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

Question 11:

• JAMB 2006

If the marginal utility of good X exceeds that of good Y, this implies that

A. A rational consumer will buy less of X
B. Consuming more of X will increase total utility
C. Y is an inferior good
D. X will be cheaper than Y

Question 12:

• JAMB 2008

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

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

Question 13:

• 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 14:

• JAMB 2010

The law of diminishing marginal utility explains why

A. The slope of a normal demand curve is negative
B. An abnormal demand curve slopes upwards
C. The slope of a normal demand curve is positive
D. The consumption of inferior goods increases with income

Question 15:

• JAMB 2012

When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he

A. Stops consuming more of the commodity
B. Reduces the quantity consumed
C. Increases the quantity consumed
D. Consumes more of another commodity