2014 - JAMB Economics Past Questions and Answers - page 1

1
The choice of how to produce in a command economy is determined by
A
government
B
consumer
C
industrialists
D
labour unions
correct option: a
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2
In capitalist economies, questions about what to produce are ultimately answered by
A
income level of households
B
available technical skills in the economy
C
output decisions of firms
D
holding decision of households
correct option: c
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3
The best measure of dispersion to determine the tallest tree in a forest is
A
range
B
variance
C
standard deviation
D
mean deviation
correct option: b
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4
A change in demand for a normal goods implies that, there is a
A
change in the quantity demanded as price changes
B
shift in the demand curve
C
movement along a given demand curve
D
change in the price elasticity of demand
correct option: d
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5
If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity of demand is
A
unitary elastic
B
zero elastic
C
elastic
D
inelastic
correct option: c
In economics, the Total Revenue Test is a means for determining whether demand is elastic or inelastic. If an increase in price causes an increase in total revenue, then demand can be said to be inelastic, since the increase in price does not have a large impact on quantity demanded. If an increase in price causes a decrease in total revenue, then demand can be said to be elastic, since the increase in price has a large impact on quantity demanded.
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6
A rightward shift of the budget line is caused by a
A
fall in consumer income
B
change in consumer taste
C
fall in the commodity relative price
D
rise in the commodity relative price
correct option: d
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7
Given the supply function P = 1/4(Qs+10) when P = N10, what is Qs?
A
20
B
15
C
50
D
30
correct option: a
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8
When price is set below equilibrium, this will lead to
A
an increase in the quantity supplied
B
a new equilibrium
C
a decrease in the quantity supplied
D
a fall in price
correct option: d
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9
Price mechanism determines the prices of commodities through
A
auctioning
B
market forces
C
the sales of treasury bills
D
government legislation
correct option: b
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10
If the production of a large firm is higher than that of a small firm, it is experiencing.
A
external economies of scale
B
external diseconomies of scale
C
internal economies of scale
D
internal diseconomies of scale
correct option: c
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