Which of the following statements illustrates diminishing marginal utility?
a. An extra dollar of income to a poor person provides that person with more additional utility than does an extra dollar to a rich person.
b. An extra dollar of income to a poor person provides that person with less additional utility than does an extra dollar to a rich person.
c. An extra dollar of income to a poor person provides that person with the same additional utility as does an extra dollar to a rich person.
d. An extra dollar of income to a poor person provides that person with the same total utility as does an extra dollar to a rich person.
a
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If Congress wanted to counteract the effects of a recession it could
A) increase government purchases. B) increase tax rates. C) increase taxes by a fixed amount. D) decrease defense spending.
Investment spending includes spending on:
A. capital goods, residential housing, and changes in inventories. B. stocks, bonds, and other financial instruments. C. durables, nondurables, and services. D. goods and services by federal, state, and local governments.