JAMB UTME - Economics - 1988 | Green Bridge CBT

Ufuoma is a consumer. His scale of preference shows that he prefers a pair of shoes to a wrist watch; he prefers the wrist watch to a pair of trousers; he prefers the pair of trousers to the pair of shoes. This means that Ufuoma is

rational

consistent

inconsistent Correct answer

transitive

Answer Details

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Question 7 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

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The Theory Of Production

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Question 8 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

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Market Structure

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Question 9 Report

Under partnership, investors who have no desires to be actively involved in the day-to-day management of such organization, are called?

stockholders

sleeping partners Correct answer

part-time investors

ordinary partners

Answer Details

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Business Organizations

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Question 10 Report

Which of the following is a direct tax?

Sales tax

Purchase tax

Export duties

property tax Correct answer

Answer Details

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International Economic Organizations

Public Finance

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Question 11 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

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Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 12 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

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The Theory Of Production

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Question 13 Report

The average product of labour in a given period is obtained by dividing the?

number of workers by the total product Correct answer

total product by the number of hours actually worked

change in total product by the change in the number of workers

total product by the number of workers

Answer Details

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The Theory Of Production

Theory Of Production

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Question 14 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 15 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

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Theory Of Costs

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Question 16 Report

Deficit financing is mostly facilitated by the existence of?

stock exchange market

commercial bank

central bank Correct answer

capital market

Answer Details

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Banking

International Trade And Balance Of Payments

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Question 17 Report

Restriction on credit creation by commercial banks can be effected through?

an overdraft

loans and advances

demand deposits

liquidity ratio Correct answer

Answer Details

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Banking

The Theory Of Demand

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Question 18 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

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Theory Of Price Determination

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Question 19 Report

Total revenue is always equal to?

marginal revenue multiplied by the quantity sold

average revenue plus marginal revenue

marginal revenue multiplied by marginal cost

average revenue multiplied by the quantity sold Correct answer

Answer Details

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Theory Of Price Determination

The Theory Of Demand

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Question 20 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

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The Theory Of Supply

The Theory Of Price Determination

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Question 21 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

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Theory Of Costs

The Theory Of Price Determination

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Question 22 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

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International Trade And Balance Of Payments

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Question 23 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

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Population And Labour Market

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Question 24 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

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Banking

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Question 25 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

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Theory Of Consumer Behaviour

The Theory Of Demand

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Question 26 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

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The Theory Of Production

Theory Of Costs

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Question 27 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

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The Theory Of Consumer Behaviour

The Theory Of Demand

The Theory Of Price Determination

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Question 28 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

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Business Organizations

The Theory Of Demand

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Question 29 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

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Money And Inflation

International Trade And Balance Of Payments

Money And Inflation

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Question 30 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

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The Theory Of Supply

Banking

Supply

Economics As A Science

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Question 31 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

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The Theory Of Price Determination

Demand

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Question 32 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

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Industrialization

Industry And Industrialization

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Question 33 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 34 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

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Methods And Tools Of Economic Analysis

Theory Of Costs

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Question 35 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

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Money And Inflation

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Question 36 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

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Methods And Tools Of Economic Analysis

Economics As A Science

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Question 37 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

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The Theory Of Supply

The Theory Of Demand

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Question 38 Report

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

a flow Correct answer

a stock

circular

static

Answer Details

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Methods And Tools Of Economic Analysis

Economics As A Science

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Question 39 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

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Population And Labour Market

Population

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Question 40 Report

Which of the following would most likely be considered an example of benefit taxation?

Excise tax

Corporate income tax

Property tax

Highway-user tax Correct answer

Answer Details

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Public Finance

Economic Development And Planning

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Question 41 Report

The Malthusian theory of population predicts that growth in food production will?

keep pace with population growth

be at a faster rate than population growth

be at a slower rate tthan population growth Correct answer

be more rapid than population growth in the developing countries

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Question 42 Report

When a nation is experiencing balance of payment surplus, it is in a better position to?

increase its foreign exchange reserves

Correct answer

increase its liabilities to foreigners

reduce its foreign exchange reserves

devalue its national currency

Answer Details

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Banking

International Trade And Balance Of Payments

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Question 43 Report

The output at which total revenue equals total cost is known as?

profit-maximizing output

break even level output Correct answer

loss-minizing output

least-cost output

Answer Details

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The Theory Of Production

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Question 44 Report

Collectivism refers to the system of management of state enterprises in a?

mixed economy

co-operative organization

capitalist economic system

socialist economy Correct answer

Answer Details

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Economic Systems

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Question 45 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

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The Theory Of Production

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Question 46 Report

Which of the following changes in equilibrium price and quantity is as a result of an upward shift in the market demand for a commodity?

Both the price and the quantity fall

The price rise and the quantity falls

The price falls and the quantity rises

Both the price and the quantity rise Correct answer

Answer Details

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Theory Of Price Determination

The Theory Of Demand

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Question 47 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

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The Theory Of Production

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Question 48 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