Economists Use the Term "Marginal Utility" to Describe the

question 116

Multiple Choice

Economists use the term "marginal utility" to describe the

• A)change in total satisfaction caused by consumption of an additional unit of a good.
• B)average utility of each unit of a good consumed.
• C)inverse of the measure of total utility.
• D)total satisfaction received from consumption of a good.
• E)price paid for every unit consumed.

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Definitions:

Market System

In this economic framework, decisions related to investment, production, and distribution are governed by supply and demand forces, and the cost of goods and services is dictated by an unrestricted pricing mechanism.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, with prices being determined by free competition among private businesses.

Economic Power

The capability of entities like countries, corporations, or individuals to influence or control market conditions, including prices, supply, and demand.

Freedom Of Enterprise

The freedom of firms to obtain economic resources, to use those resources to produce products of the firms’ own choosing, and to sell their products in markets of their choice.