New IFSCA Grade A 2024: Decoding Phase 2 Paper 2 Syllabus!
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Question

Which of the following statements is true regarding Marginal utility?

i. Marginal Utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.

ii. Marginal utility is an important economic concept because economists use it to determine how much of an item a consumer will buy

iii. Positive marginal utility is when the consumption of an additional item increases the total utility.

iv. Negative marginal utility is when the consumption of an additional item decreases the total utility.

A Only i & ii Correct Answer Incorrect Answer
B Only i & iii Correct Answer Incorrect Answer
C Only i, ii, & iii Correct Answer Incorrect Answer
D Only i, iii, & iv Correct Answer Incorrect Answer
E All of these Correct Answer Incorrect Answer

Solution

The correct answer is E

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