If Joey Kobayashi Experiences Diminishing Marginal Utility from Eating Hot

question 58

Multiple Choice

If Joey Kobayashi experiences diminishing marginal utility from eating hot dogs, then

• A) his total utility from eating hot dogs is negative.
• B) the marginal utility from the next hot dog Joey eats will be negative.
• C) the additional satisfaction he receives from eating another hot dog will be less than the satisfaction he received from his eating his last hot dog.
• D) Joey is maximizing the marginal utility per dollar he receives from eating hot dogs.

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Definitions:

Commercial Bank

A financial institution that provides services such as accepting deposits, providing business loans, and offering basic investment products.

Federal Reserve Bank

The central banking system of the United States, responsible for monetary policy, regulation of the banking industry, and maintaining stability of the financial system.

Money Supply

The full total of economic financial assets available at a certain moment in an economy.

Federal Open Market Committees

A branch of the Federal Reserve that oversees the nation's open market operations and sets the federal funds rate, influencing the economy.