JAMB UTME - Economics - 1988

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Question 8 Report

One factor which influences the slope of a non-linear demand curve for a commodity is the?

price of the commodity

quantity of the commodity demanded

availability of substitutes Correct answer

available of complements

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Demand (WAEC)

The Theory Of Demand

Demand

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Question 9 Report

Development outside a given firm which reduce the firm costs are called?

internal economies

external economies Correct answer

external diseconomies

optimum effects

Answer Details

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 10 Report

Price leadership is?

a form of tacit collusion Correct answer

used to explain price rigidity

illegal in nigeria

a form of overt collusion

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

Theory Of Price Determination

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Question 11 Report

Which of the following BEST describes the production function?

it indicates best output to produce

it relates naira inputs to naira output

it relates physical outputs to physical inputs Correct answer

it indicates the best way to combine factors to produce given output

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 12 Report

Air is essential to life but commands no price!

Diamond is not essential to life but commands a high?

thrift

value Correct answer

abundance

scarcity

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on Banking (JAMB)

Read lesson note on Supply (WAEC)

Read lesson note on Economics As A Science (JAMB)

The Theory Of Supply

Banking

Supply

Economics As A Science

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Question 13 Report

When a variable is associated with time period, it is?

a flow Correct answer

a stock

circular

static

Answer Details

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 14 Report

Economic is often described as a science because?

laboratory experiments are performed

it makes use of controlled experiments

it uses scientific methods to explain observed phenomena and predict future events Correct answer

it makes use of field work

Answer Details

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 15 Report

Which of the following is TRUE at the quantity of output where Average Cost (AC) per unit has reached its minimum level?

AVC=FC

MC=AVC

MC=AC Correct answer

AC=AFC

Answer Details

Read lesson note on Theory Of Costs (JAMB)

Read lesson note on The Theory Of Price Determination (JAMB)

Theory Of Costs

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Question 16 Report

The assumption of profit maximization implies profit?

is the most important consideration of the firm

Correct answer

is the sole consideration of the firm

assumes an insatiable propotion in the instinct of management

is made in other to break-even

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 17 Report

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

0.20

0.80 Correct answer

1.25

2.00

Answer Details

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Read lesson note on Theory Of Costs (JAMB)

Theory Of Costs

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Question 18 Report

Deficit financing is mostly facilitated by the existence of?

stock exchange market

commercial bank

central bank Correct answer

capital market

Answer Details

Read lesson note on Banking (JAMB)

Read lesson note on International Trade And Balance Of Payments (WAEC)

Banking

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Question 19 Report

Which of the following factors enhances the ability of commercial banks to create money?

Reduction in the reserve ratio Correct answer

Leakage of cash out of banking system

excess of reserves

Insistence on collateral security

Answer Details

Reserve ratio is one of instrument that central bank use to control the activities of commercial banks across the nation. So, a reduction in this reserve ratio will make commercial banks to lend more to the public which in turn yield more interest for them.

Read lesson note on Banking (JAMB)

Banking

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Question 20 Report

Which of the following items is subtracted when computing Gross National Product at factor cost, by the expenditure method?

Consumption expenditure

Indirect taxes Correct answer

Exports and property income from abroad

Gross Domestic Fixed Capital Formation

Answer Details

Read lesson note on National Income (WAEC)

Read lesson note on International Trade And Balance Of Payments (WAEC)

National Income

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Question 21 Report

If in this demand-supply diagram, the quantity supplied is OQ, then

price will be OP

there will be excess demand of RT Correct answer

price will be ON

price will tend to rise

Answer Details

Read lesson note on The Theory Of Price Determination (JAMB)

Read lesson note on Demand (WAEC)

Demand

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Question 22 Report

The most important limitation on the partner as a form of business enterprise is the?

implication for partners'liability

legal limitation placed on the number of partners Correct answer

difficulties arising from having two co-ordinate heads of a firm

fact that each partner regardless of the capital he contributes, must have the same voting rights

Answer Details

Read lesson note on Business Organizations (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Business Organizations

The Theory Of Demand

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Question 23 Report

Scarcity in economics means that?

human wants are limitless

the economy has very few resources

the economy can scarcely produce anything

resources are limited in relation to wants

Correct answer

Answer Details

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 24 Report

Which of the following occurs in the circular flow of economic activities with no leakages

Consumption equals saving

Saving equals investment Correct answer

Imports equal exports

National income equals national expenditure

Answer Details

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Question 25 Report

In a public company, enterpreneurial functions are performed by the?

workers

shareholders

general manager

board of directors Correct answer

Answer Details

Read lesson note on Agriculture (WAEC)

Read lesson note on Business Organizations (JAMB)

Agriculture

Business Organizations

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Question 26 Report

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

frictional

cyclical

residual Correct answer

hidden

Answer Details

Read lesson note on Population And Labour Market (WAEC)

Population And Labour Market

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Question 27 Report

The demand and supply equations for a commodity are given respectively as D = 20 - 1/2P; S = 8 + 1/4P. Recalling that at equilibrium, D = S, the equilibrium (P) and quantity (Q) can be obtained as

P = 12, Q = 16

P = 15, Q = 10

P = 12, Q = 14

P = 16, Q = 12

Correct answer

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Supply

The Theory Of Demand

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Question 28 Report

A commodity is said to have a derived demand when the commodity

and another have joint demand

is demanded because of what it can help to produce Correct answer

is demanded for different purposes

has inelastic demand

Answer Details

Read lesson note on Theory Of Consumer Behaviour (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Consumer Behaviour

The Theory Of Demand

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Question 29 Report

If prices fall in a perfectly competitive industry, the firms in that industry in the short run will?

not decrease in number

keep output at the same level but make losses

reduce production Correct answer

intensity the advertisement of their products

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Price Determination (JAMB)

The Theory Of Supply

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Question 30 Report

In estimating the national income of a country, the three approaches usually adopted are the?

expenditure, value-added and output

income, final product and output

expenditure,income and output Correct answer

avoiding of double counting, final expenditure and value added

Answer Details

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Read lesson note on National Income (WAEC)

Read lesson note on The Theory Of Supply (JAMB)

National Income

The Theory Of Supply

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Question 31 Report

Merchants banks perform all the following functions EXCEPT?

raising of capital for industry

provision of current account facilities Correct answer

management of investment portfolios

provision of credit for overseas trade

Answer Details

Read lesson note on Banking (JAMB)

Banking

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Question 32 Report

The most threatening problem for the less developed countries is?

the continual depletion of their soil fertility

the rise of nationalism

population explosion Correct answer

their differences towards economic growth

Answer Details

Read lesson note on Population And Labour Market (WAEC)

Read lesson note on Population (JAMB)

Population And Labour Market

Population

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Question 33 Report

An increase in an economy's productive capacity implies?

an increase in the economy's rate of capital replacement

an increase in the economy's capital stock Correct answer

a decrease in government spending

an increase in government spending

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 34 Report

The law of Diminishing Returns begins to operate when?

total product begins to rise

total product begins to fall

marginal product begins to fall Correct answer

marginal product begins to rise

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Theory Of Costs (JAMB)

The Theory Of Production

Theory Of Costs

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Question 35 Report

Localization of industries refers to the?

tendency to concentrate industries in particular areas Correct answer

sitting of industries in certain areas

deliberate policy of influencing location of industries generally

zoning of industries

Answer Details

Read lesson note on Industrialization (WAEC)

Read lesson note on Industry And Industrialization (JAMB)

Industrialization

Industry And Industrialization

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Question 36 Report

A textile firm operates a plant in the North (where capital expensive relative to labour)as well as a plant in the South (where labour is expensive relative to capital ). In this diagram above the Southern plant will minimize cost by combining labour and capital in the amounts indicated by

X Correct answer

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Supply

The Theory Of Demand

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Question 37 Report

In the short run, the monopolistic competitors?

always makes profit Correct answer

always incurs a loss

always breaks -even

may close down

Answer Details

Read lesson note on Market Structure (JAMB)

Market Structure

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Question 38 Report

Which of the following is a direct tax?

Sales tax

Purchase tax

Export duties

property tax Correct answer

Answer Details

Read lesson note on International Economic Organizations (JAMB)

Read lesson note on Public Finance (WAEC)

International Economic Organizations

Public Finance

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Question 39 Report

The additional revenue obtained by using one more unit of a factor is called?

average product

marginal product

diminishing returns

marginal revenue product Correct answer

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 40 Report

If technology becomes less capital-intensive, it means?

an increase in the capital/labour ratio

an increase in the capital/ratio Correct answer

a fall in the labour/capital ratio

increased unemployment

Answer Details

Read lesson note on Factors Of Production (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Factors Of Production

The Theory Of Demand

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Question 41 Report

If goods were free, a rational consumer would consume?

an infinite amount of each good

the amount where marginal utility became zero

the same amount as when each good had a price

the amount where marginal utility was the highest Correct answer

Answer Details

Read lesson note on The Theory Of Consumer Behaviour (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on The Theory Of Price Determination (JAMB)

The Theory Of Consumer Behaviour

The Theory Of Demand

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Question 42 Report

One of the characteristics of an imperfect market is?

a large number of buyers and sellers

a lack of homogeneity of products Correct answer

an adequate awareness of market conditions by buyers and sellers

the availability of substitutes

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Market Structure (JAMB)

The Theory Of Production

Market Structure

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Question 43 Report

The rate at which money changes hands is known as the?

rate of inflation

velocity of transactions

velocity of money

velocity of circulation Correct answer

Answer Details

Read lesson note on Money And Inflation (WAEC)

Money And Inflation

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Question 44 Report

Which of the following is a good example of invisible item on balance of payments account?

Shipping and aviation Correct answer

Export and imports

Merchandise

Bullion

Answer Details

Read lesson note on International Trade And Balance Of Payments (WAEC)

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Question 45 Report

Total fixed cost measures the cost of?

all plant and machinery

all assets where quantity cannot be varied in the short run Correct answer

all assets upon which the firm has control

prooerty owned by the firm

Answer Details

Read lesson note on Theory Of Costs (JAMB)

Theory Of Costs

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Question 46 Report

In any economy, what is used as money is determined by?

government acceptance commodity standard Correct answer

government acceptance of an inconvertible paper standard

laws and customs

its use as a store of value

Answer Details

Read lesson note on Money And Inflation (WAEC)

Read lesson note on International Trade And Balance Of Payments (WAEC)

Read lesson note on Money And Inflation (JAMB)

Money And Inflation