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    Question

    Match the following economic definition with their

    correct descriptions:  
    A A-1, B-3, C-2, D-4 Correct Answer Incorrect Answer
    B A-1, B-2, C-3, D-4 Correct Answer Incorrect Answer
    C A-3, B-1, C-2, D-4 Correct Answer Incorrect Answer
    D A-2, B-1, C-4, D-3 Correct Answer Incorrect Answer
    E A-1, B-2, C-4, D-3 Correct Answer Incorrect Answer

    Solution

    Explanation:  

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

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