Leisure, like goods and services, is subject to the law of diminishing utility. As we consume more leisure, the additional utility we derive from each additional unit of leisure will eventually decrease. This means that the marginal utility of leisure will eventually become negative, indicating that further consumption of leisure would actually reduce our overall level of satisfaction.

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Leisure Is _____

Question 7

Multiple Choice

Leisure is _____

A) not subject to the law of diminishing utility, because you can never have enough leisure time.
B) not subject to the law of diminishing utility, because you can derive utility only from goods and services.
C) subject to the law of diminishing utility, just like the consumption of goods and services.
D) subject to the law of diminishing utility only if it involves the consumption of goods and services.
E) not considered in maximizing utility.

Correct Answer: