The concept that the next dollar will not give as much happiness as the last dollar is known as
A)declining marginal utility for money.
B)inflation.
C)risk.
D)loss of purchasing power.

Question

Quizplus · Accepted Answer

The principle of declining marginal utility for money states that the more money a person has, the less happiness they gain from each additional dollar. This can be explained by the fact that as people's basic needs are met, they tend to prioritize other sources of happiness like experiences, friendships, and hobbies over accumulating more money. As a result, the satisfaction one derives from each additional dollar tends to diminish.

The Concept That the Next Dollar Will Not Give as Much