1990 - JAMB Economics Past Questions & Answers - page 1

1
A firm achieves least-cost in production by substituting factors until?
A
their prices are equal
B
the ratio of their marginal -physical-products equals the ratio of their prices
C
their marginal -physical-products are each equal to their factor prices
D
their marginal -physical-products are each equal to zero
CORRECT OPTION: b
2
Economics of scale operate only when?
A
marginal cost is falling with input
B
average cost is falling with output
C
fixed cost is variable
D
variable cost is less than fixed cost
CORRECT OPTION: b
3
At the point of profit maximization by a firm, marginal cost is?
A
minimum
B
falling
C
constant
D
rising
CORRECT OPTION: d
4
A situation in which all inputs are doubled and output also doubles is known as?
A
constant proportions
B
constant returns
C
increasing returns to scale
D
constant returns to scale
CORRECT OPTION: d
5
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
A
total utility must fall
B
marginal utility must fall
C
marginal utility may rise even though his total utility is falling
D
marginal utility may fall even though his total utility may be rising
CORRECT OPTION: b
6
Technical progress that leads to a reduction in costs results in?
A
an increase in equilibrium price and quantity
B
a decrease in equilibrium price and quantity
C
an increase in equilibrium price and decrease in equilibrium quantity
D
a decrease in equilibrium price and increase in equilibrium quantity
CORRECT OPTION: d
7
If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
A
a normal good
B
an inferior good
C
a substitute good
D
a giffen good
CORRECT OPTION: b
8
The demand for a product is said to be price inelastic if?
A
the price elasticity of demand is less than one
B
the price elasticity of demand is greater than one
C
a reduction in price results in increase in the quantity demanded
D
an increase in price results in a decrease in the quantity demanded
CORRECT OPTION: a
9
An imperfect market in which there is only one buyer of a commodity is?
A
monopsony
B
oligopoly
C
monoploy
D
duopoly
CORRECT OPTION: a
10
The tailoring services is competitive partly because it consists of a large number of?
A
large-scale enterprises
B
medium scale enterprises
C
small scale enterprises
D
government-owned enterprises
CORRECT OPTION: c
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