Question # 1

Total utility increases when marginal utility is

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Positive

Negative

Zero

Minimum

Curve of law of diminishing marginal utility

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Moves from left to right downward

Moves from left to right upward

Firstly it has a tendency to rise up and after a certain limit it starts falling

It is parallel to ox-axis

Which economist stated that utility is not measurable

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Adam Smith

Marshall

Cannon

Hicks

Law of diminishing marginal utility provides basis for:

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Law of demand

Law of equi marginal utility

Law of supply

Both (a) and (b)

One of the following is not assumption of law of diminishing marginal utility

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Same nature of the commodity

Consumption of the commodity with intervals

Suitable quantity of the commodity

No change in consumers mental condition

Total utility always:

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Decreases

1st increases then decreases

Maximum

Negative

Capital goods are those which can satisfy human wants:

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Directly

Indirectly

Proportionate

None of these

Which of the following stated that utility is measurable

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Marshall

Adam Smith

Robbins

Keynes

Which law provides the base of law of demand

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Law of supply

Law of diminishing marginal utility

Law of equi marginal utility

Law of decreasing return

Law of equi-marginal utility is also known as:

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Total utility maximizing law

Law of substitution

Law of indifference

All of them

When marginal utility is positive, total utility:

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Decreases

Increases

Zero

All of them

TU is maximum where MU of all goods is:

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Minimum

Maximum

Negative

Equal

Initial utility is ______ individual utilities of all the units

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More than

Less than

Equal to

None of these

The price of non-economic want is always:

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Very high

Very Low

Negative

Zero

Utility attained by consuming an additional or last unit of a commodity

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Positive utility

Negative utility

Zero utility

Marginal utility

When no satisfaction is attained by the consumption of a commodity, its marginal utility is

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Zero

Positive

Negative

Minimum

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Principles of Economics Icom Part 1 English Medium Chapter 2 Online Test MCQs With Answers

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