2019 - JAMB Economics Past Questions and Answers - page 1
A demand which gives rise to the reverse of the law of demand is__________
A normal demand lower price more will be demand but Abnormal demand curve slopes upward from left to right indications, It higher price more will be demanded which give reverse. A normal demand curve slopes downward from left to right indication.
If two commodities are unrelated, a change in the price of one will____________
A change in the price of refrigerator and bicycle has no effect on each other. A change in the price of refrigerator will have not affect the bicycle since they are not related. The two goods are independent goods.
| Price (₦) |
Quantity Demanded |
| 8 | 10 |
| 6 | 12 |
If we move from 8 to 6, the elasticity of demand is_______
NOTE : The elasticity of demand is always positive. Therefore, the negative sigin is ignored or extra negetive sign is introduced to make it postive.
The elasticity of demand is calculated using:
| ρd | = | % Δ in P
% Δ in Q |
Where P = Price
Q = Quantity Demanded
Therefore,
| % | Δ | in | P | = | 6 - 8
8 |
× | 100 |
= -25%
| % | Δ | in | Q | = | 12 - 10
10 |
× | 100 |
= 20%
| ρd | = | -25
20 |
= | -1.25 | = | 1.25 |
The answer is 1.25
In a perfect competition, the market price is determined by_______
The Demand and Supply determined the price the firm can sell any quantity it wishes, Since the buyers or sellers cannot influence the price of goods and services.
In the short-run, the monopoly makes_______
The short-run monopoly sells OM output at MP (OB) price. The total monopoly profits are AP × CA = CAPB is shaded in the diagram.
CAPB indicates Abnormal profit of the monopolist.
Short-runs is s period where some factors are fixed,while some are variable.
The demand curve facing the monopolist in the foreign market is__________
The foreign market is a perfect competitor then the monopolist is challenged with average revenue or horizontal demand curve or price line.
The foreign market is perfectly competitive while the home market is monopolistic.
Supply is________
Supply has a time dimension, it relates to a period of time that's why it a flow.
A rise in the supply of a commodity cause__________
There will be an excess supply over demand which will lead to a decrease in the equilibrium price and an increase in equilibrium quantity if the supply increase while the demand remains constant.
The method obtained by adding all the reward of factors of production in national income is________
Rent, Interest, wages & salaries and profit are the reward of factors of production. In national income adding the reward i.e R + I + W + P is used in calculating the income approach.
An economy in which the whole income is not consumed is referred to as______
An economy in which the income is shared between consumption and saving or consumption and investment i.e
γ = c + s or γ = C + I
It is known as frugal economy.