2022 - JAMB Economics Past Questions and Answers - page 2
PN equals average revenue or marginal revenue cure of
An imperfect competitive firm
a monopoly
a perfectly competitive firm
a monopolistic competitive firm
Option C is the correct answer.
The average revenue or marginal revenue of a perfect market or perfectly competitive firm is represented by the figure PN in the diagram.
If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is
0.50
0.65
2.00
2.50
Option C is the correct answer.
e = ∆Qd/∆P x P/Qd
= 30 - 20/ 5 - 4 x 4/ 20
= 10/1 x 4/20
= 2
The supply curve of a locally-produced good may shift to the right if
there is an increase in taxes on inputs
government increases subsidies
rural-urban migration is encouraged
the price of the commodity increases
Option D is the correct answer.
Because of positive relationship, as the price increases, so do the quantity demanded rises as well which is one of the laws of supply. As a result, an increase in price will cause the the supply curve to move to the right.
In perfectly elastic supply, the supply curve
is vertical
is horizontal
slopes upward
slopes downward
Option B is the correct answer.
When the supply curve is precisely horizontal, a perfect elastic supply curve is present. It is a theoretical curve, and one like it doesn't really exist in reality.
A country's budget allocation to various sectors of the economy is shown in the pie chart above...
Use it to answer this question.
If the budget of the country was $7,200, how much is allocated to Education?
$2,400.00
$2,000.00
$1,200.00
$1,000.00
A country's budget allocation to various sectors of the economy is shown in the pie chart above...
Use it to answer this question
What is the ratio of expenditure on health to Agriculture?
2: 3
3:4
4:3
5:4
Option B is the correct answer.
Health = 60/360 x 7200
= 1200
Agriculture = 80/360 x 7200
= 1600
The ratio of expenditure on health to agriculture = 1200/1600
= 3:4
A consumer of a single commodity is in equilibrium when
he can equate his demand with price
he equates marginal utility and price
he can equate his marginal and total utilities
his marginal utility is equal to zero
Option B is the correct answer.
A consumer is in equilibrium when the marginal utility equal to the price of the commodity i.e MUx = Px.
Where : X = the commodity
MU = Marginal utility
P = price of the commodity
Therefore, a consumer who consume a single commodity such as apple will be at equilibrium when MUa = Pa
If the government imposes a minimum price on a commodity
market surplus occurs
the market will be cleared in the short-run
excess demand occurs
government regulation is no longer needed
Option A is the correct answer.
The government often sets a minimum price, also known as a price floor, to protect the producer or seller. This minimum price is established above the equilibrium price, resulting in a surplus of goods as the supply exceeds the demand.
A minimum price legislation is also called
price ceiling
price floor
price control
price mechanism
Option B is the correct answer.
A minimum price legislation is also commonly referred to as a "price floor" is a government-imposed price floor that sets a legal minimum price for a particular good or service. It is designed to protect producers or sellers from being paid prices that are too low, but can result in an excess supply of the good and a potential surplus.
Which of the following factors is not a cause of diminishing returns?
Increase in variable inputs
Land fragmentation
Constant technology
Technological innovations
Option D is the correct answer.
The law of diminishing returns, which is also known as the law of variable proportion, applies to the analysis of production in the short run. The causes of diminishing returns, including fixed costs, limited demand, no change in technology, and scarce factors, can all be attributed to this law.