Johnny spends his day doing a variety of activities;he spends the morning exercising and doing yard work,reads in the afternoon,and hosts a dinner party in the evening.Economists would best explain his choice to do a variety of activities instead of a single activity using the concept of:
A)tastes and preferences
B)budget constraints
C)diminishing marginal utility
D)income effect

Question

Quizplus · Accepted Answer

The concept of diminishing marginal utility explains why Johnny chooses to do a variety of activities instead of a single activity. Diminishing marginal utility refers to the idea that as a person consumes more of a good or service, the additional satisfaction or utility they receive from each additional unit diminishes. By doing a variety of activities, Johnny is able to experience different kinds of satisfaction and avoid the diminishing marginal utility that would occur if he engaged in only one activity all day.

Johnny Spends His Day Doing a Variety of Activities;he Spends