JAMB UTME - Economics - 2007 | Green Bridge CBT

Question 1 Report

The minimum number of shareholders for a joint stock company is

7
Correct answer

Answer Details

Read lesson note on Types And Basic Features Of Economic Systems (WAEC)

Types And Basic Features Of Economic Systems

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Question 2 Report

An economic system in which the producer and the consumer are the same is referred to as a

mixed economy

subsistence economy Correct answer

capitalist economy

socialist economy

Answer Details

An economic system in which the producer and the consumer are the same is referred to as a subsistence economy. In this type of economy, people produce goods and services for their own consumption without the involvement of a market or money exchange. This type of economy is common in rural areas and is often associated with farming, hunting, and fishing. The primary goal of a subsistence economy is to meet the basic needs of the community rather than to generate profit.

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Question 3 Report

The term ceteris paribus implies that

Resources are scarce

Human problems can be solved

Human beings are unpredictable

All factors are fully utilized Correct answer

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 4 Report

The maximum number of workers that should be hired is

4 Correct answer

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Production

The Theory Of Demand

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Question 5 Report

The non-bank financial institutions that are entrusted with workers contributions towards retirements are

Mortgage institutions

Investment companies

Pension funds custodians Correct answer

Pension funds administrators

Answer Details

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Question 6 Report

The range is used to

estimate the mean from grouped data

calculate the standard deviation

determine the spread of a set of data Correct answer

measure the difference between the mean and the mode

Answer Details

The range is used to determine the spread of a set of data. It is a statistical measure that represents the difference between the largest and smallest value in a dataset. By calculating the range, one can get an idea about how widely dispersed the data is. A larger range indicates a greater spread of data, while a smaller range indicates a more narrow distribution. Thus, the range is a useful tool in summarizing and analyzing data, and it helps in making decisions based on the variability of the dataset.

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

Read lesson note on Basic Tools Of Economic Analysis (WAEC)

Methods And Tools Of Economic Analysis

Basic Tools Of Economic Analysis

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Question 7 Report

A reduction in the bank rate encourages commercial banks to create money by

Decreasing the interest rate

maintaining the interest rate Correct answer

Doubling the interest rate

Raising the interest

Answer Details

Read lesson note on Banking (JAMB)

Banking

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Question 8 Report

The survival of a partnership depends on

the managerial ability of the partners Correct answer

access to finance

the goodwill of the partners

political stability

Answer Details

The survival of a partnership depends on the managerial ability of the partners. This is because a partnership is a type of business organization where two or more individuals come together to carry on a business with a view of making a profit. The partners pool their resources together, share in the profits or losses, and also share the risks involved. For the partnership to succeed and survive, the partners must possess the necessary managerial skills and knowledge to manage the business effectively. They need to be able to make sound business decisions, allocate resources properly, manage finances, and develop effective marketing strategies. Without the necessary managerial ability, the partnership may fail to make profits, run into debt, and eventually collapse. Therefore, the survival of a partnership depends on the ability of the partners to manage the business effectively.

Read lesson note on Business Organizations (JAMB)

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Business Organizations

Economic Systems

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Question 9 Report

The gains from international trade are shared on the basis of the

quantity produced of each of the traded goods

cost of production of each of the traded goods

Correct answer

terms of trade

bilateral trade agreements

Answer Details

Read lesson note on International Trade (JAMB)

International Trade

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Question 10 Report

One of the ways of correcting a deficit balance of payments is to

revalue a country's currency

devalue a country's currency Correct answer

increase imports

reduce exports

Answer Details

Read lesson note on Financial Institutions (WAEC)

Financial Institutions

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Question 11 Report

Industrialization is a prerequisite for balanced economic growth because it

encourages trade liberalization

stimulates the development of all sectors Correct answer

enhances productivity in the manufacturing sector

expends employment opportunities in urban areas

Answer Details

Industrialization is a prerequisite for balanced economic growth because it stimulates the development of all sectors. When an economy is industrialized, there is an increase in the production of goods and services. This increase in production leads to the development of other sectors like transportation, communication, and energy, which are essential for the growth of the economy. Industrialization also leads to an increase in productivity in the manufacturing sector which creates more job opportunities, and increased income for workers. This increased income then leads to an increase in consumer spending, which further stimulates economic growth.

Read lesson note on Industry And Industrialization (JAMB)

Industry And Industrialization

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Question 12 Report

The logical sequence of basic concepts in economics is

Wants, scarcity, choice and opportunity cost Correct answer

Wants , choice, scarcity and opportunity cost

Scarcity, wants , choice and scale of perference

Scarcity, choice ,scale of preference and opportunity cost.

Answer Details

Read lesson note on Definition And Scope Of Economics (WAEC)

Definition And Scope Of Economics

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Question 13 Report

The coefficient of the price elasticity of supplyis always

positive Correct answer

negative

constant

zero

Answer Details

The coefficient of price elasticity of supply measures the responsiveness of quantity supplied to a change in the price of a commodity. It can be calculated by dividing the percentage change in quantity supplied by the percentage change in price. Since price and quantity supplied have a direct relationship, an increase in price will result in an increase in quantity supplied and vice versa. Therefore, the coefficient of price elasticity of supply is always positive.

Read lesson note on Theory Of Price Determination (WAEC)

Theory Of Price Determination

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Question 14 Report

The monetization policy is an offshoot of

NEEDS Correct answer

SAP

PAYE

MDGs

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 15 Report

Life insurance companies contribute to economic development by holding a part of their assets in

long-term financial instruments

money market instruments

cash and near money Correct answer

short-term financial instruments

Answer Details

Read lesson note on Financial Institutions (WAEC)

Financial Institutions

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Question 16 Report

If P = 1/2(Qs + 15). What is the quantity supplied at N9.00?

33.0

12.0

3.0 Correct answer

1.5

Answer Details

The given equation is P = 1/2(Qs + 15). Here, P represents the price, and Qs represents the quantity supplied. To find the quantity supplied when the price is N9.00, we need to substitute P = 9 in the equation and solve for Qs. So, 9 = 1/2(Qs + 15) Multiplying both sides by 2, we get: 18 = Qs + 15 Subtracting 15 from both sides, we get: Qs = 3 Therefore, the quantity supplied at a price of N9.00 is 3.0.

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 17 Report

The labour force of a country best describes

the number of people in paid employment

the number of people receiving pension

people within the retirement age

people within the working age Correct answer

Answer Details

The labour force of a country refers to the total number of people who are either employed or unemployed and are within the working age (usually defined as 15-64 years) and are actively seeking employment. This includes individuals who are currently employed, those who are unemployed and actively looking for work, and those who are available for work but not actively seeking it. It does not include people who are not within the working age, such as children and the elderly, or those who are not actively seeking employment, such as students or those who have retired.

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 18 Report

The diagram above shows a firm operating under conditions of monopolistic competition. The curve W represents its

marginal cost

average cost

average revenue Correct answer

marginal revenue

Answer Details

The curve W represents the average revenue of the firm. In a monopolistically competitive market, a firm faces a downward sloping demand curve and is able to set its price above the marginal cost due to product differentiation. The average revenue curve shows the relationship between the price of the product and the quantity sold, indicating the revenue per unit of output. The marginal revenue curve, on the other hand, shows the additional revenue generated by selling one additional unit of output. Therefore, the correct answer is average revenue.

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 19 Report

A characteristic of the linear production function is that

the percentage change in inputs change exceeds output

output and all inputs change by the same percentage Correct answer

the percentage change in output is greater than one

the percentage change in output is less than one

Answer Details

The linear production function is a type of production function that has a constant rate of increase in output as inputs increase. This means that for every additional unit of input, the output increases by the same fixed amount. In other words, output and all inputs change by the same percentage. Therefore, the percentage change in output is always equal to the percentage change in inputs, making it a linear relationship. So, the correct answer is: "output and all inputs change by the same percentage."

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 20 Report

An advantage of electronic banking is that it

Enables many customers to operate joint accounts

Reduces risk of bank fraud

Enables a customer to operate many accounts from different locations

Enables a customer to operate his account from different locations Correct answer

Answer Details

One advantage of electronic banking is that it enables a customer to operate their account from different locations. Electronic banking, also known as online banking or internet banking, allows customers to access and manage their bank accounts using electronic devices such as computers, smartphones or tablets, as long as there is internet access. This means that customers can check their account balance, make payments, transfer funds, and perform other banking transactions from wherever they are, without the need to visit a physical bank branch. This can save time and effort for customers who are unable to visit a bank branch during regular business hours or who are located far away from a bank branch.

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Banking

Financial Institutions

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Question 21 Report

What is the median wage?

₦8.00

₦5.00

₦11.00

₦6.50 Correct answer

Answer Details

Read lesson note on National Income (WAEC)

Read lesson note on Economics As A Science (JAMB)

National Income

Economics As A Science

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Question 22 Report

The table shows the wage distribution of workers.Calculate the mean wage

?7.40 Correct answer

?4.00?

?10.00

?14.80

Answer Details

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

Read lesson note on National Income (WAEC)

Methods And Tools Of Economic Analysis

National Income

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Question 23 Report

When a firm's average revenue curve is downward-slopping , it's price elasticity of demand will be

Zero

Greater than one

One Correct answer

Between zero and infinity

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 24 Report

A country would develop its agricultural sector first so as to

stabilize the prices of agricultural products

stabilize the prices of industrial products

create a market for the agricultural sector

create a market for the industrial sector Correct answer

Answer Details

Read lesson note on Agriculture (WAEC)

Read lesson note on Money And Inflation (JAMB)

Agriculture

Money And Inflation

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Question 25 Report

The movement of people from rural to urban areas affects the

occupational distribution of population

sex distribution of population

geographical distribution of population Correct answer

age distribution of population

Answer Details

The movement of people from rural to urban areas affects the **geographical distribution of population**. When people move from rural areas to urban areas, the population becomes more concentrated in urban areas, leading to a decrease in the population of rural areas and an increase in the population of urban areas. This movement can have significant effects on the geographical distribution of population, including changes in population density, urbanization, and development patterns.

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Population And Labour Market

Population

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Question 26 Report

The price per unit of a commodity to a buyer is the same as the

Normal profit of the seller

Average revenue of the seller Correct answer

Marginal cost of the commodity

Marginal revenue of the seller

Answer Details

The price per unit of a commodity to a buyer is the same as the **average revenue of the seller**. Average revenue is the total revenue earned by the seller by selling all units of the commodity divided by the total number of units sold. In other words, it is the revenue earned per unit of the commodity. Since the price of the commodity is the revenue earned per unit by the seller, the price per unit is the same as the average revenue of the seller.

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on Economics As A Science (JAMB)

Theory Of Price Determination

Economics As A Science

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Question 27 Report

A commodity is described as inferior when the

income effect is negative Correct answer

income effect is positive

substitution effect is negative

substitution effect is positive

Answer Details

A commodity is considered inferior when the income effect is negative. In other words, as consumers' income increases, the demand for the inferior commodity decreases. This is because consumers switch to superior or better quality substitutes as their income increases. An example of an inferior good is low-quality rice, where as consumers' income increases, they prefer to buy higher-quality rice or switch to other substitutes like pasta.

Read lesson note on Theory Of Consumer Behaviour (WAEC)

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on Theory Of Production (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Consumer Behaviour

Theory Of Price Determination

Theory Of Production

The Theory Of Demand

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Question 28 Report

The major determinant of cross elasticity of demand is the

price of the good

degree of necessity of the good

level of income of consumers

closeness of the substitutes Correct answer

Answer Details

The major determinant of cross elasticity of demand is the "closeness of the substitutes." Cross elasticity of demand is a measure of how the quantity demanded of a particular good changes in response to a change in the price of a related good. If there are close substitutes available, then the cross elasticity of demand will be high, indicating that consumers are likely to switch to the substitute good if the price of the original good increases. On the other hand, if there are no close substitutes, then the cross elasticity of demand will be low, indicating that consumers have few alternatives and are likely to continue buying the original good even if the price increases.

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 29 Report

A persistent rise in the prices of inputs will lead to

hyperinflation

stagflation

cost-push inflation Correct answer

demand-pull inflation

Answer Details

A persistent rise in the prices of inputs will lead to cost-push inflation. When the cost of producing goods and services increases, producers will increase the prices of those goods and services to maintain their profit margins. This, in turn, can lead to an overall rise in the general price level of the economy, which is referred to as inflation. Cost-push inflation occurs when the increase in prices is caused by an increase in the cost of production, as opposed to an increase in demand for goods and services (demand-pull inflation).

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Money And Inflation

The Theory Of Price Determination

Financial Institutions

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Question 30 Report

An increase in the marginal cost of production causes

A downward movement along the supply curve

A leftward shift of the supply curve

A rightward shift of the supply curve

An upward movement along the supply curve Correct answer

Answer Details

An increase in the marginal cost of production causes an upward movement along the supply curve. Marginal cost is the additional cost incurred in producing an additional unit of a good or service. When marginal cost increases, it becomes more expensive for producers to produce each additional unit. As a result, producers will supply fewer units at any given price, and the supply curve shifts upward. This means that the quantity supplied at any given price will decrease, resulting in a decrease in the overall supply.

Read lesson note on The Theory Of Supply (JAMB)

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The Theory Of Supply

The Theory Of Production

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Question 31 Report

Upstream oil activities involve the

exploration of crude oil Correct answer

refining of crude oil

marketing of finished products

management of pollution

Answer Details

Upstream oil activities involve the exploration and production of crude oil. This includes activities such as locating oil reserves, drilling wells, extracting the oil from underground, and bringing it to the surface for further processing. Essentially, upstream activities involve the initial stages of the oil extraction process, before the oil is refined and marketed as finished products. The other options mentioned in the question, such as refining of crude oil, marketing of finished products, and management of pollution, fall under downstream oil activities.

Read lesson note on Petroleum And The Nigerian Economy (JAMB)

Petroleum And The Nigerian Economy

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Question 32 Report

Environmental degradation is more associated with

localization of industries Correct answer

location of industries

decreased urbanization

urban-rural migration

Answer Details

Environmental degradation is more associated with the location of industries. When industries are located near sensitive ecosystems or areas with a high concentration of people, they can cause pollution, waste disposal problems, and other forms of environmental degradation. Industrial activities such as mining, manufacturing, and energy production can contribute to air and water pollution, deforestation, soil degradation, and other negative impacts on the environment. Therefore, the location of industries is an important factor to consider in reducing environmental degradation.

Read lesson note on Industrialization (WAEC)

Industrialization

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Question 33 Report

A firm operating at full capacity will have a

perfectly inelastic supply curve Correct answer

perfectly elastic supply curve

fairly elastic supply curve

fairly inelastic supply curve

Answer Details

A firm operating at full capacity means that it is producing at the maximum level it can sustain in the short term. In this situation, the firm has no excess capacity to produce more output even if the price of its product increases. Hence, the supply curve of the firm will be perfectly inelastic. This means that any increase in the price of the product will not result in an increase in the quantity supplied by the firm, as it is already producing at its maximum level. Therefore, the correct answer is "perfectly inelastic supply curve."

Read lesson note on The Theory Of Supply (JAMB)

The Theory Of Supply

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Question 34 Report

When the demand for a good increases owing to an increase in income, it means that

there is an increase in quantity demanded

inflation has taken place

demand has exceeded supply

there is an increase in demand Correct answer

Answer Details

When the demand for a good increases owing to an increase in income, it means that there is an increase in demand. In this case, people have more money to spend and are willing to buy more of the good. This leads to an increase in the quantity demanded of the good at each price point, which is represented by a rightward shift of the demand curve. Therefore, an increase in income leads to an increase in demand and a higher equilibrium price and quantity.

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 35 Report

In the circular flow of income model, the outflow variables represent

Income

Expenditure

Injections

Leakages Correct answer

Answer Details

In the circular flow of income model, the outflow variables represent the leakages from the economy. These are the ways in which money flows out of the economy and includes savings, taxes, and imports. When households save money, it is not spent in the economy and is considered a leakage. Taxes are also a leakage because they are paid to the government and are not spent in the economy. Finally, imports are considered a leakage because they represent money flowing out of the economy to purchase goods and services from other countries.

Read lesson note on Economics As A Science (JAMB)

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Economics As A Science

Economic Systems

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Question 36 Report

In a developing economy, productivity is measured by the

capital-output ratio

output growth rate

output-labour ratio Correct answer

output per capita

Answer Details

Read lesson note on The Theory Of Production (JAMB)

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The Theory Of Production

Money And Inflation

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Question 37 Report

Foreign investment can be attracted to Nigeria through

a review of the tax policy Correct answer

a review of interest rates

the revaluation of the naira

a review of the naturalization policy

Answer Details

Foreign investment refers to the investment made by foreign entities in the economy of a country. To attract foreign investment in Nigeria, the government can review its tax policy to make it more favorable to foreign investors. By reducing taxes on businesses, foreign investors would be more likely to invest in Nigeria as it would make their investments more profitable. Additionally, the government can review interest rates to make borrowing easier and more attractive for foreign investors. Revaluation of the naira may also make Nigeria's goods and services more expensive for foreign investors, which may make them less likely to invest. Finally, the government can review its naturalization policy to allow foreign investors to become citizens more easily, which would provide them with greater security and stability in their investments.

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Public Finance

Economic Systems

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Question 38 Report

What is the marginal productivity when the number of workers is increased from 2 to 3?

8kg Correct answer

20kg

60kg

180kg

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 39 Report

One way of solving the problem of double counting is by

Value-added method

Correct answer

Income method

Output method

Expenditure method

Answer Details

Double counting occurs when a single transaction is counted multiple times in the calculation of GDP. One way to solve this problem is by using the value-added method. This method adds up the value added at each stage of production rather than simply adding up the total sales. By adding up the value added at each stage, the final GDP figure does not include any intermediate goods or services that were used in the production process. This helps to avoid double counting and provides a more accurate measure of the economy's total output.

Read lesson note on Economics As A Science (JAMB)

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Economics As A Science

Economic Systems

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Question 40 Report

A major objective of the Federal Government's initiative on cassava production in Nigeria is to

diversify the export base of the economy Correct answer

ensure the availability of cassava

make cassava a staple food in the country

provide raw materials for industries

Answer Details

Read lesson note on Money And Inflation (JAMB)

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Read lesson note on Industry And Industrialization (JAMB)

Money And Inflation

Agriculture In Nigeria

Industry And Industrialization

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Question 41 Report

An upward review of the retirement age will affect the

wage rate

demand for labour

supply of labour Correct answer

tax rate

Answer Details

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

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Read lesson note on Economics As A Science (JAMB)

Methods And Tools Of Economic Analysis

Market Structures

Economics As A Science

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Question 42 Report

The world market for crude oil refers to the

total supply by OPEC members

total demand for and supply of crude oil Correct answer

excess crude oil produced in the world

difference between the supply of and demand for oil

Answer Details

The world market for crude oil refers to the total demand for and supply of crude oil globally. It is a market where producers and consumers of crude oil from different countries come together to buy and sell oil. The price of crude oil is determined by the interaction of global supply and demand. The Organization of the Petroleum Exporting Countries (OPEC) plays a significant role in influencing the world market for crude oil by controlling the supply of oil from its member countries. However, the market is also influenced by non-OPEC oil-producing countries and other factors such as geopolitical events and economic conditions.

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International Trade

Petroleum And The Nigerian Economy

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Question 43 Report

A continuous increase in national income accompanied by the structural transformation of all indices is called

economic planning

economic growth

economic reforms

economic development Correct answer

Answer Details

Economic development refers to a continuous increase in national income accompanied by the structural transformation of all indices. In other words, it is a sustained increase in economic growth that leads to significant improvements in living standards, reduction in poverty, and an increase in the general well-being of the population. It involves not just the growth of the economy, but also the improvement in social and economic indicators such as education, health, and infrastructure, among others. Economic development is a long-term process that requires the coordination of various policies and efforts to achieve sustained growth and improve the quality of life of the population.

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National Income

Economic Development And Planning

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Question 44 Report

The Malthusian theory of population has been rendered ineffective by

government policies

natural disasters

birth contorl measures

technical progress Correct answer

Answer Details

The Malthusian theory of population asserts that population growth will inevitably outpace food production, leading to a catastrophic collapse of human civilization. This theory has been rendered ineffective because of technical progress. Technological advancements, such as the Green Revolution, have led to a significant increase in food production and improved agricultural productivity, thereby increasing the world's carrying capacity. As a result, the Malthusian prediction of a population collapse due to food scarcity has not come to pass.

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International Trade

Population

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Question 45 Report

If the total fixed cost is the same regardless of output, the average fixed cost will be

increasing

maximum

minimum

decreasing Correct answer

Answer Details

If the total fixed cost is the same regardless of output, then the average fixed cost will decrease as output increases. This is because the same amount of fixed cost is being spread out over a larger quantity of output, resulting in a lower cost per unit of output. Therefore, the correct answer is "decreasing".

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Theory Of Costs

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Question 46 Report

The division of labour requires that the task to be performed

must be done in stages Correct answer

requires no special knowledge

is simple but strenuous

must be undertaken by experts

Answer Details

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Factors Of Production And Their Theories

Factors Of Production

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Question 47 Report

The main objective of WTO is to

help countries with chronic balance of payments problems

help debtor nations solve their problems

ensure adequate tariff protection for infant industries

provide a mechanism for tariff reductions Correct answer

Answer Details

Read lesson note on International Economic Organizations (JAMB)

International Economic Organizations

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Question 48 Report

The choice of what to produce in a command economy is determined by

industrial establishments

labour unions

the government and labour unions

the central government Correct answer

Answer Details

In a command economy, the choice of what to produce is determined by the central government. This means that the government has complete control over what goods and services are produced, how they are produced, and for whom they are produced. The government decides what industries to support and invest in, and how resources should be allocated. This is in contrast to a market economy, where the choice of what to produce is determined by consumer demand and the decisions of private businesses.

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Public Finance

Economic Systems

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Question 49 Report

Corrections in the GNP figures for price changes require the use of a

Retail price index

Producer price index

Price index

Price deflator Correct answer

Answer Details

Corrections in the GNP figures for price changes require the use of a price deflator. A price deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. It is used to adjust the nominal value of GDP or GNP to obtain the real value of GDP or GNP. The price deflator takes into account the changes in the price level of goods and services over time, allowing for more accurate comparisons of the economic performance of a country between two different periods.

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

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Methods And Tools Of Economic Analysis

The Theory Of Supply

The Theory Of Price Determination

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Question 50 Report

A firm incurs short-run costs when

It cannot increase prices

Operation is at its later stages

Operation is at its early stages

Some inputs cannot be varied Correct answer

Answer Details

In economics, short-run costs are the costs incurred by a firm when some of its inputs are fixed, and cannot be varied. In other words, in the short-run, a firm cannot adjust its production to changes in demand, and must continue operating with the resources it has. As a result, if the firm wants to produce more output, it will have to increase the use of its fixed inputs, such as capital, and this will result in an increase in short-run costs. The other options listed are not necessarily true in all cases and do not provide an accurate explanation of short-run costs.

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Theory Of Price Determination

Theory Of Costs

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