JAMB and WAEC Economics questions: Theory of consumer behaviour

30 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

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   Explanation and discussion

2. Question 2· Theory of consumer behaviour· JAMB

   If a consumer's income increases while prices stay the same, the budget line

   • Abecomes steeper only
   • Bshifts inwards
   • Cshifts outwards parallel to the original
   • Ddoes not change

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   Explanation and discussion

3. Question 3· 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

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   Explanation and discussion

4. Question 4· Theory of consumer behaviour· WAEC

   Total utility is maximum when marginal utility is

   • Arising
   • Bmaximum
   • Cnegative
   • Dzero

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   Explanation and discussion

5. Question 5· Theory of consumer behaviour· JAMB

   Consumer surplus is the difference between

   • Awhat a consumer is willing to pay and what he actually pays
   • Btotal and marginal utility
   • Cincome and expenditure
   • Dprice and cost of production

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   Explanation and discussion

6. Question 6· 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

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7. Question 7· Theory of consumer behaviour· JAMB

   The marginal utilities of the first three oranges eaten are 10, 8 and 6 utils. Find the total utility of the three oranges.

   • A30 utils
   • B6 utils
   • C8 utils
   • D24 utils

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8. Question 8· Theory of consumer behaviour· JAMB

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

   • AMUa/Pa = MUb/Pb
   • BMUa = MUb
   • CPa = Pb
   • Dtotal utility is falling

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   Explanation and discussion

9. Question 9· Theory of consumer behaviour· JAMB

   An indifference curve shows

   • Acombinations of two goods that give a consumer equal satisfaction
   • Bthe prices of two goods
   • Cthe consumer's income
   • Dthe cost of production

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   Explanation and discussion

10. Question 10· 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

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    Explanation and discussion

11. Question 11· 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.

    • A66 utils
    • B36 utils
    • C9 utils
    • D6 utils

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12. Question 12· Theory of consumer behaviour· JAMB

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

    • Athe consumer's income rises
    • Btotal satisfaction falls immediately
    • Cthe price of the good falls
    • Dthe additional satisfaction from each extra unit falls

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13. Question 13· 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

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14. Question 14· 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

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15. Question 15· Theory of consumer behaviour· JAMB

    When marginal utility is negative, total utility

    • Ais at its maximum
    • Brises
    • Cfalls
    • Dis zero

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16. Question 16· Theory of consumer behaviour· JAMB

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

    • Atotal cost
    • Bmarginal utility
    • Csupply only
    • Dadvertising

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17. Question 17· 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

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18. Question 18· Theory of consumer behaviour· JAMB

    An indifference curve is convex to the origin because of

    • Aperfect substitutes
    • Bincreasing marginal utility
    • Cconstant prices
    • Da diminishing marginal rate of substitution

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19. Question 19· 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

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20. Question 20· Theory of consumer behaviour· JAMB

    A consumer is in equilibrium on an indifference map where

    • Athe budget line is tangent to the highest attainable indifference curve
    • Btwo indifference curves cross
    • Cincome is zero
    • Dthe budget line is vertical

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    Explanation and discussion