The Rate of Return on Investment Is

question 22

Multiple Choice

The rate of return on investment is:

• A)the annual net return per dollar of invested capital.
• B)the number of investments we do not accept.
• C)the annual payment on money borrowed.
• D)the monthly total return per dollar of invested capital.
• E)none of the above.

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Definitions:

Total Utility

The total satisfaction or benefit gained from consuming a particular quantity of goods and services.

Maximum

The highest point on a nonlinear curve, where the slope changes from positive to negative.

Diminishing Marginal Utility

A principle stating that as a person consumes more of a good, the additional satisfaction or utility from consuming an additional unit decreases.

Total Utility

The total satisfaction received from consuming a particular quantity of goods or services.