Praxis II Citizenship

Answer: D - A product’s utility is its ability to satisfy the needs and wants of the consumer. Many goods and services are said to have decreasing marginal utility, which means that as consumption increases, their utility decreases. For example, if a person who is really hungry eats a slice of pizza, the slice will probably have high utility. If he eats a second slice of pizza, the second slice’s utility may still be high, but it won’t be as high as the utility of the first slice. If he eats a third slice of pizza, the utility will decrease even more because his hunger has already been sated and he’s only getting more full.