WAEC Economics questions: Theory of consumer behaviour

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

1. Question 1· Theory of consumer behaviour· WAEC

   Consumer surplus is the

   • Adifference between what a consumer is willing to pay and what he actually pays
   • Btax paid
   • Cproducer's profit
   • Dtotal expenditure

   Show answer

   Explanation and discussion

2. Question 2· Theory of consumer behaviour· WAEC

   MU of the last unit of bread is 20 and its price is ₦10. MU of the last unit of milk is 30 at ₦20. To maximise satisfaction the consumer should buy

   • Aneither good
   • Bmore milk and less bread
   • Cthe same amounts
   • Dmore bread and less milk

   Show answer

   Explanation and discussion

3. Question 3· Theory of consumer behaviour· WAEC

   Total utility is maximum when marginal utility is

   • Arising
   • Bmaximum
   • Cnegative
   • Dzero

   Show answer

   Explanation and discussion

4. Question 4· Theory of consumer behaviour· WAEC

   A consumer gets more satisfaction per naira from rice than from beans. To maximise satisfaction, she should

   • Abuy more beans and less rice
   • Bbuy more rice and less beans
   • Cstop buying rice
   • Dbuy equal amounts

   Show answer

   Explanation and discussion

5. Question 5· Theory of consumer behaviour· WAEC

   Musa enjoys his first bottle of water after a long walk more than his third. This illustrates

   • Aopportunity cost
   • Bconsumer surplus
   • Cthe law of supply
   • Ddiminishing marginal utility

   Show answer

   Explanation and discussion

6. Question 6· Theory of consumer behaviour· WAEC

   A consumer is in equilibrium when

   • Atotal utility is zero
   • Ball income is saved
   • Cmarginal utility is rising
   • Dthe ratio of marginal utility to price is equal for all goods

   Show answer

   Explanation and discussion

7. Question 7· Theory of consumer behaviour· WAEC

   Utility in economics means

   • Athe satisfaction derived from consuming a good
   • Bthe price of a good
   • Cthe cost of producing a good
   • Dthe usefulness of money only

   Show answer

   Explanation and discussion

8. Question 8· Theory of consumer behaviour· WAEC

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

   • Atotal utility falls at once
   • Bmarginal utility rises
   • Cprice of the commodity rises
   • Dadditional satisfaction from each extra unit falls

   Show answer

   Explanation and discussion

9. Question 9· Theory of consumer behaviour· WAEC

   The total satisfaction from 3 loaves is 30 units and from 4 loaves is 36 units. The marginal utility of the 4th loaf is

   • A9 units
   • B36 units
   • C6 units
   • D30 units

   Show answer

   Explanation and discussion

10. Question 10· Theory of consumer behaviour· WAEC

    Consumer sovereignty means that

    • Aconsumers produce goods
    • Bthe government decides consumption
    • Cproducers decide prices
    • Dconsumers determine what is produced through their spending

    Show answer

    Explanation and discussion

11. Question 11· Theory of consumer behaviour· WAEC

    A consumer buying several goods is in equilibrium when

    • Amarginal utility is at its highest
    • Bhe spends all his money on one good
    • Cmarginal utility divided by price is the same for every good
    • Dtotal utility is zero

    Show answer

    Explanation and discussion

12. Question 12· Theory of consumer behaviour· WAEC

    A thirsty boy enjoys his first bottle of water more than his third. This illustrates the law of

    • Acomparative advantage
    • Bdemand
    • Csupply
    • Ddiminishing marginal utility

    Show answer

    Explanation and discussion

13. Question 13· Theory of consumer behaviour· WAEC

    Total utility from 1, 2 and 3 oranges is 20, 35 and 45 utils. Find the marginal utility of the third orange.

    • A35
    • B45
    • C15
    • D10

    Show answer

    Explanation and discussion

14. Question 14· Theory of consumer behaviour· WAEC

    If total utility from 3 oranges is 30 and from 4 oranges is 36, the marginal utility of the 4th orange is

    • A9
    • B36
    • C6
    • D66

    Show answer

    Explanation and discussion

15. Question 15· Theory of consumer behaviour· WAEC

    Total utility is at its maximum when marginal utility is

    • Azero
    • Brising
    • Cat its highest
    • Dat its lowest positive value

    Show answer

    Explanation and discussion