Jamb Economics 2005 Past Questions and Answers

Question 26:

• JAMB 2005

If the marginal utility of the last unit of commodity X at N2 is 16 and that of commodity Y at N 4 is 24, the consumer will be at equilibrium when

A. The price-quantity ratios are equal
B. Equal amounts of X and Y are consumed
C. Less of Y and more of X are consumed
D. Less of X and more of Y are consumed

Question 27:

• JAMB 2005

A buyer who haggles in the market is applying the principle of

A. Choice
B. Price mechanism
C. Opportunity cost
D. Utilty maximization

Question 28:

• JAMB 2005

An inverse relationship between price and quantity demanded implies that

A. The two variables change in opposite directions
B. The two variables change in the same direction
C. Only one variable changes
D. The two variables remain unchanged

Question 29:

• JAMB 2005

When the marginal utility of a commodity is zero the total utility is

A. At its minimum
B. Upward-sloping
C. Downward-sloping
D. At its maximum

Question 30:

• JAMB 2005

Economic freedom is a basic feature of economy

A. An industrialized economy
B. A planned economy
C. A developed economy
D. A market economy