1999 - JAMB Economics Past Questions & Answers - page 1

1
In a firm, three employees earns N5,500 each, four earn N3,300 each, two earns N5,000 each and one earn N7,000. The mean income of the employees is?
A
N5,200
B
N 4,760
C
N4,670
D
N2,080
CORRECT OPTION: c
2
Abubakar has the choice of buying either a house ruining cost. If he decides to buy the Mercedes Benz car, his opportunity cost is?
A
N 1.5 m
B
N 2.0m
C
the house
D
the car
CORRECT OPTION: c
3
The shape of a production possibility frontier is determined by the?
A
increasing relative costs
B
returns to scale
C
diminishing returns to a fixed factor
D
increasing returns to a variable factor
CORRECT OPTION: a
4
Normative economics deals with?
A
what is and not what should be
B
facts and not figures
C
facts and figures
D
value judgements
CORRECT OPTION: d
Normative economics deals heavily in value judgments and theoretical scenarios
5
The determinants of elasticity include?
A
price, time and availability of alternatives
B
technology and cost of production
C
time and availability of alternatives
D
price, time and technology changes
CORRECT OPTION: a
6
A capitalist economy is one characterized by the?
A
private ownership of factors of production
B
ownership of factors of production by rich members of the society
C
use of capital and labour in fixed proportions during production
D
use of capital intensive methods of production
CORRECT OPTION: a
7
In a planned economy, what shall be produced is determined primarily by?
A
what the consumer wants
B
government decisions
C
price mechanism
D
the pattern of consumer spending
CORRECT OPTION: b
8
A utility maximizing household will allocate its expenditure so that?
A
more naira is spent on commodities with the highest utility
B
less naira is spent on commodities with the lowest utility
C
the utility of the last naira spent on each commodity is equal
D
the amount spent on each commodity is equal
CORRECT OPTION: c
9
The downward sloping part of the long-run average cost curve of a firm may be attributable to?
A
diminishing returns
B
the law of variable proportions
C
diseconomies of scale
D
increasing returns to scale
CORRECT OPTION: d
10
The main function of price in the economic system is to?
A
allocate scarce resources among competing uses
B
ensure equitable distribution of income and wealth
C
determine the demand for and the supply of goods and services
D
remove all the constraints on production of goods and services
CORRECT OPTION: a
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