Question : Marginal Rate of Transformation =

Option 1: Number of units sacrificed : Number of units gained

Option 2: Number of units gained : Number of units sacrificed

Option 3: Number of units sacrificed : Number of units foregone

Option 4: Number of units attainable : Number of units gained

Question : Determine the marginal opportunity cost of 10 units of commodity X:

Option 1: MOC = 10

Option 2: MOC = 20

Option 3: MOC = 14

Option 4: MOC = 2.5

Question : The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from the 10th unit.

Option 1: 0.5

Option 2: - 0.5

Option 3: 5

Option 4: - 5

Question : H, O and D were partners in a firm sharing profits and losses in the ratio of 2:2:1. The partners decide to share future profits and losses in the ratio of 3:2:1. Each partner’s gain or sacrifice due to change in ratio will be :

Option 1: H Gain 3/30, O Sacrifice 2/30, D sacrifice 1/30

Option 2: H Sacrifice 3/30, O gain 2/30, D Gain 1/30

Option 3: H Sacrifice 2/30, O Sacrifice 1/30, D Gain 3/30

Option 4: None of the above

Question : Statement 1: Marginal utility is the additional satisfaction derived from consuming one additional unit of a good.

Statement 2: The law of diminishing marginal utility states that as a consumer consumes more of a good, the additional satisfaction derived from each additional unit decreases.

Option 1: Statement 1 is true, and statement 2 is false.

Option 2: Statement 1 is false, and statement 2 is true.

Option 3: Both statement 1 and statement 2 are true.

Option 4: Both statement 1 and statement 2 are false.