Utility - Economics Jamb Past Questions and Answers

Question 16 :

• JAMB 1990

The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?

A. Total utility must fall
B. Marginal utility must fall
C. Marginal utility may rise even though his total utility is falling
D. Marginal utility may fall even though his total utility may be rising

Question 17 :

• JAMB 1994

If the economy of the country is operating at X, the implication is that

A. The productive capacity is being fully utilized
B. The productive capacity is not being fully utilized
C. Too little of consumer goods is being produced
D. There is a disequilibrium between the production of capital and consumer goods

Question 18 :

• 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 19 :

• JAMB 1998

From the table above, the total utility for the individual who consumes 3 units of commodity X is

A. 50 units
B. 150 units
C. 230 units
D. 250 units

Question 20 :

• JAMB 1999

A utility maximizing household will allocate its expenditure so that?

A. More naira is spent on commodities with the highest utility
B. Less naira is spent on commodities with the lowest utility
C. The utility of the last naira spent on each commodity is equal
D. The amount spent on each commodity is equal