Question

2.
Which of the following laws states that the more a consumer consumes a product, the lesser the utility he
derives from the additional consumption
(a) Law of equal - marginal Utility (b) law of Ordinal Utility
(c) Law of Diminishing Utility
(d) Law of Supply
VG
3.
Which of the following economists is not associated with the basics of utility analysis?
(a) A. Marshall
(b) J. M. Keynes (c) H. Gossen
(d) R. G. D. Allen.
SOM RATHAM
DEMY
4.
Purchasing power of money falls when
(a) Price level increases (b) Price level decreases (c) Income level Increases
(d) Money supply falls
5.
If X and Y are substitute Goods, the price of X and the Demand of Y are-
(a) Directly related (b) Inversely related (c) Proportionally related
(d) Any of the above
operti
6.
As a result of fall in prices of the commodity, the Consumer's
(a) Real Income (b) Purchasing Power (c) Both (a) and (b)
increases
(d) Neither (a) nor (b)
7.
When the demand for a good is more elastic the Demand Curve will be
(a) Horizontal Line
(b) Vertical line
(b) Downward Sloping to the right, flatter (d) Downward Sloping to the right, steeper
8.
Production is defined as
(a) Creation of matter
Ir creation of infrastructura
RCE
(b) Creation of utility in matter
Id) None of these
cilities​

Answer 1

Answer:

The Law Of Diminishing Marginal Utility states that all else equal as consumption increases the marginal utility derived from each additional unit declines. Marginal utility is derived as the change in utility as an additional unit is consumed.