Indifference Curve Jamb Economics Past Questions
Question 1
If the marginal utility of good X exceeds that of good Y, this implies that
- A. a rational consumer will buy less of X
- B. consuming more of X will increase total utility
- C. Y is an inferior good
- D. X will be cheaper than Y
Question 2
A commodity is described as inferior when the
- A. income effect is negative
- B. income effect is positive
- C. substitution effect is negative
- D. substitution effect is positive
Question 3
As long as marginal utility is positive, total utility must be
- A. negative
- B. increasing
- C. zero
- D. decreasing
Question 4
A consumer's scale of preference is an arrangement of his?
- A. scarce resources in order of importance
- B. needs in order of importance
- C. sources of income and their importances
- D. requirements and how to satisfy them
Question 5
\(\begin{array}{c|c}
\text{Units of Quantity consumed} & \text{Total utility} & \text{Marginal utility} \\
0 & --- & --- \\
1 & 10 & 10 \\
2 & 15 & 5 \\
3 & 17 & 2 \\
4 & 18 & 1 \\
5 & 18 & 0 \\
\end{array}\)
The table above illustrates the law of?
- A. diminishing marginal utility
- B. diminishing marginal productivity
- C. diminishing returns
- D. increasing returns
- E. increasing total utility
