The money market equilibrium is defined as_________

when the demand and supply of money are equal

when demand is greater than supply of money

when demand is less than supply of money

when supply is greater than demand for money

The determination of wages in a labour market depends on the_______

Interaction between demand and supply of labour

The birth rate in 1976 for a certain country with a population of 10m was 8.0. This means that in 1976,___________

there were 80,000 live births in the country

there were 6,400 live births in the country

there were 8 live births to every 100 women in working-class families

8 in every 1000 women of 21 - 45 gave birth to a live child

If AC and MC are represented on a graph, the MC curve will cut the AC curve_______

at the minimum point on the AC curve

at the maximum point on the AC curve

at the highest point on the AC curve

at the minimum point on the AC curve

The term M 33 comprises M 11 together with deposits on deposit account held by_______

banks, discount houses and stock, exchanges

One of these is not a way by which government encourage industrialization?

Low Productivity and inefficiency

Protection of Infant industries

Establishment of Nigeria Enterprises Promotion Decree

Low Productivity and inefficiency

Establishment of higher institutions

One of these is not a problem of agriculture___________

lack of preservation and storage facilities

JAMB UTME - Economics - 2019 | Green Bridge CBT

Question 1 Report

Supply is________

A stock

A Flow

Correct answer

Constant

A table

Answer Details

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Theory Of Production

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Supply

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Question 2 Report

Given two substitute goods (X and Y) with demand and supply function;

Qd = 7p - 12

Qs = 4p + 9

Find the magnitude of excess demand when p = ₦18

303

114

33 Correct answer

Answer Details

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Question 3 Report

An economic condition in which much reduced economic activity co-exists with inflation is referred to as__________

stagflation

inflationary spiral

slump inflation Correct answer

inflationary gap

Answer Details

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Money And Inflation

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Question 4 Report

Among the disadvantages of the one-man business is the fact that______

its capital may not be increased without government permission

the proprietor is personally liable for the firm's debts Correct answer

the proprietor is not able to obtain credit

the proprietor may not sue for bad debts

Answer Details

The main disadvantage of a one-man business is that the proprietor is personally liable for the firm's debts. This means that if the business is unable to pay its debts, the proprietor's personal assets, such as their savings, property, or other valuables, can be used to settle the debt. This can put the proprietor's personal financial stability at risk and may discourage them from taking on certain business ventures or expanding the business.

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Business Organizations

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Question 5 Report

A form of tax that is midly progressive and regressive is_______

Proportional tax

Progressive tax

Regressive tax

Digressive tax Correct answer

Answer Details

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Economics As A Science

Economic Systems

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Question 6 Report

An example of a vertical combination is the merger of_________

a spinning firm and a wearing firm Correct answer

two meat retailing firms

two very large wholesale textile distributors

three secretarial employment agencies in one town

Answer Details

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Agriculture

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Question 7 Report

Consider the diagram below which shows a demand curve (d).

Total expenditure on a commodity is represented by the area TUVW. Consumer's surplus is represented by__________

The area VWX Correct answer

The area XTUV

XW/XT

TU/UV

Answer Details

Consumer's surplus is represented by the area above the demand curve and below the market price. In the diagram, this would be the area represented by VWX. Consumer's surplus measures the difference between the amount that consumers are willing to pay for a good and the amount they actually pay. In the diagram, consumers are willing to pay more for the good up to the market price, represented by the height of the demand curve. The area VWX represents the amount by which they are benefiting from the market, as they are paying less than they would be willing to pay. So, the answer to the question is the area VWX represents consumer's surplus.

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Question 8 Report

In a perfect competition, the market price is determined by_______

the government

the producer

the consumer

the market supply and demand junctions Correct answer

Answer Details

In a perfect competition, the market price is determined by the market supply and demand junctions. This means that the price is set by the intersection of the supply of goods and services offered by producers and the demand for those goods and services by consumers. When there is a high demand for a good or service, the price will go up, and when there is a low demand, the price will go down. This is because producers will raise their prices when there is high demand in order to make more profit, and they will lower their prices when there is low demand to try to sell more goods. On the other hand, consumers will be willing to pay more for a good or service when there is high demand and they will be less willing to pay when there is low demand. The market price is a result of the negotiation between producers and consumers, and it reflects the balance between supply and demand in the market.

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Question 9 Report

Most of the National debts is "dead weight" in the sense that is____

bound to increase from year to year

accumulated as the result of past capital investment

the responsibility of the treasury

not covered by any real asset Correct answer

Answer Details

Most of the national debt is "dead weight" in the sense that it is not covered by any real asset. This means that the debt is not backed up by any tangible property or valuable resource. Instead, it is simply a financial obligation that the government owes to its creditors, who have loaned the government money. The government must pay back this debt with interest, which can add up over time and become a burden on the economy. This type of debt is sometimes referred to as "dead weight" because it does not contribute to the growth or development of the economy, but instead represents a financial obligation that must be met.

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National Income

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Question 10 Report

A retailer is distinguished by the nature of its sales, which is in___________

Bulk

Large

Units Correct answer

Chain

Answer Details

A retailer is distinguished by the nature of its sales, which is in units. Retailers sell products in small quantities directly to consumers for their personal or household use. They purchase products from wholesalers or manufacturers and sell them to the end-users at a markup. This type of retailing typically involves a physical store where customers can browse and purchase products, but it can also include online retailing. The focus of retailing is on selling individual units of products to the consumer, rather than selling in bulk to other businesses.

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Distributive Trade

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Question 11 Report

When a member's currency is declared "scarce", it is the duty of the IMF to______

suspend the member state indefinitely

ban all exports from that state

suspend dealings in that currency for one year

ration it among the countries demanding it Correct answer

Answer Details

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International Trade

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Question 12 Report

A commodity is defined as normal when its demand changes in the same direction as______

income Correct answer

price

taste

preferences

Answer Details

A commodity is defined as normal when its demand changes in the same direction as income. This means that as income increases, demand for the commodity will also increase, and as income decreases, demand for the commodity will decrease. Normal goods are those goods for which demand increases as income increases, and decreases as income decreases. For example, as people's incomes increase, they may choose to buy more luxury items such as expensive cars, jewelry, or designer clothing, which would be considered normal goods. On the other hand, as people's incomes decrease, they may choose to cut back on these purchases and switch to more budget-friendly options, causing demand for normal goods to decrease.

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The Theory Of Demand

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Question 13 Report

An economy system that uses what is regarded as the "Market mechanism" is called_______

Mixed economy

Socialism

Command economy

Capitalism Correct answer

Answer Details

Capitalism is an economic system that uses the market mechanism. In a capitalist economy, individuals and businesses own and operate the means of production, and the prices of goods and services are determined by supply and demand in the marketplace. In simple terms, this means that people are free to produce and sell whatever they want, and consumers are free to buy whatever they want, at prices that are determined by the market. This creates an economy that is driven by competition and innovation, and is often associated with growth and prosperity. It is important to note that capitalism can take on different forms, ranging from a more laissez-faire approach with minimal government intervention, to a more regulated form with a larger role for the government in managing the economy.

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Question 14 Report

The most reliable and acceptable index of economic growth is the__________

Wholesale Price Index

Consumer Price Index

National Income Correct answer

Retailer's Price Index

Answer Details

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Question 15 Report

Effective demand for a commodity is desire for that commodity backed by_______

a wish for the lowest possible price

ability and willingness to pay Correct answer

cash in one's pocket

a promise to make payment

Answer Details

Effective demand for a commodity is the desire or want for that commodity backed by the ability and willingness to pay for it. This means that a person not only wants the commodity, but also has the means to purchase it and is willing to part with their money in exchange for it. For example, if someone wants to buy a new car but does not have the money to pay for it, their desire for the car is not effective demand. Similarly, if someone has the money but is not interested in buying a car, their willingness to pay is not effective demand. Effective demand requires both the desire for the commodity and the ability and willingness to pay for it. It is the combination of these two factors that drives the demand for goods and services in the economy.

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Demand

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Question 16 Report

The arithmetic mean of 5, 8, 10, 15, 24 and 28 is_______

145

15 Correct answer

Answer Details

To find the arithmetic mean of a set of numbers, you need to add up all the numbers and divide the sum by the total number of numbers. In this case, we have six numbers, so we need to add them up and divide by 6. Adding up the numbers, we get: 5 + 8 + 10 + 15 + 24 + 28 = 90 Then, we divide the sum by the total number of numbers: 90 / 6 = 15 Therefore, the arithmetic mean of 5, 8, 10, 15, 24 and 28 is 15.

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Methods And Tools Of Economic Analysis

Public Finance

Population And Labour Market

The Theory Of Demand

National Income

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Question 17 Report

Use the following information given to answer this question

Total of all expenditure incurred during the year ₤ 80,000m

Indirect taxes on goods and services ₤ 8,000m

Capital consumption ₤ 6,000m

Gross national expenditure at factor cost is_________

₤ 88,000μ

₤ 82,000μ

₤ 74,000μ

₤ 72,000μ Correct answer

Answer Details

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Question 18 Report

Which of the following is not a cause of unemployment_______

poor education

lack of skills

good government planning Correct answer

corruption

Answer Details

"Good government planning" is not a cause of unemployment. Unemployment refers to the situation where individuals who are actively seeking employment are unable to find work. The causes of unemployment can be complex and multi-faceted, but typically include factors such as a lack of available jobs, poor education and lack of relevant skills, and corruption. "Good government planning" is not a direct cause of unemployment, but it can have an indirect effect by helping to create a favorable economic environment that supports job growth and job creation. For example, good government planning can help to attract businesses to an area, provide funding for education and training programs, and reduce corruption, all of which can help to reduce unemployment over time.

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Banking

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Question 19 Report

A permit that allows an importer to bring a certain quantity of foreign goods into a country is_________

Import monopoly

Import licence Correct answer

Import quota

Embargo

Answer Details

An import quota is a permit that allows an importer to bring a certain quantity of foreign goods into a country. It is a government-imposed limit on the quantity of a certain good that can be imported into a country during a specific period of time. The purpose of an import quota is to protect domestic producers and limit the amount of foreign competition in the domestic market. The government sets the quota to regulate the flow of goods into the country and to ensure that domestic producers are not overwhelmed by foreign competition.

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International Trade

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Question 20 Report

If we move from 8 to 6, the elasticity of demand is_______

-1.25

0.62

1.25 Correct answer

Answer Details

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Question 21 Report

A method of analysis that draws conclusions from data rather than general Principles already known is________

Deductive reasoning

Inductive reasoning Correct answer

Normative reasoning

Positive reasoning

Answer Details

Inductive reasoning is a method of analysis that draws conclusions from data rather than general principles already known. In simple terms, inductive reasoning takes specific observations or pieces of evidence and uses them to form a general conclusion or pattern. For example, if you observe that every time it rains, the streets get wet, you can use inductive reasoning to conclude that rain causes the streets to get wet. In contrast, deductive reasoning starts with a general principle or premise and uses it to reach a specific conclusion. For example, if you know that all birds have feathers and you observe a creature with feathers, you can use deductive reasoning to conclude that it's a bird. Inductive reasoning is often used in scientific research, where data is collected and analyzed to form hypotheses or theories that can then be tested through further experimentation.

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Methods And Tools Of Economic Analysis

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Question 22 Report

John an apprentice, engineer and amateur trumpet player, was earning ₦30 per week before accepting Full-time employment in a top orchestra, for which he now receives ₦150 per week. ₦120 of his current weekly earnings can be described as________

marginal physical productivity

marginal income productivity

consumer's surplus

economic rent Correct answer

Answer Details

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The Theory Of Production

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Question 23 Report

If wage rate is less than the average revenue product, the firms would be earning________

loss

super normal profit Correct answer

normal profit

higher revenue

Answer Details

If the wage rate is less than the average revenue product (ARP), the firms would be earning a profit. The ARP is the amount of revenue generated by one unit of labor and is typically greater than the wage rate. If the firm is paying its workers less than the amount of revenue they generate, the firm will have extra revenue left over, which is a profit. So, in this situation, the firm would either be earning a normal profit or a super normal profit, depending on the size of the gap between the wage rate and the ARP. A normal profit is the minimum level of profit necessary for a firm to stay in business, while a super normal profit is a profit that is higher than the normal profit.

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Question 24 Report

A supply curve slopes upwards from the left to the right indicating__________

a negative slope

a positive slope Correct answer

a backward sloping supply curve

short-run supply curve

Answer Details

A supply curve that slopes upwards from left to right indicates a positive slope. This means that as the price of a good or service increases, the quantity supplied by suppliers also increases. In other words, producers are willing to supply more of a good or service at higher prices. To understand why this is the case, think about it from the perspective of a supplier. If the price of a good or service goes up, it becomes more profitable for suppliers to produce and sell that good or service. As a result, suppliers are incentivized to increase their production in order to take advantage of the higher prices and earn more profits. This is why the quantity supplied by suppliers tends to increase as the price of a good or service increases. It's important to note that this explanation applies to the long run. In the short run, supply may be relatively fixed and a supply curve may be upward sloping or even backward sloping, indicating that the quantity supplied doesn't change much in response to changes in price. However, over the long run, suppliers have more time to adjust their production levels and the supply curve typically slopes upward.

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Theory Of Price Determination

Supply

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Question 25 Report

In the short-run, the monopoly makes_______

Normal profit

Abnormal Profit Correct answer

Loss

Sales

Answer Details

In the short-run, a monopoly can make abnormal profit. Abnormal profit is a profit that is higher than the normal profit a company would make in a competitive market. This is because a monopoly has market power, meaning it has control over the price of its product and can set it higher than the market price, leading to higher profits. However, it's important to note that this situation is only temporary and in the long-run, competition and other factors can drive down prices and eliminate the abnormal profit.

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Question 26 Report

If two commodities are unrelated, a change in the price of one will____________

have effect on the quantity demanded of the other

have no effect on the quantity demanded of the other Correct answer

increase the quantity demanded on the other

decrease the quantity demanded on the other

Answer Details

If two commodities are unrelated, a change in the price of one will have no effect on the quantity demanded of the other. This is because unrelated commodities are not substitutes for each other, so a change in the price of one will not affect the demand for the other. For example, if the price of apples increases, it will not affect the demand for bananas, since apples and bananas are not substitutes for each other. Similarly, if the price of bananas decreases, it will not affect the demand for apples. This is because the demand for each commodity is determined by its own factors, such as income, tastes, and preferences, and not by the price of other unrelated commodities.

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Question 27 Report

Consider the following figures which refer to a firm's production department during one week:

Wage bill ₦6,000, Rent, Rates, Depreciation ₦200, raw materials ₦800, Power ₦300.

Total variable costs incurred during the week are

₦7,300

₦7,100 Correct answer

₦1,300

₦1,100

Answer Details

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Question 28 Report

Restrictive monetary policy is designed to curtail aggregate demand and to overcome________

Deflation

Reinflation

Disinflation

Inflationary gap Correct answer

Answer Details

Restrictive monetary policy is designed to overcome inflation. Inflation is when the overall price level in an economy is rising, and the value of money is decreasing. The central bank can use restrictive monetary policy to reduce the amount of money in circulation and decrease aggregate demand, which will in turn help to curb inflation. For example, the central bank may increase interest rates, which makes borrowing money more expensive and reduces consumer spending. It may also sell government bonds, which reduces the amount of money available in the banking system. This type of policy is called restrictive because it restricts or slows down the growth of the economy, which helps to control inflation.

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Money And Inflation

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Question 29 Report

One of these is not an assumption of the cardinalist theory of utility?

The consumer is rational

Diminishing marginal utility

The concept of money utility

Consistency and transivity of choice Correct answer

Answer Details

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Question 30 Report

ECOWAS was formed for the purpose of________

promoting co-operation and integration Correct answer

to facilitate the expansion of international trade

to provide insurance

to insure new investment

Answer Details

ECOWAS, or the Economic Community of West African States, was formed for the purpose of promoting co-operation and integration among its member countries. This means that the organization was created to help the countries work together and coordinate their efforts in areas such as trade, politics, and development. The goal of ECOWAS is to promote economic and social progress in the region and improve the lives of the people living in West Africa.

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Economic Integration

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Question 31 Report

The shape of the production possibility frontier is determined by the_________

law of returns to scale

law of diminishing returns Correct answer

factors of productions

technology

Answer Details

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Factors Of Production

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Question 32 Report

The use of government income and expenditure instrument to regulate the economy is termed______

monetary policy

physical policy

fiscal policy Correct answer

public finance

Answer Details

The use of government income and expenditure instrument to regulate the economy is called fiscal policy. Fiscal policy is a tool used by the government to influence the economy by changing the level and composition of government spending and taxation. The main aim of fiscal policy is to achieve macroeconomic objectives, such as controlling inflation, promoting economic growth and stability, and reducing unemployment. When the government increases its spending and/or reduces taxes, it injects more money into the economy, which can increase consumer spending and business investment. This can help to stimulate economic growth, create jobs, and increase aggregate demand. On the other hand, when the government reduces its spending and/or increases taxes, it takes money out of the economy, which can help to cool down an overheating economy and reduce inflation. In summary, fiscal policy involves using government income (taxation) and expenditure (spending) to influence the economy and achieve macroeconomic objectives.

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Public Finance

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Question 33 Report

A rise in the supply of a commodity cause__________

an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold

an increase in both equilibrium

a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold Correct answer

a decrease in both equilibrium

Answer Details

When the supply of a commodity increases, it means that there is more of that commodity available in the market than before. This increase in supply causes the market to shift, leading to a change in the equilibrium price and quantity of that commodity. As the supply of the commodity increases, sellers will want to sell more of the commodity, but buyers may not want to buy as much at the higher price. This creates a surplus, where there is more supply than demand, causing the price to decrease. As the price decreases, buyers are more willing to buy the commodity, and sellers may reduce the amount they are willing to sell, until the market reaches a new equilibrium. This new equilibrium will have a lower price and a higher quantity bought and sold than before the increase in supply. Therefore, the correct answer is: a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold.

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Theory Of Price Determination

Supply

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Question 34 Report

Use the following information given to answer this question

Total of all expenditure incurred during the year ₤ 80,000m

Indirect taxes on goods and services ₤ 8,000m

Capital consumption ₤ 6,000m

National income is__________

₤ 74,000m

₤ 66,000m Correct answer

₤ 60,000m

₤ 14,000m

Answer Details

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National Income

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Question 35 Report

Let capital formation = CF, Production = P, C = consumption. Then CF =_______

P - C Correct answer

P + C

P/C

Answer Details

Capital formation (CF) is equal to P minus C, where P is production and C is consumption. Capital formation refers to the process of creating new capital goods, such as factories, machines, and infrastructure, which are used to produce goods and services. This process requires investment in new capital goods and is therefore reflected as a reduction in consumption. So, CF = P - C, where P is the total amount of goods and services produced and C is the amount consumed by households, businesses, and government. This equation shows that the amount of new capital being formed is equal to the difference between what is produced and what is consumed. In simpler terms, capital formation is the amount of investment made in the economy to increase its productive capacity and support future economic growth.

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Question 36 Report

The method obtained by adding all the reward of factors of production in national income is________

income approach Correct answer

expenditure approach

value added method

output approach

Answer Details

The method of adding up all the rewards of the factors of production in national income is known as the "income approach." The income approach calculates national income by summing up all the income received by individuals and firms in the economy. This includes wages, salaries, interest, rent, and profits earned by the factors of production, such as labor, capital, and land. The idea behind this approach is that the total income generated in an economy is equal to the total amount spent on consumption and investment, and this spending creates the demand for goods and services produced in the economy. This method provides a comprehensive picture of the total income generated in the economy and is useful in understanding the distribution of income among different groups in the economy and the sources of economic growth.

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National Income

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Question 37 Report

Whether a monopolist is able to increase his revenue by restricting his output depends on the shape of the_________

marginal product

marginal cost curve

demand curve Correct answer

average cost curve

Answer Details

The shape of the demand curve determines whether a monopolist is able to increase their revenue by restricting output. A monopolist is the only seller in the market and has some control over the price of the good or service they provide. If the demand for their product is high, they can increase the price, and if they restrict the quantity of the product they supply, the price will go up even more. The demand curve shows the relationship between the price of a good and the quantity of it that consumers are willing and able to buy. If the demand curve is downward sloping, it means that as the price of the good increases, the quantity demanded decreases. This is because consumers will switch to cheaper alternatives when the price of the good goes up. So, if the monopolist restricts their output, the price will go up and they will make more profit as long as the demand curve remains downward sloping. However, if the demand curve becomes perfectly inelastic, meaning that the quantity demanded does not change with the price, then the monopolist will not be able to increase their revenue by restricting output. Therefore, in simple terms, the shape of the demand curve determines whether a monopolist can increase their revenue by restricting output.

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Question 38 Report

Which of the following matters may account for changes in demand?

I - changes in consumer preferences

II - changes in real income

III - changes in distribution of incomes

IV - changes in levels of taxation

I, II

II, III

I, III, IV

I, II, III, IV Correct answer

Answer Details

Changes in demand can be influenced by various factors. Among them, changes in consumer preferences, real income, distribution of incomes, and levels of taxation can all affect the quantity of a good or service that consumers are willing and able to buy at a given price. I. Changes in consumer preferences refer to shifts in the tastes and preferences of consumers. For example, if people start to prefer healthier food options, the demand for fruits and vegetables may increase while the demand for processed foods may decrease. II. Changes in real income can also impact demand. If people's real income increases, they may be able to afford more goods and services, which can lead to an increase in demand for those products. Conversely, if real income decreases, consumers may cut back on their spending, leading to a decrease in demand. III. Changes in the distribution of incomes can also affect demand. If the distribution of incomes becomes more unequal, with some people becoming much richer and others becoming much poorer, this can impact the demand for certain products. For example, if the rich become richer, they may be more willing to purchase luxury goods, leading to an increase in demand for those products. On the other hand, if the poor become poorer, they may not be able to afford certain goods, leading to a decrease in demand. IV. Changes in levels of taxation can impact demand by affecting the disposable income of consumers. If taxes increase, consumers may have less disposable income, leading to a decrease in demand for certain goods and services. Conversely, if taxes decrease, consumers may have more disposable income, leading to an increase in demand for certain products. Therefore, the answer is: I, II, III, IV, since all four factors can account for changes in demand.

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Question 39 Report

The determination of price by bargaining between buyers and sellers is________

Sales by Auction

Tender

Higgling and Haggling Correct answer

Price Control

Answer Details

The determination of price by bargaining between buyers and sellers is called Haggling or Higgling. This is a process where buyers and sellers negotiate the price of a product or service, typically in an informal setting. The buyer wants to pay as little as possible, while the seller wants to get as much as they can. They both compromise and agree on a price that is acceptable to both parties. Haggling is common in open-air markets, street vendors, and in some cultures it's a part of the normal purchasing process. In this process, the buyer and the seller communicate and exchange information about the value of the product or service, and how much each is willing to pay or receive. The price is ultimately determined through a give-and-take negotiation, and both parties must agree on the final price for the transaction to occur.

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Question 40 Report

The oil boom between 1970 - 1980 caused the oil sector to become____________

the main source of government Correct answer

management of spillage and pollution

protection to the local operators in the petroleum industry

decrease in the rate of inflation

Answer Details

The oil boom between 1970-1980 caused the oil sector to become the main source of government revenue. This is because during this time period, the demand for oil was high and the price of oil was high, which led to an increase in profits for oil companies and the countries that produced oil. As a result, the government received a significant portion of its revenue from the oil sector, which made it the main source of government funding. This allowed the government to fund various projects and initiatives, and also had a significant impact on the economy.

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Petroleum And The Nigerian Economy

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