Excessive Spending, Often Done with the Intention of Showing Off

question 91

Multiple Choice

Excessive spending, often done with the intention of showing off or impressing others, is what Thorstein Veblen termed

• A) capital classism.
• B) capitalist consumerism.
• C) class mobility.
• D) conspicuous consumption.

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Definitions:

Marginal Revenue

Marginal revenue is the additional income generated from the sale of one more unit of a product or service.

Profit Maximizing

The process or strategy of adjusting production and operations to achieve the highest possible profit from business activities.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.