Question

    Marginal utility of money can NOT be

    1. Positive

    2. Negative

    3. Zero

    Which of above is/are correct?

    A Only 1 Correct Answer Incorrect Answer
    B Only 2 Correct Answer Incorrect Answer
    C Only 2 and 3 Correct Answer Incorrect Answer
    D Only 1 and 2 Correct Answer Incorrect Answer

    Solution

    Marginal utility of money can be positive or zero, reflecting the value derived from the last unit of money spent. It typically does not become negative as spending money always leads to some level of utility.

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