1994 - JAMB Economics Past Questions and Answers - page 2
11
In the long run, all production factors are?
A
fixed
B
semi fixed
C
variable
D
semi-variable
correct option: c
Users' Answers & Comments12
A company's expenditure on raw materials is regarded as?
A
explicit cost
B
implicit cost
C
prime cost
D
average cost
correct option: a
Users' Answers & Comments13
The basic relationship between the cost of production, and the market price of any commodity in the short run is that the market price?
A
always reflects the cost of labour
B
reflects the variable, but not the fixed cost of production
C
does not rise above variable costs
D
is determined by the cost of production and the current rate of inflation
correct option: b
Users' Answers & Comments14
A firm determines its profit when it studies its?
A
Marginal Cost
B
Average Cost
C
Total Cost
D
Average Cost relative to price in the market
correct option: d
Users' Answers & Comments15
An increase in the supply of labour in a factory while other things remain equal will lead to?
A
an increase in the wage rate and an increase in the number of people employed
B
a decreased in the wage rate and a decrease in employment
C
an increase in the wage rate and an decrease in the employment
D
a decrease in the wage rate and an increase in employment
correct option: d
Users' Answers & Comments16
A demand which is positively related to price is true of?
A
normal goods
B
giffen goods
C
ostentatious goods
D
capital goods
correct option: a
In economics, normal goods are any goods for which demand increases when income increases, and falls when income decreases but price remains constant, i.e. with a positive income elasticity of demand.
Users' Answers & Comments17
Elasticity demand is an effective tool in the hands of a producer in that it enables him?
A
raise his profit and lower his costs
B
discourage buyers from cheating
C
determine what he will produce
D
set his price to maximize his profit
correct option: d
Users' Answers & Comments18
The basic idea behind brand differentiation under an imperfect market arrangement is to?
A
stimulate demand for rival products
B
create demand for the particular product
C
enable the product penetrate the market
D
enable the product to complete with others
correct option: b
Users' Answers & Comments19
In the long run, a firm in a perfectly competitive market will make?
A
normal profit
B
adnormal profit
C
marginal profit
D
no profit
correct option: a
Users' Answers & Comments20
Output restriction, fixing of prices, creating obstacles to free entry into the market are features of?
A
pure monopoly
B
perfect monopoly
C
perfect competition
D
monopsonist competition
correct option: a
Users' Answers & Comments