Diminishing marginal utility and the law of demand - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1988

If goods were free, a rational consumer would consume?

A. An infinite amount of each good
B. The amount where marginal utility became zero
C. The same amount as when each good had a price
D. The amount where marginal utility was the highest

Question 7:

• JAMB 1992

At what level of input has diminishing marginal returns set in?

A. 3
B. 16
C. 20
D. 22

Question 8:

• JAMB 1997

With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the?

A. Total utility derived from each goods and services is increasing at an increasing rate
B. Marginal utility derived from each good or service is increasing at the same rate
C. Marginal utility derived per naira spent is the same for all the goods and services
D. Total utility derived from all the goods and services is large

Question 9:

• 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 10:

• 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