If the First Four Units of a Good Consumed Have

question 209

Multiple Choice

If the first four units of a good consumed have marginal utilities of 60, 50, 40, and 30, respectively, this trend is an indication of the:

• A) maximization of utility.
• B) law of diminishing marginal utility.
• C) law of consumer equilibrium.
• D) minimization of utility.

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Definitions:

Long Terms

Agreements or financial instruments that have an extended duration or maturity period, often exceeding one year.

Medium of Exchange

A mediating tool or mechanism designed to ease the process of buying, selling, or exchanging products among individuals or entities.

Federal Reserve

The primary banking authority in the United States, tasked with setting monetary policy, supervising banking institutions, ensuring the stability of the financial system, and delivering financial services.

Bank Failures

The circumstance where a bank fails to meet its obligations to its depositors or creditors, leading to its insolvency or being shut down by regulatory agencies.