2022 - JAMB Economics Past Questions and Answers - page 2

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.

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

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. 

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.

Option A is the correct answer. 

120 /360 x 7200 = 2400

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

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

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.

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.

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.