Theory of Consumer Behaviour Generix Content - Theory of Consumer Behaviour
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WAEC questions for "Economics :: Theory of Consumer Behaviour"
Q1

A consumer maximizes his utility in consuming a good 'x' when

A

Mux = Px

B

Px > Mux

C

Price is falling

D

Mux > Px

E
Q2

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

A

satisfaction from an extra unit

B

satisfaction from an extra unit rises

C

satisfaction from an extra unit remains constant

D

total satisfaction from the good remains the same

E
Q3

The satisfaction derived from the use of a commodity is it's

A

demand

B

elasticity

C

wealth

D

utility

E
Q4

The amount of satisfaction obtained from the consumption of a commodity at a particular time is called

A

marginal utility

B

diminishing utility

C

total utility

D

average utility

E
Q5

In the analysis of utility theory, the basis of demand is

A

marginal utitlity

B

average utility

C

fixed utility

D

diminishing utility

E
Q6

A carpenter's consumer goods include 

I. a kilogram of rice

II. 3 pairs of shoes

III. 4 pairs of sacks

IV. 3 screw drivers

A

I and IV only

B

I,II,III and IV

C

I, II and IV only

D

I, II and III only

E
Q7

The additional satisfaction derived from the consumption of one or more unit of good is called

A

marginal production

B

marginal utility

C

marginal revenue

D

marginal cost

E
Q8
Consumers buy more of a commodity at a lower price than at a higher price because
A
producers like to produce more
B
in any given situation, people like to buy more
C
consumers like to show off
D
with the same amount of money, they will be able to buy more.
E
Q9
Which of the following is a luxury item?
A
Petrol
B
Textbook
C
Pencil
D
Gold
E
Q10
The entire activities that a consumer derives from a successive consumption of a particular commodity is known as
A
marginal utility
B
total utility
C
average utility
D
diminishing utility
E
Q11
Abstention from consumption which enables capital to be produced is called
A
savings
B
production
C
accumulation
D
opportunity cost
E
Q12
The creation of utility can be referred to as
A
value added
B
profit maximization
C
entrepreneurship
D
production
E
Q13
If the last Nigeria spent on each commodity by a consumer gave him equal satisfaction, it means the consumer has been able to
A
cut cost
B
maximize costs
C
increase profits
D
maximize utility
E
manage scarce resources
Q14
An increase in marginal propensity to save will lead
A
an increase in marginal propensity to consume
B
a decrease level in the level of consumption
C
an immediate decrease in the net National income
D
an increase in the level of consumption
E
a decrease in the level of saving
Q15
For two commodities A and B, MA and MB are the respective marginal utilities of the two commodities are maximized when
A
MA/PA = MB/PB
B
MA/PA > MB/PB
C
MA/PA < MB/PB
D
PA/MA < PB/MB
E
PA/MA > PB/MB
Q16
The ranking of a consumers' needs in order of importance is termed
A
an opportunity cost
B
economies of scale
C
a scale of preference
D
the making of choice
E
direct production
Q17
The quality of banana consumed by the family is
A
20
B
120
C
200
D
240
E
300
Q18
The sum total of the quality of mango and orange consumed by the family is
A
120
B
200
C
300
D
400
E
5200
Q19
The quality of carrot consumed by the family is
A
200
B
360
C
400
D
520
E
600
Q20
MUX = PX (where X and Y = good X and good Y, MU = Marginal Utility, P = Price) MUY = PY The above respresents the
A
marginal utility equation
B
equation for consumer dis-equilibrium
C
utility maximization equation
D
equation for total utility
E
equation for price elasticity
Q21
Diminishing returns occur in the short run when there is a reduction in the
A
average product of the fixed factor
B
total product of the variable factor
C
total product of the fixed factor
D
marginal product of the variable factor
E
marginal product of the fixed factor
Q22
A point along a consumer's indifference curve shows
A
the different commodities he can consume
B
a combination of all commodities he is willing to buy
C
a combination from which he derives the same satisfaction
D
the quantities of commodities demanded by him
E
the difference between quality supplies and quantity demanded
Q23

The decision to consume more of one product will under normal circumstances imply that

A

more of another product will be consumed

B

less of something else will be consumed

C

no other product will be consumed

D

decision-making is basic in Economics

E

enough resources are available

Q24

Abstention from consumption enables capital to be produced. Such abstention is called

A

saving

B

production

C

accumulation

D

factors of production

E

opportunity cost

Q25

A rational consumer tends to do all the following except

A

buying more at  a high price than at a low price

B

buying more at a low price than a high price

C

at utility maximization

D

reacting to price changes

E

complying with a law of demand

Q26

The theory of consumer behaviour is based on all the following assumption except that the

A

consumer is assumed irrational

B

consumer's taste remain constant

C

consumer has a budget constraint

D

consumer aims at maximizing his utility

E

consumer is exposed to more than one commodity

Q27

Units of quantity consumed Total utility Marginal utility
0 - -
1 10 10
2 15 5
3 17 2
4 18 1
5 18 0

This table illustrates the law of

A

diminishing marginal utility

B

diminishing marginal productivity

C

diminishing returns

D

increasing returns

E

increase productivity

Q28

In which of the following economic system is the consumer referred to as. 'The King'?

A

planned economy

B

mixed economy

C

traditional economy

D

free market

E

socialist economy

Q29

The term marginal propensity to consume can best be explained as the

A

desire to spend more income on consumption

B

change in consumption as percentage of the change income

C

average income regularly spent on consumption

D

inclination to spend only a little on consumption

E