2007 - JAMB Economics Past Questions & Answers - page 1

1
An economic system in which the producer and the consumer are the same is referred to as a
A
mixed economy
B
subsistence economy
C
capitalist economy
D
socialist economy
CORRECT OPTION: b
2
The choice of what to produce in a command economy is determined by
A
industrial establishments
B
labour unions
C
the government and labour unions
D
the central government
CORRECT OPTION: d
3
The range is used to
A
estimate the mean from grouped data
B
calculate the standard deviation
C
determine the spread of a set of data
D
measure the difference between the mean and the mode
CORRECT OPTION: c
4
When the demand for a good increases owing to an increase in income, it means that
A
there is an increase in quantity demanded
B
inflation has taken place
C
demand has exceeded supply
D
there is an increase in demand
CORRECT OPTION: d
5
A firm operating at full capacity will have a
A
perfectly inelastic supply curve
B
perfectly elastic supply curve
C
fairly elastic supply curve
D
fairly inelastic supply curve
CORRECT OPTION: a
6
The major determinant of cross elasticity of demand is the
A
price of the good
B
degree of necessity of the good
C
level of income of consumers
D
closeness of the substitutes
CORRECT OPTION: d
7
A commodity is described as inferior when the
A
income effect is negative
B
income effect is positive
C
substitution effect is negative
D
substitution effect is positive
CORRECT OPTION: a
8
The coefficient of the price elasticity of supply is always
A
positive
B
negative
C
constant
D
zero
CORRECT OPTION: a
9
The world market for crude oil refers to the
A
total supply by OPEC members
B
total demand for and supply of crude oil
C
excess crude oil produced in the world
D
difference between the supply of and demand for oil
CORRECT OPTION: b
10
The division of labour requires that the task to be performed
A
must be done in stages
B
requires no special knowledge
C
is simple but strenuous
D
must be undertaken by experts
CORRECT OPTION: a
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