Marginal Utility

question 32

Multiple Choice

Marginal utility

• A) occurs when total utility declines as consumption increases.
• B) is the additional satisfaction derived from consuming one more unit of a good or service.
• C) is the combination of goods and services that maximizes utility for a given income.
• D) occurs when a consumer buys more of a good as a result of a relative price change.
• E) occurs when there is a change in purchasing power as a result of a change in the price of a good.

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Definitions:

Party Machine

A political organization in which an authoritative boss or group commands the loyalty of supporters and businesses, often using incentives for political support.

Two-Party System

A political system in which two major parties dominate voting in nearly all elections at every level of government.

Two-Party System

A political system dominated by two major parties, often leading to competition for power and influencing the political landscape of a country.

Proportional Representation

An electoral system where parties gain seats in proportion to the number of votes cast for them, as opposed to winner-take-all systems.