Financial Information Capable of Making a Difference in a Decision

question 48

Multiple Choice

Financial information capable of making a difference in a decision is

• A)relevant.
• B)verifiable.
• C)consistent.
• D)neutral.

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Definitions:

Consumer Surplus

The difference between the maximum price consumers are willing to pay for a good or service and the actual price they do pay.

Marginal Utility

The additional satisfaction or utility gained from consuming one more unit of a good or service.

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.

Marginal Utility

The change in satisfaction or benefit derived by consuming an additional unit of a good or service.