1992 - JAMB Economics Past Questions and Answers - page 2

11
If demand is relatively inelastic and sellers are able to raise the price of their commodity, then there we be a?
A
fall in both quantity of demand and total revenue
B
fall in the quantity demanded and rise in total revenue
C
fall in the quantity demanded and rise in marginal revenue
D
rise in both the quantity demanded and the marginal revenue
correct option: a
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12
The demand curve for a normal good will shift to the left if?
A
the incomes of consumers rise
B
the price of the goods rises
C
the price of complementary goods rises
D
advertising expenditure on complementary goods increase
correct option: b
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13
A firm with marginal cost equals to its marginal revenue will produce the equilibrium output if it is in?
A
pure competition only
B
pure monopoly only
C
monopolistic competition only
D
any type of market
correct option: a
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14
An important function of the retailer is to?
A
grant credit to the wholesaler
B
break bulk and sell products in small units
C
reduce cost of distribution
D
generate demand for products through advertisement
correct option: b
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15
The main handicap of sole proprietorship is?
A
limited liability
B
lack of technical know-how
C
low profit margin
D
inadequate capital
correct option: d
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16
The main reason for the current programme of privatization and commercialization of public enterprises in Nigeria is to?
A
reduce public expenditure
B
encourage efficiency in the performance of such enterprises
C
reduce the number of public enterprises
D
raise the prices of goods and services produced by the enterprises
correct option: b
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17
The type of business finance that entitles the holder to a fixed rate of dividend is?
A
perferred stock
B
common stock
C
debenture
D
bank loan
correct option: c
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18
Farmers' income may fall if they produce more cash crops for export because?
A
foreign demand is inelastic
B
the price of the crops will rise
C
of domestic currency depreciation
D
of export duties
correct option: a
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19
Under the Nigerian Structural Adjustment Programme, the marketing of agricultural commodities in Nigeria has been placed under?
A
the marketing boards
B
the commodity boards
C
the river-basin authorities
D
private investors and individuals
correct option: d
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20
The primary barrier to land reform in developing countries is the?
A
frequent opposition by the landlords
B
realization that output levels might fall
C
fear that peasants will be cut off from credit
D
general contentment with the present arrangement
correct option: a
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