The Idea That the Utility a Consumer Derives from Successive

question 76

Multiple Choice

The idea that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases is known as

• A)the paradox of value.
• B)the utility theory of demand.
• C)utility maximization.
• D)diminishing marginal utility.
• E)diminishing total utility.

---

Definitions:

Test Statistic

A value calculated from sample data during hypothesis testing. It is used to determine whether to reject the null hypothesis.

Alternative Hypothesis

In hypothesis testing, the hypothesis that contradicts the null hypothesis, indicating there is an effect or a difference.

Test Statistic

An outcome obtained from samples in a hypothesis experiment, crucial in deciding if the null hypothesis should be dismissed.

P-value

Assuming the correctness of the null hypothesis, it is the possibility of obtaining test results that are equally or more extreme than those observed.