2019 - JAMB Economics Past Questions and Answers - page 7

61

Which of the following persons is engaged in "Secondary Production"?

I - a bricklayer
II - an automobile assembly-line worker
III - an accountant
IV - a cinema projectionist

A
I only
B
I, II
C
II, III
D
I, II, III, IV
correct option: b

Tthe transformation of extractive product into finished goods or semi-finished goods is seen as secondary production. 

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62

Let capital formation = CF, Production = P, C = consumption. Then CF =_______

A
P - C
B
P + C
C
PC
D
P/C
correct option: a

The increasing a country's stock of real capital is known as capital formation or capital accumulation.

There must be increase in savings and reduction in consumption of consumer goods i.e consumption must be minus from production.

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63

If wage rate is less than the average revenue product, the firms would be earning________

A
loss
B
super normal profit
C
normal profit
D
higher revenue
correct option: b

MRP = Marginal Revenue Product
ARP = Average Revenue Product
Therefore, if the wage rate is less than the ARP, the firm will make super normal profit. As a result, new forms will enter the industry and the demand for labour will increase which will push up the wage rate so as to be equal to the ARP.

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64

The determination of wages in a labour market depends on the_______

A
Government
B
People
C
Interaction between demand and supply of labour
D
Economy
correct option: c

Labour laws and other forces, the interaction between dd and ss of labour determines the wages in a labour market irrespective of the presence of labour Union.

i.e where dd for labour equals ss of labour.

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65

If the demand for a commodity is perfectly elastic, the incidence of a tax on that commodity will be, other things being equal, entirely on the_______

A
buyer
B
seller
C
government
D
local authority
correct option: b

Attempt to increase price will make the demand for the commodity to fall to zero. The seller or prouder will bear the whole burden of taxation. 

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66

Most of the National debts is "dead weight" in the sense that is____

A
bound to increase from year to year
B
accumulated as the result of past capital investment
C
the responsibility of the treasury
D
not covered by any real asset
correct option: d

 A debt that is incurred to meet current needs without the security of an enduring asset is seen as Dead weight. 

It is usually incurred by the government 

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67

The basic principle underlying location of industry is the tendency for production of a commodity to be located on the basis of______

A
division of labour
B
employment trends
C
relative costs and benefits
D
immobility of skilled labour
correct option: c

The sitting of a firm in a particular area is seen as location of industry.

The benefits a firm derive i.e economies of scale is one of the principle in location of industry.

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68

External economies arises essentially from__________

A
a firm's individual policies
B
localisation of industry
C
government economic policy
D
free transferability of shares
correct option: b

The benefits a firm derives from concentration or localisation of industries in a particular area or the benefits a firm enjoys from increase in its output and decrease in cost as a result of the kind of assistance it derives from other firms is seen as an external economie

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69

The birth rate in 1976 for a certain country with a population of 10m was 8.0. This means that in 1976,___________

A
there were 80,000 live births in the country
B
there were 6,400 live births in the country
C
there were 8 live births to every 100 women in working-class families
D
8 in every 1000 women of 21 - 45 gave birth to a live child
correct option: a

80,000 child were given birth in the country in 1976. 

Since the population in the country is 10pm and 8.0 gave birth to live child.

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70

Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)

A
208
B
104
C
54
D
4
correct option: b

Terms of trade = \(\frac {\text{Index of export prices}} {\text{Index of import prices}}\) x 100

\(\frac {106}{102}\) x 100

= 103.9
≈ 104

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