In the theory of utility, it is assumed that marginal utility:

In the theory of utility, it is assumed that marginal utility:
 a. increases as the consumption of a product increases.
  b. is always zero irrespective of any increase or decrease in consumption.
  c. remains constant when consumption of a product increases.
  d. diminishes as the consumption of a product increases.
  e. remains constant when the consumption of a product decreases.

QUESTION 2

A firm's average fixed cost curve is:
 a. U-shaped.
 b. a curve that increases as output expands.
 c. a vertical line.
 d. a curve that declines as output expands and approaches the X-axis when output is very large.

QUESTION 3

The product of the stock price and the total outstanding shares of that stock is referred to as:
 a. market capitalization.
  b. floating capital.
  c. book value.
  d. financial value.
  e. face value.

QUESTION 4

Which one of the following is based on the idea that the marginal utility of income diminishes as income increases?
 a. Progressive taxation
  b. Capital controls
  c. Minimum wages
  d. Price controls
  e. Employee compensation regulations

QUESTION 5

The marginal cost curve:
 a. is a vertical line.
 b. generally rises at first and then declines as output expands.
 c. generally falls at first and then rises as output expands.
 d. intersects the average variable cost curve from below at its maximum point.

QUESTION 6

A stock index measures the:
 a. change in dividend payments of a group of stocks.
  b. fluctuation in the price-to-earnings ratio of each share.
  c. change in the trading volume in the stock exchange.
  d. price movements of a group of stocks.
  e. change in the number of enlisted companies.