A Budget Is a

question 138

Multiple Choice

A budget is a

• A)purchase plan.
• B)line of credit.
• C)financial statement.
• D)detailed financial forecast.
• E)set of personal financial objectives.

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Definitions:

Marginal Utility

The variation in pleasure or usefulness a consumer feels from using one more unit of a product or service.

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good or service, the additional satisfaction gained from consuming an additional unit decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to what is observed with normal goods.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from consuming an additional unit decreases.