Question : What is the First Law of Gossen?

Option 1: Law of Equi-marginal utility

Option 2: Law of Diminishing marginal utility

Option 3: Law of supply

Option 4: Law of demand

Question : The law of diminishing marginal utility states that:

Option 1: Marginal utility increases as consumption increases

Option 2: Total utility decreases as consumption increases

Option 3: Marginal utility decreases as consumption increases

Option 4: Total utility remains constant as consumption increases

Question : What is the name of the law that causes the demand curve to slope downward?

Option 1: Consumer equilibrium

Option 2: Utility minimization

Option 3: Utility maximization

Option 4: Diminishing marginal utility

Question : Which of the following is the basis of diminishing marginal utility?

Option 1: Law of supply

Option 2: Laws of return

Option 3: Law of demand

Option 4: None of the above

Question : According to the law of diminishing marginal utility, as a consumer consumes more of a good:

Option 1: The total utility derived from the good increases at a decreasing rate.

Option 2: The marginal utility derived from the good increases at a decreasing rate.

Option 3: The total utility derived from the good decreases at a decreasing rate.

Option 4: The marginal utility derived from the good decreases at a decreasing rate.