Question

Question 5
The extra cost that results from carrying out one additional unit of an activity is the _____ of the activity.
⦁   marginal benefit

⦁   reservation cost
⦁   marginal cost
⦁   opportunity cost

Question 7
The demand for a good is said to be elastic with respect to price if the absolute value of its price elasticity is ____________ than 1.
A.    smaller as well as greater
B.    greater
C.    smaller
D.    equal to and greater

Question 10
Marginal utility is defined as the:
A.    additional utility gained by consuming an extra unit of a good.
B.    total utility from all units consumed of a good.
C.    average utility gained by consuming an average amount of the good.
D.    total utility gained by consuming an extra unit of a good.

Answer 1

Question no 5:

The extra cost that results from carrying out one additional unit of an activity is the _____ of the activity.

the answer is marginal cost

the increase in cost that results from carrying out one additional unit of an activity is marginal cost.

Question no 7:

The demand for a good is said to be elastic with respect to price if the absolute value of its price elasticity is

____________ than 1

The answer is option B i.e greater than 1.Elasticity can be calculated by dividing the % change in quantity demanded by % change in price.If the elasticity is lessthan one it is called inelastic.If it is equal to one ,then the demand is said to be unit elastic.

Question no 10:

marginal utility is additional utility gained by consuming an extra unit of good.

The answer is option A

Note:Marginal, in genereal means Additional that means when we say marginal cost ,it means additional cost.marginal benefit means additional benefit.