2015 - JAMB Economics Past Questions & Answers - page 1

1
The law of variable proportions is also known as
A
law of demand
B
law of diminishing returns
C
law of diminishing marginal utility
D
law of returns to scale
CORRECT OPTION: b
2
All the following are problems identified with agriculture in West Africa except
A
land tenure system
B
ignorance of the farmers
C
use of crude implement
D
provision of food for the teeming population
CORRECT OPTION: d
3
Revenue can be expressed as
A
total Profit made after sales
B
amount of goods produced
C
total money realized from sales
D
amount spent on purchases
CORRECT OPTION: c
Revenue can be defined as the income generated by a firm from the sales of its goods and services.
4
All the following are factors that would bring about a change in supply except
A
level of technology
B
government policy
C
Entry of new firms
D
Price of the commodity
CORRECT OPTION: d
5
The combination of two commodities each yielding the same level of satisfaction to the consumer is
A
consumer surplus
B
indifference curve
C
budget constant
D
goods of necessity
CORRECT OPTION: b
6
In which situation is it likely that the demand for labour would be inelastic?
A
Labour and capital are close substitutes
B
Labour costs are only a small proportion of total costs
C
Demand for the final product that the labour produces is elastic
D
A large quantity of unemployed labour is available in the economy
CORRECT OPTION: b
7
The headquarter of the Organization Of Petroleum Exporting Countries (OPEC) is in
A
Paris, France
B
Geneva, Switzerland
C
Lagos, Nigeria
D
Vienna, Austria
CORRECT OPTION: d
8
What will increase the likelihood that the firms in an industry will conclude to maximize their joint profit?
A
The industry has many differentiated products
B
The industry is characterized by rapid technological change
C
The industry consist of large number of producers
D
There are significant barriers to prevent firms entering the market
CORRECT OPTION: d
9
A commercial bank can create money by
A
issuing currency
B
increasing cash ratio
C
issuing cheque
D
lending to borrowers
CORRECT OPTION: d
lending to borrowers in form of loan with an interest rate makes the commercial bank to create more money.
10
The source of all economic problems arises from
A
wants
B
Scarcity
C
Opportunity Cost
D
Scale of Preference
CORRECT OPTION: b
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