If the First Four Units of a Good Consumed Have

question 44

Multiple Choice

If the first four units of a good consumed have marginal utilities of 10, 9, 8, and 7, respectively, this trend is an indication of the:

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

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Definitions:

Government Bonds

Debt securities issued by a government to support government spending and obligations.

Savings Account

A bank account where people can deposit money to earn interest over time, with fewer withdrawal facilities.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Discouraged Workers

Individuals who have stopped looking for employment due to repeated failure to find work, and are no longer counted as part of the labor force.