Kevin Likes Weasel Leg Stew

question 211

Multiple Choice

Kevin likes weasel leg stew.But every bite of the stew that he eats provides him with less and less total utility.This fact means that Kevin's marginal utility is

• A) decreasing.
• B) increasing, but at a decreasing rate.
• C) increasing at an increasing rate.
• D) not changing.
• E) changing, but the rate of change is not certain without more information.

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Definitions:

Compensating Balance

A minimum bank account balance that a borrower agrees to maintain as a condition for borrowing from a lender.

Minimum Cash Balance

The least amount of cash a company aims to hold in its accounts to meet immediate transaction demands.

Bank Requirement

Specific conditions imposed by a bank on a borrower or account holder, including minimum balances and fees.

Risk Assessment

The identification, evaluation, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.