The Principle of Diminishing Marginal Utility Implies

question 28

Multiple Choice

The principle of diminishing marginal utility implies:

• A)indifference curves are concave.
• B)indifference curves are convex.
• C)indifference curves are straight lines.
• D)as your consumption level increases, the marginal utility received from consumption of an additional unit increases.

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Definitions:

Investment Bankers

Professionals who work for financial institutions, facilitating mergers, acquisitions, and issuing of securities for corporations and governments.

Commercial Bankers

Professionals working in commercial banks that provide a variety of financial services including loans, deposits, and investment products to businesses and individuals.

Credit Raters

Agencies or entities that assess the creditworthiness of issuers of debt securities, determining their ability to make timely interest payments and repay the principal.

Sarbanes-Oxley Act

A U.S. federal law that aimed to protect investors by improving the accuracy and reliability of corporate disclosures.