2015 - JAMB Economics Past Questions and Answers - page 3
21
A monopolist has the power to influence the prices of goods and services. Therefore, he is a
A
price maker
B
price taker
C
price system
D
price competition
correct option: a
Monopoly is a situation where there is a single producer and seller of a commodity for which there is no close substitute. This gives a monopolist the power to make/decide the price for a particular commodity.
Users' Answers & Comments22
Which of the following business units can issue shares?
A
Partnership
B
Public limited liability company
C
Sole proprietorship
D
Central bank
correct option: b
Users' Answers & Comments23
Which of the following are examples of transfer payment
A
gift and donations
B
rents and rates
C
profit and dividends
D
internal and external debts
correct option: a
Users' Answers & Comments24
The technical relationship between the physical inputs and the physical outputs of a firm is
A
Utility
B
Cost
C
Demand
D
Production function
correct option: d
production function shows the technical information about the combination of inputs necessary for the production of outputs. In equation we write the production function as q = f (L, K) where L and K represents the inputs of labour and capital respectively.
Users' Answers & Comments25
The income elasticity of demand of normal goods is
A
negative
B
positive
C
zero
D
fixed
correct option: b
Users' Answers & Comments26
The following equations relate to an open economy with a government sector. E = aggregate expenditure on domestically produced goods, C = Consumption, I = Investment, G = Government expenditure, T = taxes, M = imports, X = Exports. Which equation is correct
A
E = C + I + G
B
E = C + I + G + M – X
C
E = C + I + G + X – M
D
E = C + I + G – T + M – X
correct option: c
The national income of a country can be estimated as aggregate expenditure, consumption, investment, government expenditure, export less import. Import will be deducted because it is the money paid on importation of goods from other countries.
Users' Answers & Comments27
\(\begin{array}{c|c}
\text{Units of labour} & \text{Fixed capital} & \text{Total product} & \text{Average product} & \text{Marginal product} \\ \hline
0 & 10 & - & - & - \\ \hline
1 & 10 & 10 & 10 & 10 \\ \hline
2 & 10 & 25 & ? & 15 \\ \hline
3 & 10 & 50 & 16.7 & 25 \\ \hline
4 & 10 & 80 & 20.0 & 30 \\ \hline
5 & 10 & 106 & 21.2 & 26 \\ \end{array}\)
Calculate the average product when the 2nd labour was employed 12.5
\text{Units of labour} & \text{Fixed capital} & \text{Total product} & \text{Average product} & \text{Marginal product} \\ \hline
0 & 10 & - & - & - \\ \hline
1 & 10 & 10 & 10 & 10 \\ \hline
2 & 10 & 25 & ? & 15 \\ \hline
3 & 10 & 50 & 16.7 & 25 \\ \hline
4 & 10 & 80 & 20.0 & 30 \\ \hline
5 & 10 & 106 & 21.2 & 26 \\ \end{array}\)
Calculate the average product when the 2nd labour was employed 12.5
A
12.5
B
12
C
15
D
10
correct option: a
Average Product = total product ÷ Labour Employed
TPL/1 = 25/2= 12.5
Average product = 12.5
Users' Answers & CommentsTPL/1 = 25/2= 12.5
Average product = 12.5
28
The relationship between the cost of living and standard of living is
A
A rise in cost of living gives a corresponding rise in standard of living
B
A lower cost of living give a higher standard of living
C
A lower cost of living give a lower standard of living
D
None of the above
correct option: b
Cost of living is the amount of money individuals spent on consumption while the standard of living is the state of economic well being. Therefore, a fall in the cost of living leads to a rise in standard of living.
Users' Answers & Comments29
The ordinalist approach of utility postulated that utility can be
A
Rank
B
Measurable
C
Rise
D
Fall
correct option: a
The ordinalist approach explains that an individual can rank boundless of goods in order of preference with regard to the satisfaction they give him or her. Ordinalist approach is explained by means of different curves and budget lines.
Users' Answers & Comments30
The frequent value that occurs most in a data is
A
median
B
mean
C
mode
D
range