How Much Utility Is Gained by Spending an Additional Dollar

question 130

Multiple Choice

How much utility is gained by spending an additional dollar on good X?

• A) It is the average utility of good X divided by the price of good X.
• B) MUₓ/Pₓ
• C) TUₓ/Pₓ
• D) None of the above are correct.

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Definitions:

Trait Theories

An approach to the study of human personality which focuses on the measurement of consistent patterns of behavior, thought, and emotion.

Positive Self-Concept

An individual's view of themselves that is generally positive, reflecting a belief in one’s own abilities and self-worth.

Abraham Maslow

A psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Carl Rogers

An influential American psychologist who developed client-centered therapy and emphasized the importance of a positive self-concept.