The Theory of Consumer Behaviour - Jamb Economics Past Questions and Answers

Question 51:

• JAMB 2003

In the table above, the price of commodity y is N2 and that of x is N1 while the individual has an income of N12. Determine the combination of the two commodities the individual should consume to maximize his utility

A. 3y and 3x
B. 6y and 4x
C. 3y and 6x
D. 5y and 5x

Question 52:

• JAMB 2004

One of the assumptions of ordinal utility in consumer behaviour is that

A. Consumers are irrational
B. Marginal utility rises continuously
C. Utility is measurable
D. Utility can only be ranked

Question 53:

• JAMB 2004

In the diagram above, ST is the budget line while l,ll and lll represent indifference curves. A rational consumer will choose to consume at point

A. M
B. J
C. K
D. L

Question 54:

• 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 55:

• 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