JAMB Economics questions

378 questions with answers and explanations. Tap an option to check yourself.

All JAMB WAEC

Question 281· Theory of consumer behaviour· JAMB
A consumer buying two goods, A and B, is in equilibrium when
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Answer: A. MUa/Pa = MUb/Pb
Explanation and discussion
Question 282· Theory of consumer behaviour· JAMB
An indifference curve shows
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Answer: A. combinations of two goods that give a consumer equal satisfaction
Explanation and discussion
Question 283· Theory of consumer behaviour· JAMB
The total utility from 3 units of a good is 30 utils and from 4 units is 36 utils. Find the marginal utility of the 4th unit.
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Answer: D. 6 utils
Explanation and discussion
Question 284· Theory of consumer behaviour· JAMB
The law of diminishing marginal utility states that as more units of a good are consumed,
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Answer: D. the additional satisfaction from each extra unit falls
Explanation and discussion
Question 285· Theory of consumer behaviour· JAMB
When marginal utility is negative, total utility
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Answer: C. falls
Explanation and discussion
Question 286· Theory of consumer behaviour· JAMB
The paradox of value (water and diamonds) is explained by
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Answer: B. marginal utility
Explanation and discussion
Question 287· Theory of consumer behaviour· JAMB
An indifference curve is convex to the origin because of
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Answer: D. a diminishing marginal rate of substitution
Explanation and discussion
Question 288· Theory of consumer behaviour· JAMB
A consumer is in equilibrium on an indifference map where
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Answer: A. the budget line is tangent to the highest attainable indifference curve
Explanation and discussion
Question 289· Theory of consumer behaviour· JAMB
A consumer spends all his income on X and Y. MUx = 20, Px = ₦4, MUy = 30 and Py = ₦6. The consumer is
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Answer: A. in equilibrium
Explanation and discussion
Question 290· Theory of consumer behaviour· JAMB
A budget line shows
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Answer: A. combinations of goods a consumer can afford with given income and prices
Explanation and discussion
Question 291· Theory of consumer behaviour· JAMB
The budget (price) line shows
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Answer: D. combinations of two goods a consumer can buy with a given income
Explanation and discussion
Question 292· Theory of consumer behaviour· JAMB
The law of diminishing marginal utility states that
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Answer: C. each additional unit consumed gives less extra satisfaction
Explanation and discussion
Question 293· Theory of costs and revenue· JAMB
A firm earns normal profit when
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Answer: A. total revenue equals total cost including opportunity cost
Explanation and discussion
Question 294· Theory of costs and revenue· JAMB
Which of the following is a fixed cost to a factory?
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Answer: A. rent on the factory building
Explanation and discussion
Question 295· Theory of costs and revenue· JAMB
Costs that change as output changes are called
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Answer: A. variable costs
Explanation and discussion
Question 296· Theory of costs and revenue· JAMB
Total cost is ₦9,000 when output is 300 and total fixed cost is ₦6,000. Average variable cost is
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Answer: C. ₦10
Explanation and discussion
Question 297· Theory of costs and revenue· JAMB
A profit-maximising firm produces where
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Answer: B. marginal cost equals marginal revenue
Explanation and discussion
Question 298· Theory of costs and revenue· JAMB
For a firm in perfect competition, average revenue is equal to
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Answer: C. the price of the product
Explanation and discussion
Question 299· Theory of costs and revenue· JAMB
Average revenue is equal to
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Answer: D. price
Explanation and discussion
Question 300· Theory of costs and revenue· JAMB
Average fixed cost
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Answer: D. falls continuously as output rises
Explanation and discussion

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JAMB Economics questions

A consumer buying two goods, A and B, is in equilibrium when

An indifference curve shows

The total utility from 3 units of a good is 30 utils and from 4 units is 36 utils. Find the marginal utility of the 4th unit.

The law of diminishing marginal utility states that as more units of a good are consumed,

When marginal utility is negative, total utility

The paradox of value (water and diamonds) is explained by

An indifference curve is convex to the origin because of

A consumer is in equilibrium on an indifference map where

A consumer spends all his income on X and Y. MUx = 20, Px = ₦4, MUy = 30 and Py = ₦6. The consumer is

A budget line shows

The budget (price) line shows

The law of diminishing marginal utility states that

A firm earns normal profit when

Which of the following is a fixed cost to a factory?

Costs that change as output changes are called

Total cost is ₦9,000 when output is 300 and total fixed cost is ₦6,000. Average variable cost is

A profit-maximising firm produces where

For a firm in perfect competition, average revenue is equal to

Average revenue is equal to

Average fixed cost