JAMB Economics 2005 past questions and answers

A profit maximizing monopolist should produce within the range where his demand is

1. A.inelastic
2. B.elastic
3. C.infinitely elastic
4. D.unitarily elastic

In the circular flow diagram above, the arrow marked K indicates

1. A.the flow of capital goods
2. B.payments to factors of production
3. C.payments for goods and services
4. D.the flow of economic rent

The savings deposit in a commercial bank is called

1. A.capital
2. B.fund
3. C.near money
4. D.call money

Output(kg) | 240 | 450 | 580 | 630
MR(₦) | 75 | 48 | –40 | –22
MC(₦) | 41 | 48 | 77 | 20
Given the table above, what is the firm's short-run profit-maximizing output?

1. A.450g
2. B.630 kg
3. C.240 kg
4. D.580 kg

The regulatory authority of the capital market in Nigeria is the

1. A.Central Bank
2. B.Securities and Exchange Commission
3. C.Nigerian Deposit Insurance Corporation
4. D.Stock Exchange Market

In the long run, the equilibrium point of a monopolistic firm is a point where the

1. A.marginal cost cruve is tangential to the average fixed cost curve
2. B.demand curve is tangential to the average variable cost curve
3. C.supply curve is tangential to the marginal cost curve
4. D.demand curve is tangential to the average cost curve

Given that Y = C + I, where C = 50 + 0.75 and I = N45m, what is the equilibrium level of income?

1. A.N380 m
2. B.N 20 m
3. C.N180 m
4. D.N200 m

Above full employment level, an expansionary monetary policy will lead to a

1. A.fall in aggregate demand
2. B.decrease in aggregate supply
3. C.fall in the inflation rate
4. D.rise in the inflation rate

A major assumption in a perfectly competitive market is that

1. A.the number of buyers and sellers is small
2. B.individuals cannot influence prices
3. C.the quality of products remains the same
4. D.prices will always remain constant

A discount house is a market where

1. A.various bills are exchanged
2. B.short-term and medium-term loans are obtained
3. C.shares are bought and sold
4. D.short-term loans are obtained

Idle cash balances are held for

1. A.planned purchases
2. B.the purchase of bonds
3. C.the purchase of shares
4. D.unplanned purchases

In a particular year, the sum of the value added in each sector of the economy was N4550 million. The amount represents the GNP measured by the

1. A.factor-price approach
2. B.output approach
3. C.income approach
4. D.expenditure approach

Population density is described as the

1. A.average number of people per square kilometre
2. B.average number of people in a country
3. C.total population excluding migration
4. D.total population including net migration

The short-run inelasticity of supply of agricultural produce causes

1. A.stability in prices
2. B.a steady rise in prices
3. C.a steady decline in prices
4. D.instability in prices

The major contribution of the petroleum industry to the Nigerian economy is the

1. A.generation of revenue for the oil companies
2. B.provision of employment opportunities for communities
3. C.generation of revenue for government
4. D.promotion of industrial harmony

During a conflict between management and workers, the union's bargaining power is based on

1. A.work-to-rule
2. B.negotiation
3. C.picketing
4. D.management decision

If the death rate of a country is 52% and the growth rate is 12%, what is the birth rate of the country

1. A.48%
2. B.64%
3. C.40%
4. D.52%

Agricultural backward-linkage effect means the establishment of

1. A.subsidiary industries to increase the number of industries
2. B.main industries to increase output
3. C.industries to reduce imports
4. D.subsidiary industries to feed the main industry

The distinction between onshore and offshore operations in oil exploration lies in the

1. A.location of sites
2. B.output generated
3. C.size of production
4. D.techniques of production

Long-run production is called

1. A.diminishing returns to scale
2. B.returns to scale
3. C.external economies of scale
4. D.economies of scale

For a firm to break even in the long run, the marginal cost curve must cut the

1. A.average variable cost curve at its highest point
2. B.average cost curve at any two lowest point
3. C.total cost cure at its lowest point
4. D.average cost curve at its lowest point

An increase in the quantity supplied of a commodity suggests

1. A.a leftward shift of the supply curve
2. B.a rightward shift of the supply curve
3. C.a movement along the supply curve
4. D.an increase in elasticity of supply

An example of a long-run cost of a firm is

1. A.fuel and maintenance cost
2. B.the planned size of plant and equipment
3. C.the existing size of plant and equipment
4. D.rent on buildings

In a car assembly plant, division of labour is demonstrated by

1. A.assigning each worker to a specific activity
2. B.assigning each worker a given number to produce
3. C.increasing the daily output
4. D.producing a specific model

Under perfect competition, the short-run supply curve of a firm is determined by its

1. A.total cost curve
2. B.marginal cost curve
3. C.average fixed cost curve
4. D.average cost curve

The hoarding of goods is usually experienced when

1. A.supply is greater than demand
2. B.the market price is above the equilibrium price
3. C.demand is greater than supply
4. D.excess demand is greater than excess supply

The technical relationship between input combination and maximum attainable output is called

1. A.a production function
2. B.an indifference curve
3. C.an isocost
4. D.an isoquant

If the marginal utility of the last unit of commodity X at N2 is 16 and that of commodity Y at N4 is 24, the consumer will be at equilibrium when

1. A.the price-quantity ratios are equal
2. B.equal amounts of X and Y are consumed
3. C.less of Y and more of X are consumed
4. D.less of X and more of Y are consumed

A buyer who haggles in the market is applying the principle of

1. A.choice
2. B.price mechanism
3. C.opportunity cost
4. D.utility maximization

An inverse relationship between price and quantity demanded implies that

1. A.the two variables change in opposite directions
2. B.the two variables change in the same direction
3. C.only one variable changes
4. D.the two variables remain unchanged

When the marginal utility of a commodity is zero, the total utility is

1. A.at its minimum
2. B.upward-sloping
3. C.downward-sloping
4. D.at its maximum

Economic freedom is a basic feature of

1. A.a market economy
2. B.an industrialized economy
3. C.a planned economy
4. D.a developed economy

Use the table below to answer the question.
Price (₦) | Quantity(kg)
40 | 6
48 | 5
55 | 4
60 | 3
70 | 2
What is the median quantity?

1. A.5 kg
2. B.6 kg
3. C.3 kg
4. D.4 kg

Use the table below to answer the question.
Price (₦) | Quantity(kg)
40 | 6
48 | 5
55 | 4
60 | 3
70 | 2
Find the mean price of the distribution

1. A.N54
2. B.N51
3. C.N56
4. D.N59

If elasticity of demand is greater than 1 and less than infinity, demand is said to be

1. A.elastic
2. B.perfectly inelastic
3. C.inelastic
4. D.perfectly elastic

In economics, production takes place only when

1. A.producers sell to retailers
2. B.value has been added to a commodity
3. C.modern equipment is used
4. D.consumption has taken place

The monetization policy of the Nigerian government is aimed at

1. A.encouraging public servants toretire early and become self-employed
2. B.transferring government's properties to retired public servants
3. C.reducing government's burden on the provision of fringe benefits to public servants
4. D.helping government recover properties held by public servants

The problem of planning in Nigeria is mainly in the

1. A.implementation of the plans
2. B.appraisal of the plans
3. C.allocation of scarce resources
4. D.articulation of the plans

Use the table below to answer the question.
Country | Groundnuts(unit) | Cocoa (units)
Nigeria | 8,000 | 1,000
Ghana | 1,000 | 8,000
Total production | 9,000 | 9,000
Applying the law of comparative costs, how many units of groundnuts will Nigeria produce?

1. A.7, 000 units
2. B.16,000 units
3. C.9,000 units
4. D.8,000 units

Use the table below to answer the question.
Country | Groundnuts(unit) | Cocoa (units)
Nigeria | 8,000 | 1,000
Ghana | 1,000 | 8,000
Total production | 9,000 | 9,000
The difference in each country's total output on specialization is

1. A.16,000 units
2. B.9,000 units
3. C.8,000 units
4. D.7,000 units

Economic growth is different from economic development because economic growth

1. A.describes expansion and change
2. B.is measurable but not objective
3. C.describes expansion and not change
4. D.is not measurable but objective

A long-term capital outflow is recorded in the balance of payment as a

1. A.credit on the capital account
2. B.credit on the current account
3. C.debit on the current account
4. D.debit on the capital account

Business organizations in which the owners' personal property may be forfeited in the event of bankruptcy are

1. A.partnerships and limited liability companies
2. B.partnerships and sole proprietorships
3. C.cooperatives and limited liability companies
4. D.corporations and sole proprietorships

The factor responsible for the current inflationary pressures in Nigeria is the

1. A.exchange rate depreciation
2. B.increase in exports
3. C.low per capita income
4. D.budget surplus

If government increases its expenditure on public works, the desired effect is

1. A.a reduction in the use of capital equipment
2. B.an increase in the level of emploment
3. C.an increase in the level of inflation
4. D.an increase in the use of capital equipment

An institution that regulates trade relations among members is the

1. A.ADB
2. B.OPEC
3. C.EU
4. D.IMF