Consumer Surplus And Its Applications Jamb Economics Past Questions
Question 1
Consider the diagram below which shows a demand curve (d).
Total expenditure on a commodity is represented by the area TUVW. Consumer's surplus is represented by___________
- A. The area VWX
- B. The area XTUV
- C. \(\frac {XW} {XT}\)
- D. \(\frac {TU} {UV}\)
Question 2
The shaded triangle in the diagram above is known as
- A. excess supply
- B. consumer surplus
- C. excess consumption
- D. producer surplus
Question 3
A consumer surplus measures the
- A. benefits derived from consuming a cheap commodity
- B. excess of total expenditure over total uility
- C. difference between marginal utility and marginal cost
- D. excess of marginal utility over price
Question 4
In which of the diagrams above, is the consumer surplus correctly shaded?
- A. I
- B. II
- C. III
- D. IV
Question 5
The excess benefit derived from the purchase of goods over the amount paid for them is referred to as consumer
- A. rationality
- B. surplus
- C. sovereignty
- D. credit
