Question

Exception to the law of diminishing marginal utility includes:

• A. Reading
• B. Money
• C. Acquiring knowledge
• D. All of these

Hint:

Law of Diminishing Utility applies to most goods, but not to money, knowledge, or hobbies.

Answer 1

The Correct Option is D

Step 1: Understanding the law.
The law of diminishing marginal utility states that as a consumer consumes more units of a commodity, the additional satisfaction (utility) decreases.
Step 2: Exceptions.
- In case of money, more money increases satisfaction.
- In case of knowledge, more knowledge gives more utility.
- In case of hobbies like reading, satisfaction keeps increasing.
Step 3: Analyzing options.
(A) Reading – Exception.
(B) Money – Exception.
(C) Acquiring knowledge – Exception.
(D) All of these – Correct, as all listed cases are exceptions.
Step 4: Conclusion.
Therefore, all given examples are exceptions to the law of diminishing marginal utility.