Classifying a Good as Rival Means

question 135

Multiple Choice

Classifying a good as rival means

• A)that the good is produced in a competitive market.
• B)that there is a shortage of the good.
• C)that when one person consumes a unit of the good no one else can consume it.
• D)anyone who does not pay for the good cannot consume it.

---

Definitions:

Diminishing Marginal Utility

The decrease in satisfaction or benefit from consuming each additional unit of a good or service.

Utilitarian Argument

A principle in ethics and economics that advocates for actions that maximize happiness or well-being for the largest number of people.

Minimum Wage Law

Legislation establishing the lowest hourly rate that employers can legally pay their employees.

Income Distribution

The way in which a country's total economic output is divided among its population, or the share of national income earned by each quintile or group of the population.