The Total Utility of the Consumer Diminishes Whenever

question 48

Multiple Choice

The total utility of the consumer diminishes whenever:

• A)he or she buys an additional unit of a good.
• B)his or her marginal utility decreases.
• C)his or her total utility increases at a decreasing rate.
• D)the last unit consumed of a particular good is distasteful or provides dissatisfaction.
• E)other consumers are also purchasing the product.

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Definitions:

Hourly Rate

A rate of pay based on one hour of work, often used to compensate temporary, part-time, or freelance employees.

FICA Tax Rates

The percentages of social security and Medicare taxes that both employers and employees must pay, according to the Federal Insurance Contributions Act.

Net Pay

The amount of an employee's earnings remaining after all deductions, such as taxes and retirement contributions, have been taken out.

Overtime Rate

The higher pay rate employees earn for hours worked in excess of standard full-time hours.