JAMB Economics 2014 past questions and answers

The choice of how to produce in a command economy is determined by

1. A.industrialists.
2. B.labour unions.
3. C.government.
4. D.consumers.

In capitalist economies, questions about what to produce are ultimately answered by

1. A.output decisions of firms.
2. B.spending decisions of households.
3. C.income level of households.
4. D.available technical skills in the economy.

The best measure of dispersion to determine the tallest tree in a forest is

1. A.standard deviation.
2. B.mean deviation.
3. C.range.
4. D.variance.

Use the pie chart below to answer the question.
What is the percentage contribution of services to the national income?

1. A.54%.
2. B.24%.
3. C.15%.
4. D.10%.

Use the pie chart below to answer the question.
If the national income is ₦60m, the contribution of the manufacturing sector is

1. A.₦18m.
2. B.₦17m.
3. C.₦12m.
4. D.₦9m.

Use the graph below to answer the question.
A combination of factors responsible for a shift from D₀D₀ to D₁D₁ are

1. A.consumers income and population size.
2. B.consumers taste and change in price.
3. C.consumers income and change in technology.
4. D.price of the commodity and weather conditions.

Given that Qd = 40 − 2P and Qs = 6P + 24, calculate the equilibrium price.

1. A.₦36
2. B.₦16
3. C.₦4
4. D.₦2.

A change in demand for a normal good implies that, there is a

1. A.movement along a given demand curve.
2. B.change in the price elasticity of demand.
3. C.change in the quantity demanded as price charges.
4. D.shift in the demand curve.

If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity of demand is

1. A.elastic.
2. B.inelastic.
3. C.unitary elastic.
4. D.zero elastic.

Use the graph below to answer the question.
From the graph above, the consumer will attain equilibrum at point

1. A.L.
2. B.M.
3. C.J.
4. D.K.

A rightward shift of the budget line is caused by a

1. A.fall in the commodity relative price.
2. B.rise in the commodity relative price.
3. C.fall in consumer income.
4. D.change in consumer taste.

Given the supply function p = ¼(Qs + 10) when P = ₦10, what is Qs?

1. A.50
2. B.30
3. C.20
4. D.15.

Use the table below to answer the question.
Price (₦) | Quantity supplied
8 | 20
10 | 24
From the table above, calculate the price elasticity of supply.

1. A.2.00
2. B.1.25
3. C.0.50
4. D.0.80.

When price is set below equilibrium, this will lead to

1. A.a decrease in the quantity supplied.
2. B.a fall in price.
3. C.an increase in the quantity supplied.
4. D.a new equilibrium.

Price mechanism determines the prices of commodities through

1. A.the sales of treasury bills.
2. B.government legislation.
3. C.auctioning.
4. D.market forces.

Use the table below to answer the question.
Unit of labour | Total product | Average product | Marginal product
1 | 8 | 8 | –
2 | 20 | 10 | 12
3 | E | 9 | 7
4 | 28 | 7 | F
5 | 40 | 8 | 12
From the table above, find the values of E and F respectively.

1. A.28 and 5
2. B.12 and 19
3. C.27 and 1
4. D.68 and 12.

If the production cost of a large is higher firm than that of a small firm, it is experiencing

1. A.internal economies of scale.
2. B.internal diseconomies of scale.
3. C.external economies of scale.
4. D.external diseconomies of scale.

Given that FC = ₦500, VC = ₦1500, and Q = 50 units. Find the average cost of the product.

1. A.₦10
2. B.₦20
3. C.₦30
4. D.₦40.

Rent and administrative expenses are examples of

1. A.fixed costs.
2. B.variable costs.
3. C.average fixed costs.
4. D.average variable costs.

A perfect competitor will continue to expand output up to the point where

1. A.MC<MR
2. B.MC>MR
3. C.TC>TR
4. D.MR=AR.

One of the characteristics of a monopolist is that he can influence

1. A.both price and quanity.
2. B.price or quantity.
3. C.quantity produced by other producers.
4. D.prices charged by other producers.

A monopolist can boost his revenue by

1. A.increasing price.
2. B.reducing price.
3. C.adjusting both price and output upward.
4. D.reducing total output to match the price.

Which of the following can be used to measure the Gross National Product in an open economy?

1. A.C+I+G
2. B.C+I+G+(X−M)
3. C.C−I−G−(X+M)
4. D.C+I+G+X.

If MPC = ⅔ and investment is ₦100 million, the level of national income is

1. A.₦303 million.
2. B.₦300 million.
3. C.₦100 million.
4. D.₦10 million.

The precautionary demand for money is determined by

1. A.the level of income.
2. B.general price level.
3. C.the rate of interest.
4. D.the level of savings.

An inflation that co-exists with high rate of unemployment is

1. A.demand-pull inflation.
2. B.cost-push inflation.
3. C.hyperinflation.
4. D.stagflation.

One of the challenges facing the banking industry in Nigeria is

1. A.providing loans for investment.
2. B.creating more money.
3. C.ensuring technological security.
4. D.providing employment.

Short-term loans for investment are usually obtained through the

1. A.money market.
2. B.capital market.
3. C.stock market.
4. D.development banks.

Wage freeze is a policy measure aimed at

1. A.regulating standard of living.
2. B.curbing deflation.
3. C.encouraging investors.
4. D.curbing inflation.

A major obstacle to the development of Nigerian economy is

1. A.over-dependence on oil.
2. B.poor development policies.
3. C.low capital formation.
4. D.rural-urban migration.

A major feature of an underdeveloped economy is

1. A.low level of standard of living.
2. B.low level of unemployment.
3. C.excess capacity utilization.
4. D.low rate of population growth.

An important role of agriculture in Nigeria's economic development is the

1. A.provision of infrastructure.
2. B.provision of employment.
3. C.processing of raw materials for industries.
4. D.regulation of price system.

An advantage of large-scale farming over peasant farming is in the area of

1. A.encouraging the use of traditional implements.
2. B.encouraging urban-rural migration.
3. C.providing research and massive employment of labour.
4. D.redistributing national income to various regions of the country.

A major disadvantage of localization of industry is

1. A.the risk of seasonal unemployment.
2. B.under-utilization of installed industrial capacity.
3. C.the risk of structural unemployment.
4. D.over-utilization of installed industrial capacity.

One major factor that determines the location of an industry is

1. A.the capital base.
2. B.the social responsibility of the firm.
3. C.tax exemption grant.
4. D.its proximity to the market.

The major contribution of OPEC to the Nigerian economy is the

1. A.stabilization of oil prices.
2. B.building of refineries.
3. C.provision of social infrastructures.
4. D.granting of subsidies on petroleum products.

The short-run average variable cost of a firm will rise owing to

1. A.an increase in the cost of labour.
2. B.an increase in the salaries of directors.
3. C.the expansion of factory space.
4. D.the building of new warehouses.

Firms embark on vertical integration in order to

1. A.reduce advertisement and marketing cost.
2. B.enjoy economies of large-scale production.
3. C.take over markets formally controlled by other firms.
4. D.prevent other firms from entering the market.

The voting power in co-operative societies is vested on

1. A.the shareholders.
2. B.members with the highest contribution.
3. C.the management.
4. D.members without loan.

An accurate census figure is an important tool for planners in

1. A.providing social amenities.
2. B.allocating resources.
3. C.providing employment.
4. D.siting industries.

An accurate population census is important in order to

1. A.estimate a country's per capita income.
2. B.fast track industrial development.
3. C.produce more food for the growing population.
4. D.provide employment opportunities for the people.

A major determinant of a floating exchange rate is

1. A.the system of government.
2. B.the forces of demand and supply.
3. C.the highest denomination of the currency.
4. D.an Act of the parliament.

If the importation of a commodity is limited to a definite quantity, the trade control measure imposed is

1. A.quotas.
2. B.tariff.
3. C.excise duties.
4. D.import duties.

The main objective of WTO is to

1. A.assist countries with chronic balance of payments problem.
2. B.assist developing countries to execute developmental projects.
3. C.ensure adequate protection for infant industries.
4. D.provide a mechanism for tariff reduction.

The major determinant of the total volume of output in an economy is the

1. A.number of farmers.
2. B.size of the labour force.
3. C.level of total expenditure.
4. D.composition of consumer spending.

The labour force of a country is determined by the

1. A.sex distribution of the population.
2. B.number of people available for work.
3. C.age structure of the population.
4. D.geographical distribution of the population.