Economics 2010 JAMB Past Questions
Economics 2010 JAMB Past Questions
1. Economics is the study of human behaviour as it relates to the
- A. efficient allocation of resources
- B. production of goods
- C. operation of companies
- D. generation of income
Correct Answer: Option A
2. The downturn in the prices of shares on stock markets is a highlight of
- A. efficient allocation of resources
- B. the invisible hand
- C. the regulatory nature of the market
- D. consumer rationality
Correct Answer: Option C
3. The standard deviation of a set of data is
- A. always measured from the mode
- B. the most representative of averages
- C. always measured from the median
- D. a measure of dispersion
Correct Answer: Option D
4. The mean is the best measure of central tendency because it
- A. is not affected by extreme values in a data
- B. is a midpoint value in an array of data
- C. is a balancing point in an observation
- D. can be calculated from incomplete data
Correct Answer: Option C
5.The most popular sizes of dresses and shoes are determined by the
- A. range
- B. mean
- C. mode
- D. median
Correct Answer: Option C
6. If the demand for a good is more elastic than its supply, the tax burden is borne
- A. equally by consumers and producers
- B. more by producers
- C. more by consumers
- D. more by retailers and producers
Correct Answer: Option B
7. If the price of a commodity with elastic demand increases, the revenue accruing to the producer will
- A. double
- B. increase
- C. be constant
- D. decrease
Correct Answer: Option D
8. Consumer surplus tends to be higher when demand is
- A. inelastic
- B. perfectly elastic
- C. elastic
- D. unitarily elastic
Correct Answer: Option C
9. One of the assumptions of ordinal utility theory is that
- A. choice is not consistent
- B. utility can be ranked
- C. total utility is a function of price
- D. satisfaction is measurable
Correct Answer: Option B
10. The law of diminishing marginal utility explains why
- A. the slope of a normal demand curve is negative
- B. an abnormal demand curve slopes upwards
- C. the slope of a normal demand curve is positive
- D. the consumption of inferior goods increases with income
Correct Answer: Option A
11. If a consumer plans to spend 120k on four oranges but spent 80k, his consumer surplus is
- A. N1.50
- B. N0.40
- C. N1.00
- D. N2.00
Correct Answer: Option B
12. A set of factors that can shift the supply curve are changes in
- A. weather, price and technology
- B. technology, weather and population
- C. technology, price and taste
- D. population, price and taste
Correct Answer: Option B
13. If the coefficient of price elasticity of supply is greater than one, the supply is said to be
- A. perfectly elastic
- B. fairly inelastic
- C. infinitely inelastic
- D. fairly elastic
Correct Answer: Option D
14. If commodity X is a by-product of commodity Y , this implies that both commodities are
- A. in competitive supply
- B. in composite supply
- C. jointly supplied
- D. in excess supply
Correct Answer: Option B
15. In perfect competition,price is determined by the
- A. government
- B. sellers
- C. buyers
- D. market
Correct Answer: Option D
16. In order to reduce hardship faced by consumers due to high prices government can introduce
- A. maximum prices
- B. commodity boards
- C. minimum prices
- D. price control boards
Correct Answer: Option A
17. Average product is less than marginal product when
- A. there is constant returns to scale
- B. there is increasing returns to scale
- C. there is decreasing returns to scale
- D. diminishing returns set in
Correct Answer: Option C
18. A firm enjoying economies of scale is said to be
- A. reducing average cost as production increases
- B. benefiting from the activties of other firms
- C. maximizing profits as production increases
- D. having an upward-sloping average cost curve
Correct Answer: Option A
19. The rising portion of the long-run average cost curve of a firm is an indication that it is experiencing
- A. increasing efficiency
- B. economies of scale
- C. diseconomies of scale
- D. increasing marginal returns
Correct Answer: Option C
20. An industry's supply curve is more likely to be elastic when firms are
- A. enjoying free entry and exit
- B. operating at full capacity
- C. operating below capacity
- D. maximizing profits
Correct Answer: Option A
21. One of the characteristics of monopolistic competition is that
- A. there is mobility of factors of production
- B. no single seller dominates the market
- C. the firms are price-takers
- D. consumers have perfect knowledge of price
Correct Answer: Option B
22. The demand curve for factors of production
- A. is perfect elastic
- B. slopes upwards
- C. slopes of downwards
- D. is perfectly inelastic
Correct Answer: Option C
23. An agreement among firms on price and segmentation is termed
- A. cartel
- B. collusion
- C. haggling
- D. specialization
Correct Answer: Option A
24. In national income accounting, tax is determined by the
- A. level of income
- B. level of consumption
- C. level of investment
- D. rate of savings
Correct Answer: Option A
25. A decrease in aggregate spending in an economy will ultimately lead to
- A. boom
- B. inflation
- C. deflation
- D. recession
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