2022 - JAMB Economics Past Questions and Answers - page 1
Marginal cost is?
the lowest cost of producing goods
the cost of production of the most efficient firm in an industry
the cost of production of the most inefficient firm in an industry
the cost of production of the last or extra unit of goods produced by a firm
Option D is the correct answer.
The additional cost incurred in producing an additional unit of a good or service is known as the marginal cost.
The price mechanism
regulates supply and demand
rations the consumers
rewards the producers
allocates scarce resources
Option D is the correct answer.
The price mechanism allocates scarce resources by using market prices to signal the relative scarcity of goods and services. When a good is scarce, the price tends to rise, signaling producers to increase supply and consumers to reduce demand. This process helps to ensure that resources are allocated efficiently to their most valuable uses.
In a free market economy, the rationing of scarce goods is done principally by?
the government
business organizations
the price mechanism
consumers
Option C is the correct answer.
In a free market economy, the price mechanism is used to ration scarce goods. When a good becomes scarce, its price rises, encouraging consumers to buy less and producers to supply more, which helps allocate the limited resources to their most valued uses.
Scale of preference shows
incomes of consumers in order of size
utilities enjoyed by consumers
opportunity cost of goods consumed
consumer's wants in order of priority
Option D is the correct answer.
A scale of preference is a table that displays an individual needs and wants in either chronological order or according to priority.
There is unemployment of resources when production is
within the production possibility curve
outside the production possibility curve
along the production possibility curve
adequate to meet market demand
Option A is the correct answer.
Inefficient use of resources, widespread unemployment, or resources not being fully employed are indicated by points inside the production possibility curve.
A major characteristic of natural resources is they
are unlimited in supply
have high cost of production
are free gifts of nature
do not command any price
Option C is the correct answer.
Unlike man-made resources, which are produced by humans, natural resources exist naturally. Natural resources are products of nature and cannot be attributed to human activity.
A major disadvantage of a capitalist economy is that it
leads to low production of goods and services
requires large number of officials to operate
considers individual consumers' satisfaction
worsens income inequality among the citizens
Option D is the correct answer.
The concentration of wealth and power over the means of production in the hands of a small number of people is one of the disadvantages of capitalism. The wealthy families always have control over society's wealth.
The mining sector of an economy contributes 60% to the Gross Domestic Product(GDP). If the GDP is $540, what is the contribution of the mining sector?
$ 90.00
$ 180.00
$ 324.00
$ 350.00
The increase in the demand for a commodity may lead to a decrease in the demand for another if both are
in complementary demand
of the same quality
in composite demand
in competitive demand
Option D is the correct answer.
Competitive demand, also referred to as substituted demand. There are substitute commodities that have comparable utility and can satisfy similar wants. When the demand for one increases, the desire for the other decreases.
The demand curve for goods of ostentation is usually
negatively sloped
positively sloped
vertical
horizontal
Option B is the correct answer.
Ostentation goods are expensive items like jewellery, gold watches, etc. The quantity demanded increases as the price rises. As a result, there is a positive relationship between price and quantity demanded.