Question

D. The more consumption of a product, the smaller is the total and consumption 35. When marginal utility is decreasing but positive, total utility is; A. increasing at a decreasing rate C. increasing at an increasing rate D. decreasing at an increasing rate B. deceasing at a decreasing rate 36. An indifference curve shows combinations of two goods that: A. a consumer could buy with their given income B. could be available to the consumer in a given time period C. could provide the consumer with similar levels of satisfaction D. would provide the consumer with the same level of satisfaction 37. Ordinal utility analysis is otherwise known as A. Gossans second law B. Cardinality approach D. Rationality approach C. Indifference curve analysis 38. Total utility is maximum when A. Marginal utility is zero B. Marginal utility is maximum D. Average utility is maximum C. Marginal utility increases 39. When Total utility is increasing at a decreasing rate, marginal utility is A. Constant B. Negative C. Increasing D. Decreasing 40. A consumer reaches equilibrium when A. Marginal utility is equal to price C. Marginal utility less than price B. Marginal utility greater than price D. Total utility is equal to price​

Answer 1

Let's go through each question one by one:

1. When marginal utility is decreasing but positive, total utility is:

Answer: B. decreasing at a decreasing rate

2. An indifference curve shows combinations of two goods that:

Answer: D. would provide the consumer with the same level of satisfaction

3. Ordinal utility analysis is otherwise known as:

Answer: C. Indifference curve analysis

4. Total utility is maximum when:

Answer: A. Marginal utility is zero

5. When Total utility is increasing at a decreasing rate, marginal utility is:

Answer: D. Decreasing

6. A consumer reaches equilibrium when:

Answer: A. Marginal utility is equal to price