The Concept of Diminishing Marginal Utility Means That a Graph

question 121

Multiple Choice

The concept of diminishing marginal utility means that a graph representing marginal utility will be

• A) downward-sloping.
• B) upward-sloping.
• C) impossible to generalize without a data set.
• D) downward-facing concave.
• E) upward-facing concave.

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Definitions:

Real GDP

The measure of a country's economic output (Gross Domestic Product) adjusted for price changes, such as inflation or deflation, to reflect the real value of goods and services produced.

National Debt

The cumulative sum of funds borrowed by a nation's government.

MPC

Marginal Propensity to Consume; the proportion of additional income that a consumer spends on goods and services rather than saving it.

Multiplier

In economics, a factor by which an initial change in spending is magnified or multiplied in the overall economy.