Post Utme Abu 2018 Economics Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Abu Economics examination.

Post Utme Abu 2018 Economics Objective / Multiple Choice
Question 1 POST_UTME_ABU • 2018 • ECONOMICS • objective

The concept of scarcity in economics implies that the needs and wants of individuals are unlimited, but the resources available to satisfy these needs and wants are limited. Which of the following is a correct statement regarding the law of diminishing marginal utility?

Answer Options

Correct Answer A. As the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.
B. The law of diminishing marginal utility is applicable only to normal goods.
C. The law of diminishing marginal utility is a consequence of the law of supply.
D. The law of diminishing marginal utility is a consequence of the law of demand.
Correct Answer
A
Correct Option:
As the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.

About This Question

This is Post Utme Abu 2018 Economics Question 1. It is one of the objective questions from the 2018 Post Utme Abu Economics examination.

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