Fact Pattern 29-1A (Questions A11-A13 Apply)

question 33

Multiple Choice

Fact Pattern 29-1A (Questions A11-A13 apply)
Luxuro Vehicles,Inc.,makes and sells automobiles to auto dealers,including MotorPros Auto & Truck Sales.MotorPros sells the cars to consumers and businesses.
-Refer to Fact Pattern 29-1A.Oakes,a police officer,buys a Luxuro from MotorPros to drive in his off-duty hours.Oakes's Luxuro is

• A)a consumer good.
• B)an instrument.
• C)equipment.
• D)inventory.

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Definitions:

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product or service.

Diminishing

A principle often seen where there is a decrease in the marginal (incremental) output of a production process as the amount of a single factor of production increases while others remain constant.

Donut

A fried dough confectionery or dessert food, usually sweet, and often served with a variety of toppings or fillings.

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.