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. zero

B. equal to average utility

C. maximum

D. negative

Answer: Option A

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 'Goods and Services Tax' rate on packaged food items may be:

A. 28% only

B. 5% or 12% depending on the product

C. 18% only

D. 0%

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Correct Answer: Option B

Explanation:
Packaged food items attract 5% or 12% GST depending on the product.

This question belongs to: Economy GK Economy Set 1

Question #2

Which of the following is a characteristic of the 'Loss and Damage Fund' established under the UNFCCC?

A. A fund limited to adaptation within national borders of developed countries

B. A fund only for mitigation projects in developed countries

C. A private insurance mechanism without public finance

D. A fund to assist developing countries that are particularly vulnerable to the adverse effects of climate change in responding to loss and damage

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Correct Answer: Option D

Explanation:
The Loss and Damage Fund, agreed at COP27 and operationalised subsequently, is intended to provide financial assistance to developing countries that are especially vulnerable to climate-related loss and damage.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'International Monetary Fund' in India provides advice on:

A. defence strategy

B. macroeconomic policy and balance of payments

C. criminal justice

D. elections

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Correct Answer: Option B

Explanation:
IMF advises on macroeconomic policy and balance of payments.

This question belongs to: Economy GK Economy Set 1

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