Instruction
JAMB Economics 2010
JAMB (UTME)
Economics
2010
Q5351.
The ultimate aim of agricultural policies in Nigeria is to achieve
A
food sufficiency
B
industrialization
C
full employment
D
industrial capacity utilization
Correct Answer: A
The primary aim of agricultural policies is to achieve food sufficiency for the nation.
JAMB (UTME)
Economics
2010
Q5352.
Government can boost agricultural output in Nigeria primarily by
A
embarking on buffer stock programmes
B
placing embargo on food importation
C
granting subsidies on farm inputs
D
placing farmers on monthly income
Correct Answer: C
Subsidies on farm inputs reduce production costs and encourage farmers to increase output.
JAMB (UTME)
Economics
2010
Q5353.
Localization of industries refers to the
A
spread of firms producing different products
B
siting of industries near the market
C
concentration of firms of an industry
D
siting of firms producing different products
Correct Answer: C
Localization of industries refers to the concentration of firms of the same industry in a particular area.
JAMB (UTME)
Economics
2010
Q5354.
In developing countries, governments influence the location of industries in order to
A
spread development
B
redistribute wealth
C
encourage entrepreneurs
D
encourage industries to earn high profits
Correct Answer: A
Governments influence industrial location to ensure even development across regions.
JAMB (UTME)
Economics
2010
Q5355.
A disadvantage of Nigeria's dependence on imported petroleum products is the
A
instability in the demand for the products
B
dominance of multinational firms
C
instability in the supply of the product
D
poor maintenance of the refineries
Correct Answer: C
Dependence on imported petroleum products makes Nigeria vulnerable to supply disruptions.
JAMB (UTME)
Economics
2010
Q5356.
The maximum number of shareholders for a limited liability company's is
A
twenty
B
five
C
seven
D
infinite
Correct Answer: D
A public limited liability company has no maximum number of shareholders.
JAMB (UTME)
Economics
2010
Q5357.
The primary motive for an individual engaging in production is to
A
make profit
B
satisfy basic human wants
C
redistribute wealth
D
put inputs into use
Correct Answer: A
The primary motive for production in a market economy is profit maximization.
JAMB (UTME)
Economics
2010
Q5358.
What is the population growth rate in 2003?
A
33.3%
B
20.0%
C
11.0%
D
50%
Correct Answer: A
Population in 2002 = 40,000; 2003 = 50,000. Growth rate = $\frac{50000 - 40000}{40000} \times 100 = 25\%$. (The provided answer A is a typo).
JAMB (UTME)
Economics
2010
Q5359.
The percentage of working population in 2002 is?
Correct Answer: D
Working population in 2002 = 32,000; Total population = 40,000. Percentage = $\frac{32000}{40000} \times 100 = 80\%$.
JAMB (UTME)
Economics
2010
Q5360.
One of the characteristics of free trade zone is
A
common tariff against nonmember countries
B
different trade policies of nonmember countries
C
free factor mobility within the zone
D
harmonized trade among member countries
Correct Answer: D
A free trade zone is characterized by harmonized trade policies among member countries.
JAMB (UTME)
Economics
2010
Q5361.
If Nigeria imports vehicles from Japan the transaction will appear as a
A
credit in Nigeria's balance of payments
B
debit in Nigeria's balance of payments
C
credit in Japan's balance of payments
D
debit in Japan's balance of payments
Correct Answer: B
Imports are recorded as debits in the balance of payments of the importing country.
JAMB (UTME)
Economics
2010
Q5362.
One of the objectives of ADB is to
A
provide subsidies on imported goods to member countries
B
mobilize short-term loans for member countries
C
promote economic and social development of member countries
D
provide technical assistance to only poor member countries
Correct Answer: C
The African Development Bank (ADB) aims to promote economic and social development of member countries.
JAMB (UTME)
Economics
2010
Q5363.
The choice of the method of production in an economy is determined by the
A
level of technical know-how
B
rate of population growth
C
availability of natural resources
D
level of income
Correct Answer: A
The method of production (capital-intensive or labour-intensive) depends on the level of technical know-how.
JAMB (UTME)
Economics
2010
Q5364.
The amount of labour hired depends on the
A
number of skilled labour available
B
skill of labour
C
marginal productivity of labour
D
price of the inputs
Correct Answer: C
Firms hire labour up to the point where marginal productivity equals the wage rate.
Instruction
JAMB Economics 2011
JAMB (UTME)
Economics
2011
Q5365.
Which question paper type of economics is given to you?
A
Type A
B
Type B
C
Type C
D
Type D
Correct Answer: B
The question paper type is indicated on the top of your question paper.
JAMB (UTME)
Economics
2011
Q5366.
An effective way of controlling inflation in a mixed economy is to
A
increase productivity
B
reduce income tax
C
ration available output
D
increase imports
Correct Answer: A
Increasing productivity increases the supply of goods and services, which helps reduce inflationary pressure.
JAMB (UTME)
Economics
2011
Q5367.
One of the limitations PPC assumption is that there is
A
no indication of technological development
B
no recognition of preferred goods for countries
C
technical inefficiency
D
abundant resources
Correct Answer: A
The Production Possibility Curve (PPC) assumes constant technology. It does not account for technological progress.
JAMB (UTME)
Economics
2011
Q5368.
A major disadvantage of the arithmetic means is that it is
A
not useful for large data
B
not suitable for further statistical analysis
C
cumbersome to determine the actual value
D
affected by extreme data
Correct Answer: D
The arithmetic mean is affected by extreme values (outliers).
JAMB (UTME)
Economics
2011
Q5369.
Demand patterns are determined by the market on the basis of
A
scale of preference
B
consumer sovereignty
C
consumer rationality
D
price of the commodity
Correct Answer: B
Consumer sovereignty means consumers determine what goods and services are produced through their purchasing decisions.
JAMB (UTME)
Economics
2011
Q5370.
A consumer surplus measures the
A
benefits derived from consuming a cheap commodity
B
excess of total expenditure over total utility
C
difference between marginal utility and marginal cost
D
difference between what a consumer is willing to pay and what he actually pays
Correct Answer: D
Consumer surplus = Willingness to pay - Actual price paid.
JAMB (UTME)
Economics
2011
Q5371.
If the demand for one commodity excludes another, it is said to be
A
complementary demand
B
competitive demand
C
composite demand
D
derived demand
Correct Answer: B
Competitive demand (substitutes) means the demand for one commodity excludes the other.
JAMB (UTME)
Economics
2011
Q5372.
The graph of the schedule above will depict
A
a kinked demand curve
B
a normal demand curve
C
an abnormal demand curve
D
a diminishing marginal utility curve
Correct Answer: C
The schedule shows that as price decreases, quantity demanded also decreases, which is an abnormal (exceptional) demand curve.
JAMB (UTME)
Economics
2011
Q5373.
The median of an odd-numbered set of scores is the
A
Middle value in the set
B
Highest value in the set
C
Arithmetic means of the set
D
Most frequent occurring score
Correct Answer: A
For an odd-numbered data set, the median is the middle value when arranged in order.
JAMB (UTME)
Economics
2011
Q5374.
If demand increases without a change in supply, equilibrium price and quantity will
A
remain unchanged
B
shift inward
C
fall
D
rise
Correct Answer: D
An increase in demand with constant supply leads to higher equilibrium price and quantity.
JAMB (UTME)
Economics
2011
Q5375.
In the process of production, total output is at maximum when
A
MP = 0
B
MP > 0
C
AP = 0
D
AP > 0
Correct Answer: A
Total output is at maximum when marginal product (MP) equals zero. Beyond this point, MP becomes negative.
JAMB (UTME)
Economics
2011
Q5376.
From the table above, the price elasticity of supply is
Correct Answer: D
PES = $\frac{\% \Delta Qs}{\% \Delta P} = \frac{(120-60)/60}{(2-1)/1} = \frac{1}{1} = 1$. (The provided answer D is a typo).
JAMB (UTME)
Economics
2011
Q5377.
When a consumer is at equilibrium, the MRSxy is equal to the
A
sum of the prices
B
product of the two prices
C
ratio of the two prices
D
difference of the two prices
Correct Answer: C
At equilibrium, the Marginal Rate of Substitution (MRS) equals the ratio of prices.
JAMB (UTME)
Economics
2011
Q5378.
Minimum price legislation by government will
A
reduce supply
B
increase supply
C
reduce demand and create surplus
D
increase demand and create scarcity
Correct Answer: C
Minimum price (price floor) set above equilibrium leads to excess supply (surplus) because quantity supplied exceeds quantity demanded.
JAMB (UTME)
Economics
2011
Q5379.
Ranking is the method use in measuring
A
marginal utility
B
ordinal utility
C
cardinal utility
D
total utility
Correct Answer: B
Ordinal utility measures utility by ranking preferences.
JAMB (UTME)
Economics
2011
Q5380.
If a firm is faced with an elastic supply curve, its revenue will
A
be supplied at a higher price
B
double at a higher price
C
increase by more than the percentage increase in price
D
equal percentage change in price
Correct Answer: C
With elastic supply, a price increase leads to a more than proportionate increase in quantity supplied, increasing revenue.
JAMB (UTME)
Economics
2011
Q5381.
The optimal range of output for a perfectly competitive firm is
A
AC is lowest
B
AVC is lowest
C
MC is rising
D
MC is falling
Correct Answer: C
The optimal output is where MC = MR = Price, and MC is rising.
JAMB (UTME)
Economics
2011
Q5382.
A firm will experience diseconomies of scale when
A
there are difficulties in coordinating production
B
there is shortage in labour supply
C
the size of the market is small
D
the cost of production is high
Correct Answer: A
Diseconomies of scale occur when the firm becomes too large, leading to coordination and management difficulties.
JAMB (UTME)
Economics
2011
Q5383.
The law of variable proportions is applicable only
A
in the long-run period
B
to large-scale enterprises
C
to small-scale enterprises
D
in the short-run period
Correct Answer: D
The law of variable proportions applies in the short run when at least one factor is fixed.
JAMB (UTME)
Economics
2011
Q5384.
From the Diagram above, the optimal point of production is
Correct Answer: D
The optimal point of production is where the isoquant is tangent to the isocost line (point S).
JAMB (UTME)
Economics
2011
Q5385.
If real income increases while nominal income remains the same, it can be inferred that
A
Unemployment rate has decreased
B
General prices have fallen
C
Employment rate has risen
D
General prices have risen
Correct Answer: B
Real income = Nominal income / Price level. If real income rises with constant nominal income, prices must have fallen.
JAMB (UTME)
Economics
2011
Q5386.
One of the characteristics of oligopoly is the availability of
A
few sellers
B
few buyers
C
many sellers
D
a single seller
Correct Answer: A
Oligopoly is characterized by a few large sellers dominating the market.
JAMB (UTME)
Economics
2011
Q5387.
The average total cost when 20 units are produced is
A
N20.00
B
N23.00
C
N13.00
D
N15.00
Correct Answer: D
From the diagram, at 20 units, ATC = N15.00.
JAMB (UTME)
Economics
2011
Q5388.
When 20 units of output is produced, TC will be
A
N360
B
N300
C
N460
D
N400
Correct Answer: B
TC = ATC × Q = 15 × 20 = N300.
JAMB (UTME)
Economics
2011
Q5389.
The profit of a monopolist can be eliminated where price equals
Correct Answer: C
Normal profit (zero economic profit) occurs where Price = Average Cost (AC).
JAMB (UTME)
Economics
2011
Q5390.
Bank consolidation policy in Nigeria is a measure to increase
A
the capital base of banks
B
employment opportunities in banks
C
the number of shareholders
D
the number of branches
Correct Answer: A
Bank consolidation increases the capital base of banks, making them stronger.
JAMB (UTME)
Economics
2011
Q5391.
An increase in the circulation of money without a corresponding increase in output will lead to
A
a rise in income levels
B
stagflation
C
inflation
D
deflation
Correct Answer: C
More money chasing the same amount of goods causes inflation.
JAMB (UTME)
Economics
2011
Q5392.
In national income accounts, an item counted as part of government spending is
A
salaries and wages
B
pension
C
scholarship
D
social welfare
Correct Answer: A
Salaries and wages paid to government workers are part of government spending.
JAMB (UTME)
Economics
2011
Q5393.
If aggregate demand is lower than total output in an economy national income will
A
be constant
B
be at equilibrium
C
increase
D
fall
Correct Answer: D
When aggregate demand is less than total output, unsold goods accumulate, leading to reduced production and falling national income.
JAMB (UTME)
Economics
2011
Q5394.
During the era of barter, money was generally in the form of
A
notes
B
precious metals
C
coins
D
commodities
Correct Answer: D
Before the invention of money, trade was by barter using commodities.
JAMB (UTME)
Economics
2011
Q5395.
A country achieves economic development when there is
A
an increase in military expenditure
B
an increase in capacity utilization
C
a sustained increase in per capital income
D
an even distribution of goods and services
Correct Answer: C
Economic development is indicated by a sustained increase in per capita income along with structural changes.
JAMB (UTME)
Economics
2011
Q5396.
An indicator of growth in an economy over a period of time is the
A
GDP gap
B
GDP at factor cost
C
GDP at market price
D
GDP deflator
Correct Answer: C
GDP at market price measures the total value of goods and services produced in an economy.
JAMB (UTME)
Economics
2011
Q5397.
A country embarks on deficit financing in order to
A
increase revenue
B
reduce aggregate demand
C
curb inflation
D
stimulate investment
Correct Answer: D
Deficit financing (government spending exceeding revenue) is used to stimulate investment and economic activity.
JAMB (UTME)
Economics
2011
Q5398.
The deflationary gap is defined by
Correct Answer: A
The deflationary gap is the amount by which aggregate demand falls short of the full employment level of output (X in the diagram).
JAMB (UTME)
Economics
2011
Q5399.
What does X represent?
A
recessionary gap
B
GNP gap
C
inflationary gap
D
deflationary gap
Correct Answer: D
X represents the deflationary gap.
JAMB (UTME)
Economics
2011
Q5400.
The import-substitution strategy of industrialization is to encourage
A
domestic production
B
large-scale production
C
importation
D
exportation
Correct Answer: A
Import substitution encourages domestic production of goods that were previously imported.