If a Consumer Concludes That the Marginal Utility of the Last

question 265

Multiple Choice

If a consumer concludes that the marginal utility of the last dollar spent on vegetables exceeds the marginal utility of the last dollar spent on junk food, he will respond by

• A) consuming relatively more junk food and fewer vegetables.
• B) consuming relatively more vegetables and less junk food.
• C) consuming equal amounts of vegetables and junk food.
• D) halting consumption of junk food altogether.

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Definitions:

Liability Account

An accounting record tracking obligations or debts that a company owes to others.

Credit Balance

Credit Balance refers to the amount of money that a company or individual has in their account that can credit against future purchases or borrowings.

Payee

The party in a financial transaction to whom money is paid or is to be paid.

Interest Income

Earnings received from deposit accounts or investments that yield interest, such as savings accounts, bonds, or loans.