A Good or Service Is Considered Scarce If

question 99

Multiple Choice

A good or service is considered scarce if

• A)any quantity of it can be consumed at a zero price
• B)the amount people desire exceeds the amount available at a zero price
• C)the amount people desire exceeds the amount available at any price
• D)the amount people desire is less than the amount available at any price
• E)the amount people desire is less than the amount available at a zero price

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Definitions:

Diminishing Marginal Utility

A principle stating that as a person consumes more of a good, the additional satisfaction or utility from consuming an additional unit decreases.

Total Utility

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

Marginal Utility

The added satisfaction a consumer gets from having one more unit of a good or service.

Diminishing Marginal Utility

A principle in economics that posits an individual gains less satisfaction from consuming each additional unit of the same product or service.