JAMB UTME - Economics - 1987 | Green Bridge CBT

Question 1 Report

A production possibility curve shows?

how much of the resources of society are used to produce a particular commodity

the rate of inflation

the rate of unemployment in the economy

the various combinations of two commodities that can be produced

Correct answer

Answer Details

The production possibility frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors. The PPF assumes that all inputs are used efficiently.

Read lesson note on Factors Of Production And Their Theories (JAMB)

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Theory Of Production (WAEC)

Factors Of Production And Their Theories

The Theory Of Production

Theory Of Production

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Question 2 Report

Which of the following best describes the concept of opportunity cost?

a special bargain or scale at below market price

Cost of input tends to go up as we use more of them

Goods that are not produced in order to produce more of another good Correct answer

A cost that constantly decreases

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 3 Report

Given an original price of N3.50 per kilogram of rice and a change in price of 1.40, and given the quantity purchase at the old price as 10kg and a change in the quality as 5kg after the price change, the elasticity is equal to?

10.20

3.57

1.25 Correct answer

0.80

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on Theory Of Price Determination (WAEC)

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The Theory Of Supply

Theory Of Price Determination

The Theory Of Demand

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Question 4 Report

Which of the following applies to a commodity sold abroad at a price lower than that in the producing country?

Dumping Correct answer

Counter-trade

Bilateral trade

Trade liberalization

Answer Details

Read lesson note on International Trade (JAMB)

International Trade

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Question 5 Report

Transfer payment are

transfer earnings

money transferred from one country to another

unearned income Correct answer

payment transferred from one account to another

Answer Details

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Question 6 Report

The study of economic behavior of individual decision-making units (consumers, resources owners and business firms) in a free-enterprise economy is known as?

microeconomics Correct answer

macroeconomics

production

indifference curve

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Economics As A Science (JAMB)

The Theory Of Demand

Economics As A Science

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Question 7 Report

Market is defined as?

one geographical location where people meet to buy and sell

the demand and supply of goods and services

a group of people whose sole interest is to make profit

any organizational framework which links the buyers and sellers of a good and service Correct answer

Answer Details

Read lesson note on Theory Of Consumer Behaviour (WAEC)

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Read lesson note on Economics As A Science (JAMB)

Theory Of Consumer Behaviour

Market Structures

Economics As A Science

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Question 8 Report

In the keynesian model?

the demand for money is inversely related to the rate of interest

investment is directly related to the rate of interest

investment is not related to the rate of interest to the rate of interest

the demand for money is directly related to the rate of interest Correct answer

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Economics As A Science (JAMB)

The Theory Of Demand

Economics As A Science

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Question 9 Report

In which of the diagrams above, is the consumer surplus correctly shaded?

III

IV Correct answer

Answer Details

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

Read lesson note on The Theory Of Demand (JAMB)

Methods And Tools Of Economic Analysis

The Theory Of Demand

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Question 10 Report

The money which government spends yearly for the maintenance of its school is?

used only for wages and salaries

part of the government's capital expenditure

part of the government's recurrent expenditure Correct answer

the government's budget for its school

Answer Details

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Question 11 Report

Which of the following is compatible with a firm in a purely competitive market?

demand is inelastic

demand is infinitely inelastic Correct answer

Marginal Cost is falling

Price is greater than Marginal Cost

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Supply

The Theory Of Demand

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Question 12 Report

If inflation is anticipated to continue?

people will lose confidence in goods

lenders will demand higher interest rate Correct answer

the growth of full employment output will be accelerated

people will want to hold more money

Answer Details

Read lesson note on Money And Inflation (WAEC)

Read lesson note on Money And Inflation (JAMB)

Money And Inflation

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Question 13 Report

The difference between personal income and personal disposal income is?

personal income tax Correct answer

investment income

personal savings

consumption expenditure

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 14 Report

The form of capital which is usually consumed or transformed into finished goods and services in the production process is called?

industrial capital

social capital

fixed capital

circulating capital Correct answer

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 15 Report

Economic development is defined as?

positive change plus growth

avalibility of more goods and services

outward shift of the production possibility curve

growth in the national income Correct answer

Answer Details

Read lesson note on Economic Growth And Development (JAMB)

Economic Growth And Development

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Question 16 Report

Average fixed cost is

Average total cost less the sum of average variable cost

Half the sum of all costs

Total fixed cost divided by the level of output

Correct answer

Total fixed cost plus marginal cost

Answer Details

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

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Methods And Tools Of Economic Analysis

Theory Of Costs

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Question 17 Report

The main reason for charging interest is to?

reward enterpreneurial effort

redistribute profits

reward investors for present use of profits Correct answer

mobilize more funds for development

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 18 Report

Efficiency of labour is enhanced by?

Average Total Cost less the sum of Varriable Cost

half the sum of all costs

Total Fixed Cost divided by the the level of output Correct answer

Total Fixed Cost plus Marginal Cost

Answer Details

Read lesson note on Factors Of Production And Their Theories (JAMB)

Read lesson note on Theory Of Costs (JAMB)

Factors Of Production And Their Theories

Theory Of Costs

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Question 19 Report

In order to raise more revenue for a certain period, government should impose higher taxes on goods whos demand is?

elastic

inelastic Correct answer

perfectly elastic

unitary elastic

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 20 Report

In the operation of market forces, the market is in equilibrium at the point where?

demand and supply curve intersect in more than one point provided the market is cleared

the excess in market can be conveniently stored

excess demand is negative

demand and supply curves intersect Correct answer

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

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The Theory Of Supply

The Theory Of Demand

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Question 21 Report

Which of the following is a disadvantage of regional concentration of industries?

Development of congested urban areas Correct answer

Existence of regional unempolyment

High cost of labour

Immobility of labour

Answer Details

Read lesson note on Distributive Trade (WAEC)

Read lesson note on Industry And Industrialization (JAMB)

Distributive Trade

Industry And Industrialization

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Question 22 Report

Which of the following is NOT a type of business ownership?

Debenture holding Correct answer

private company

Parnership

Joint Stock venture

Answer Details

Read lesson note on Business Organizations (WAEC)

Business Organizations

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Question 23 Report

The residual of production which accrues to the owner of land after all other expenses have been met is called?

wages

rent Correct answer

interest

profit

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Theory Of Price Determination (WAEC)

The Theory Of Production

Theory Of Price Determination

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Question 24 Report

The liability of the sole trader is?

indeterminable

unlimited Correct answer

transferable

limited

Answer Details

Read lesson note on Business Organizations (WAEC)

Business Organizations

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Question 25 Report

In the history of Economic Thought the concept of Division of labour is usually associated with?

David Richardo

J.M. Keynes

Adam Smith Correct answer

Karl Marx

Answer Details

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Question 26 Report

Use the following information above to answer this question. X, Y and Z are the only three consumers of a commodity. Their respective demand schedules for the commodity are as given above. The market demand curve for the commodity cuts the quantity axis when quantity is

75 units

35 units

7 units

not determinable from the schedules except when graphed Correct answer

Answer Details

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Question 27 Report

Frictional unemployment?

is total unemployment minus structural unemployment

occurs when the unemployed are persons with specific training

occurs when the number of job seekers exceeds the number of vacancies

occurs when people are changing jobs Correct answer

Answer Details

Read lesson note on National Income (JAMB)

National Income

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Question 28 Report

Use the following information above to answer this question. X, Y and Z are the only three consumers of a commodity. Their respective demand schedules for the commodity are as given above. What is market demand for the commodity when price is N5?

65 units

40 units

30 units Correct answer

20 units

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 29 Report

Money market differs from capital market in that it?

deals with short-term loans while capital market deals with long-term funds

Correct answer

deals with money only while capital market deals with capital as well

is limited in scope while capital market is not

uses interest rate while capital does not

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 30 Report

If a good is an inferior good, then?

it is also necessarily a Giffen good

the quality of the goods demanded varies inversely with its price

its income elasticity of demand is negative Correct answer

the poor buy the good only out of habit

Answer Details

Read lesson note on Theory Of Consumer Behaviour (WAEC)

Read lesson note on Distributive Trade (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Demand (WAEC)

Theory Of Consumer Behaviour

Distributive Trade

The Theory Of Demand

Demand

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Question 31 Report

For normal goods the income elasticity of demand is?

positive Correct answer

negative

zero

infinite

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Demand

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Question 32 Report

Which of the following best explains the structural changes in the population of a country?

Positive changes in the size and ethnic composition of the population

A decrease in the size of the population

An increase in the birth rate which is higher than the decrease in the death rate

Changes in the age, sex and occupational composition of the population Correct answer

Answer Details

Read lesson note on Population And Labour Market (WAEC)

Read lesson note on Population (JAMB)

Population And Labour Market

Population

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Question 33 Report

A shift in the demand curve for commodity when the supply curve is vertical will lead to a change in the?

price only Correct answer

quantity only

quality only

price and quantity

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

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Theory Of Price Determination

The Theory Of Demand

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Question 34 Report

A budget with a projected revenue in excess of its expenditure is said to be?

balanced

surplus Correct answer

deficit

inflationary

Answer Details

Read lesson note on Public Finance (WAEC)

Public Finance

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Question 35 Report

For the improvement of the welfare of a people, a high production level is not enough because

the have-nots deserve more than a fair share Correct answer

equitable distribution is necessary

production efficiency is vital

savings in the country must be guaranteed at more than 50 percent of income earned.

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Economics As A Science (JAMB)

The Theory Of Production

Economics As A Science

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Question 36 Report

Price can be defined as?

a rate of exchange Correct answer

a mediumof exchange

the cost of product

the standard of accounting

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

Theory Of Price Determination

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Question 37 Report

Labour productivity is defined as?

output per man/hour Correct answer

average output

the maximum number of hours worked

total level of output

Answer Details

Read lesson note on Market Structures (WAEC)

Market Structures

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Question 38 Report

Statistical information available in most West African countries suggests that?

the marginal propensity to save is high

the marginal propensity to consume is high Correct answer

the consumption pattern is negative

there exists perfect correlation between consumption and savings

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Economic Systems (JAMB)

The Theory Of Demand

Economic Systems

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Question 39 Report

In the diagram, above Ps is the supply curve for a particular commodity, while OP is the price which of the following statements is correct?

the quantity supplied is infinitely elastic Correct answer

when price is zero, the quantity supplied infinite

when price is infinite, the quantity supplied zero

the quantity supplied is definite

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

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Theory Of Price Determination

The Theory Of Price Determination

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Question 40 Report

The shut-down point for a firm in the short run is the output at which?

the pricr of the product is lowest

marginal Cost is constant

Average Variable Cost is not covered Correct answer

Average Cost is minimum

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 41 Report

What form of market is found in an imperfect competition where there are few buyers and many sellers?

Oligopoly

Monopoly

Duopoly

Oligopsony Correct answer

Answer Details

Read lesson note on Market Structure (JAMB)

Market Structure

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Question 42 Report

To which of the following sectors do services belong?

Primary

Secondary

Tertiary Correct answer

Construction

Answer Details

Read lesson note on Market Structure (JAMB)

Market Structure

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Question 43 Report

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

marginal product

additional product

marginal revenue product Correct answer

average product

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 44 Report

The rate of exchange between a domestic and a foreign currency is defined as the?

terms of trade

domestic currency price of a unit of the foreign currency Correct answer

foreign currency price of gold

domestic currency price of gold

Answer Details

Read lesson note on International Trade (JAMB)

International Trade

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Question 45 Report

Capital consumption allowance refers to?

personal consumption expenditure

indirect business taxes

depreciation of capital equipment

Correct answer

expenditure on capital equipment

Answer Details

Read lesson note on Theory Of Costs (JAMB)

Theory Of Costs

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Question 46 Report

In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the?

substitution effect of a price change

income effect of a price change

opportunity cost of a price change

inflation effect of a price change Correct answer

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

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Theory Of Price Determination

The Theory Of Demand

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Question 47 Report

In the long run a firm will leave an industry if price?