Total utility is maximum when marginal utility is: MCQ with Answer and Explanation

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Total utility is maximum when marginal utility is:

A. equal to average utility

B. zero

C. maximum

D. negative

Answer: Option B

Solution (By JKSSB Mock Tests)

Total utility reaches its maximum when marginal utility is zero; beyond this point, marginal utility becomes negative and total utility falls.

This question belongs to: Economy GK Economy Set 1

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Question #1

The Narasimham Committee was associated with reforms in:

A. taxation

B. banking and financial sector

C. agriculture

D. labour laws

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Correct Answer: Option B

Explanation:
The Narasimham Committee recommended banking and financial sector reforms.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a feature of the 'Data Economy' or 'Attention Economy'?

A. Only traditional manufacturing matters

B. Data has no economic value

C. Only physical goods generate value

D. Economic value is increasingly derived from the collection, analysis and monetisation of data and user attention

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Correct Answer: Option D

Explanation:
In the data and attention economy, the ability to collect, process and monetise large volumes of personal and behavioural data, as well as to capture user attention, has become a central source of economic value.

This question belongs to: Economy GK Economy Set 1

Question #3

A progressive income tax is one where:

A. the tax rate increases as income rises

B. the tax rate decreases as income rises

C. the tax rate is constant at all incomes

D. only the poor pay tax

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Correct Answer: Option A

Explanation:
Under a progressive tax, the average tax rate rises as income increases.

This question belongs to: Economy GK Economy Set 1

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