Question
Match the following economic definition with their
correct descriptions: ÂSolution
Explanation: Â
- Marginal Utility (A-1): Refers to the additional satisfaction derived from consuming one more unit of a good. Â
- Giffen Goods (B-2): Goods where demand increases as price increases because the strong negative income effect outweighs the substitution effect. Â
- Deadweight Loss (C-3): Represents the loss of total surplus due to inefficiencies such as taxes, price controls, or monopolistic pricing. Â
- Money Multiplier (D-4): Describes how an initial deposit in the banking system expands the total money supply through lending. Â
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