The Table Given Below Depicts the Total Utility Derived from the Consumption

question 64

Multiple Choice

The table given below depicts the total utility derived from the consumption of a good.Table 7.1

-Which of the following statements about marginal utility is correct?

• A)When marginal utility is negative, an increase in the quantity will increase total utility.
• B)When marginal utility is decreasing, an increase in quantity will decrease total utility.
• C)When marginal utility is positive, an increase in quantity will decrease total utility.
• D)When marginal utility is zero, an increase in quantity will leave total utility unchanged.
• E)When total utility is increasing, marginal utility will be negative.

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Definitions:

Money Supply

The entire sum of monetary holdings accessible in an economy at a certain period.

Travelers Checks

Preprinted, fixed-amount checks designed to allow the person signing them to make payments or exchange for local currency, used mainly by travelers to protect against theft or loss.

M1 Balance

The most liquid components of the money supply, including physical currency, demand deposits, and other assets that can quickly be converted to cash.

Currency

A form of currency widely accepted in a specific nation or economic setting.