The Principle of Diminishing Marginal Satisfaction Explains Why

question 22

Multiple Choice

The principle of diminishing marginal satisfaction explains why

• A)many people don't like to save.
• B)annual consumption almost always exceeds annual savings.
• C)people can't seem to save more even though their incomes rise.
• D)future consumption looks more appealing than current consumption as our current incomes increase.

---

Definitions:

Sales Revenue

The income received by a company from its sales of goods or the provision of services before any costs or expenses are deducted.

Profit Before Income Tax

The earnings of a business before taking into account the deduction of income tax expenses, also known as pre-tax profit.

Percentage Increase

The ratio, often expressed as a percentage, by which a quantity grows over a specific period.

After-Tax Profit

The amount of net income left over after all taxes have been deducted from total revenue.