Economics 2012 JAMB Past Questions
Economics 2012 JAMB Past Questions
1. A major disadvantage of a socialist economy is that
- A. corruption is rampant
- B. consumer's sovereignty is lost
- C. income inequality is entrenched
- D. there is high level of unemployment
Correct Answer: Option A
2. The privatization of public enterprises will lead to efficient management of resources in the economy.
This statement can best be described as
- A. normative reasoning
- B. inductive reasoning
- C. deductive reasoning
- D. positive reasoning
Correct Answer: Option B
3. The sign of the slope of a graph in economic analysis is important because it
- A. shows whether a good is normal or inferior
- B. shows the relationship between variables
- C. reveals the magnitude of the change between variables
- D. helps to determine the unit of measurement of variables
Correct Answer: Option D
4. If the quantity
of rice bought decreases from 250 tonnes to 200 tonnes owing to a 2%
rise in price, it shows that there is a change in
- A. consumers' income
- B. demand
- C. consumers' tastes
- D. quantity damanded
Correct Answer: Option D
5. A rise in income will, ceteris paribus, bring about
- A. a movement along the demand curve
- B. a leftward shift of the demand curve
- C. a rightward shift of the demand curve
- D. no effect on the demand curve
Correct Answer: Option B
6. If the price of
an item increases by 8% while the quantity demanded falls from 1500
units to 1492 units, the demand is said to be
- A. perfectly elastic
- B. inelastic
- C. elastic
- D. perfectly inelastic
Correct Answer: Option B
7. Comparison of interpersonal utility is impossible because
- A. utility is measured in utils
- B. marginal utility is not observable
- C. utility is subjectively determined
- D. individual income differ
Correct Answer: Option A
8. When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he
- A. stops consuming more of the commodity
- B. reduces the quantity consumed
- C. increases the quantity consumed
- D. consumes more of another commodity
Correct Answer: Option C
9. The supply of cocoa is influenced by
- A. seasonal conditions
- B. the efficacy of fertilizer used
- C. the demand for beverages
- D. the availability of close substitutes
Correct Answer: Option B
10. If quantity supplied is constant irrespective of price changes, the supply elasticity is
- A. unitary
- B. infinity
- C. fairly elastic
- D. perfectly inelastic
Correct Answer: Option D
11. The cost elasticity of supply is a useful instrument for measuring
- A. profit
- B. productivity
- C. national income
- D. price index
Correct Answer: Option B
12. The invisible hand promotes the interests of
- A. consumers
- B. society
- C. government
- D. producers
Correct Answer: Option C
13. Fixing price above equilibrium will cause
- A. demand and supply to remain constant
- B. an increase in quantity supplied
- C. an increase in supply
- D. a decrease in quantity supplied
Correct Answer: Option B
14. An important function of the price system is to
- A. ensure that producers' profits remain high
- B. guarantee full employment of resources
- C. allocate resources to most productive uses
- D. protect the economic interests of government
Correct Answer: Option D
15. If all factors are variable in the long run,firms will experience
- A. decreasing returns to scale
- B. increasing returns to scale
- C. diminishing returns
- D. economies of scale
Correct Answer: Option B
16. The equilibrium point of a firm is attained at the point where the isoquant is
- A. greater than the isocost
- B. less than the isocost
- C. tangent to the isocost
- D. greater than the output
Correct Answer: Option B
17. The long-run average cost curve touches to the short-run average cost curves at the
- A. minimum points of all short run average cost curves
- B. declining points of all short-run average cost curves
- C. minimum point of only one of the short-run cost curves
- D. rising points of all short-run average cost curves
Correct Answer: Option D
18. If a firm doubles all inputs in the long run and the total output is less than doubled, this results in
- A. diminishing returns
- B. constant returns to scale
- C. increasing returns to scale
- D. decreasing returns to scale
Correct Answer: Option D
19. Patents and copyrights enable monopolists to
- A. determine the quality of their products
- B. determine the scale of their products
- C. restrict information flow to new firms
- D. restrict entry of new firms
Correct Answer: Option B
20. A discriminatory monopoly is characterized by
- A. a common elasticity in different markets
- B. different elasticities in different markets
- C. a finite elasticity in all markets
- D. zero elasticity in all market
Correct Answer: Option A
21. Net National Product is derived by deducting
- A. net exports from GNP
- B. subsidies from GDP
- C. taxes from GDP
- D. depreciation from GNP
Correct Answer: Option D
22. The investment expenditure of an economy changes by N 2 million and MPC is 0.75
The multiplier is
- A. 8
- B. 4
- C. 3
- D. 2
Correct Answer: Option D
23. The investment expenditure of an economy changes by N 2 million and MPC is 0.75
What is the change in income?
- A. N0.5m
- B. N1.5m
- C. N2.6m
- D. N8.0m
Correct Answer: Option D
24. If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index
- A. 100
- B. 200
- C. 240
- D. 300
Correct Answer: Option B
25. The money that commands a higher market value than its face value is called
- A. paper money
- B. standard money
- C. commodity money
- D. fiat money
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