An Article in the Textbook Suggests That One Method to Correct

question 152

Multiple Choice

An article in the textbook suggests that one method to correct the higher education inefficiency is to

• A)provide free higher education to all Americans.
• B)have college students sell equity in themselves.
• C)reduce interest rates on student loans.
• D)increase the number of colleges and universities in the United States.

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Definitions:

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.

Marginal Utility

The incremental utility or happiness a consumer derives from acquiring and using an additional unit of a good or service.

Utility Per Dollar

A measure of the satisfaction or usefulness obtained from purchasing goods or services relative to the amount of money spent.

Diminishing Marginal Utility

The principle stating that as more of a good or service is consumed, the marginal benefit of additional units will decline.