Utility Is _____

question 81

Multiple Choice

Utility is _____

• A)the sense of pleasure or satisfaction derived from consuming goods and services.
• B)the addition to total satisfaction resulting from an additional unit of consumption.
• C)the ratio of the units of a good consumed to its price.
• D)objectively measured and compared across individuals.
• E)the difference in the total satisfaction derived from the consumption of any two products.

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Definitions:

Present Value Factor

A multiplier used to determine the present value of a future cash flow, considering the time value of money.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Period of Time

A Period of Time is a specific duration measured in terms of days, weeks, months, or years, during which certain activities or events occur or are intended to occur.

Discount Factors

A multiplicative factor used to discount future cash flows back to their present value.