JAMB UTME - Economics - 1978 | Green Bridge CBT

Question 1 Report

The effect of the demand for product A caused by a change in the price of a product B is called?

cross-elasticity of demand Correct answer

elasticity of supply

competitive demand

composite demand

joint demand

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Demand (WAEC)

The Theory Of Production

Demand

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Question 2 Report

Economics is called a social science because it is

A branch of social studies

A study of the ways man devises to satisfy his unlimited wants from unlimited resources Correct answer

A dismissal science in the Malthusian sense

Governed by scientific law

The study of human wants by the means of scientific method of observation

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 3 Report

Opportunity cost is a term which describe

The initial cost of setting up a business venture

Cost of one product in terms of foregone production of others Correct answer

The monetary equivalent of the utility of commodity

Cost related to an optimum level of production

Implicit cost

Answer Details

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

Read lesson note on Economics As A Science (JAMB)

Methods And Tools Of Economic Analysis

Economics As A Science

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Question 4 Report

Which of the following activities of government precludes the existence of a market economy?

The imposition of taxes

The control of the location of industry

The central planning of production Correct answer

The fixing of maximum price for all necessities

The establishment of law requiring the registration of business firms

Answer Details

Read lesson note on Public Finance (JAMB)

Read lesson note on Economic Systems (JAMB)

Public Finance

Economic Systems

View Answer

Question 5 Report

By ‘trade by barter’, we mean

Trade done by people in the village

Exchange of goods for money

International trade

Exchange of goods for goods Correct answer

The trade of the middle ages

Answer Details

Read lesson note on International Trade (JAMB)

Read lesson note on Economics As A Science (JAMB)

International Trade

Economics As A Science

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Question 6 Report

As consumption of beer increases, its marginal utility to a drinker will

Increase

Remain constant

Fluctuate

Decrease Correct answer

Change proportionally

Answer Details

Read lesson note on Theory Of Consumer Behaviour (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Consumer Behaviour

The Theory Of Demand

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Question 7 Report

In economics, production is complete when

Goods are produced in the factory

Goods are sold to the wholesalers

Goods and services are produced by the government

Prices are fixed for goods and services

Goods and services finally reach the consumer Correct answer

Answer Details

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 8 Report

A commercial bank is unique in that it is only the institution that

makes loans to private people and businessmen

accept deposits

can store peoples' valuables Correct answer

can transfer money from one place to another for its customers

saves money through the granting of credits

Answer Details

Read lesson note on Banking (JAMB)

Banking

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Question 9 Report

The Lagos clearing house is

a commodity market

an import licensing centre

another name for the Lagos stock exchange

an insurance and underwriting centre

a cheque sorting centre Correct answer

Answer Details

Read lesson note on International Trade (JAMB)

Read lesson note on Banking (JAMB)

International Trade

Banking

View Answer

Question 10 Report

Which of the following statements is true?

A proportional tax is one which takes from high income people a larger fraction of their income than it takes for low income people Correct answer

taxes on commodities of services which can be shifted elsewhere are usually called direct taxes

The sole proprietor is a legal entity

the influence of demand on price will be smallest on the short run

the cost of production is the most important determining factor of supply in the long run

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 11 Report

Inferior goods are referred to in Economics as goods

Whose quality is low

Consumed by very poor people

Whose consumption falls when cunsumers' income rises Correct answer

Which satisfy only the basic needs

None of the above

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Demand

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Question 12 Report

Which of the following sector of the economy is estimated to be the largest employer of labour in the country

Construction

Agriculture Correct answer

Distribution

Mining and petroleum

Transport and communication

Answer Details

Read lesson note on Agriculture (WAEC)

Read lesson note on Population And Labour Market (WAEC)

Agriculture

Population And Labour Market

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Question 13 Report

A Tax which takes a higher percentage from higher incomes is called?

a regressive tax

a progressive tax Correct answer

a proportional tax

an indirect tax

a direct tax

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 14 Report

Which of these would NOT increase population of a country

Increase in death rate Correct answer

Decrease in birth rate

Emigration

Migration

Better medical facilities

Answer Details

Read lesson note on Population And Labour Market (WAEC)

Read lesson note on Population (JAMB)

Population And Labour Market

Population

View Answer

Question 15 Report

The foreign exchange market is a market where

graded commoditties like wheat, flour, etc are sold and bought

currencies are sold and bought Correct answer

treasury bills are sold and bought

government bonds are sold and bought

treasury certificates are sold

Answer Details

Read lesson note on International Trade (JAMB)

International Trade

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Question 16 Report

The advantage of sole proprietorship is as follow

It is always successful

Continuity is no problem

Control and supervision is under one man Correct answer

Funds are easy to obtain

Inter-generational equity is assured

Answer Details

Read lesson note on Business Organizations (WAEC)

Business Organizations

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Question 17 Report

The optimum population of a country is reached when

All factor of production have been fully employed

The productive effort per man is at its highest with a given volume of resources Correct answer

The total population of a country increases

The natural resources of a country increases

The working population of a country increases

Answer Details

Read lesson note on Factors Of Production (WAEC)

Read lesson note on Population And Labour Market (WAEC)

Read lesson note on Population (JAMB)

Factors Of Production

Population And Labour Market

Population

View Answer

Question 18 Report

Which of the following is NOT strictly included In the study of economics?

The study of wants

The study of choice

Whether a particular want satisfies a good or bad purpose Correct answer

The study of scarcity

The study of substitution

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 19 Report

Which of the following can be regarded as a liability of a commercial bank?

advances

deposits Correct answer

treasury bills

overdrafts

cash

Answer Details

Read lesson note on Banking (JAMB)

Read lesson note on Theory Of Costs (JAMB)

Banking

Theory Of Costs

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Question 20 Report

Marginal cost is

Lowest cost of producing goods

The cost of production of the most efficient firm in the industry

Cost of production of the most inefficient firm in the industry

The cost of production of the last or extra unit of goods produced by a firm Correct answer

The cost of production at which the minimum profit is obtained by a firm

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on Theory Of Costs (JAMB)

Read lesson note on Theory Of Production (WAEC)

The Theory Of Supply

Theory Of Costs

Theory Of Production

View Answer

Question 21 Report

Malthus became famous through his theory which may be stated simply

the death rate may become so high that people may not be able to produce

population may outgrow the means of subsistence Correct answer

people will eventually decide not to have children

migration of people from one place to another may leave some parts of the world barren

all of the above

Answer Details

Read lesson note on Factors Of Production (WAEC)

Factors Of Production

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Question 22 Report

In the diagram equilibrium price is:

P₂

P_o Correct answer

P₁

indeterminate

between P_o and P₁ Diagram P.2

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

Theory Of Price Determination

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Question 23 Report

A rational consumer will adjust his spending pattern so that

He buys only the one item that gives him most total satisfaction

The marginal utility he gets from the last unit of item is the same

The marginal utility he gets from the last naira spent on each item is the same Correct answer

The total utility he gets from each item is the same

The total amount of money he spends on each item is the same

Answer Details

Read lesson note on The Theory Of Consumer Behaviour (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Consumer Behaviour

The Theory Of Demand

View Answer

Question 24 Report

If the demand of a product with perfectly elastic supply increases, there will be

An increase in price and quantity offered

An increase in quantity offered but price will remain the same Correct answer

A reduction in price and quantity offered

An increase in price but a reduction in quantity offered for sale

An increase in quantity offered but a reduction in price

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

View Answer

Question 25 Report

The numerical measure of elasticity is

\(\frac{\text{%change in Q}}{\text{%change in P}}\) Correct answer

\(\frac{\text{change in Q}}{\text{change in P}}\)

\(\frac{\text{%change in P}}{\text{%change in Q}}\)

\(\frac{\text{change in P plus change in Q}}{\text{change in P}}\)

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

View Answer

Question 26 Report

The expression ‘terms of trade’ is used to describe

Quality of export

The direction of foreign trade

Terms of purchase on deferred payment basis

The rate at which export exchange for imports Correct answer

Import licensing

Answer Details

Read lesson note on International Trade (JAMB)

International Trade

View Answer

Question 27 Report

Which of the following item in the balance of payment of account is an invisible transaction?

Import of cars

Export of cocoa

Export of crude petroleum

Tourism Correct answer

Import of building materials

Answer Details

View Answer

Question 28 Report

An increase in liquid reserve requirements by the central bank of Nigeria will result in

a reduction in commercial banks' excess reserves

more commercial bank loan to members of the public

an increase in commercial banks excess reserves Correct answer

no change in commercial banks excess reserves

a reduction in central banks gold reserves

Answer Details

Read lesson note on National Income (WAEC)

Read lesson note on Banking (JAMB)

National Income

Banking

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Question 29 Report

A distinguishing characteristics of a consumers' cooperative is the fact that

the customers are the owners Correct answer

the customers are the workers

the customers are the managers

the customers are low income people

the customers are high income people

Answer Details

Read lesson note on Business Organizations (WAEC)

Business Organizations

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Question 30 Report

If a company doubles all its inputs and discovers that its output is more than doubles, we can say that the company is experiencing

Increasing Marginal utility

Diseconomies of scale

Increasing costs

Constant returns to scale

Increasing returns to scale Correct answer

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Theory Of Costs (JAMB)

The Theory Of Supply

The Theory Of Production

Theory Of Costs

View Answer

Question 31 Report

Which of these would not be included in the fundamental principle of a free enterprise economy

Private ownership of factors of production

The right to organize factor for production purposes

The right to make private profit

Government control of mobility of factor of production Correct answer

Government effort to encourage competitive capitalism within the law of the country

Answer Details

Read lesson note on Public Finance (JAMB)

Read lesson note on Economic Systems (JAMB)

Public Finance

Economic Systems

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Question 32 Report

If the consumer demand for product X increases as the price of product Y decreases we can be fairly certain that X

X and Y are complementary commodities Correct answer

X and Y are substitute goods

X and Y are independent goods

X and Y are jointly supplied

X and Y are inferior commodities

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Demand (WAEC)

The Theory Of Demand

Demand

View Answer

Question 33 Report

Less developed countries obtain foreign exchange reserve mainly from the export of

Manufactured goods

Processed and semi processed commodities

Invisible items

Primary product Correct answer

All of the above

Answer Details

Read lesson note on International Trade (JAMB)

Read lesson note on Market Structures (WAEC)

International Trade

Market Structures

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Question 34 Report

In order to build up its capital stock, the typical less developed country should ideally

Increase total saving Correct answer

Depend on hand-out from foreigners

Impose tariff on import

nationalise all foreign concern

None of the above

Answer Details

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Question 35 Report

The biggest source of government revenue in Nigeria is

mining, rents and royalties

company income tax

import duties

export duties

petroleum profit tax Correct answer

Answer Details

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Question 36 Report

Which of the following is a term used to describe a payment representing a surplus in excess of transfer costs?

Interest rates

Opportunity costs

Economic rent Correct answer

Indirect costs

Wages

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

View Answer

Question 37 Report

A budget deficit means

That a country is buying more than is selling

That a country is selling more than is buying

That a government is spending more than in takes in taxation Correct answer

That a government is spending less than it takes in taxation

That a government is spending as much as it takes in taxation

Answer Details

View Answer

Question 38 Report

A country has a surplus in its balance of visible trade if

the value of imports exceeds the value of exports of goods

the value of exports exceeds the value of import of goods Correct answer

the value of goods exported is equal to the value of goods imported

it is able to spend a lot on capital programmes

commercial banks assets increase

Answer Details

Read lesson note on International Trade (JAMB)

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

International Trade

International Trade And Balance Of Payments

View Answer

Question 39 Report

Which of these should determine, in a planned economy how the factor of production are to be allocated among different production activities

Fairness

The distribution of income and wealth

Public need which is determined by the government Correct answer

Private needs determined by the market

The ability of individual to make profit

Answer Details

Read lesson note on Economic Systems (JAMB)

Economic Systems

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Question 40 Report

Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be

The same as equilibrium supply

Greater than equilibrium supply

Less than the equilibrium supply Correct answer

Determined later by government

None of these

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

Theory Of Price Determination

View Answer

Question 41 Report

Price control cannot work in Nigeria because

the population is too large

the policemen hate to arrest people

while it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled Correct answer

control cannot work under military rule

too many things are produced in the country

Answer Details

Read lesson note on Population And Labour Market (WAEC)

Read lesson note on Population (JAMB)

Population And Labour Market

Population

View Answer

Question 42 Report

The following is NOT a reason for the existence of small firms

Scale of production is limited by size of the market

Expansion brings diminishing returns Correct answer

Large firms can carter for wide markets

Small firms can provide personal services

All of the above

Answer Details

Read lesson note on Business Organizations (JAMB)

Business Organizations

View Answer

Question 43 Report

The largest liability appearing in the book of a commercial bank is

cash

deposits Correct answer

loans and advances

capital and reserves

treasury bills

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Public Finance (JAMB)

Read lesson note on Banking (JAMB)

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

The Theory Of Production

Public Finance

Banking

Definition And Scope Of Economics

View Answer

Question 44 Report

Which is an example of an invisible item in the trade Account of Ghana?

Export of Cocoa from Ghana

Import of oil from Nigeria

A gift of a Peugout 504 by a firm in Nigeria to a firm in Ghana

Payment for shipping and insurance by a Ghanaian company to companies outside Ghana Correct answer

None of the above

Answer Details

Read lesson note on International Trade (JAMB)

International Trade

View Answer

Question 45 Report

Disposable income is the same thing as

personal income minus personal savings

personal inome minus taxes Correct answer

national income minus depriciation

exports minus imports

savings plus investments

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

View Answer

Question 46 Report

Which is NOT a direct effort to increase Agricultural production in Nigeria?

Operation feed the Nation

Nigerian Youth Service Corps Correct answer

Increased loans to farmers and cooperatives

Research in Agric & Extension services

Mechanization of Agriculture

Answer Details

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

Read lesson note on Money And Inflation (JAMB)

Read lesson note on Agriculture In Nigeria (JAMB)

Petroleum And The Nigerian Economy

Money And Inflation

Agriculture In Nigeria

View Answer

Question 47 Report

When elasticity is zero, the demand curve is

Perfectly elastic

Perfectly inelastic

Concave

Downward slopping Correct answer

Circular

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Demand

View Answer

Question 48 Report

Bondholders are treated more favorably than shareholders because

They are not liable for the companies losses

They greater voice in the electing board of the directors

They control the management

They have a prior claim on the companies assets

none of the above 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

View Answer

Question 49 Report

Which of the following financial assets consist the lowest rate of interest in Nigeria?

commercial bills

call money

treasury bills

development loan stocks Correct answer

deposits with the federal savings bank

Answer Details

Read lesson note on Money And Inflation (WAEC)

Money And Inflation

View Answer

Question 50 Report

Which of the following is not a form of business organization

A sole proprietorship

Cartel Correct answer

Partnership

Joint stock

Cooperative society

Answer Details

Read lesson note on Business Organizations (WAEC)

Read lesson note on Market Structure (JAMB)

Business Organizations

Market Structure

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