected lifetime income, not just their current income.

Consumption

Consumption involves the use of goods and services by households, and it's a primary component of economic activity.