A Retirement Plan Where Employers Often Match Part of an Employee's

question 32

Multiple Choice

A retirement plan where employers often match part of an employee's contribution is known as a

• A) simple IRA.
• B) Roth IRA.
• C) Keogh plan.
• D) 401(k) plan.

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Definitions:

Diminishing Marginal Utility

The principle that as a person increases consumption of a product, there is a decline in the additional satisfaction or utility that person gains from consuming one more unit of the product.

Additional Utils

The extra satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Optimal Consumption

The mix of goods and services purchased that maximizes the utility or satisfaction of a consumer given their budget constraint.

Marginal Utility

The additional pleasure a consumer experiences from acquiring another unit of a product or service.