JAMB and WAEC Economics questions: Theory of consumer behaviour

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

1. Question 21· 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

   • Ain equilibrium
   • Bbuying too much X
   • Cbuying too much Y
   • Dnot maximising satisfaction

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   Explanation and discussion

2. Question 22· 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

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   Explanation and discussion

3. Question 23· Theory of consumer behaviour· JAMB

   A budget line shows

   • Acombinations of goods a consumer can afford with given income and prices
   • Butility levels
   • Csupply
   • Dcosts

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   Explanation and discussion

4. Question 24· 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

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5. Question 25· 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

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   Explanation and discussion

6. Question 26· Theory of consumer behaviour· JAMB

   The budget (price) line shows

   • Athe cost of production
   • Bthe satisfaction from two goods
   • Cthe supply of goods
   • Dcombinations of two goods a consumer can buy with a given income

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7. Question 27· Theory of consumer behaviour· JAMB

   The law of diminishing marginal utility states that

   • Amarginal utility always rises
   • Btotal utility always falls
   • Ceach additional unit consumed gives less extra satisfaction
   • Dutility is constant

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8. Question 28· 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

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9. Question 29· 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

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10. Question 30· 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

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    Explanation and discussion