Total Utility

question 161

Multiple Choice

Total utility

• A)cannot decrease as a person consumes more and more of a good.
• B)has a constant rate of increase as a person consumes more and more of a good.
• C)is equal to the sum of the marginal utilities of all units consumed.
• D)is negative when marginal utility is declining.

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Definitions:

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Liquidity

A measure of the ease with which an asset can be converted into cash without significantly affecting its value.

Solvency

The ability of a company or individual to meet long-term financial obligations, indicating they possess more assets than liabilities over the long term.

Profitability

A measure of the efficiency and effectiveness of a company in generating profit from its operations.