2001 - JAMB Economics Past Questions and Answers - page 4
31
The major reason why nations engage in international trade is that?
A
it allows free movement of factors of production
B
it makes possible the use of capital-intensive method of production
C
nations are substantially different in their endowments of economic resources
D
it affords the trading nations the opportunity to earn high profit
correct option: c
Users' Answers & Comments32
A country with over-valued currency will?
A
expect balance of payments surplus
B
have increased demand forthe exports
C
increase her foreign reserve
D
decreased her foreign reserve
correct option: a
Users' Answers & Comments33
A
increases
B
is unity
C
diminishes
D
is zero
correct option: d
Users' Answers & Comments34
A
N 100
B
N110
C
N60
D
N80
correct option: d
Users' Answers & Comments35
If the price elasticity of demand for a good is 0.43, an increase in the price of the good will result in?
A
an increase in profit by 43%
B
a net gain
C
a decrease in profit 43%
D
a net loss
correct option: b
Users' Answers & Comments36
In a free market economy, the price system allocates resources?
A
under government's directives
B
to ensure general welfare
C
to their best alternatives
D
to reduce poverty
correct option: c
Users' Answers & Comments37
At the consumer equilibrium, the slope of the indifference curve is?
A
half the slope of the budget constraint line
B
equal to the slope of the budget constraint line
C
greater than the slope of the budget constraint line
D
less than the slope of the budget constraint line
correct option: b
Users' Answers & Comments38
For a supply curve, an increase in the price of a commodity will result in?
A
a decrease in supply
B
a decrease in the quantity supplied
C
an increase in supply
D
an increase in the quantity supplied
correct option: d
Users' Answers & Comments39
A normal good with close substitutes is likely to have its price elasticity of demand?
A
between zero and one
B
equal to unity
C
less than unity
D
greater than unity
correct option: d
Users' Answers & Comments40
Economics is regarded as a social science because it?
A
adopts the scientific method in production
B
is an agent of socialization
C
adopts the scientific method in the study of human behaviour
D
adopts the scientific method with social problems
correct option: c
Users' Answers & Comments