Economics 2011 JAMB Past Questions
Economics 2011 JAMB Past Questions
1. An effective way of controlling inflation in a mixed economy is to
- A. increase productivity
- B. reduce income tax
- C. ration available output
- D. increase imports
Correct Answer: Option A
2. One`of the limitations PPC assumption is that there is
- A. no indication of technological development
- B. no recognition of preferred goods for countries
- C. technical inefficiency
- D. abundant resources
Correct Answer: Option B
3.A major disadvantage of the arithmetic means is that it is
- A. not useful for large data
- B. not suitable for further statistical analysis
- C. cumbersome to determine the actual value
- D. affected by extreme data
Correct Answer: Option D
4. Demand patterns are determined by the market on the basis of
- A. scale of preference
- B. cousumer sovereignty
- C. cosumer rationality
- D. price of the commodity
Correct Answer: Option B
5. A consumer surplus measures the
- A. benefits derived from consuming a cheap commodity
- B. excess of total expenditure over total uility
- C. difference between marginal utility and marginal cost
- D. excess of marginal utility over price
Correct Answer: Option D
6. If the demand for one commodity excludes another, it is said to be
- A. complementary demand
- B. competitive demand
- C. composite demand
- D. derived demand
Correct Answer: Option B
7. If demand increases without a change in supply, equilibrium price and quantity will
- A. remain unchanged
- B. shift inward
- C. fall
- D. rise
Correct Answer: Option D
8. In the process of production, total output is at maximum when
- A. MP=0
- B. MP > 0
- C. AP = 0
- D. AP > 0
Correct Answer: Option A
9. When a consumer is at equilibrium, the MRSxy is equal to the
- A. sum of the prices
- B. product of the two prices
- C. ratio of the two prices
- D. difference of the two prices
Correct Answer: Option A
10. Minimum price legislation by government will
- A. reduce supply
- B. increase supply
- C. reduce demand and create surplus
- D. increase demand and create scarcity
Correct Answer: Option C
11.Ranking is the method use in measuring
- A. marginal utility
- B. ordinal utility
- C. cardinal utility
- D. total utility
Correct Answer: Option B
12. If a firm is faced with an elastic supply curve, its revenue will
- A. be supplied at a higher price
- B. double at a higher price
- C. increase by more than the percentage increase in price
- D. equal percentage change in price
Correct Answer: Option C
13. A firm will experience diseconomies of scale when
- A. there are difficulties in coordinating production
- B. there is shortage in labour supply
- C. the size of market is small
- D. there is an increase in the price of raw materials
Correct Answer: Option A
14. The law of variable proportions is applicable only
- A. in the long-run period
- B. to large-scale enterprises
- C. to small-scale enterprises
- D. in the short-run period
Correct Answer: Option A
15. One of the characteristics of oligopoly is the availability of
- A. few sellers
- B. few buyers
- C. many sellers
- D. a single seller
Correct Answer: Option A
16. Bank consolidation policy in Nigeria is a measure to increase
- A. the capital base of banks
- B. employment opportunities in banks
- C. the number of shareholders
- D. the number of branches
Correct Answer: Option A
17. An increase in the circulation of money without a corresponding increase in output will lead to
- A. a rise in income levels
- B. stagflation
- C. inflation
- D. deflation
Correct Answer: Option C
18. In national income accounts, an item counted as part of government spending is
- A. salaries and wages
- B. pension
- C. scholarship
- D. social welfare
Correct Answer: Option D
19. If aggregate demand is lower than total output in an economy national income will
- A. be constant
- B. be at equilibrium
- C. increase
- D. fall
Correct Answer: Option D
20. During the era of barter, money was generally in the form of
- A. notes
- B. precious metals
- C. coins
- D. commodities
Correct Answer: Option D
21. A country achieves economic development when there is- A. an increase in military expenditure
- B. an increase in capacity utilization
- C. a sustained increase in per capital income
- D. an even distribution of goods and services
Correct Answer: Option C
22. An indicator of growth in an economy over a period of time is the
- A. GDP gap
- B. GDP at factor cost
- C. GDP at market price
- D. GDP deflator
Correct Answer: Option C
23. A country embarks on deficit financing in order to
- A. increase revenue
- B. reduce aggregate demand
- C. curb inflation
- D. stimulate investment
Correct Answer: Option C
24. The import-substitution strategy of industrialization is to encourage
- A. domestic production
- B. large-scale production
- C. importation
- D. exportation
Correct Answer: Option A
Explanation
Import substitution, also referred to as import substitution industrialization (ISI), is a set of policies that addresses the developmental concerns of structurally deficient economic countries. As the name suggests, the ultimate goal of ISI is to promote a country’s economic industrialization by encouraging domestic production and discouraging imports of consumer goods.
25. Upstream oil activities involve the
- A. management of pollution
- B. marketing of refined products
- C. exploration of crude oil
- D. refining of crude oil
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