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

Question 61:

• JAMB 2007

A commodity is described as inferior when the

A. Income effect is negative
B. Income effect is positive
C. Substitution effect is negative
D. Substitution effect is positive

Question 62:

• JAMB 2008

As long as marginal utility is positive, total utility must be

A. Negative
B. Increasing
C. Zero
D. Decreasing

Question 63:

• JAMB 2008

Diminishing marginal utility implies that

A. Total utility decreases as consumption increases
B. Marginal utility increases as consumption increases
C. Marginal utility deceases as consumption increase
D. Marginal utility decreases as consumption decreases

Question 64:

• JAMB 2008

The excess benefit derived from the purchase of goods over the amount paid for them is referred to as consumer

A. Rationality
B. Surplus
C. Sovereignty
D. Credit

Question 65:

• JAMB 2009

A major assumption in cardinal utility theory is that

A. Utility is measureable
B. Utility is not measurable
C. Total utility equals marginal utility
D. Total utility is constant