JAMB Economics 2013 past questions and answers

An economy in which both the public and private sectors contribute to economic growth is a

1. A.feudal economy.
2. B.capitalist economy.
3. C.socialist economy.
4. D.mixed economy.

If the standard deviation of a given data is 53, what is the variance?

1. A.2082
2. B.2809
3. C.2808
4. D.2209.

Which of the following set of statistical tools is used for further economic analysis?

1. A.The median and standard deviation.
2. B.The mean and mode.
3. C.The mean and standard deviation.
4. D.The mode and median.

Find the median of the following set of data 35, 10, 14, 38, 15, 18, 22, 30 and 28.

1. A.10
2. B.38
3. C.35
4. D.22.

An increase in the price of a commodity will result in

1. A.a decrease in quantity demanded.
2. B.an increase in demand.
3. C.an increase in quantity demanded.
4. D.a decrease in demand.

If the price of a bicycle changes from N120 to N80 and the quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is

1. A.66.7
2. B.0.5
3. C.1.5
4. D.2.0

Use the graph below to answer the question.
From the graph above, the price elasticity of demand is

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

One of the assumptions of the cardinalist approach is

1. A.diminishing marginal rate of substitution.
2. B.the consistency and transitivity of choice.
3. C.that total utility depends on the quantity of the commodities consumed.
4. D.unstable marginal utility of money.

Utility is the satisfaction derived from the

1. A.distribution of goods and services.
2. B.use of goods and services.
3. C.demand of goods and services.
4. D.production of goods and services.

Use the graph below to answer the question.
From the indifference curve above, a consumer will prefer combination

1. A.F
2. B.S
3. C.M
4. D.K.

One of the major factors that brings about changes in supply is

1. A.market discrimination.
2. B.availability of storage facilities.
3. C.the cost of storage.
4. D.incentives granted to workers.

If P = ¼(Qs + 10), what is the quantity supplied at N14?

1. A.14
2. B.60
3. C.46
4. D.32.

If the supply of a product is elastic, a small reduction in price will

1. A.reduce the cost of production.
2. B.reduce the quantity supplied.
3. C.increase the quantity supplied.
4. D.lead to no change in the quantity supplied.

The supply of beverages by firms in a monopolistic market is an example of

1. A.derived demand.
2. B.competitive supply.
3. C.composite supply.
4. D.joint demand.

If the price of a commodity is fixed below equilibrium, this will lead to

1. A.excess demand.
2. B.a decrease in price.
3. C.an increase in price.
4. D.excess supply.

One of the criticisms of the price mechanism is that

1. A.producers are sovereign.
2. B.it provides low degree of freedom.
3. C.it widens the inequitable gap.
4. D.consumers are sovereign.

In Nigeria, government can reduce the cost of accommodation by fixing rent

1. A.at the prevailing rate.
2. B.at the equilibrium price.
3. C.above the equilibrium price.
4. D.below the equilibrium price.

If a refinery achieves a reduction in cost by purchasing and transporting crude oil in large quantities, it enjoys

1. A.economies of scale.
2. B.specialization.
3. C.division of labour.
4. D.diseconomies of scale.

An isoquant lying above to the right of another represents

1. A.a higher output level.
2. B.constant returns to scale.
3. C.over-capacity utilization.
4. D.a lower output level.

Use the graph below to answer the question.
From the graph above, R represents

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

Use the graph below to answer the question.
The optimum level of output of the firm is

1. A.BC.
2. B.OB.
3. C.OS.
4. D.BS.

Use the graph below to answer the question.
The total revenue of the firm is represented by

1. A.GHEF.
2. B.GHJC.
3. C.EFJC.
4. D.GHOB.

A measure of national income used as a comparison of standard of living among nations is

1. A.net national product.
2. B.gross domestic product.
3. C.gross national product.
4. D.per capita income.

The speculative demand for money is inversely related to the

1. A.interest rate.
2. B.level of income.
3. C.exchange rate.
4. D.inflation rate.

If Mr. K obtains a N50,000 loan from a bank for the purpose of providing household needs, the demand for money is said to be

1. A.transactionary and speculative.
2. B.transactionary.
3. C.speculative.
4. D.precautionary and speculative.

Which of the following is used by the Central Bank of Nigeria to control inflation?

1. A.Tariffs on imports.
2. B.Tax rate.
3. C.Exchange rate.
4. D.Discount rate.

If CBN reduces money supply, the interest rate will

1. A.fluctuate.
2. B.rise.
3. C.fall.
4. D.remain unchanged.

An example of an expansionary fiscal policy action is

1. A.decrease in the corporate profit tax rates.
2. B.decrease in welfare payments.
3. C.purchase of government securities.
4. D.decrease in the bank rate.

A tax on land will ultimately fall

1. A.partly on agents and users.
2. B.entirely on users.
3. C.entirely on owners.
4. D.partly on users and owners.

In order to add value to Nigeria agricultural produce, there is need to

1. A.cultivate high. breed crops.
2. B.process them into finished goods.
3. C.adopt modern storage methods.
4. D.advertize them in European markets.

The main reason for low agricultural produce in West Africa is

1. A.the presence of large-scale agro-allied industries.
2. B.high dependency ratio.
3. C.over dependence on agriculture for subsistence.
4. D.the use of crude implements in farming process.

The most important determinant for the location of a brick industry is the availability of

1. A.market.
2. B.power supply.
3. C.water.
4. D.raw materials.

In Nigeria, efficiency in public corporations can be achieved through

1. A.public offer.
2. B.indigenization.
3. C.privatization.
4. D.nationalization.

Government participation in the oil industry was necessitated by the

1. A.annual increase in production.
2. B.formation of OPEC.
3. C.high demand for crude oil.
4. D.huge investment outlay.

The deregulation of the petroleum sector in Nigeria will bring about

1. A.efficiency in pricing and distribution of the products.
2. B.an end to the importation of fuel.
3. C.an end to foreign firms' dominance.
4. D.fixing appropriate production quotas.

A distinguishing characteristic of consumer co-operative society is that, the

1. A.maximum number of shareholders is 20.
2. B.members are the owners.
3. C.members are the workers.
4. D.the minimum number of shareholder is 5.

A major disadvantage of partnership business is

1. A.difficulty in the transfer of shares.
2. B.distrust among members.
3. C.limited liability.
4. D.large capital outlay.

The quality of labour force in Nigeria can be improved by

1. A.establishing more tertiary institutions.
2. B.creating sufficient job opportunities.
3. C.encouraging the study of science and technology.
4. D.establishing more skills acquisition centres.

The effect of emigration on a country's population is

1. A.decrease in the population.
2. B.decrease in job opportunities.
3. C.increase in population.
4. D.increase in dependency ratio.

A measure for preventing the external value of the naira from falling is for the government to

1. A.increase its spending with foreign reserve.
2. B.sell its own currency.
3. C.reduce interest rate.
4. D.buy its own currency with foreign reserve.

A fiscal policy instrument that can influence the demand pattern in an economy is

1. A.government spending.
2. B.interest rate.
3. C.income tax.
4. D.tariff.

One of the main achievements of the Economic commission for Africa is

1. A.eliminating trade restrictions among states.
2. B.encouraging transport and communication development.
3. C.guaranteeing a steady flow of foreign investment into Africa.
4. D.providing the machinery for collaboration on monetary issues.

The rate of interest charged on loans depends largely on

1. A.the prevailing exchange rate.
2. B.marginal efficiency of capital.
3. C.the risk associated with the loan.
4. D.the prevailing tax rate.

A valid explanation for real wage growth is

1. A.an increase in the rate of productivity.
2. B.the rising cost of capital accumulation.
3. C.a contraction of employment in service industries.
4. D.an increase in the quantity of labour.

If Mr. X lost his clerical job at a store and searched for a similar job for ten months before finding one, this implies that Mr. X was

1. A.structurally unemployed.
2. B.frictionally unemployed.
3. C.seasonally unemployed.
4. D.cyclically unemployed.