Question

Question 1

What does the term ‘marginal’ in economics mean?

A) Additional

B) Unimportant

C) Minimum unit

D) None of the above

Answer: A



Question 2

Which of the following must be true when the marginal is negative?

A) The average is positive.

B) The average is negative.

C) The total is decreasing.

D) The total is negative.

Answer: C



Question 3

What is the utility generally related to?

A) Satisfaction

B) Necessary

C) Useless

D) Useful

Answer: A



Question 4

What is the law that defines the demand curve to slope downward known as?

A) Diminishing marginal utility

B) Utility maximisation

C) Utility minimisation

D) Consumer equilibrium

Answer: A



Question 5

Why are indifference curves convex to the origin?

A) Two goods are perfect complementary goods.

B) Two goods are imperfect substitutes.

C) Two goods are perfect substitutes.

D) None of the above

Answer: B



Question 6

When the marginal utility is equal to zero, what will the total utility be?

A) Maximum

B) Laws of return

C) Minimum

D) None of the above

Answer: A



Question 7

Which of the following is the basis of diminishing marginal utility?

A) Law of demand

B) Laws of return

C) Law of supply

D) None of the above

Answer: A



Question 8

A consumer is in equilibrium when the marginal utilities are ___________ .

A) Increasing

B) Equal

C) Minimum

D) Highest

Answer: B



Question 9

Why is a consumer’s spending restricted?

A) Due to the utility maximisation

B) Due to the budget constraint

C) Due to the demand curve

D) Due to the marginal utility

Answer: B



Question 10

When MU is positive, what happens to TU?

A) It decreases.

B) It becomes the highest.

C) It remains constant.

D) It increases.

Answer: D​

Answer 1

Answer to the Question 1 :-》

• A) Additional

¤ The term ‘marginal’ in economics means Additional.

Answer to the Question 2 :-》

• C) The total is decreasing.

¤ The total is decreasing must be true when the marginal is negative.

Answer to the Question 3 :-》

• A) Satisfaction

¤ The utility is generally related to Satisfaction.

Answer to the Question 4 :-》

• A) Diminishing marginal utility

¤ The law that defines the demand curve to slope downward known as Diminishing marginal utility.

Answer to the Question 5 :-》

• B) Two goods are imperfect substitutes.

¤ Indifference curves are convex to the origin because Two goods are imperfect substitutes.

Answer to the Question 6 :-》

• A) Maximum

¤ When the marginal utility is equal to zero, the total utility will be Maximum.

Answer to the Question 7 :-》

• A) Law of demand

¤ Law of demand is the basis of diminishing marginal utility.

Answer to the Question 8 :-》

• B) Equal

¤ A consumer is in equilibrium when the marginal utilities are Equal.

Answer to the Question 9 :-》

• B) Due to the budget constraint

¤ Due to the budget constraint, a consumer’s spending is restricted.

Answer to the Question 10 :-》

• D) It increases.

¤ When MU is positive, TU increases.