2015 - JAMB Economics Past Questions and Answers - page 2

11
The quantity theory of money states that a reduction in the quantity of money in circulation would bring about
A
A constant change in price
B
A rise in prices
C
An unequal fall in prices
D
A proportionate fall in price
correct option: a
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12
The tax levied on locally produced goods is
A
import duty
B
excise duty
C
company tax
D
value added tax
correct option: b
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13
\(\begin{array}{c|c}
\text{Capital consumption allowance} & \text{N20,000} \\ \hline
\text{Gross domestic production} & \text{N60,000} \\ \hline
\text{Factor payment to foreigners} & \text{N10,000} \\ \hline
\text{Factor income from abroad} & \text{N15,000} \\ \end{array}\)

From the above table, calculate the Gross National Product.
A
N70,000
B
N75,000
C
N50,000
D
N60,000
correct option: b
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14
Petroleum has the following positive contributions to the Nigerian economy except
A
Generate employment
B
Source of government revenue
C
development of mono economy
D
Infrastructure development
correct option: c
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15
The market in which the operators are many and none of them can influence the price is
A
stock exchange market
B
imperfect market
C
perfect foreign market
D
exchange market
correct option: c
Perfect foreign market is a market where buyers and sellers cannot influence the price because they are large in number.
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16
The concentration of industries in a particular geographical area is
A
localization of industries
B
roles of industrialization
C
location of industry
D
strategies of industrialization
correct option: a
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17
\(\begin{array}{c|c}
\text{Units of quantity} & \text{Total utility} & \text{Marginal utility} \\ \hline
0 & - & - \\ \hline
1 & 10 & 10 \\ \hline
2 & 15 & 5 \\ \hline
3 & 17 & 2 \\ \hline
4 & 18 & 1 \\ \hline
5 & 18 & 0 \\ \end{array}\)


The table illustrate the law of
A
admonishing returns
B
increasing returns
C
diminishing marginal utility
D
increasing marginal utility
correct option: c
It shows that when total utility is at the maximum, marginal utility equals zero.
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18
All the following are the canons of taxation given by Adam Smith except
A
objective
B
economy
C
convenience
D
certainty
correct option: a
There are four principles given by Adam Smith which include equality/ability to pay, economy, convenience and certainty. Objective is not a canon of taxation
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19
Census can be classified as
A
defacto and dejure
B
increasing and decreasing
C
over and under
D
optimum
correct option: a
Defacto is that type of census where only those who physically present would be counted. Dejure is that type of census where an individual must be a permanent resident of an area. It is counting by proxy.
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20
A firm that charges the maximum price without attracting competition from new entrants is
A
Oil firms
B
Monopolistic competitive firm
C
Monopolistic firm
D
Perfectly competitive firm
correct option: c
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