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Utility & Consumer's Equilibrium · Question 20 of 73

Question 20

MediumOriginal question

Read the two statements and choose the correct option.

I. The TU curve rises from the origin as long as MU is positive.

II. The MU curve slopes downward under the law of diminishing marginal utility.

Options for question 20

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. I is true: positive MU means TU keeps rising.

  2. II is true: each unit adds less, so the MU curve falls.

Concept
Shapes of TU and MU curves
Typical time
70 s
Your time
—
The rule this testsTotal and marginal utility
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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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Ten questions from Utility & Consumer's Equilibrium, at your own pace.

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