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

Consistency and transivity of choice

The determination of wages in a labour market depends on the_______

Interaction between demand and supply of labour

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

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

a backward sloping supply curve

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

banks, discount houses and stock, exchanges

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

ration it among the countries demanding it

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

ECOWAS was formed for the purpose of________

promoting co-operation and integration

to facilitate the expansion of international trade

JAMB UTME - Economics - 2019 | Green Bridge CBT

Question 1 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 2 Report

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

Protection of Infant industries

Establishment of Nigeria Enterprises Promotion Decree

Low Productivity and inefficiency Correct answer

Establishment of higher institutions

Answer Details

Low productivity and inefficiency is not a way by which government encourages industrialization. In fact, it is the opposite. Encouraging industrialization means creating a favorable environment for businesses to grow and increase productivity. Low productivity and inefficiency hinder the growth of industries, making it difficult for the government to encourage industrialization. On the other hand, protection of infant industries, establishment of Nigeria Enterprises Promotion Decree, and establishment of higher institutions are ways by which the government can encourage industrialization. Protection of infant industries involves offering support and protection to new and growing businesses to help them establish and grow. The establishment of Nigeria Enterprises Promotion Decree provides support and incentives for local businesses to grow and expand. The establishment of higher institutions provides a well-educated workforce, which is essential for industrial growth and development.

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National Income

Industry And Industrialization

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Question 3 Report

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 Correct answer

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

Answer Details

In 1976, there were 8 live births for every 1,000 people in the population of the country. This means that for a population of 10 million people, there would be 8 x 10,000 = 80,000 live births in the country.

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Population

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Question 4 Report

An example of a market which approaches fairly near to perfection is____________

the retail market

the house market

the labour market

the foreign exchange market Correct answer

Answer Details

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Methods And Tools Of Economic Analysis

Market Structures

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Question 5 Report

The most important cost curve for the firm is_________

AC Correct answer

Answer Details

Read lesson note on Theory Of Costs (JAMB)

Theory Of Costs

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Question 6 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 7 Report

The second equation of exchange is__________

MV = PT

P = M/KR Correct answer

P = MV/T

P=MV

Answer Details

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Question 8 Report

The sector which contribute highly to the economy is___________

Primary sector Correct answer

Secondary sector

Tertiary sector

Education sector

Answer Details

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Agriculture

National Income

Population And Labour Market

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Question 9 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 10 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.

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 11 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 12 Report

When of the following matters may account for changes in supply?

I - technological advances in an industry

II - changes in labour costs

III - changes in source of supply

IV - changes in levels of taxation

I, II

I, III

II, III, IV

I, II, III, IV Correct answer

Answer Details

All of the options listed - I, II, III, and IV - can contribute to changes in supply. Technological advances in an industry can increase the efficiency of production and lower costs, leading to an increase in supply. Changes in labor costs, such as an increase in wages, can make production more expensive, leading to a decrease in supply. Changes in the source of supply, such as a new supplier entering the market or a current supplier becoming unavailable, can also impact supply. Finally, changes in levels of taxation, such as an increase in taxes on production, can make production more expensive and lead to a decrease in supply. Therefore, all four options can impact changes in supply.

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Question 13 Report

One of these is not a problem of agriculture___________

provision of employment Correct answer

lack of preservation and storage facilities

land tenure system

poor transportation systems

Answer Details

"Provision of employment" is not a problem of agriculture. It is actually a benefit of agriculture. Agriculture provides job opportunities for people, from farmers to food processing workers. The other three options listed are actual problems faced by the agriculture industry: - Lack of preservation and storage facilities can lead to food waste and loss of income for farmers. - Land tenure system refers to the rules and regulations governing who can use and own land. In many countries, the land tenure system is not favorable for small farmers and can limit their ability to produce food. - Poor transportation systems can make it difficult for farmers to get their products to market and for consumers to access fresh food.

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Agriculture

Money And Inflation

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Question 14 Report

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

-1.25

0.62

1.25 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 15 Report

Whatever form an economic system may take, choice is essential for members of the community because resources are__________

scarce Correct answer

unlimited

free

many

Answer Details

Scarce. This means that there is not enough of a certain resource to meet the demand or needs of everyone in the community. As a result, choices have to be made about how to allocate these limited resources among different individuals, groups, or uses. When resources are scarce, it is important to make decisions about their use in the most efficient and effective way possible.

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Question 16 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.

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

Petroleum And The Nigerian Economy

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Question 17 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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The Theory Of Demand

Demand

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Question 18 Report

The basic and essential economic problems in a community are related to choice and________

Freedom

Scarcity Correct answer

Social class

Politics

Answer Details

The basic and essential economic problems in a community are related to choice and scarcity. Scarcity refers to the limited availability of resources in any given community. These resources can include natural resources, such as land, water, and minerals, as well as human-made resources, such as factories, machines, and tools. Because these resources are limited, there is never enough of them to satisfy everyone's wants and needs. This scarcity means that individuals, businesses, and governments must make choices about how to allocate these resources in the most efficient way possible. This requires making trade-offs and decisions about what goods and services to produce, how to produce them, and who should receive them. , Freedom, and Politics, are not directly related to the basic and essential economic problems of choice and scarcity. Social class, may be related to economic problems, but is not a fundamental concept in economics.

Read lesson note on Economics As A Science (JAMB)

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Read lesson note on Economic Systems (JAMB)

Economics As A Science

Types And Basic Features Of Economic Systems

Economic Systems

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Question 19 Report

The business risks of a public corporation are borne ultimately________

by the government

by the treasury

by the rate payers

by the tax payers Correct answer

Answer Details

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Question 20 Report

In the case of highly or close complementary goods, the indifference curve is_______

A straight line

A right-angled

L - shaped

Curvature
Correct answer

Answer Details

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The Theory Of Demand

Economics As A Science

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Question 21 Report

The money market equilibrium is defined as_________

when the demand and supply of money are equal Correct answer

when demand is greater than supply of money

when demand is less than supply of money

when supply is greater than demand for money

Answer Details

The money market equilibrium is defined as when the demand and supply of money are equal. In other words, the amount of money people want to hold (demand) is equal to the amount of money available (supply). Think of the money market as a marketplace where people buy and sell money. Just like any other market, when there is high demand for a product, its price (in this case, the interest rate) will increase. When there is low demand, the price (interest rate) will decrease. In the money market, the interest rate is a measure of the cost of borrowing money. If there is a high demand for money, people are willing to pay a higher interest rate to borrow it. This results in an increase in the interest rate. On the other hand, if there is low demand for money, people are not willing to pay a high interest rate, and the interest rate decreases. When the demand and supply of money are equal, the interest rate will be at the level where the quantity of money that people want to hold is equal to the amount of money available. This is the money market equilibrium.

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Theory Of Price Determination

The Theory Of Consumer Behaviour

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Question 22 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 23 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 24 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 25 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.

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

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Read lesson note on The Theory Of Demand (JAMB)

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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 26 Report

The release of a liquid petroleum hydrocarbon into the environment is_______

Oil glut

Oil spill Correct answer

Oil shock

Oil wastage

Answer Details

An oil spill is the release of a liquid petroleum hydrocarbon into the environment. This can occur in a variety of ways, such as from an oil tanker that leaks or a pipeline that ruptures. The oil can contaminate the water and harm wildlife, as well as damage the natural environment and disrupt human activities such as fishing and tourism. It is important to take measures to prevent and clean up oil spills to minimize their impact on the environment and local communities.

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

Petroleum And The Nigerian Economy

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Question 27 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 28 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 29 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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The Theory Of Production

Theory Of Costs

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Question 30 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.

Read lesson note on The Theory Of Supply (JAMB)

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The Theory Of Supply

The Theory Of Demand

Economics As A Science

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Question 31 Report

A contractionary monetary policy is used to control__________

Deflation

Inflation Correct answer

Recession

Balance of Payment deficit

Answer Details

A contractionary monetary policy is used to control inflation. Inflation is a sustained increase in the general price level of goods and services in an economy over time. It occurs when there is too much money chasing too few goods, leading to an increase in demand and upward pressure on prices. A contractionary monetary policy is a type of economic policy used by central banks to reduce the money supply and increase the cost of borrowing, with the aim of slowing down the economy and reducing inflationary pressures. This can be achieved through several measures, such as raising interest rates, increasing reserve requirements for banks, and selling government securities in the open market. By reducing the supply of money and making it more expensive to borrow, the central bank aims to reduce spending and investment in the economy, which can help to lower inflation. A contractionary monetary policy is the opposite of an expansionary monetary policy, which is used to stimulate economic growth by increasing the money supply and lowering interest rates.

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Money And Inflation

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Question 32 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 33 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 34 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 35 Report

Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)

208

104 Correct answer

Answer Details

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International Trade

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Question 36 Report

As indifference curve shows equal level of satisfaction at all points, An isoquant shows equal level of_________

Input

Commodities

Output Correct answer

Factors

Answer Details

An isoquant shows equal level of output. An isoquant is a curve that represents all the possible combinations of inputs (such as labor and capital) that can produce the same level of output for a particular product or service. In other words, it represents all the different ways to produce the same amount of output using different combinations of inputs. So, all points on an isoquant represent the same level of output, and this level of output gives us the same satisfaction or usefulness. As we move along the isoquant, we can produce the same output using different combinations of inputs, but the level of output remains constant. In simple terms, an isoquant is a line that shows the different combinations of inputs that can produce the same level of output.

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Theory Of Production

The Theory Of Demand

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Question 37 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 38 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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The Theory Of Production

Factors Of Production

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Question 39 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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The Theory Of Demand

Economics As A Science

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Question 40 Report

The last link in the channel of distribution is____________

Producer

Retailer

Consumer Correct answer

Wholesaler

Answer Details

The last link in the channel of distribution is the Consumer. The channel of distribution refers to the path that a product takes from the producer to the final customer. The producer creates the product, and it is then sold to a wholesaler, who sells it to a retailer, and finally, the retailer sells it to the consumer. The consumer is the end user of the product and is the last link in the chain of distribution. In other words, the consumer is the person who ultimately buys the product and uses it for their own purposes. The channel of distribution is important because it helps to ensure that the product reaches the end user in a timely and efficient manner.

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Distributive Trade

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