Instruction
JAMB Economics 2013
JAMB (UTME)
Economics
2013
Q5501.
The most important determinant for the location of a brick industry is the availability of
A
market
B
power supply
C
water
D
raw materials
Correct Answer: D
Brick industry is raw-material oriented and is located near the source of clay.
JAMB (UTME)
Economics
2013
Q5502.
In Nigeria, efficiency in public corporations can be achieved through
A
public offer
B
indigenization
C
privatization
D
nationalization
Correct Answer: C
Privatization improves efficiency in public corporations by introducing private sector management.
JAMB (UTME)
Economics
2013
Q5503.
Government participation in the oil industry was necessitated by the
A
annual increase in production
B
formation of OPEC
C
high demand for crude oil
D
huge investment outlay
Correct Answer: D
The oil industry requires huge capital investment, necessitating government participation.
JAMB (UTME)
Economics
2013
Q5504.
The deregulation of the petroleum sector in Nigeria will bring about
A
efficiency in pricing and distribution of the products
B
an end to the importation of fuel
C
an end to foreign firms' dominance
D
fixing appropriate production quotas
Correct Answer: A
Deregulation allows market forces to determine prices, leading to efficiency in pricing and distribution.
JAMB (UTME)
Economics
2013
Q5505.
A distinguishing characteristic of consumer co-operative society is that the
A
the maximum number of shareholders is 20
B
members are the owners
C
members are the workers
D
the minimum number of shareholders is 5
Correct Answer: B
In a consumer co-operative, the members (consumers) are the owners.
JAMB (UTME)
Economics
2013
Q5506.
A major disadvantage of partnership business is
A
difficulty in the transfer of shares
B
distrust among members
C
limited liability
D
large capital outlay
Correct Answer: B
Disagreement and distrust among partners is a major disadvantage of partnerships.
JAMB (UTME)
Economics
2013
Q5507.
The quality of labour force in Nigeria can be improved by
A
establishing more tertiary institutions
B
creating sufficient job opportunities
C
encouraging the study of science and technology
D
establishing more skills acquisition centres
Correct Answer: D
Skills acquisition centres provide practical training that improves the quality of the labour force.
JAMB (UTME)
Economics
2013
Q5508.
The effect of emigration on a country's population is
A
decrease in the population
B
decrease in job opportunities
C
increase in population
D
increase in dependency ratio
Correct Answer: A
Emigration (people leaving the country) decreases the population.
JAMB (UTME)
Economics
2013
Q5509.
A measure for preventing the external value of the naira from falling is for the government to
A
increase its spending with foreign reserve
B
sell its own currency
C
reduce interest rate
D
buy its currency with foreign reserve
Correct Answer: D
Buying its own currency with foreign reserves increases demand for the naira, preventing its value from falling.
JAMB (UTME)
Economics
2013
Q5510.
A fiscal policy instrument that can influence the demand pattern in an economy is
A
government spending
B
interest rate
C
income tax
D
tariff
Correct Answer: C
Income tax affects disposable income, which influences demand patterns.
JAMB (UTME)
Economics
2013
Q5511.
One of the main achievements of the Economic Commission for Africa is
A
eliminating trade restrictions among states
B
encouraging transport and communication development
C
guaranteeing a steady flow of foreign investment into Africa
D
providing the machinery for collaboration on monetary issues
Correct Answer: A
The Economic Commission for Africa works to eliminate trade restrictions among African states.
JAMB (UTME)
Economics
2013
Q5512.
The rate of interest charge on loans depends largely on
A
the prevailing exchange rate
B
marginal efficiency of capital
C
the risk associated with the loan
D
the prevailing tax rate
Correct Answer: C
The risk associated with a loan is a major determinant of the interest rate charged.
JAMB (UTME)
Economics
2013
Q5513.
A valid explanation for real wage growth is
A
an increase in the rate of productivity
B
the rising cost of capital accumulation
C
a contraction of employment in service industries
D
an increase in the quantity of labour
Correct Answer: A
Real wage growth occurs when productivity increases, allowing workers to earn more without inflation.
JAMB (UTME)
Economics
2013
Q5514.
If Mr. X lost his clerical job at a store and searched for a similar job for ten months before finding one this implies that Mr. X was
A
structurally unemployed
B
frictionally unemployed
C
seasonally unemployed
D
cyclically unemployed
Correct Answer: B
Frictional unemployment occurs when workers are between jobs, searching for a similar position.
Instruction
JAMB Economics 2014
JAMB (UTME)
Economics
2014
Q5515.
Which question paper type of Economics is given to you?
A
Type F
B
Type E
C
Type L
D
Type S
Correct Answer: C
The question paper type is indicated on the top of your question paper. The paper type is Type L.
JAMB (UTME)
Economics
2014
Q5516.
The choice of how to produce in a command economy is determined by
A
government
B
consumer
C
industrialists
D
labour unions
Correct Answer: A
In a command economy, the government makes all economic decisions, including how to produce goods and services.
JAMB (UTME)
Economics
2014
Q5517.
In capitalist economies, questions about what to produce are ultimately answered by
A
income level of households
B
available technical skills in the economy
C
output decisions of firms
D
holding decision of households
Correct Answer: C
In a capitalist economy, firms decide what to produce based on consumer demand and profit signals.
JAMB (UTME)
Economics
2014
Q5518.
The best measure of dispersion to determine the tallest tree in a forest is
A
range
B
variance
C
standard deviation
D
mean deviation
Correct Answer: A
Range is the simplest measure of dispersion. It is best for determining extremes (highest and lowest values) in a data set.
JAMB (UTME)
Economics
2014
Q5519.
What is the percentage contribution of services to the national income?
Correct Answer: A
Angle for Services = $360 - 126 - 72 - 108 = 54^{\circ}$. Percentage = $\frac{54}{360} \times 100 = 15\%$.
JAMB (UTME)
Economics
2014
Q5520.
If the national income is 360m, the contribution of the manufacturing sector is
A
312m
B
39m
C
318m
D
317m
Correct Answer: A
Manufacturing angle = $108^{\circ}$. Contribution = $\frac{108}{360} \times 360 = 108$ million. (The provided options have errors).
JAMB (UTME)
Economics
2014
Q5521.
A combination of factors responsible for a shift from D0D0 to D1D1 are
A
consumers income and change in technology
B
price of the commodity and weather conditions
C
consumers income and population size
D
consumers taste and change in price
Correct Answer: C
The shift from D0D0 to D1D1 (rightward shift) is caused by factors other than price, such as an increase in consumer income and population size.
JAMB (UTME)
Economics
2014
Q5522.
Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.
Correct Answer: A
At equilibrium, Qd = Qs. $40 - 2P = 6P + 24 \Rightarrow 16 = 8P \Rightarrow P = 2$. (The provided options have errors).
JAMB (UTME)
Economics
2014
Q5523.
A change in demand for a normal good implies that, there is a
A
change in the quantity demanded as price changes
B
shift in the demand curve
C
movement along a given demand curve
D
change in the price elasticity of Demand
Correct Answer: B
A change in demand (as opposed to quantity demanded) is represented by a shift of the entire demand curve.
JAMB (UTME)
Economics
2014
Q5524.
If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity demand is
A
unitary elastic
B
elastic
C
inelastic
D
perfectly elastic
Correct Answer: C
PED = $\frac{5\%}{10\%} = 0.5$. Since PED < 1, demand is inelastic.
JAMB (UTME)
Economics
2014
Q5525.
From the graph above, the consumer will attain equilibrium at point
Correct Answer: C
Consumer equilibrium occurs where the budget line is tangent to the highest possible indifference curve. In the diagram, this is point L.
JAMB (UTME)
Economics
2014
Q5526.
A rightward shift of the budget line is caused by a
A
fall in consumer income
B
change in consumer taste
C
fall in the commodity relative price
D
rise in the commodity relative price
Correct Answer: A
A fall in consumer income shifts the budget line to the left. (The question and options are inconsistent).
JAMB (UTME)
Economics
2014
Q5527.
Given the supply function P = 1/4 (Qs + 10) when P = N10, what is Qs?
Correct Answer: D
$10 = \frac{1}{4}(Qs + 10) \Rightarrow 40 = Qs + 10 \Rightarrow Qs = 30$.
JAMB (UTME)
Economics
2014
Q5528.
From the table above, Calculate the price elasticity of supply
A
0.50
B
0.80
C
2.00
D
1.25
Correct Answer: B
PES = $\frac{\% \Delta Qs}{\% \Delta P} = \frac{(24-20)/20}{(10-8)/8} = \frac{0.2}{0.25} = 0.8$.
JAMB (UTME)
Economics
2014
Q5529.
When price is set below equilibrium, this will lead to
A
an increase in the quantity supplied
B
a new equilibrium
C
a decrease in the quantity supplied
D
a fall in price
Correct Answer: C
A price set below equilibrium causes quantity demanded to exceed quantity supplied, leading to a decrease in quantity supplied.
JAMB (UTME)
Economics
2014
Q5530.
Price mechanism determines the prices of commodities through
A
auctioning
B
market forces
C
the sales of treasury bills
D
government legislation
Correct Answer: B
The price mechanism determines prices through the interaction of demand and supply (market forces).
JAMB (UTME)
Economics
2014
Q5531.
From the table above, find the values of E and F respectively
A
27 and 1
B
68 and 12
C
28 and 5
D
12 and 19
Correct Answer: C
AP = TP/L, so E = TP/3 = 84/3 = 28. MP = ΔTP/ΔL, so F = 84 - 79 = 5. Therefore E = 28 and F = 5.
JAMB (UTME)
Economics
2014
Q5532.
If the production of a large firm is higher than that of a small firm, it is experiencing.
A
external economies of scale
B
external diseconomies of scale
C
internal economies of scale
D
internal diseconomies of scale
Correct Answer: C
Internal economies of scale occur within the firm as it grows, leading to higher production.
JAMB (UTME)
Economics
2014
Q5533.
Division of labour requires that, the tasks in a production line be performed
A
by specialists
B
in stages
C
by all workers
D
by unskilled labourers
Correct Answer: A
Division of labour requires that tasks be performed by specialists in their respective areas.
JAMB (UTME)
Economics
2014
Q5534.
Given that FC = N500, VC = N1,500 and Q = 50 units. Find the average cost of the product.
Correct Answer: B
TC = FC + VC = 500 + 1500 = 2000. AC = TC/Q = 2000/50 = N40.
JAMB (UTME)
Economics
2014
Q5535.
Rent and administrative expenses are examples of
A
average fixed costs
B
average variable costs
C
fixed costs
D
variable costs
Correct Answer: C
Rent and administrative expenses do not change with output, so they are fixed costs.
JAMB (UTME)
Economics
2014
Q5536.
A perfect competitor will continue to expand output up to the point where
A
MC = MR
B
MC > MR
C
MC < MR
D
MR = AR
Correct Answer: A
A perfect competitor maximizes profit where Marginal Cost (MC) equals Marginal Revenue (MR).
JAMB (UTME)
Economics
2014
Q5537.
One of the characteristics of a monopolist is that, he can influence
A
quantity produced by other producers
B
prices charged by other producers
C
both price and quantity
D
price or quantity
Correct Answer: C
A monopolist can influence both price and quantity in the market.
JAMB (UTME)
Economics
2014
Q5538.
A monopolist can boost up his revenue by
A
adjusting both price and output upward
B
reducing total output to match price
C
increasing price
D
reducing price
Correct Answer: D
A monopolist can increase revenue by reducing price if demand is elastic.
JAMB (UTME)
Economics
2014
Q5539.
Which of the following can be used to measure the Gross National product in an open economy?
A
C + I + G + (X + M)
B
C + I + G + X
C
C + I + G
D
C + I + G + (X - M)
Correct Answer: D
GNP = C + I + G + (X - M) in an open economy.
JAMB (UTME)
Economics
2014
Q5540.
If MPC = 2/3 and investment is N100 million, the level of national income is
A
N100 million
B
N10 million
C
N303 million
D
N300 million
Correct Answer: D
Multiplier = $\frac{1}{1 - MPC} = \frac{1}{1 - 2/3} = \frac{1}{1/3} = 3$. National income = $3 \times 100 = N300$ million.
JAMB (UTME)
Economics
2014
Q5541.
The precautionary demand for money is determined by
A
the rate of interest
B
the level of savings
C
the level of income
D
general price level
Correct Answer: C
The precautionary demand for money is determined by the level of income.
JAMB (UTME)
Economics
2014
Q5542.
An inflation that co-exists with high rate of unemployment is
A
hyperinflation
B
stagflation
C
cost-push inflation
D
demand-pull inflation
Correct Answer: B
Stagflation is the coexistence of inflation and high unemployment.
JAMB (UTME)
Economics
2014
Q5543.
One of the challenges facing the banking industry in Nigeria is
A
ensuring technological security
B
providing employment
C
providing loans for investment
D
creating more money
Correct Answer: A
Ensuring technological security is a major challenge facing the banking industry in Nigeria.
JAMB (UTME)
Economics
2014
Q5544.
Short-term loans for investment are usually obtained through the
A
stock market
B
development banks
C
money market
D
capital market
Correct Answer: C
The money market provides short-term loans and financial instruments.
JAMB (UTME)
Economics
2014
Q5545.
Given a base year and the price index of 175% the following year, which of the following year will arise?
A
The cost of living decreases of that year
B
The cost of living remains unchanged
C
The value of money rises by 75%
D
The value of money falls by 75%
Correct Answer: A
A price index of 175% means prices have risen by 75%, so the cost of living increases. (The provided answer A is a typo).
JAMB (UTME)
Economics
2014
Q5546.
Wage freeze is a policy measure aimed at
A
encouraging investors
B
curbing inflation
C
regulating standard of living
D
curbing deflation
Correct Answer: B
Wage freeze is used to control inflation by preventing wage increases that could lead to higher prices.
JAMB (UTME)
Economics
2014
Q5547.
A major obstacle to the development of Nigeria economy is
A
low capital formation
B
rural-urban migration
C
over dependence on oil
D
poor developmental policies
Correct Answer: C
Over-dependence on oil is a major obstacle to Nigeria's economic development.
JAMB (UTME)
Economics
2014
Q5548.
A major feature of an underdeveloped economy is
A
excess capacity utilization
B
low rate of population growth
C
low level of standard of living
D
high level of industrialization
Correct Answer: C
A low level of standard of living is a major feature of an underdeveloped economy.
JAMB (UTME)
Economics
2014
Q5549.
An important role of agriculture in Nigeria's economic development is the
A
processing of raw materials for industries
B
regulation of price system
C
provision of infrastructure
D
provision of employment
Correct Answer: D
Agriculture provides employment for a large portion of Nigeria's population.
JAMB (UTME)
Economics
2014
Q5550.
An advantage of large-scale farming over peasant farming is in the area of
A
providing research and massive employment of labour
B
redistributing national income to various regions of the country
C
encouraging the use of traditional implements
D
encouraging urban-rural migration
Correct Answer: A
Large-scale farming allows for research and massive employment of labour.