Marginal Utility Theory Is About

question 13

Multiple Choice

Marginal utility theory is about

• A)the consumer behaviour that underlies the theory of demand.
• B)proving that demand curves are always downward sloping.
• C)the total satisfaction resulting from the consumption of some good by the consumer.
• D)how producers allocate their scarce resources.
• E)calculating consumer surplus.

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Definitions:

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, which represents the actual yearly cost over the term of a loan.

Periodic Compounding

Periodic compounding involves the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Mortgage Loan

A loan secured by real estate. Commonly referred to simply as a mortgage.

Compounded Monthly

The process of adding interest earned back to the principal sum of a deposit or loan, with this process happening every month.