# 1991 - JAMB Economics Past Questions & Answers - page 1

1
in market economy, the question of what, how and for whom to produce are solved the
A
elected representative of the solved
B
planning committe
C
price mechanism
D
government
CORRECT OPTION: a
2
Economic goods are termed scarce goods when they are?
A
not available in sufficient quantities to satisfy all wants for them
B
not produced in sufficient quantities to satisfy the effefctive demand for them
C
of high quality
D
of primary importance in satisfying the needs of a society
CORRECT OPTION: a
3
A school girl who needs a book and mirror, each coasting five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determined the real cost of her book.
A
The five naira she spent on the book
B
Five naira real cash value
C
the mirror
D
The book
CORRECT OPTION: c
4
Macroeconomics is a study of economics science from the point of view of?
A
resource markets or production units
B
individual producers or consumers
C
aggregate or general economy
D
companies or individual firms
CORRECT OPTION: c
Macroeconomics is the field of economics that studies the behavior of the aggregate economy.
5
If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of?
A
increasing returns to the variable factor
B
increasing returns to scale
C
constant returns to variable factor
D
external economies of scale
CORRECT OPTION: a
6
At any given level of output, the total cost of a firm equals the?
A
marginal cost plus the average cost
B
fixed costs less its varriable cost
C
average cost multiplied by variable costs
D
economic costs multiplied by variable costs
CORRECT OPTION: c
7
At any given level of output, a firm's total variable cost equals ?
A
total cost less marginal cost
B
total cost less total fixed costs
C
total cost less average cost
D
average variable cost and marginal cost
CORRECT OPTION: b
8
If the price of a ball point pen falls from N1.00 to N0.60 and the quantity demanded increases from 200 to 300, the point elasticity of demand is equal to?
A
1.25
B
0.80
C
0.50
D
0.40
CORRECT OPTION: a
9
If a society is operating on the production possibility curve, this implies that the resources are?
A
fully and efficiently utilized
B
fully but inefficiently utilized
C
efficiently but not fully utilized
D
abundant
CORRECT OPTION: a
10
A market is in disequilibrium if?
A
the quantity purchased is greater than quantity sold
B
the quantity sold differs from the quantity purchased
C
at a lower price, a large quantity is sold
D
the quantity demand differs from the quantity supplied
CORRECT OPTION: d
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