JAMB UTME - Economics - 1986 | Green Bridge CBT

Given that the cash reserve ratio is 10 percent, what is the maximum amount of that the banking system can create from an initial cash deposit of N1,000.00?

N100.00

N1,000.00

N9,000.00

N10,000.00 Correct answer

Answer Details

Read lesson note on Banking (JAMB)

Banking

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Question 20 Report

Under normal circumstances the concept of consumers sovereignty implies that

the consumer and not the producer owns the means of production

the producer and not the consumer determines what is to be produced Correct answer

the consumer and not the producer determines what is to be produced

both the consumer and the producer determines what should be produced

Answer Details

Read lesson note on Theory Of Consumer Behaviour (WAEC)

Read lesson note on Theory Of Production (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Consumer Behaviour

Theory Of Production

The Theory Of Demand

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Question 21 Report

The revenue accruing to the seller of commodity X as a result of a fall in price will

increase

fall Correct answer

first fall but will increase later

remain unchanged

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 22 Report

Deflation is a persistent fall in the general price level and is usually caused by?

a reduction in total demand Correct answer

an increase in government spending

an increase in the money supply

an increase in aggregate demand

Answer Details

Read lesson note on Public Finance (JAMB)

Read lesson note on Economics As A Science (JAMB)

Public Finance

Economics As A Science

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Question 23 Report

Which of the following advantages of localization of industries may also be a disadvantage?

External economies

Concentration of industries and of people Correct answer

Development of organized markets

Reduced costs of research

Answer Details

Read lesson note on Market Structure (JAMB)

Read lesson note on Industry And Industrialization (JAMB)

Market Structure

Industry And Industrialization

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Question 24 Report

Which of the following is NOT a goal of modern budgets?

The control of inflation

The reduction in income inequality

The shift of all resources from the private to the public sector Correct answer

Economic development

Answer Details

Read lesson note on Public Finance (WAEC)

Read lesson note on Public Finance (JAMB)

Public Finance

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Question 25 Report

Choice in economic life is necessitated by?

the need to construct scale of preference

the opportunity cost of consumption

unlimited wants

scarcity of economic resources 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 26 Report

In international trade, a country specializes in the production of a commodity or group of commodities for which it has?

a buoyant market

plenty of raw materials

the greatest relative advantage Correct answer

executive manpower

Answer Details

Read lesson note on International Trade (JAMB)

International Trade

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Question 27 Report

In a public company, shares are?

sold to one person only

distributed freely

advertised to members of the public for subscription Correct answer

disposed by the Chief Executive

Answer Details

Read lesson note on Distributive Trade (WAEC)

Read lesson note on Economic Systems (JAMB)

Distributive Trade

Economic Systems

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Question 28 Report

Production in Economics can be defined as the

totality of producing, buying and consuming

transformation of raw materials and services in order to provide ultimate utility

transformation of raw materials and services in order to make maximum profit

production of goods and services for consumption Correct answer

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 29 Report

In the normal channels of distribution the breaking of bulk is performed by the

producer

wholesaler Correct answer

retailer

consumer

Answer Details

Read lesson note on Distributive Trade (WAEC)

Distributive Trade

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Question 30 Report

A society which forgoes present consumption

is forced to do so because of excessive consumption within the country in the past

is devoting new resources to new capital formation Correct answer

is merely devoting resources to the replacement of capital

expects to consume only that amount tomorow which was forgone today

Answer Details

Read lesson note on Theory Of Costs (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Costs

The Theory Of Demand

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Question 31 Report

The main function of price mechanism is to?

limit consumer demand

enable producers make profit

allocate scarce resources among competing ends Correct answer

ensure consumer sovereignty

Answer Details

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Question 32 Report

One major difference between monopoly and perfect competition is that?

the perfect competitor is a price taker while the monopolist determines his own output Correct answer

homogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exist for the monopolist

sellers are located all over the world in the perfect competition but sellers are only in one country in the case of the monopolist

there is free entry and exist in perfect competition but no free exist in monopoly

Answer Details

Read lesson note on Market Structure (JAMB)

Market Structure

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Question 33 Report

What fundamentally determines how much a consumer spends in a producer's shop?

Individual's propensity to consume

level of his taxation

level of his income Correct answer

Individual's taste or fashion

Answer Details

Read lesson note on Public Finance (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on National Income (JAMB)

Public Finance

The Theory Of Demand

National Income

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Question 34 Report

The degree of specialization is limited by the

avalibility of specialized skills and machinery Correct answer

marginal cost exceeding marginal revenue

extent of the market

disadvantage of standardization

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Demand

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Question 35 Report

One of the advantages of a partnership over a sole proprietorship is that?

it is the most popular form of business organization

the patern can easy withdraw from business

it makes an increase in the capital of the business possible Correct answer

there is no limit to the number of people who may bring in capital

Answer Details

Read lesson note on Business Organizations (WAEC)

Business Organizations

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Question 36 Report

A firm is at its optimum size when?

it produce the greatest output at a minimum cost Correct answer

it has a motive to increase output

marginal cost equals marginal revenue

marginal cost is less than marginal revenue

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 37 Report

Balance of payment deficit in Nigeria CANNOT be solved by

importing more goods and services Correct answer

devaluation of the currency

imposing import duties

imposing import bans on some commodities

Answer Details

Read lesson note on Economic Integration (WAEC)

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

Economic Integration

International Trade And Balance Of Payments

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Question 38 Report

Which of the following is used by the Central Bank to control the rate of interest?

Bill of Exchange

Banker's order Correct answer

Fixed deposit account

Open market operation

Answer Details

Read lesson note on Banking (JAMB)

Banking

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Question 39 Report

Which of the following strategies will provide more employment opportunities for Nigerians?

Investment in social services

Industrialization Correct answer

Economics planning

Eradication of illiteracy

Answer Details

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Question 40 Report

ECOWAS will enable the countries involved to achieve

comparative political advantage over other countries not in the region

a large market for their products Correct answer

military superiority over countries not in the region

lower the transportation codt of goods wthin the region

Answer Details

Read lesson note on Economic Integration (WAEC)

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

Economic Integration

International Trade And Balance Of Payments

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Question 41 Report

A firm achieves least cost in production by substituting factors until

their factor prices are equal

their marginal-physical products are each equal to their factor prices

their marginal-physical products are each zero Correct answer

the ratio of their marginal-physical products equals the ratio of their prices

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 42 Report

Tax incidence is the analysis of?

how progressive a tax is

how a tax is collected

hw distorting a tax is

who ultimately pays the tax 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 43 Report

To control inflation, the monetary authorities of a country can?

reduce taxes

advise government to increase its expenditure

engage in expansive monetary policy

engage inrestrictive monetary policy

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 characteristic of private limited liability company?

its shares can be sold to the public

the number of shareholders ranges from fifty to one hundred

all shareholders have equal powers and responsibilities

the number of shareholders ranges from two to fifty Correct answer

Answer Details

Read lesson note on Business Organizations (JAMB)

Business Organizations

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Question 45 Report

A country has a population distribution as shown below:

The dependency ratio is

3:2

1:3

2:3

1:5 Correct answer

Answer Details

Read lesson note on Population (JAMB)

Population

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Question 46 Report

An nation's distribution of income shows?

the value of all goods produce inthe economy

how income is divided among different groups Correct answer

where the economy system is on its production possibility curve

the consumption behaviour of the people

Answer Details

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

Read lesson note on National Income (JAMB)

Methods And Tools Of Economic Analysis

National Income

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Question 47 Report

Gresham's law in economics shows that

bad money drives good money out of circulation Correct answer

good money drives bad money out of circulation

gold must be available to maintain the value of paper money

the price level varies directly with the quality of money

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 48 Report

Which of the following is an important function of prices in a market economy?

Ensuring that resources are used in the most efficient manner

Ensuring an equitable distribution of goods and services

Ensuring that all industries are perfectly competitive in the long run

Equating level of purchases with level of needs 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 49 Report

Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?

induce greater demand for beef

induce greater demand for fish Correct answer

induce lower demand for fish

equate demands for beef and fish

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 50 Report

Mobility of labour is NOT affected by

optimum size of population Correct answer

marriage and family

regulation of trade unions

period of training

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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