What do you mean by "Marginal utility of money"?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: Rupee worth of satisfaction
Marginal utility of money which is also known as rupee worth of satisfaction is the utility that the consumer expects to obtain from a standard basket of goods which he or she can buy for a rupee. The marginal utility of money represents the additional utility or satisfaction that a consumer derives from an additional unit of money. It indicates how much extra satisfaction a consumer gains from receiving or spending an additional rupee. As the consumer's income increases, the marginal utility of money generally decreases, reflecting the diminishing marginal utility of wealth.