Podcast
Questions and Answers
What are units called when the marginal utility is greater than the price?
What are units called when the marginal utility is greater than the price?
- Marginal units
- Extramarginal units
- Maximum utility units
- Intramarginal units (correct)
What term is used for the unit at which the marginal utility becomes equal to the market price?
What term is used for the unit at which the marginal utility becomes equal to the market price?
- Maximum utility unit
- Intramarginal unit
- Marginal unit (correct)
- Extramarginal unit
Why is the Union Budget considered important?
Why is the Union Budget considered important?
- It determines the maximum price of consumer goods
- It affects production, income distribution, and resource utilization (correct)
- It defines the maximum utility of consumer goods
- It has a direct impact on inflation rates
What happens to the marginal utility as the consumer consumes further units of x?
What happens to the marginal utility as the consumer consumes further units of x?
At what point does the total utility start to decline and the marginal utility becomes negative?
At what point does the total utility start to decline and the marginal utility becomes negative?
What is the implication of consumption beyond the point of satiety?
What is the implication of consumption beyond the point of satiety?
What does the law of diminishing marginal utility assume about the commodity consumed?
What does the law of diminishing marginal utility assume about the commodity consumed?
What does the law of diminishing marginal utility assume about the utility derived from each unit of a commodity?
What does the law of diminishing marginal utility assume about the utility derived from each unit of a commodity?
What aspect of the commodity consumed does the law of diminishing marginal utility assume to be of reasonable size?
What aspect of the commodity consumed does the law of diminishing marginal utility assume to be of reasonable size?
What characteristic does the law of diminishing marginal utility assume about all related factors like income, tastes, habits, choices, likes, and dislikes of a consumer?
What characteristic does the law of diminishing marginal utility assume about all related factors like income, tastes, habits, choices, likes, and dislikes of a consumer?
