2013 - JAMB Economics Past Questions and Answers - page 2
11
One of the assumptions of the cardinalist approach is
A
diminishing marginal rate of substitution
B
the consistency and transitivity of choice
C
that total utility depends on the quantity of the commodities consumed
D
unstable marginal utility of money
correct option: c
Users' Answers & Comments12
Utility is the satisfaction derived from the
A
distribution of goods and services
B
use of goods and services
C
demand of goods and services
D
production of goods and services
correct option: b
Users' Answers & Comments13
One of the major factors that brings about changes in supply is
A
market discrimination
B
availability of storage facilities
C
the cost of storage
D
incentives granted to workers
correct option: c
Users' Answers & Comments14
If the supply of a product is elastic, a small reduction in price will
A
reduce the cost of production
B
reduce the quantity supplied
C
increase the quantity supplied
D
lead to no change in the quantity supplied
correct option: c
Users' Answers & Comments15
If the price of a commodity is fixed below equilibrium, this will lead to
A
excess demand
B
a decrease in price
C
an increase in price
D
excess supply
correct option: a
Users' Answers & Comments16
One of the criticisms of the price mechanism is that
A
producers are sovereign
B
it provides low degree of freedom
C
it widens the inequitable gap
D
consumers are sovereign
correct option: d
Users' Answers & Comments17
In Nigeria, government can reduce the cost of accommodation by fixing rent
A
at the prevailing rate
B
at the equilibrium price
C
above the equilibrium price
D
below the equilibrium price
correct option: c
Users' Answers & Comments18
If a refinery achieves a reduction in cost by purchasing and transporting crude oil in large quantities, it enjoys
A
economies of scale
B
specialization
C
division of labour
D
diseconomies of scale
correct option: a
Users' Answers & Comments19
An isoquant lying above to the right of another represents
A
a higher output level
B
constant returns to scale
C
over-capacity utilization
D
a lower output level
correct option: a
Users' Answers & Comments20
A measure of national income used as comparison of standard of living among nations is
A
net national product
B
gross domestic product
C
gross national product
D
per capita income
correct option: d
Users' Answers & Comments