Description : When marginal utility is zero, the total utility is - (1) Minimum (2) Increasing (3) Maximum (4) Decreasing
Last Answer : (3) Maximum Explanation: Marginal utility measures the extra utility (or satisfaction) from consuming an additional unit of a product. Total utility is the total satisfaction from the consumption of the ... in total satisfaction from the consumption of that unit. So the total unit is at maximum.
Description : If total utility is maximum at a point, then marginal utility is - (1) positive (2) zero (3) negative (4) positive but decreasing
Last Answer : (2) zero Explanation: Marginal utility of a good or service is the gain (or loss) from an increase (or decrease) in the consumption of that good or service. As the rate ... increase in consumption of units of commodities causes marginal utility to become negative; this signifies dissatisfaction.
Description : If total utility is maximum at a point, then marginal utility is (1) positive (2) zero (3) negative (4) positive but decreasing
Last Answer : zero
Description : Total utility is maximum, when (a) marginal utility is maximum (b) marginal utility is zero © marginal utility increases (d) average utility is maximum
Last Answer : (b) marginal utility is zero
Description : When the total product rises at an increasing rate, the - (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant
Last Answer : (2) marginal product is rising Explanation: Marginal product of an input (factor of production) is the extra output that can be produced by using one more unit of the input (for instance ... from total product. The other is average product. Marginal product is directly proportional to total product.
Description : When the total product rises at an increasing rate, the (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant
Last Answer : marginal product is rising
Description : The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from 10th unit. (1) 0.5 (3) 5 (2) -0.5 (4) -5
Last Answer : (4) -5 Explanation: Marginal Utility = Change in Total Utility / Change in number of Units consumed. The first component of the formula is to calculate the change in total utility. The second component of the marginal utility formula is the change in the number of units that have been consumed.
Description : Diamonds are priced higher than water because : (1) they are sold by selected firms with monopolistic powers. (2) their marginal utility to buyers is higher than that of water. (3) their total utility to buyers is higher than that of water. (4) consumers do not buy them at lower prices.
Last Answer : (2) their marginal utility to buyers is higher than that of water. Explanation: The water diamond paradox or puzzle was a mystery of Adam Smith who observed that the price of diamonds was much higher ... is very high and so consumers are willing to pay higher prices for diamond, than for water.
Description : The law of diminishing marginal utility is most useful for explaining the (a) Law of supply (b) Law of demand © Shape of production possibility curve (d) curvature of total cost curve
Last Answer : (b) Law of demand
Description : The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from 10th unit. (1) 0.5 (2) –0.5 (3) 5 (4) –5
Last Answer : –5
Last Answer : their marginal utility to buyers is higher than that of water.
Description : Consumer gets maximum satisfaction at the point where - (1) Marginal Utility = Price (2) Marginal Utility > Price (3) Marginal Utility < Price (4) Marginal Cost = Price
Last Answer : (1) Marginal Utility = Price Explanation: As per the law of diminishing marginal utility, the utility of each successive unit goes on diminishing as more and more units of a commodity are consumed. A ... for it. In this way, the consumer will get the maximum satisfaction and will be in equilibrium.
Description : Consumer gets maximum satisfaction at the point where (1) Marginal Utility = Price (2) Marginal Utility > Price (3) Marginal Utility < Price (4) Marginal Cost = Price
Last Answer : Marginal Utility = Price
Description : According to traditional approach the factor responsible for operation of downward slope of demand curve are (a) Change in number of consumers ; (b) Law of decreasing marginal utility (c) Alternative uses of goods ; (d) All the three
Last Answer : (d) All the three
Description : firm's marginal revenue A.is always negative B.can be positive C.is always positive D.is zero at point at which the total revenue is maximum
Last Answer : D.is zero at point at which the total revenue is maximum
Description : A firm is in equilibrium when its (1) marginal cost equals the marginal revenue (2) total cost is minimum (3) total revenue is maximum (4) average revenue and marginal revenue are equal
Last Answer : (1) marginal cost equals the marginal revenue Explanation: A consumer is in a state of equilibrium when he achieves maximum aggregate satisfaction on the expenditure that he makes depending on the ... its production. In short run Marginal revenue = Marginal Cost is the condition of equilibrium.
Last Answer : marginal cost equals the marginal revenue
Description : If air resistance is neglected, at the mid-point of its swing, the acceleration of the bob of a simple pendulum along its path is always a.Increasing b.Zero c.A cycloid d.Decreasing e.A minimum but not equal to zero
Last Answer : d. Decreasing
Description : Which of the following concepts are most closely associated with J.M. Keynes? (1) Control of money supply (2) Marginal utility theory (3) Indifference curve analysis (4) Marginal efficiency of captial
Last Answer : (4) Marginal efficiency of captial Explanation: The marginal efficiency of capital (MEC) is that rate of discount which would equate the price of a fixed capital asset with its present discounted ... given by the returns expected from the capital asset during its life Just equal its supply price
Description : The Marginal Utility Curve slopes downward from left to right indicating - (1) A direct relationship between marginal utility and the stock of commodity (2) A constant relationship between marginal ... stock of commodity (4) An inverse relationship between marginal utility and the stock of commodity
Last Answer : (4) An inverse relationship between marginal utility and the stock of commodity Explanation: The Marginal Utility Curve is a curve illustrating the relation between the marginal utility obtained from ... marginal (additional) benefit to the consumer falls; hence consumers are prepared to pay less.
Description : Law of diminishing marginal utility is based on the assumption that a. Tastes change over time b. Consumption is continuous c. Different units of goods consumed are homogeneous Of these statements: A.Only a is true B.a and c are true C.b and c are true D.All are true
Last Answer : D.All are true
Description : Put into chronological order on the basis of development: l. Law of demand 2. Law of indifference 3. Law of diminishing marginal utility 4. Revealed preference curve 5. Indifference curve A.1 3 4 2 5 B.1 5 3 4 2 C.1 3 2 5 4 D.1 2 3 4 5
Last Answer : C.1 3 2 5 4
Description : Demand curve can be derived from the law of diminishlng marginal utility on which of the following assumptions? (i) Utility can be measured in quantitative terms (ii) Utility of money is constant Of these statements: A.Only ... ) and (ii) are true C.Only (ii) is true D.Neither (i) nor (ii) is true
Last Answer : B.Both (i) and (ii) are true
Description : Which of the following concepts are most closely associated with J.M. Keynes ? (1) Control of money supply (2) Marginal utility theory (3) Indifference curve analysis (4) Marginal efficiency of captial
Last Answer : Marginal efficiency of captial
Description : The Marginal Utility Curve slopes downward from left to right indicating (1) A direct relationship between marginal utility and the stock of commodity (2) A constant relationship between marginal ... stock of commodity (4) An inverse relationship between marginal utility and the stock of commodity
Last Answer : An inverse relationship between marginal utility and the stock of commodity
Description : During inter conversion of energy from one form to other forms, total energy at any time remains– (1) constant (2) zero (3) increasing (4) decreasing
Last Answer : (1) constant Explanation: During interconversion of energy from one form to other forms, total energy at any time remains constant.
Description : Total momentum within a closed system is A. increasing B. decreasing C. zero D. constant
Last Answer : constant
Description : At a point in a simply supported or overhanging beam where Shear force changes sign and = 0, Bending moment is (a) Maximum (b) Zero (c) Either increasing or decreasing (d) Infinity
Last Answer : (a) Maximum
Description : When total product remains constant the marginal product will be a. Zero b. Negative c. Positive d. Constant
Last Answer : a. Zero
Description : MSP is stand for: (a) Minimum Support Price (b) Maximum Support Price (c) Marginal Support Price (d) None of these
Last Answer : (a) Minimum Support Price
Description : A monopolist is able to maximise his profit when (a) his output is maximum (b) he charges higher prices (c) his average cost is minimum (d) his marginal cost is equal to marginal revenue
Last Answer : (d) his marginal cost is equal to marginal revenue
Description : Total output is maximum when (a) MP =0 ; (b) MP is increasing ; (c) MP is decreasing ; (d) MP is constant
Last Answer : (a) MP =0 ;
Description : What is the marginal utility at the highest state of total utility ?
Last Answer : The marginal utility becomes zero when the total utility increases and reaches the maximum value.
Description : If total product is at its maximum then: (AP= Average product) (MP= Marginal product) (1) AF = 0 (2) AP < 0 (3) MP = 0 (4) AP = MP = 0
Last Answer : (3) MP = 0 Explanation: Total product (TP) is the total output a production unit can produce, using different combination of factors of production. When marginal product =0 (at point D in ... figure given below). Then en as the marginal product becomes negative, the total product starts going down.
Description : If total product is at its maximum then: (AP= Average product) (MP= Marginal product) (1) AP = 0 (2) AP < 0 (3) MP = 0 (4) AP = MP = 0
Last Answer : MP = 0
Description : The bowed shape of the production possibilities curve illustrates: a. the law of increasing marginal cost b. that production is inefficient c. that production is unattainable d. the demand is relatively inelastic
Last Answer : a. the law of increasing marginal cost
Description : When average cost is increasing, marginal cost is (a) Equal to average cost (b) Less than average cost (c) Greater than average cost (d) Uncertain
Last Answer : Greater than average cost
Description : Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : (4) decreasing money supply Explanation: The technical and most often used way to control inflation is by tightening the money supply. The logic goes that when people do not have excess money, ... . Most central banks use high interest rates as the traditional way to fight or prevent inflation.
Description : If people's income of a country is denoted in a curved line space that it has increased, then what does it denote? (1) the income is increasing (2) the income is decreasing (3) dissimilarity is decreasing in income distribution (4) dissimilarity in income distribution is increasing
Last Answer : (3) dissimilarity is decreasing in income distribution Explanation: It shows inequality in income distribution. Inequality indices can also be derived directly from the Lorenz curve. Perhaps the most commonly- ... by the Lorenz curve and the perfect equality line to the total area below that line.
Description : Over the years the contribution of agriculture to Indian GDP is a. Increasing b. Decreasing c. Constant d. None of these
Last Answer : b. Decreasing
Description : Penetration of disc plough can be improved by a. Increasing disc angle b. Decreasing tilt angle c. Both a & b d. None of these
Last Answer : b. Decreasing tilt angle
Description : If the production possibility curve is linear, then production is said to be subject of (a) constant opportunity cost (b) decreasing opportunity cost © Increasing opportunity cost (d) first increasing then decreasing opportunity cost.
Last Answer : (a) constant opportunity cost
Description : Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply
Last Answer : decreasing money supply
Description : If people’s income of a country is denoted in a curved line space that it has increased, then what does it denote? (1) the income is increasing (2) the income is decreasing (3) dissimilarity is decreasing in income distribution (4) dissimilarity in income distribution is increasing
Last Answer : dissimilarity is decreasing in income distribution
Description : A ball tied with a string to a rotating shaft revolves at uniform speed. As the shaft is suddenly brought to rest, the string starts getting round the shaft with the angular velocity of the ball (a) increasing (b) decreasing (c) remaining constant (d) becoming zero
Last Answer : Ans:(a)
Description : An object covers distance which is directly proportional to the square of the time. Its acceleration is – (1) increasing (2) decreasing (3) zero (4) constant
Last Answer : (4) constant Explanation: When an object covers distance which is directly proportional to the square of the time, its acceleration is constant. This is seen in the cases of falling objects. This connection between time and distance was first observed by Galileo.
Description : Entropy of the universe is - (1) continuously increasing (2) continuously decreasing (3) zero (4) constant
Last Answer : (1) continuously increasing Explanation: In an irreversible process, entropy always increases, so the change in entropy is positive. The total entropy of the universe is continually increasing.
Description : If there is no net force acting on body, then its acceleration is A. zero B. constant C. increasing D. decreasing
Description : Until a force acts on a body, it's velocity is A. zero B. constant C. increasing D. decreasing
Description : An object travelling with constant velocity has A. constant momentum B. zero momentum C. increasing momentum D. decreasing momentum
Last Answer : constant momentum