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2012 - JAMB Economics Past Questions and Answers - page 1

1

A major disadvantage of a socialist economy is that

A
corruption is rampant
B
consumer's sovereignty is lost
C
income inequality is entrenched
D
there is high level of unemployment
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2

The privatization of public enterprises will lead to efficient management of resources in the economy.

This statement can best be described as

A
normative reasoning
B
inductive reasoning
C
deductive reasoning
D
positive reasoning
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3

The sign of the slope of a graph in economic analysis is important because it

A
shows whether a good is normal or inferior
B
shows the relationship between variables
C
reveals the magnitude of the change between variables
D
helps to determine the unit of measurement of variables
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4

If the quantity of rice bought decreases from 250 tonnes to 200 tonnes owing to a 2% rise in price, it shows that there is a change in

A
consumers' income
B
demand
C
consumers' tastes
D
quantity damanded
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5

A rise in income will, ceteris paribus, bring about

A
a movement along the demand curve
B
a leftward shift of the demand curve
C
a rightward shift of the demand curve
D
no effect on the demand curve
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6

If the price of an item increases by 8% while the quantity demanded falls from 1500 units to 1492 units, the demand is said to be

A
perfectly elastic
B
inelastic
C
elastic
D
perfectly inelastic
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7

Comparison of interpersonal utility is impossible because

A
utility is measured in utils
B
marginal utility is not observable
C
utility is subjectively determined
D
individual income differ
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8

When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he

A
stops consuming more of the commodity
B
reduces the quantity consumed
C
increases the quantity consumed
D
consumes more of another commodity
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9

The supply of cocoa is influenced by

A
seasonal conditions
B
the efficacy of fertilizer used
C
the demand for beverages
D
the availability of close substitutes
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10

If quantity supplied is constant irrespective of price changes, the supply elasticity is

A
unitary
B
infinity
C
fairly elastic
D
perfectly inelastic
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