If Marginal Utility Is Positive as Consumption Increases

question 23

Multiple Choice

If marginal utility is positive as consumption increases,

• A)the consumer will not experience diminishing marginal utility.
• B)total utility will remain high and constant as consumption increases.
• C)total utility will increase as consumption increases.
• D)the demand curve will have a positive slope.

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Definitions:

Usury Laws

Regulations that set maximum interest rates which can be charged on loans, to protect borrowers from excessively high rates.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal, paid to lenders over a period.

Real Rate of Return

The rate of profit or loss on an investment after adjusting for inflation, providing a more accurate measure of purchasing power.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.