Economics JAMB Questions and Answers, 1979, Part 2

Economics Jamb, 1979:

Please see questions 1 – 25 here.

26. If Mr. A earns N2000 a year while Mr. B earns N8000 a year, but Mr. pays N200 per annum in tax while Mr. B pays 400; such a tax is _____.

1. progressive
2. indirect
3. regressive
4. proportional
5. none of the above

                                                                   

27. Which of the following is NOT a asset of a commercial bank?

1. Cash
2. Money at call
3. Treasury bills
4. Reserve fund
5. Loans and overdrafts

 

28. The lowering of the exchange rate between a country’s currency and other currencies is known as _____.

1. the foreign exchange rate
2. deflation
3. exchange control
4. the law of comparative advantage
5. none of the above

 

29. When the average physical product curve is rising, the marginal physical product is _____.

1. below
2. above it
3. falling
4. zero
5. none of the above

 

30. The proportion of currency in the money supply _____.

1. is higher in developing countries than advanced countries
2. is lower in developing countries than advanced countries
3. is the same in both developing and advanced countries
4. grows as the economy develops
5. none of the above

 

3. If a government is running a deficit, this means _____.

1. terms of trade are unfavourable
2. more projects cannot be undertaken
3. tax inflow is greater than expenditure
4. aggregate demand is greater than aggregate supply
5. tax inflow is less than expenditure

 

32. Pure monopoly describes a market where _____.

1. there are many sellers and few buyers
2.  goods are sold at different prices
3. entry is not blocked, but no one cares to enter
4. a few seller and one buyer exist
5. none of the above

 

33. Which of the following assets of a commercial bank does not yield revenue?

1. Money in the tills of the bank
2. Money at calls
3. Treasury certificates
4. Treasury bills
5. Bills of exchange

 

34. Which of the following is NOT a component of National income at factor cost?

1.  Wages earned by doctors
2. Rent paid to landlords
3. Indirect taxes
4. Undistributed company profits
5. Interest on loans

 

35. Which of these financial institutions cannot provide financial loans to individuals?

1. The Agricultural Bank
2. The industrial Bank
3. The central Bank
4. The Co-operative Bank
5. The Standard Bank

 

36. An ad valorem tax means _____.

1. total amount of an income tax
2. a certain percentage tax on the value of a commodity
3. a certain percentage tax on the volume of a commodity
4. a tax on capital gains
5. a profit tax

 

37. The foreign exchange rate of a country is _____.

1. the interest rate fixed by the Central Bank
2. the price of one national currency in terms of another
3. the rate at which the Central Bank issues money
4. the rate of interest on government bonds
5. none of the above

 

38. The “terms of trade” means _____.

1. the trade agreement between two countries
2. the difference in the volumes of exports of two countries
3. the value of a unit of export in relation to the value of a unit of import
4. the proportion of total value of exports to the value of total trade
5. none of the above

 

39. Which is the most liquid of the following financial asset held by an individual?

1. Outstanding balance on the current account of a Commercial Bank
2. A credit balance on savings account
3. A crossed postal order
4. An insurance policy
5. All of the above

 

40. The price mechanism _____.

1. regulates supply and demand
2. rations the consumer
3. rewards the producers
4. allocates scarce resources
5. does all of the above

 

41. When marginal cost equals marginal revenue product, it means that _____.

1. the firm is producing at a loss
2. the firm is at a break-even point
3. the firm is making the least profit
4. the supplementary cost of the firm is highest
5. the firm has maximum profit

 

42. Study the table below.

Number of Workers	Total Products
1	10
2	28
3	48
4	72
5	80

 

What is the marginal product of the second worker?

1. 10
2. 20
3. 15
4. 18
5. 43

 

43. Disposable income equals _____.

1. personal income less business profits
2. personal income less taxes and subsidies
3. national income less borrowing from abroad
4. national income plus transfer payments
5. personal income less taxes plus subsidies

 

44. What do we call a market where there are a large number of buyers and sellers, such that no one has an appreciable influence on the prices?

1. Free market
2. Perfectly competitive market
3. Controlled market
4. Stock exchange market
5. Open market

 

45. A typical corporate form of business organization is owned by _____.

1. presidents of the country
2. shareholders
3. the general manager and the executives of the business concern
4. a local government
5. foreigners and citizens of the country

 

46. The burden of tax on commodity whose demand is infinitely elastic _____.

1. is zero
2. will be borne by seller alone
3. will be borne by buyer alone
4. will be borne by both seller and buyer
5. is impossible to tell who bears it

 

47. The predominance of non-working wives and house maids in West Africa _____.

1. will understate the national income of the countries
2. will overstate the national income of the countries
3. will lead to constant per capital income over the years
4. will lead to balance of payments deficits
5. will cause unfavourable terms of trade

 

48. Inflation can be curbed by _____.

1. increasing aggregate demand
2. paying higher wages
3. increasing government expenditure
4. reducing aggregate demand
5. a deficit budget

 

49. In most cases, the marginal utility derived from a particular good _____.

1. increases as additional units are consumed
2. increases at a decreasing rate as additional units are consumed
3. decreases at a constant rate as additional units are consumed
4. decreases as additional units are consumed
5. remains constant as additional units are consumed

 

50. Infant industries are _____.

1. baby food and baby clothing factories
2. those which are introducing new products
3. cases of arrested developments
4. industries that are protected by tariff barriers until mature enough to compete in the world market
5. industries that are allowed to remain permanent  cases of adolescence

 

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Answers to Economics Jamb, 1979

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

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

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

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

42. C   42. D   43. E   44. B   45. B   46. C   47. A   48. D   49. D   50. D