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

Question 31:

• JAMB 1985

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

A. Diminishing marginal utility
B. Diminishing marginal productivity
C. Diminishing returns
D. Increasing returns
E. Increasing total utility

Question 32:

• JAMB 1985

At every point on a indifference curve, the

A. Total utility is decreasing
B. Prices of all goods are constant
C. Consumer is satiated
D. Level of utility is constant
E. Level of utility is increasing

Question 33:

• JAMB 1986

Under normal circumstances the concept of consumers sovereignty implies that

A. The consumer and not the producer owns the means of production
B. The producer and not the consumer determines what is to be produced
C. The consumer and not the producer determines what is to be produced
D. Both the consumer and the producer determines what should be produced

Question 34:

• JAMB 1987

In which of the diagrams above, is the consumer surplus correctly shaded?

A. I
B. II
C. III
D. IV

Question 35:

• 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