2020 - JAMB Economics Past Questions and Answers - page 2

11

If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?

A

0.20

B

0.80

C

1.25

D

2.00

correct option: b

Average Propensity to Consume (APC) is a measure of the percentage of income that is spent rather than saved. 

APC = C / DI

Income = 500

consumption = 400 

\(\frac{400}{500}\) = 0.8 

 

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12

The group of unemployed members of a community who are physically handicapped or disable, is generally classified under unemployment as?

A

frictional

B

cyclical

C

residual

D

hidden

correct option: b

Cyclical unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn.

Unemployment typically rises during recessions and declines during economic expansions.

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13

Collectivism refers to the management of state enterprises in a?

A
mixed economy
B
co-operative organizations
C
capitalist economic system
D
socialist economy
correct option: d
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14

Efficiency in production means?

A
reducing the size of the work force
B
producing a given output with the lowest cost of combination of factors of production
C
adoption of capital intensive technology
D
increasing the quantity of the fixed factors of production
correct option: b
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15

In economic life, the choice among alternatives depends on the?

A
income of the decision maker
B
scarcity of resources
C
the scale of preference of the decision-maker
D
status of the decison maker
correct option: c
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16

The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continously

A
total utility must fall
B
marginal utility must fall
C
marginal utility may rise
D
marginal utility may fall even though his total utility may be rising
correct option: b
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17

Which of the following rewards is associated with entrepreneurship

A
salaries
B
profits
C
interest
D
rent
correct option: b
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18

Which of the following is likely to be inflationary

A
taxes increase
B
increase in unemployment
C
budget surplus
D
wages increase
correct option: d
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19

The relationship between the tax rate and income which is relevant to progressive tax is shown by?

A
curve X
B
curve Y
C
curve Z
D
curve X and Z
correct option: b
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20

The relationship between tax rate and income which is relevant to a proportional tax is depicted by?

A
curve Z and Y
B
curve X
C
curve Z
D
curve Y
correct option: c
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