If Marginal Utility Is Negative

question 451

Multiple Choice

If marginal utility is negative,

• A) total utility increases at a decreasing rate.
• B) the consumer considers extra units of the commodity to be a "bad."
• C) the consumer will want to consume the unit only if it is free.
• D) the consumer likes the commodity, but not as much as he or she once did.

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Definitions:

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Marketable Securities Portfolio

A collection of liquid financial instruments and securities that can be quickly converted into cash at a value close to the market rates.

Treasury Bills

Short-term government securities with maturity periods of one year or less, sold at a discount from their face value.