1997 - JAMB Economics Past Questions & Answers - page 1

1
With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the?
A
total utility derived from each goods and services is increasing at an increasing rate
B
marginal utility derived from each good or service is increasing at the same rate
C
marginal utility derived per naira spent is the same for all the goods and services
D
total utility derived from all the goods and services is large
CORRECT OPTION: c
2
Ike's scale of preference reveals that he prefers bananas to pawpaw, pawpaw to oranges and oranges to bananas. Ike's preferences are therefore?
A
inconsistent
B
consistent
C
transitive
D
rational
CORRECT OPTION: a
3
One of the features of a free market economy is that?
A
resources are directed by the price mechanism
B
workers do not earn equal wages
C
the profit motive is serverly constrained
D
descisions on the economy are taken by bureaucratic structures
CORRECT OPTION: a
4
One of the fundamental differences between a capitalist and a socialist economy is that while?
A
the former is characterized by complete government ownership of resources, the latter characterized by complete private ownership
B
in the former, prices act as signals in the allocation of resources, it is central authority that performs this function in the letter
C
taxes are levied in a capitalist economy, there is no taxation in a capitalist economy
D
income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy
CORRECT OPTION: b
5
When a country's population is experiencing increase returns, that country is said to be?
A
overpopulated
B
economically poor
C
over-producing goods and services
D
underpopulated
CORRECT OPTION: a
6
In a country, if the proportion of people who are below 15 years is 45% and those above 60 years is 30%, this implies that the?
A
dependency is ratio high
B
population is optimum
C
active population is large
D
population is growing according to Malthus theory
CORRECT OPTION: a
7
One of the objectives of Nigeria's current population policy is to?
A
reduce the birth rate
B
reduce the emmigration rate
C
increase the birth rate
D
enhance longevity
CORRECT OPTION: a
8
Labour productivity is the ratio of?
A
labour to output
B
man-hours to output
C
output to man-hours
D
average product to man-hours
CORRECT OPTION: c
9
The type of cost which has to be covered for a firm to continue production in the short-run is the?
A
overhead cost
B
fixed cost
C
marginal cost
D
average variable cost
CORRECT OPTION: d
10
A good is said to be inferior if its demand?
A
rises as it price rises
B
falls as it price rises
C
rises as it price falls
D
is perfectly inelastic
CORRECT OPTION: b
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