The Law of Diminishing Marginal Utility Implies That the Marginal

question 168

Multiple Choice

The law of diminishing marginal utility implies that the marginal utility for a particular product

• A) remains constant, regardless of how much of the product is consumed.
• B) remains constant as long as the product is still considered useful.
• C) decreases as more of the product is consumed.
• D) increases as more of the product is consumed.

---

Definitions:

Lender of Last Resort

An institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse.

Board of Governors

The leading body of a central banking system that oversees policy and administration.

Money Supply

The entire amount of finances available in an economy, covering all forms of cash, coins, and the funds in checking and savings accounts, at a precise moment.

Old Currency

Outdated or not in current use money forms, replaced or withdrawn by respective authorities.