1995 - JAMB Economics Past Questions & Answers - page 1

1
Any payment to a factor of production in excess of what is necessary to keep that factor in its present employment is known as?
A
real income
B
profit
C
economic rent
D
real wage
CORRECT OPTION: c
2
The opportunity cost of the use of productive resources which a producer owns and so does not pay constitutes?
A
a fixed cost
B
an implicit cost
C
a variable cost
D
a prime cost
CORRECT OPTION: b
3
The effect of changes in the condition of demand on a demand schedule with the price constant is?
A
A movement along the demand curve
B
deflation of the demand curve
C
hyperbola formation by the demand curve
D
shift of the demand curve
CORRECT OPTION: d
4
Which of the following statement is TRUE of the effect of changes in demand and supply on price?
A
A decrease in supply will lead to fall in price and a fall in the quantity bought and sold
B
An increase in demand will lead to a fall in price and quantity bought and sold
C
A decrease in demand will lead to a rise in price and in the quantity bought and sold
D
An increase in supply will lead to a fall price and a rise in the quantity bought and sold
CORRECT OPTION: d
5
In a free market economy, available resources are more efficiently allocated by complete reliance on?
A
development planning
B
strategic planning
C
capital budgeting
D
price system
CORRECT OPTION: d
6
In order to maximize his profit, a businessman who faces a very elastic demand for his product is advised to?
A
slightly increase the price of his product
B
slightly reduce the price of his products
C
leaves his price unchanged
D
discriminate his prices
CORRECT OPTION: b
7
What is the elasticity of demand for commodity X, if at a price of N25 the quantity demanded is 80 and when the price is reduced to N20 the quantity demanded is 100?
A
1.25
B
1.45
C
0.25
D
0.15
CORRECT OPTION: a
8
If y represents the income earned by workers in a factory, find the range of their income which satisfies the following inequality: 4Y - 300 > 500.
A
y > 300
B
y > 250
C
y > 200
D
y > 150
CORRECT OPTION: c
9
Both in the short run and in the long run, a firm maximizes its profits when?
A
MC = MR
B
AC = MC
C
AVC = AC
D
MC = AVC
CORRECT OPTION: a
10
Stocking small quantities of a variety of goods is a function of the?
A
manufacturer
B
wholesaler
C
retailer
D
consumer
CORRECT OPTION: c
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