JAMB Economics Past Questions 2010 | Free Practice Test & Answers
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Economics is the study of human behaviour as it relates to the
efficient allocation of resources
production of goods
operation of companies
generation of income
The downturn in the prices of shares on stock markets is a highlight of
efficient allocation of resources
the invisible hand
the regulatory nature of the market
consumer rationality
If = 6 and N = 6, determine the value of ∑fx
36
12
1
72
The standard deviation of a set of data is
always measured from the mode
the most representative of averages
always measured from the median
a measure of dispersion
The mean is the best measure of central tendency because it
is not affected by extreme values in a data
is a midpoint value in an array of data
is a balancing point in an observation
can be calculated from incomplete data
The most popular sizes of dresses and shoes are determined by the
range
mean
mode
median
If the demand for a good is more elastic than its supply, the tax burden is borne
equally by consumers and producers
more by producers
more by consumers
more by retailers and producers
If the price of a commodity with elastic demand increases, the revenue accruing to the producer will
double
increase
be constant
decrease
An excess demand for beans will result from
an increase in the price of beans
a decrease in the price of beans
an increase in the supply of beans
a decrease in the supply of beans
Consumer surplus tends to be higher when demand is
inelastic
perfectly elastic
elastic
unitarily elastic
One of the assumptions of ordinal utility theory is that
choice is not consistent
utility can be ranked
total utility is a function of price
satisfaction is measurable
The law of diminishing marginal utility explains why
the slope of a normal demand curve is negative
an abnormal demand curve slopes upwards
the slope of a normal demand curve is positive
the consumption of inferior goods increases with income
If a consumer plans to spend 120k on four oranges but spent 80k, his consumer surplus is
₦1.50
₦0.40
₦1.00
₦2.00
A set of factors that can shift the supply curve are changes in
weather, price and technology
technology, weather and population
technology, price and taste
population, price and taste
If the coefficient of price elasticity of supply is greater than one, the supply is said to be
perfectly elastic
fairly inelastic
infinitely inelastic
fairly elastic
If commodity X is a by-product of commodity Y, this implies that both commodities are
in competitive supply
in composite supply
jointly supplied
in excess supply
In perfect competition, price is determined by the
government
sellers
buyers
market
In order to reduce hardship faced by consumers due to high prices government can introduce
maximum prices
commodity boards
minimum prices
price control boards
Average product is less than marginal product when
there is constant returns to scale
there is increasing returns to scale
there is decreasing returns to scale
diminishing returns set in
A firm enjoying economies of scale is said to be
reducing average cost as production increases
benefiting from the activities of other firms
maximizing profits as production increases
having an upward-sloping average cost curve
The rising portion of the long-run average cost curve of a firm is an indication that it is experiencing
increasing efficiency
economies of scale
diseconomies of scale
increasing marginal returns
An industry's supply curve is more likely to be elastic when firms are
enjoying free entry and exit
operating at full capacity
operating below capacity
maximizing profits
One of the characteristics of monopolistic competition is that
there is mobility of factors of production
no single seller dominates the market
the firms are price-takers
consumers have perfect knowledge of price
The demand curve for factors of production
is perfect elastic
slopes upwards
slopes of downwards
is perfectly inelastic
An agreement among firms on price and segmentation is termed
cartel
collusion
haggling
specialization
In national income accounting, tax is determined by the
level of income
level of consumption
level of investment
rate of savings
A decrease in aggregate spending in an economy will ultimately lead to
boom
inflation
deflation
recession
If MPC is 0.7 while government expenditure increased by ₦ 150m, the equilibrium national income is
₦ 214 million
₦ 45 million
₦ 105 million
₦ 500 million
The function of money which makes division of labour possible is its
unit of account
store of value
medium of exchange
standard of deferred payment
By buying treasury bills, the Central Bank of Nigeria intends to
increase money supply in the economy
reduce the cash reserve ratio for banks
reduce money supply in the economy
increase the capital base of commercial banks
The velocity of money is represented as
Money supply
Real GDP
Real GDP
Money supply
Nominal GDP
Money supply
Real GDP
Nominal GDP
One of the functions of commercial banks is
maintaining stable price in the economy
regulating monetary policies
granting loans to customers
issuing bank notes and coins
A strategy for curbing unemployment is to
implement government stabilization policy
increase taxes and decrease government expenditure
increase government expenditure and decrease taxes
ensure even distribution of job opportunities
In Nigeria, the distribution of job opportunities
balanced budgeting
deficit budgeting
surplus budgeting
zero budgeting
National development plans in Nigeria fail mainly because of
overdependence on foreign aids
inadequate funding of projects
poor implementation strategies
shortage of skilled manpower
The ultimate aim of agricultural policies in Nigeria is to achieve
food sufficiency
industrialization
full employment
industrial capacity utilization
Government can boost agricultural output in Nigeria primarily by
embarking on buffer stock programmes
placing embargo on food importation
granting subsidies on farm inputs
placing farmers on monthly income
Localization of industries refers to the
spread of firms producing different products
siting of industries near the market
concentration of firms of an industry
siting of firms producing different products
In developing countries, governments influence the location of industries in order to
spread development
redistribute wealth
encourage entrepreneurs
encourage industries to earn high profits
A disadvantage of Nigeria's dependence on imported petroleum products is the
instability in the demand for the products
dominance of multinational firms
instability in the supply of the product
poor maintenance of the refineries
The maximum number of shareholders for a limited liability company's is
twenty
five
seven
infinite
The primary motive for an individual engaging in production is to
make profit
satisfy basic human wants
redistribute wealth
put inputs into use
What is the population growth rate in 2003?
| Year | Population (000) | Working Population (000) |
|---|---|---|
| 2000 | 25 | 13 |
| 2001 | 30 | 19 |
| 2002 | 40 | 32 |
| 2003 | 50 | 49 |
33.3%
20.0%
11.0%
50%
The percentage of working population in 2002 is?
| Year | Population (000) | Working Population (000) |
|---|---|---|
| 2000 | 25 | 13 |
| 2001 | 30 | 19 |
| 2002 | 40 | 32 |
| 2003 | 50 | 49 |
50%
25%
8%
80%
One of the characteristics of free trade zone is
common tariff against non- member countries
different trade policies of non- member countries
free factor mobility within the zone
harmonized trade among member countries
If Nigeria imports vehicles from Japan the transaction will appear as a
debit on Japan's balance of payments
credit on Japan's balance of payments
credit on Nigeria's balance of trade
credit on Nigeria's balance of payment
One of the objectives of ADB is to
provide subsidies on imported goods to member countries
mobilize short-term loans for member countries
promote economic and social development of member countries
provide technical assistance to only poor member countries
The choice of the method of production in an economy is determined by the
level of technical know-how
rate of population growth
availability of natural resources
level of income
The amount of labour hired depends on the
number of skilled labour available
skill of labour
marginal productivity of labour
price of the inputs
