Correct Answer: negative return

Solution : The correct answer is the negative return.

Negative returns are the third step of the law of changing proportions. This is the point at which adding more variable inputs to the fixed inputs causes the overall product to start declining. The reason for this is the ineffective use of the variable inputs. There are several reasons why there could be negative returns. The different inputs could start to compete with one another for resources, for starters. For instance, workers on a production line may begin to obstruct one another if there are too many of them.

Correct Answer: Shivam is more cleverer

Solution : The correct choice is the second option.

The error is in the use of more cleverer, as the word more is redundant because the correct comparative form is clever.

Therefore, the correct sentence is: Shivam is cleverer than any other boy in the office.

Correct Answer: begins to decrease

Solution : The correct answer is (c) begins to decrease

According to the law of diminishing marginal utility (DMU), the marginal utility from each commodity begins to decrease as more units of the commodity are consumed.

The law of diminishing marginal utility states that as a consumer consumes more and more units of a commodity, the additional satisfaction or utility derived from each additional unit diminishes. In other words, the consumer experiences diminishing marginal utility.

Correct Answer: Fugitive

Solution : The third option is the correct answer.

The term fugitive is the most appropriate, as it specifically refers to a person who is fleeing or evading legal authorities to escape punishment or arrest. 

The meanings of the other options are as follows:

• A convict is a person found guilty of a criminal offence and serving a sentence in prison.
• A lunatic is a person who is mentally ill, especially one who is insane.
• A fatalist is someone who believes that events are predetermined and inevitable, often in a negative or fatalistic sense.

Correct Answer: Law and order

Solution : The correct option is Law and order.

Law and order maintenance is not classified as part of economic activities. Maintaining law and order falls under the purview of governance, public administration, and the justice system, which are considered non-economic activities. While crucial for a stable and functioning society, they are distinct from economic activities that directly contribute to the production, and exchange of goods and services.

Correct Answer: Mandatory spending is required by law, while discretionary spending is optional

Solution : The correct answer is (a). Mandatory spending is required by law, while discretionary spending is optional.

Mandatory spending refers to government expenditures that are required by law and are not subject to annual appropriations or discretionary decision-making. These spending programs are typically established through legislation and include entitlement programs such as Social Security, Medicare, and Medicaid. The government is obligated to make these payments to eligible individuals or entities based on predetermined eligibility criteria and benefit formulas.

Discretionary spending, on the other hand, is spending that is subject to annual appropriations and is determined through the discretionary decision-making process. It includes funding for various government agencies, departments, programs, and initiatives, such as defense, education, infrastructure, research, and foreign aid. The allocation of discretionary spending is determined by the government's priorities and can be adjusted from year to year through the budgeting process.

Correct Answer: Engel's Law

Solution : The correct option is Engel's Law.

According to Engel's Law, even though the quantity spent on food increases in absolute terms, the percentage of income spent on food drops as income rises. Based on the observation that when income levels rise, people tend to spend a smaller proportion of their income on necessities like food and have more money available for other purchases.

Correct Answer: Heinrich Friedrich Lenz

Solution : The correct answer is Heinrich Friedrich Lenz.

Heinrich Friedrich Lenz was a Russian physicist of German origin who independently formulated what is known as Lenz's Law in 1834. Lenz's law articulates that when a magnetic field around a conductor changes, the induced electric current's direction opposes the change. In other words, the magnetic field generated by this induced current acts to counteract alterations in the original magnetic field.

Correct Answer: International Labour Organisation

Solution : The correct option is the International Labour Organisation.

One of the first and most specialized UN organisations, the International Labour Organisation was established by the League of Nations in October 1919. Setting global labour standards is part of its purpose to enhance social and economic fairness.

Correct Answer: Gossen

Solution : Gossen is the proponent of the Law of Diminishing Marginal Utility.
The Law of diminishing marginal utility states that the marginal utility of a good or service declines as more of it is consumed by an individual.