JAMB - Economics (2006)

1
If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million, the equilibrium level of income will change by
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(B)
N25. 0 milion
2
Personal income tax as a source of government revenue is increased when the
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(A)
tax rate is raised
3
In computing national income, transfers are excluded because
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(D)
they are not payments for productive activities
4
The major role of NDIC is to
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(A)
insure bank deposits
5
When the federal government guarantees a loan for a state government, such a loan constitutes
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(A)
a public debt
6
One way of controlling deflation is by
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(C)
deficit financing
7
If the Central Bank of Nigeria reduces the bank rate, this will cause
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(A)
money supply to increase
8
The main source of government revenue in Nigeria is
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(A)
import duties
9
The Revenue Mobilization, Allocation and Fiscal Commission in Nigeria has the primary responsibility for
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(C)
evolving an acceptable revenue-sharing formula
10
The burden of a government tax on a commodity whose demand is inelastic will
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(B)
fall more heavily on consumers
11
An important determinant of price elasticity of demand is
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(C)
the ease of substitution
12
The range of the data 14,13,15,18,20,35 and 13 is
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(B)
22
13
If the marginal utility of good X exceeds that of good Y, this implies that
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(B)
consuming more of X will increase total utility
14
A commodity will be demanded only if
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(D)
it has utility
15
Derived demand is normally used with reference to
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(D)
the factors of production
16
A straight line indifference curve indicates that the two products are
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(C)
perfect substitutes
17
Given that demand and price remain unchanged an outward shift of the supply curve will lead to
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(B)
excess supply
18
A distribution is said to be positively skewed if it
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(B)
has a long tail to the right
19
A decision on input combination solves the economic problem of
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(A)
how to produce
20
Choice involves opportunity cost because
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(B)
available resources are inadequate
21
A characteristic common to partnership and sole proprietorship is
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(D)
unlimited laibility
22
Nigeria's exports usually comprise
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(D)
primary goods
23
Economic growth can be accelerated through
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(D)
increased current investment
24
An association formed by a group of individuals solely for the marketing of their product is a
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(C)
producer cooperative society
25
The exchange rate determined by market forces is known as
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(B)
floating exchange rate
26
Import substitution policy is used to
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(C)
correct the balance of payments problem
27
The organization whose aim is to solve the trade problems of less developed nations is
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(A)
UNCTAD
28
Mobility of labour is higher when there
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(C)
are alternative jobs in the same location
29
A major advantage of industrialization is that it
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(C)
leads to growth and development
30
The oil-producing area in Nigeria are agitating for special compensation owing mainly to
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(D)
environmental pollution
31
If children and the aged dominate the population of a country, this results in
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(A)
a reduction in the importation of capital goods
32
A major factor militating against rapid industrialization in Nigeria is
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(D)
epileptic power supply
33
Minimum wage legislation will result in
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(B)
greater supply labour
34
The term 'oil shock' is used to describe a situation in which
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(B)
oil prices have fallen drastically
35
The major problem of conducing a census in Nigeria is
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(D)
lack of political will
36
The marginal productivity theory applies in a
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(B)
perfectly competitive market
37
A rising short-run average cost is a result of
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(C)
diminishing returns
38
The only factor of production that plays an active role in the production process is
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(C)
entrepreneur
39
The market structure in which there is interdependence of price-output policies is
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(B)
an oligopoly
40
If the short-run cost curve of a firm is U-shaped, the marginal and average cost are equal where the
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(C)
average cost is minimum
41
A perfectly competitive firm is advised to close down when the
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(D)
price is below the average variable cost
42
Product differentiation in monopolistic competition implies that
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(D)
the same product is available in different forms
43
If the price per unit is N2, what is the average revenue when 6 men are employed?
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(C)
110
44
The diagram above shows the effect of
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(A)
excess demand over supply at q₃
45
A movement from K to M will
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(C)
increase the consumer's utility