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

Question 36:

• JAMB 1989

The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?

A. Utility
B. Productivity
C. Rate of substitution
D. Revenue

Question 37:

• 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 38:

• JAMB 1992

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

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

Question 39:

• 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 40:

• 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