2003 - JAMB Economics Past Questions and Answers - page 2

11
A normal supply curve is usually positively sloped because the relationship between
A
price and supply is positive
B
demand and price is positive
C
supply and price is negative
D
price and demand is negative
correct option: a
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12
Short-run period in production is a period too short for a firm to be able to change its
A
scale of operation
B
total revenue
C
total outputs
D
variable inputs
correct option: a
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13
Price elasticity of supply is a ratio of the change in
A
original quantity to a change in new quantity
B
quantity supplied to the change in price
C
price to the change in quantity supplied
D
quantity supplied to the change in demand
correct option: b
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14
The long-run average cost curve is called a planning curve because it shows what happens to costs when
A
a bigger size of plant is built
B
differents sizes of plants are built
C
variable inputs are increased
D
fixed factors are increased
correct option: b
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15
Imperfect market is characterized by
A
perfect mobility of factors of production
B
many buyers and few sellers
C
a large number of buyers and sellers
D
non-preferential treatment
correct option: b
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16
The term 'Near money' is best described as
A
a financial instrument that is readily convertible to cash
B
government financial instrument that is convertible to cash
C
time deposits with low interest rates
D
a financial asset that is convertible to cash
correct option: a
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17
The distinguishing characteristic between the money market and the capital market lies in whether the
A
securities are primary or secondary
B
debt instruments provided are long-term or short-term
C
funds mobilized are private or public
D
securities are in debentures or ordinary shares
correct option: b
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18
For a firm, value added can be defined as the difference between the
A
input prices and product prices
B
value of its output and inputs purchased from other firms
C
value of its output and the cost of production
D
total revenue and total cost
correct option: b
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19
Insurance companies, pension and provident funds and unit trusts are all examples of
A
rural-based revenue mobilizers
B
non-governmental organisations
C
government financial agencies
D
non-bank financial institutions
correct option: d
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20
Inflation that is usually associated with periods of trade boom is
A
creeping inflation
B
cost-push inflation
C
stagflation
D
demand-pull inflation
correct option: d
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