Economics questions and answers, JAMB, 1978, part 2

JAMB Economics, 1978:

You can read questions 1 - 25 here

 

26. Which of the following is NOT a form of Business Organization?

1. Sole proprietorship
2. Cartel
3. Partnership
4. Joint stock
5. Cooperative societies

 

27. As consumption of beer increases, its marginal utility to a drinker will _____.

1. increase
2. remain constant
3. fluctuate
4. decrease
5. change proportionately

 

28. Which of the following sectors of the economy is estimated to be the largest employer of labour in the country?

1. Construction
2. Aquaculture
3. Distribution
4. Mining and Petroleum
5. Transport and communications

 

29. The expression “Terms of Trade” is used to describe _____.

1. the quality of exports
2. the direction of foreign trade
3. terms of purchase on deferred payment basis
4. the rate at which exports exchange for imports
5. import licensing

 

30. If the demand for a product with a perfectly elastic supply increases, there will be _____.

1. an increase in price and quantity offered
2. an increase in quantity but price will remain the same
3. a reduction in price and quantity offered
4. an increase in price but a reduction in quantity offered for sale
5. an increase in quantity offered but a reduction in price

 

31. Which of these would NOT be included in the fundamental principles of a free enterprise economy?

1. Private ownership of factors of production
2. The right to organize factors for productive purposes
3. The right to make private profit
4. Government’s control of the mobility of factors of production
5. Government’s effort to encourage competitive capitalism within the laws of the country

 

32. Economics is called a social science because it is _____.

1. a branch of the social studies
2. a study of the ways man devises to satisfy his unlimited wants from limited resources
3. a dismal science in the Malthusian sense
4. governed by scientific laws
5. the study of human wants by means of scientific methods of observation

 

33. Opportunity cost is a term which describes _____.

1. the initial cost of setting up a business venture
2. cost of one product in terms of forgone production of others
3. the monetary equivalent of the utility of a commodity
4. costs related to an optimum level of production
5. implicit costs

 

34. If consumer’s demand for product X increases as the price of product Y decreases, we can be fairly certain that _____.

1. X and Y are complementary goods
2. X and Y are substitute goods
3. X and Y are independent goods
4. X and Y are jointly supplied
5. X and Y are inferior commodities

 

35. Which of the following items in the Balance of Payments Account is an invincible transaction?

1. Import of Cars
2. Export of cocoa
3. Export of crude petroleum
4. Tourism
5. Import of building materials

 

36. Which of the following is a term used to describe a payment representing a surplus in excess of transfer cost?

1. Interest rates
2. Opportunity costs
3. Economic rent
4. Indirect costs
5. Wages

 

37. Less developed countries obtain foreign exchange reserves mainly from the export of _____.

1. manufactured goods
2. processed and semi-processed commodities
3. invisible items
4. primary products
5. all of the above

 

38. By “Trade by Barter”, we mean _____.

1. trade done by people in villages
2. exchange of goods for money
3. international trade
4. exchange of goods for goods
5. the trade of the middle ages

 

39. In order to build up its capital stock, the typical less developed country should ideally _____.

1. increase total savings
2. depend on hand-outs from foreigners
3. nationalize all foreign concerns
4. impose tariffs on imports
5. none of the above

 

40. Which of the following is an advantage of the sole proprietorship?

1. It is always successful
2. Continuity is no problem
3. Control and supervision is under one man
4. Funds are easy to obtain
5. Inter-generational equity is assured

 

41. Which of these should determine in, in a planned economy, how the factors of production are to be allocated among different production activities?

1. Fairness
2. The distribution of income and wealth
3. Public need which is determined by the government
4. Private needs determined by the market
5. The ability of an individual to make profit

 

42. Which of the following activities of government precludes the existence of a market economy?

1. The imposition of taxes
2. The control of the location of industry
3. The central planning of all production
4. The fixing of maximum prices for all necessities
5. The establishment of laws requiring the registration of business firms

 

43. Which of the following is NOT strictly included in the study of economics?

1. The study of wants
2. The study of choice
3. Whether a particular want satisfies a good or bad purpose
4. The study of scarcity
5. The study of substitution

 

44. Which of these would NOT increase the population of a country?

1. Increase in death rate
2. Decrease in birth rate
3. Emigration
4. Migration
5. Better medical facilities

 

45. The optimum population of a country is reached when _____.

1. all factors of production have been fully employed
2. the productive effort per man is at its highest with a given volume of resources
3. the total population of a country increases
4. the natural resources of a country increases
5. the working population of a country increases

 

46. In economics, production is complete when _____.

1. goods are produced in the factories
2. goods are sold to tile wholesalers
3. goods and services are produced by the government
4. prices are fixed for goods and services
5. goods and services finally reach the consumers

 

47. A rational consumer will adjust his spending pattern so that _____.

1. he buys only the one item that gives him the most total satisfaction
2. the marginal utility he gets from the last unit of each item is the same
3. the marginal utility he gets from the last naira spent on each item is the same
4. the total utility he gets from each item is the same
5. the total amount of money he spends on each item is the same

 

48. Bond holders are treated more favourably than shareholders because _____.

1. they are not liable for the company’s losses
2. they have a greater voice in electing the board of directors
3. they control the management
4. they have a prior claim to the company’s assets
5. none of the above

 

49. If P = Price and Q = Quantity: The numerical measure of elasticity is:

1.   % change in Q

% change in P

2.   change in Q

change in P

3.   % change in P

% change in Q

4.   change in P

change in Q

5.   change in P + change in Q

change in P

 

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Answers to Economics JAMB, 1978

.1. C   2. C   3. B   4. B   5. C   6. B   7. C   8. D   9. B   10. E

11. C   12. B   13. B   14. D   15. A   16. B   17. B   18. A   19. B   20. E  

21. E   22. C   23. A   24. B   25. D   26. B   27. D   28. B   29. D   30. B

31. D   32. B   33. B   34. A   35. D   36. C   37. D   38. D   39. A   40. C

41. C   42. C   43. C   44. A    45. B   46. E   47. C   48. E   49. A