In Cardinal Utility Analysis

question 389

Multiple Choice

In cardinal utility analysis

• A) numbers can be assigned to utility.
• B) it is recognized that numbers can not be assigned to utility.
• C) the concept of marginal utility exists while in ordinal utility analysis marginal utility does not exist.
• D) marginal utility always increases as more of a good is consumed.

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Definitions:

Sales

The exchange of goods or services for money, constituting the revenue of a business.

Pledging Accounts Receivable

The use of accounts receivable as collateral to secure a loan, without transferring the title.

Promissory Note

A financial instrument where one party (the issuer) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.

Maturity

The date on which a financial obligation, such as a bond or loan, is due to be fully repaid.