If, as a Person Consumes More and More of a Good

question 77

Multiple Choice

If, as a person consumes more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of

• A)the law of demand.
• B)the law of supply.
• C)the law of increasing marginal opportunity cost.
• D)the law of diminishing marginal utility.

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Definitions:

Vesting Period

The time period an employee must wait before gaining access to the employer's contributions in a pension plan or stock options.

Incremental Fair Value

The additional amount that a company expects to earn from acquiring a new asset over its current market value.

Vesting Period

The period of time an employee must wait until they have the full right to exercise their stock options or benefits.

Exercise Price

The price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying security or commodity.