Which of the following best expresses the law of diminishing marginal utility?
A. The more a person consumes a product, the smaller becomes the utility, which he receives from its consumption
B. The more a person consumes a, product, the smaller becomes the additional utility, which he receives as a result of consuming an additional unit of the product
C. The less a person consumes a product, the smaller becomes the utility, which he receives from its consumption
D. The less a person consumes a product, the smaller becomes the additional utility which he receives as a result of consuming an additional unit of the product
Answer: Option B
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
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