1990 - JAMB Economics Past Questions and Answers - page 2

11
Which of the following is applicable to a monopolistic firm operating at the output where marginal cost equals marginal revenue?
A
Cost of production is at a medium
B
The plant is of optimum size
C
Price is above marginal revenue
D
Average variable cost is at a minimum
correct option: c
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12
Which of the following is the major function of the wholesaler?
A
Bulk breaking
B
Provision of useful information to th manufacturer on products
C
Provision of after-sales services to consumers
D
Provision of warehouse facility
correct option: a
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13
In the distribution channels for goods and services, the middleman's mark-up margin provides a rough measure for the ?
A
quantity discounts allowed final consumer
B
reward for business enterpreneurship
C
effectiveness of government control over the economy's marketing channels
D
extent of exploitation of the final consumer
correct option: b
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14
Which of the following reasons could induce a manufacturer to bypass the wholesaler in the distribution chain?
A
To provide the quantity needed by retailers
B
To collect useful information on his product
C
To provide warehousing facilities
D
To violate government regulation on distribution
correct option: b
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15
A major difference between a state-owned enterprise and a private enterprise is that the former?
A
is not expected to cover its costs of production while the latter is
B
is not always expected to maximize profits while the latter is
C
has shareholders while the latter does not
D
has a board of directors while the latter does not
correct option: b
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16
Divorce of ownership from control is a characteristic of?
A
sole properitorship
B
a limited liability company
C
partnership
D
a private limited company
correct option: b
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17
Capital provided by individuals to the firm by purchasing stocks is called?
A
debt capital
B
fixed capital
C
circulating capital
D
equlity capital
correct option: d
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18
Which of the following factors is the most important in siting a petrol-chemical plants?
A
Nearness to the source of raw materials
B
Nearness to the source of power
C
Availability of labour
D
Proximity to financial institutions
correct option: a
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19
Which of the following will be the effect of allowing only economic factors to dedicate the location of industries in Nigeria?
A
A more even development of the different parts of the country will be assured
B
There will be an unbalanced spread in the distribution of industries
C
The less developed parts of the country will be able to attract more industries
D
Only the government will be able to finance the establishment of industries
correct option: b
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20
If the same basket of goods which cost N12.00 in 1985 cost N15.00 in 1987, price index for 1987 is?
A
25
B
80
C
100
D
125
correct option: d
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