JAMB 2023 Economics · Question 52
The decision to consume more of one product under normal circumstances will apply
Options
- A.less of another product will be consumed
- B.more of another product will be consumed
- C.less of the product will be consumed
- D.no other products will be consumed
Answer: A. less of another product will be consumed
Explanation written with AI and checked against the answer key
Analyze the question
The sentence is a little garbled. It is probably meant to read: "The decision to consume more of one product under normal circumstances will imply that less of another product will be consumed." This tests scarcity, choice and opportunity cost.
Concept
- A consumer has limited income, so resources are scarce.
- When income is fixed, spending more on one product leaves less money for others.
- This is the idea of opportunity cost: choosing more of one thing means giving up some of something else.
- The phrase "under normal circumstances" means we assume income and prices stay the same.
Step-by-step solution
- Suppose a student has ₦5,000 to spend on recharge cards and snacks.
- If she spends more on recharge cards, less money remains for snacks.
- So consuming more of one product means consuming less of another.
Now check the options:
- A. Less of another product will be consumed. This fits the budget constraint and opportunity cost.
- B. More of another product will be consumed. This is true only for complementary goods, or if income rises. It is not the normal case.
- C. Less of the product will be consumed. This contradicts the decision to consume more of it.
- D. No other products will be consumed. This is too extreme, since consumers usually still buy other goods.
Answer: A
Tip: In Economics, whenever you see "more of one, what happens to the other?", think scarcity → choice → opportunity cost. With limited resources, gaining more of one thing means sacrificing some of another. Watch out for extreme words like "no" or "all" in options, as they are often wrong.
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