Economics - Study Mode

[#636] When Marginal Utility is positive, Total Utility
Correct Answer

(A) Increases

Explanation

Solution: When Marginal Utility is positive, Total Utility Decreases. When we say that the total utility is increasing at a diminishing rate, we mean that amount of change in total utility is decreasing with the consumption of every extra unit which is nothing but marginal utility.

[#637] The three broad types of productive resources are
Correct Answer

(B) Capital, labour and natural resources

Explanation

Solution: The three broad types of productive resources are Capital, labour and natural resources.

[#638] Economic development of a country requires
Correct Answer

(D) a' and 'c' both

Explanation

Solution: Economic development of a country requires Skilled labour and Abundant natural resources.

[#639] Profits are
Correct Answer

(A) Residual payment

Explanation

Solution: Profits are Residual payment. Residual payments are most often associated with the entertainment industry, since movies and music can generate revenues long after they are originally released.

[#640] Diminishing marginal utility is the basis of
Correct Answer

(B) Law of demand

Explanation

Solution: Diminishing marginal utility is the basis of Law of demand. When the price of a goods falls, downward sloping marginal utility curve implies that the consumers must buy more of the good so that its marginal utility falls and becomes equal to the new price.