Classical

Business Economics - Business Economics MCQ

51:  
Demand curve can be derived from the law of diminishlng marginal utility on which of the following assumptions?
(i) Utility can be measured in quantitative terms
(ii) Utility of money is constant
Of these statements:
A.

Only (i) is true

B.

Both (i) and (ii) are true

C.

Only (ii) is true

D.

Neither (i) nor (ii) is true

 
 

Option: B

Explanation :

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52:  
Law of diminishlng marginal rate of substitution is associated with
A.

Marshall

B.

Hicks

C.

Slutsky

D.

Keynes

 
 

Option: B

Explanation :

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53:  
According to principle of diminishing marginal rate of substitution
a. One commodity must be decreased while other is increased
b. Commodity which is increased has higher marginal significance
c. Commodity which is decreased has higher marginal significance.
Of these statemenls:
 
A.

Only a is correct

B.

Both a and b are correct

C.

Both a and c are correct

D.

All are correct

 
 

Option: C

Explanation :

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