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JAMB - Economics (1989)

1
In its simplified form, the circular flow of income concept refers to the?
Answer
(C)
transactions in goods and services and payment for such transactions between individual firms and households.
2
The need to construct a scale of preference is necessitated by?
Answer
(B)
scarcity and the need for choice
3
A shift in the production possibility frontier could result from?
Answer
(D)
changes in production techniques
4
The primary problem of Economics is?
Answer
(B)
the scarcity of productive resources relative to material needs
5
Efficiency in production involves?
Answer
(B)
producing a given output with the lowest cost combination of factors of production
6
if X represent the factors of production and Y represent the factor price, which of the following sets of association is correct?
Answer
(D)
(land,rent), (capital, interest), (labour, wage),
7
If the cost of production for a firm continues to increase as it output rises, the firm is said to be experiencing?
Answer
(D)
diseconomies of scale
8
Given perfect competition in the capital market, the opportunity cost of capital is adequately reflected by the?
Answer
(B)
returns on capital
9
If a 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were purchased, the resultant point elasticity of demand is?
Answer
(C)
1
10
If, as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is?
Answer
(D)
perfectly inelastic
11
Which of the following factors is an important determinant of the magnitude of price elasticity of demand?
Answer
(C)
Durability of the product
12
The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?
Answer
(B)
productivity
13
In order to increase its profit margin, the monopolist can manipulate
Answer
(B)
either price or output
14
For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?
Answer
(B)
perfectly price elastic
15
The merging of firms engage in different stages of production and marketing is called?
Answer
(B)
vertical intergration
16
which of the following is an important function of the retailer?
Answer
(B)
Breaks bulk and sales product in small units
17
One of the purposes of advertisement in marketing is to?
Answer
(C)
shift the demand curve for the product to the right
18
The size of a business units tends to be small if the activity?
Answer
(D)
involves the provision of direct services
19
Which type of business organization has the attribute effectively combining management with control?
Answer
(A)
sole proprietorship
20
The co-operative as a form of business organization differs from partnership by having?
Answer
(C)
entrenched democratic control in the conduct of business
21
the type of business finance that entitle the holder to a fixed rate of dividend is?
Answer
(A)
perferred stock
22
Which of the business organization listed below is characterized by limited authority and liability of the individual owners?
Answer
(C)
Joint stock company
23
A company is said to be highly geared if the?
Answer
(A)
value of fixed interest loans is high compared with share capital
24
Industries that can be randomly located are characterized by?
Answer
(A)
relatively low transport cost for both raw materials and output and factor mobility
25
The term 'double coincidence ' of wants is usually associated with a?
Answer
(D)
barter exchange mechanism
26
A major factor affecting the value of money is the?
Answer
(A)
price level
27
Cost-push inflation is caused by?
Answer
(B)
increase in factor prices
28
The stock exchange market is where?
Answer
(C)
existing bonds and stocks are traded
29
Commercial bank reserves at the Central Bank have the effect of?
Answer
(A)
controlling credit and money supply
30
A tax is defined as regressive if?
Answer
(C)
the proportion if income taen by the tax falls as income increases
31
Government intervention in an economy is often justified on the group that?
Answer
(A)
wants are unlimited while resources are scarce
32
The three groups of government revenue are?
Answer
(A)
investment income, direct tax and indirect tax
33
The main objectives of public expenditure does NOT include?
Answer
(D)
revenue sharing and profit maximizationn
34
A perfect example of a public good is?
Answer
(A)
air
35
A balance budget is defined as a condition of?
Answer
(C)
equality of planned receipts and planned expenditure
36
By using exchange controls, a country tries to eliminate a balance of payments deficit by?
Answer
(A)
limiting her imports to its currency value of exports
37
The law of comparative advantage states that a country should specialize in the production of a commodity
Answer
(B)
in which its oportunity cost is lower than that of the trade partner
38
International and inter-regional trade differ primarily because?
Answer
(B)
products flow across national boundaries
39
Optimum population is the population level at which?
Answer
(B)
per capita income is at a maximum
40
The group of people engaged in banking or insurance services by occupational distributions are classified as?
Answer
(C)
tertiary producers
41
The difference between gross national product and net national product is equal to?
Answer
(D)
capital depreciation
42
The value of the total output produced within Nigeria by all residents (citizens and non-citizens) is referred to as the?
Answer
(D)
gross domestic product
43
If C stands for consumption expenditure, I for investment, X for exports, and M for imports, then national income is?
Answer
(B)
C + I +X - M
44
A sustained increase in the per capita income of a country over a period of time is called?
Answer
(A)
economic growth
45
The primary goal of development planning in Nigeria is to?
Answer
(B)
achieve a rapid increase in the welfare and standard of living of Nigerians