Question # 1

When marginal utility is negative, then total utility

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Decreases

Increases

Does not change

Becomes negative

Utility attained by the consumption of first unit of a commodity is called

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Positive utility

Negative utility

Initial utility

Zero utility

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)

When marginal utility is zero, then total utility is

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Minimum

Positive

Maximum

Zero

Initial utility of a product is:

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Highest

Lowest

Constant

All of these

When total utility is decreasing, marginal utility is

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Zero

Positive

Negative

Maximum

Objective of a rational consumer is

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To save maximum amount from his limited income

To buy goods at minimum price

Best choice from existing economic goods

To attain maximum utility from the spent amount

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

One of the following is non economic want:

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Car

Bike

Fan

Self respect

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

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