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1998 - JAMB Economics Past Questions and Answers - page 1

1

One of the economic problems of Nigeria today arises from?

A
the over utilization of human and natural resources
B
unavailability of mineral resources
C
inadequate manpower resources
D
the under-utilization of human and natural resources
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2

In certain circumstances, a centrally planned economy adopts the rationing system because of?

A
the scarcity of goods and services in the market
B
low real and money wages
C
the need for equitable distribution of goods and services
D
transportation and distribution problems
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3

Given that

     B = Births<br />

     D = Death<br />

     X = Emigrants <br />

     M = Immigration <br />

The population of a country over a period of time will rise if?

A
B = D and X > M
B
B - D = O and M > X
C
D - B = O and M = X
D
X > M and D > B
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4

The short-run period in production is defined as a period when?

A
there is at least one fixed factor
B
all costs of production must be covered
C
the output cannot be varied
D
current output is not profitable
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5

Specialization often improves economic performance because it?

A
permits exploitation of economies of scale
B
incorporates external economies
C
is based on the law of variable proportions
D
allocates resources according to absolute advantage
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6

Which of the following statements best describes the relationship between average product and marginal products?

A
Marginal product and average product curves rise and falls together
B
Marginal product equals average product at the minimum point of the latter
C
Average product curve will rise as product is greater than average product
D
Marginal product at the maximum point of the fomer
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7

When a firm is reaping economies of large-scale production, it experiences a fall in its?

A
long-run marginal cost
B
long-run average cost
C
long-run total cost
D
short-run marginal cost
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8

If an increase in the price of a commodity leads to increase in total revenue, then it means that the demand for this commodity is?

A
normal
B
elastic
C
inelastic
D
abnormal
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9

Given that the elasticity of demand for a commodity is 2.5, the percentage change in the quantity demanded as a result of a 10 percent change in it price is?

A
0.25
B
0.40
C
4.00
D
25.00
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10

The producer in a perfectly competitive market is faced with a demand curve whose elasticity is?

A
unitary
B
greater than one
C
infinite
D
less than one
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