Which of the Following Is NOT One of the Three

question 124

Multiple Choice

Which of the following is NOT one of the three basic categories for individual income?

• A) active income
• B) passive income
• C) gross income
• D) portfolio income
• E) all of these

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) a consumer derives from consuming an additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a certain quantity of goods or services.

Consumer Surplus

The difference between the maximum amount a consumer is willing to pay for a good or service and the actual amount they do pay.

Marginal Utility

The additional satisfaction or utility that a consumer receives from having one more unit of a good or service.