Instruction
JAMB Economics 2014
JAMB (UTME)
Economics
2014
Q5551.
A major disadvantage of localization of industry is
A
the risk of structural unemployment
B
over-utilization of installed industrial capacity
C
the risk of seasonal unemployment
D
under-utilization of installed industrial capacity
Correct Answer: D
Localization can lead to under-utilization of installed industrial capacity in other regions.
JAMB (UTME)
Economics
2014
Q5552.
One major factor that determines the location of an industry is
A
tax exemption grant
B
its proximity to the market
C
the capital base
D
the social responsibility of the firm
Correct Answer: B
Proximity to the market is a major factor in determining the location of an industry.
JAMB (UTME)
Economics
2014
Q5553.
The major contribution of OPEC to the Nigerian economy is the
A
provision of social infrastructures
B
granting of subsidies on petroleum products
C
stabilization of oil prices
D
building of refineries
Correct Answer: C
OPEC's major contribution is the stabilization of oil prices, which affects Nigeria's oil revenue.
JAMB (UTME)
Economics
2014
Q5554.
The loading of crude oil at the terminal is an activity in the
A
downstream sector of the oil industry
B
upstream and downstream sector of the oil industry
C
upstream sector of the oil industry
D
midstream and upstream sectors of the oil industry
Correct Answer: B
Loading crude oil at the terminal is an activity in the upstream and downstream sectors.
JAMB (UTME)
Economics
2014
Q5555.
The short-run average variable cost of a firm will rise owing to
A
the expansion of factory space
B
the building of new warehouse
C
an increase in the cost of labour
D
an increase in the salaries of directors
Correct Answer: C
An increase in the cost of labour (a variable factor) raises the average variable cost.
JAMB (UTME)
Economics
2014
Q5556.
Firms embark on vertical integration in other to
A
take over markets formally controlled by other firms
B
prevent other firms from entering the market
C
reduce advertisement and management cost
D
enjoy economies of large-scale production
Correct Answer: D
Vertical integration allows firms to enjoy economies of large-scale production.
JAMB (UTME)
Economics
2014
Q5557.
The voting power in cooperative societies is vested on
A
management
B
members without loan
C
shareholders
D
members with the highest contribution
Correct Answer: C
In cooperative societies, voting power is vested in the members (shareholders).
JAMB (UTME)
Economics
2014
Q5558.
An accurate census figure is an important tool for planners in
A
providing employment
B
siting industries
C
providing social amenities
D
allocating resources
Correct Answer: D
Accurate census figures are essential for allocating resources effectively.
JAMB (UTME)
Economics
2014
Q5559.
An accurate population census is important in other to
A
produce more food for the growing population
B
provide employment
C
provide social amenities
D
formulate economic policies
Correct Answer: D
Accurate population census is important for formulating economic policies.
JAMB (UTME)
Economics
2014
Q5560.
A major determinant of floating exchange rate is
A
the highest denomination of the currency
B
an Act of the parliament
C
the system of government
D
the forces of demand and supply
Correct Answer: D
A floating exchange rate is determined by the forces of demand and supply.
JAMB (UTME)
Economics
2014
Q5561.
If the importation of a commodity is limited to a definite quantity, the trade control measure imposed is
A
excise duties
B
import duties
C
quotas
D
tariff
Correct Answer: C
Import quotas limit the quantity of a commodity that can be imported.
JAMB (UTME)
Economics
2014
Q5562.
The main objective of WTO is to
A
ensure adequate protection of infant industries
B
provide a mechanism for tariff reduction
C
assist countries with chronic balance of payments problem
D
assist developing countries to execute developmental projects
Correct Answer: B
The main objective of the WTO is to provide a mechanism for tariff reduction and trade liberalization.
JAMB (UTME)
Economics
2014
Q5563.
The major determinant of the total volume of output in an economy is the
A
level of total expenditure
B
composition of consumer spending
C
number of farmers
D
size of the labour force
Correct Answer: A
The level of total expenditure (aggregate demand) is the major determinant of total output in an economy.
JAMB (UTME)
Economics
2014
Q5564.
The labour force of a country is determined by the
A
age structure of the population
B
geographical distribution of the population
C
sex distribution of the population
D
number of people available for work
Correct Answer: A
The age structure of the population determines the labour force (working-age population).
Instruction
JAMB Economics 2015
JAMB (UTME)
Economics
2015
Q5565.
The major implication of high dependency ratio on an economy is
A
high capital formation
B
vicious cycle of poverty
C
low cost of living
D
high standard of living
Correct Answer: B
A high dependency ratio means a large proportion of the population is dependent on a small working population, leading to a vicious cycle of poverty.
JAMB (UTME)
Economics
2015
Q5566.
One of the major problems of agricultural sector in Nigeria is
A
low literacy level of farmers
B
small size of farms
C
pest attack on crops
D
inadequate modern farm implements
Correct Answer: D
Inadequate modern farm implements is a major problem of the agricultural sector in Nigeria.
JAMB (UTME)
Economics
2015
Q5567.
Cooperative societies are characterized with
A
divergent interest of members
B
limited liability
C
free entry and exit
D
unlimited size of membership
Correct Answer: C
Cooperative societies are characterized by free entry and exit of members.
JAMB (UTME)
Economics
2015
Q5568.
The marginal propensity to save measures the
A
ratio of change in saving
B
change in supply as a result of a change in consumption
C
ratio of change in consumption to a change in the level of income
D
average propensity to consume
Correct Answer: A
The marginal propensity to save (MPS) is the ratio of change in saving to change in income.
JAMB (UTME)
Economics
2015
Q5569.
Structural unemployment is mainly caused by
A
a change in the consumption pattern
B
a change in the business cycle
C
decrease in the output level
D
seasonal variation
Correct Answer: A
Structural unemployment is caused by changes in the structure of the economy, including changes in consumption patterns.
JAMB (UTME)
Economics
2015
Q5570.
One of the major problems of census in Nigeria is
A
inadequate skilled personnel
B
high dependency ratio
C
distortion of census figures
D
high cost of conducting census
Correct Answer: C
Distortion of census figures (manipulation for political or ethnic reasons) is a major problem of census in Nigeria.
JAMB (UTME)
Economics
2015
Q5571.
A decrease in government expenditure in an economy will cause general price level to
A
rise
B
fall
C
remain constant
D
fluctuate
Correct Answer: B
A decrease in government expenditure reduces aggregate demand, causing the general price level to fall.
JAMB (UTME)
Economics
2015
Q5572.
From the table above, find the values of K and F respectively
A
13 and 27
B
27 and 13
C
10 and 27
D
27 and 10
Correct Answer: B
AP = TP/L, so K = TP/3 = 81/3 = 27. MP = ΔTP/ΔL, so F = 40 - 27 = 13. Therefore K = 27 and F = 13.
JAMB (UTME)
Economics
2015
Q5573.
In the theory of consumer behaviour, the sum of all marginal utilities is
A
average marginal utility
B
the initial marginal utility
C
total utility
D
diminishing marginal utility
Correct Answer: C
Total utility is the sum of all marginal utilities.
JAMB (UTME)
Economics
2015
Q5574.
In a pure capitalist economy, the means and forces of production are owned and controlled by the
A
public and private sectors
B
feudal lords
C
public sector
D
private sector
Correct Answer: D
In a pure capitalist economy, the means of production are owned and controlled by the private sector.
JAMB (UTME)
Economics
2015
Q5575.
A factor earning which is paid out as unemployment benefit is referred to as
A
interest rate
B
direct rate
C
economic rent
D
transfer payment
Correct Answer: D
Unemployment benefit is a transfer payment (payment without corresponding production).
JAMB (UTME)
Economics
2015
Q5576.
From the graph above, FG indicates
A
equilibrium quantity demanded
B
excess supply
C
equilibrium quantity supplied
D
excess demand
Correct Answer: B
FG represents the difference between quantity supplied and quantity demanded at a price above equilibrium, which is excess supply.
JAMB (UTME)
Economics
2015
Q5577.
The demand for money is referred to as the
A
liquidity preference
B
speculative motive
C
transaction motive
D
precautionary motive
Correct Answer: A
The demand for money is referred to as liquidity preference.
JAMB (UTME)
Economics
2015
Q5578.
In the theory of production, a producer is at equilibrium at a point where
A
isocost is above the isoquant curve
B
isoquant is below the isocost curve
C
isocost is tangent to the marginal revenue
D
isoquant is tangent to the isocost curve
Correct Answer: D
Producer equilibrium occurs where the isoquant is tangent to the isocost curve.
JAMB (UTME)
Economics
2015
Q5579.
Balance of trade shows the relationship between the
A
internal and external trade
B
total value visible import and Export
C
deficit and surplus balance of payments
D
total value of invisible import and export
Correct Answer: B
Balance of trade shows the relationship between the total value of visible imports and exports.
JAMB (UTME)
Economics
2015
Q5580.
If the cash reserve ratio is 30%, a new deposit of 120 million will increase supply by
A
57.8m
B
47.9m
C
69.78m
D
66.7m
Correct Answer: A
Money multiplier = $\frac{1}{CRR} = \frac{1}{0.3} = 3.33$. Increase in money supply = $120 \times 3.33 = 400$ million. (The provided options have errors).
JAMB (UTME)
Economics
2015
Q5581.
A fall in the price of ostentatious goods will
A
increase the quantity demanded
B
decrease the quantity demanded
C
decrease demand
D
increase demand
Correct Answer: A
A fall in price leads to an increase in quantity demanded (movement along the demand curve).
JAMB (UTME)
Economics
2015
Q5582.
Payment of interests on loans and the repayment of capital sum at a future date is
A
balance debt
B
debt servicing
C
debt relief
D
debt burden
Correct Answer: B
Debt servicing is the payment of interest and repayment of principal on a loan.
JAMB (UTME)
Economics
2015
Q5583.
The most difficult measure of central tendency to determine in a grouped data is
A
range
B
variance
C
mean
D
mode
Correct Answer: D
The mode is the most difficult measure of central tendency to determine in grouped data.
JAMB (UTME)
Economics
2015
Q5584.
Localization of industry is mainly determined by
A
diseconomies of scale
B
population growth
C
division of labour
D
access to raw materials
Correct Answer: D
Access to raw materials is a major factor that determines the localization of industry.
JAMB (UTME)
Economics
2015
Q5585.
Geographical distribution of a population is affected by
A
low birth rate
B
the availability of skilled manpower
C
the availability of agricultural land
D
high birth rate
Correct Answer: C
The availability of agricultural land affects the geographical distribution of a population.
JAMB (UTME)
Economics
2015
Q5586.
A tax burden on a commodity will be shared equally if the demand is
A
fairly elastic
B
perfectly inelastic
C
fairly inelastic
D
unitary elastic
Correct Answer: D
Tax burden is shared equally between consumers and producers when demand is unitary elastic.
JAMB (UTME)
Economics
2015
Q5587.
Higher income taxes can be used to control
A
demand-pull inflation
B
high interest rates
C
cost-push inflation
D
hyperinflation
Correct Answer: A
Higher income taxes reduce disposable income, which reduces aggregate demand and controls demand-pull inflation.
JAMB (UTME)
Economics
2015
Q5588.
From the graph above, a shift of the Supply curve from S0S0 to S1S1 will lead to
A
a decrease in equilibrium price and increase in quantity
B
an increase in equilibrium price and quantity
C
a decrease in equilibrium price and quantity
D
an increase in equilibrium price and decrease in quantity
Correct Answer: A
A rightward shift of the supply curve leads to a decrease in equilibrium price and an increase in equilibrium quantity.
JAMB (UTME)
Economics
2015
Q5589.
An indifference map is made up of a set of
A
consumers' total utility
B
consumer surplus
C
budget lines
D
indifference curves
Correct Answer: D
An indifference map is made up of a set of indifference curves.
JAMB (UTME)
Economics
2015
Q5590.
Recapitalization policy will enable commercial banks to
A
employ more qualified workers
B
open more branches
C
reduce interest rate
D
have a very strong capital base
Correct Answer: D
Recapitalization increases the capital base of commercial banks.
JAMB (UTME)
Economics
2015
Q5591.
The number of persons required to form a private company ranges from
A
ten to twenty
B
two to fifty
C
two to seven
D
seven to ten
Correct Answer: B
A private company requires a minimum of 2 and a maximum of 50 persons.
JAMB (UTME)
Economics
2015
Q5592.
The major function of international monetary funds is the
A
provision of short-run loans to medium scale industries
B
provision of long-term loans for infrastructure
C
development of agriculture in member countries
D
maintenance of stable exchange rates
Correct Answer: D
The IMF's major function is to maintain stable exchange rates among member countries.
JAMB (UTME)
Economics
2015
Q5593.
One of the major activities in the upstream sector of the Nigeria petroleum industry includes
A
transportation of finished products
B
refining of crude oil
C
marketing of refined petrol
D
exploration of crude oil
Correct Answer: D
Upstream activities include exploration and production of crude oil.
JAMB (UTME)
Economics
2015
Q5594.
The law of supply states that the
A
higher the price the higher the quantity supplied
B
quantity supplied is always equal to the quantity demanded
C
lower the price the higher the quantity supplied
D
higher the price the lower the quantity supplied
Correct Answer: A
The law of supply states that the higher the price, the higher the quantity supplied.
JAMB (UTME)
Economics
2015
Q5595.
One of the features of a perfect competitive firm is
A
restrictions to entry and exit
B
price discrimination
C
absence of transportation cost
D
product differentiation
Correct Answer: C
In perfect competition, there is no transportation cost, and products are homogeneous.
JAMB (UTME)
Economics
2015
Q5596.
The basis for international trade is the
A
differences in natural resources endowment
B
differences in the population size
C
prevailing interest rate on multilateral loans
D
economic system in practice
Correct Answer: A
International trade is based on differences in natural resource endowment (comparative advantage).
JAMB (UTME)
Economics
2015
Q5597.
Training farmers on the improved farming techniques is the major activity of
A
intermediate workers
B
middlemen
C
extension workers
D
creditors
Correct Answer: C
Extension workers train farmers on improved farming techniques.
JAMB (UTME)
Economics
2015
Q5598.
In a free market economy, prices are determined by
A
consumers
B
producers
C
the central government
D
the forces of demand and supply
Correct Answer: D
In a free market economy, prices are determined by the forces of demand and supply.
JAMB (UTME)
Economics
2015
Q5599.
The basic economic problem of what to produce in an economy is determined by
A
the availability of labour
B
the means of distribution
C
the availability of resources
D
technological know-how
Correct Answer: C
The basic economic problem of what to produce is determined by the availability of resources.
JAMB (UTME)
Economics
2015
Q5600.
In Nigeria, a fall in the supply of petrol would generally affect the
A
import of goods and services
B
export of goods and services
C
general price level in the country
D
exchange rate of the Naira
Correct Answer: C
A fall in the supply of petrol increases transportation costs, raising the general price level.