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

Question 16:

• JAMB 2015

In a situation where Mux represent the marginal utility of product X while Px represent the price respectively. Utility can be maximized when

A. MUX = MUA
B. MUX = PX
C. PX = X
D. PX = PY

Question 17:

• JAMB 2015

All the following are properties of an indifference curves except

A. It can intersect
B. It slopes downward from left to right like that of a normal demand curve
C. As it shift rightward it indicate higher and higher level of satisfaction
D. It does not intersect

Question 18:

• JAMB 2015

A line in commodity space which shows the constraints imposed by his budget, his money income and the price of goods purchased is

A. Supply curve
B. Liquidity preference
C. Budget line
D. Demand curve

Question 19:

• JAMB 2015

The ordinalist approach of utility postulated that utility can be

A. Rank
B. Measurable
C. Rise
D. Fall

Question 20:

• JAMB 2015

\(\begin{array}{c|c}
\text{Units of quantity} & \text{Total utility} & \text{Marginal utility} \\
\hline
0 & - & - \\
\hline
1 & 10 & 10 \\
\hline
2 & 15 & 5 \\
\hline
3 & 17 & 2 \\
\hline
4 & 18 & 1 \\
\hline
5 & 18 & 0 \\
\end{array}\)
The table illustrate the law of

A. Admonishing returns
B. Increasing returns
C. Diminishing marginal utility
D. Increasing marginal utility