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