2019 - JAMB Economics Past Questions and Answers - page 5
Effective demand for a commodity is desire for that commodity backed by_______
Effective demand is the desire, backed by willingness and ability, to buy at a given price.
A commodity is defined as normal when its demand changes in the same direction as______
A commodity whose income purchased as the consumer's income increases is a normal good because it's income elasticity is positive.
Which of the following matters may account for changes in demand?
I - changes in consumer preferences
II - changes in real income
III - changes in distribution of incomes
IV - changes in levels of taxation
Factors that affect or change shift the demand curve. Consumer preferences (Taste), taxation, income, population, weather conditions, advertisement, price of other commodities are shift.
An example of a market which approaches fairly near to perfection is____________
A market which involves with foreign exchange transactions and it also involves the buying and selling of foreign currencies is known as the foreign exchange Market.
Whether a monopolist is able to increase his revenue by restricting his output depends on the shape of the_________
A monopolist must consider elasticity of demand, since his aim is to produce the output that will yield him maximum profit, A monopolist can either decide his output or the price at which he will sell, but not both. If the demand curve is elastic,
He will decrease his price and if it is inelastic, he will increase his price in order to earn revenue.
An example of a vertical combination is the merger of_________
The merging together of two businesses that are at different stages of production is known as vertical combination. Merging in this way with something further on in the production process is known as Forward Integration.
When of the following matters may account for changes in supply?
I - technological advances in an industry
II - changes in labour costs
III - changes in source of supply
IV - changes in levels of taxation
shifts of the supply also known as change in supply curve is determined by other factors affecting supply except price of the commodity when price is constant.
A supply curve slopes upwards from the left to the right indicating__________
What shows graphical illustrations or diagrammatic representation of a supply schedule and slopes upwards from left to the right indicating a positive slope is the supply curve.
A supply curve sloping upwards from left to right or sloping downward from right to left.
Use the following information given to answer this question
Total of all expenditure incurred during the year ₤ 80,000m
Indirect taxes on goods and services ₤ 8,000m
Capital consumption ₤ 6,000m
National income is__________
National Income = Expenditure - Indirect taxes - Capital consumption (Depreciation)
N.I = 80,000 - 8,000 - 6,000 = ₤ 66,000m
Use the following information given to answer this question
Total of all expenditure incurred during the year ₤ 80,000m
Indirect taxes on goods and services ₤ 8,000m
Capital consumption ₤ 6,000m
Gross national expenditure at factor cost is_________
GNP at cost = Expenditure - Depreciation
⇒ 80,000 - 6,000 = ₤ 72,000μ