Economics JAMB Questions and Answers, 1979

Economics Jamb, 1979:

1. Which of the following is NOT true of the occupational distribution of the labour force in West Africa?

1. A large percentage of the labour force is engaged in agriculture
2. Agriculture is the most important occupation in West Africa
3. The manufacturing sector employs a large percentage of the population
4. Agriculture does not contribute an important source of paid employment
5. The public sector forms an important source of paid employment

 

2. Which of the following is NOT true of the theory of optimum population?

1. It is possible for a densely populated country to be under-populated if it has insufficient labour to make the most effective use of its other factors
2. The quantity of labour, which combined with the other factors gives the minimum output is known as optimum population
3. The quantity of labour, which combined with other factors gives the maximum output is known as optimum population
4. The test of over-population is whether it exceeds the optimum. It is possible for a thinly populated country to be overpopulated if it has a poor supply of other factors
5. None of the above

 

3. Production covers all but one of the following activities.

1. Changing the position of a good in time, for example, holding stocks of goods until they are required
2. The provision of some kind of service, for instance, retailing
3. Changing the form of a good from the raw material to the finished product
4. Changing the situation of a food, for example, from a factory in Lagos to a retail shop in Port Harcourt
5. The use of goods and services to satisfy individual want

 

4. If two commodities are good substitutes for one another, for instance, butter and margarine, an increase in the demand for one will reduce the demand for the other. This type of demand is called _____.

1. composite demand
2. elastic demand
3. derived demand
4. competitive demand
5. inelastic demand

 

5. One of the reasons why the conditions of supply of a commodity may change is _____.

1. a change in real income
2. changes in the technique of production
3. a change in the fashion or taste
4. changes in the price of the commodity itself
5. changes in population

 

6. When the demand curve shifts to the right, it indicates that a larger quantity is demanded at each price. This is caused by one of the followings:

1. a fall in income
2. a rise in the price of a complement
3. a fall in the price of a substitute
4. a change in taste against the commodity
5. none of the above

 

7. When the price of a commodity is below the equilibrium price, the quantity demanded will exceed the quantity supplied. Such a situation is referred to as _____.

1. elastic supply
2. joint demand
3. excess supply
4. derived demand
5. none of the above

 

8. The central bank controls the activities of other banks by all but one of the following. Which one?

1. The use of bank rate
2. The purchase or sale of government bonds on the open market
3. Special deposit
4. The use of directives
5. Taxation

 

9. Which of these alternatives is wrong? Central banks are _____.

1. bankers to the government
2. bankers to commercial banks
3. merchant banks
4. controllers and regulators of the money supply
5. issuers of bank notes

 

10. The principle of comparative advantage or comparative cost is NOT based on one of the following assumptions.

1. There are restrictions to trade
2. There are no costs of transportation
3. There is perfect competition
4. There are no tariffs or import and export quotas
5. There are only two countries and only two commodities entering into international trade

 

11. Which of the following is NOT a direct tax?

1. Company income tax
2. Capital tax
3. Purchase tax
4. Personal income tax
5. Capital gains tax

 

12. Division of labor means _____.

1. dividing the labour into different category
2. splitting the process of production into different parts to be completed by each person
3. dividing the goods and services into different sections
4. assigning different duties to labourers
5. group of labourers working in a factory or shop

 

13. By utility, we mean _____.

1. usefulness
2. power of satisfying a want
3. beneficial
4. advantageous
5. consumable

 

14. Which of the following is NOT an indirect tax?

1. Excise duty
2. Company tax
3. Import duty
4. Export duty
5. Sales tax

 

15. Average cost is _____.

1. the total cost of production
2. the extra cost of producing one additional unit of output
3. the cost of producing a unit of output
4. variable cost
5. overhead cost

 

16. Opportunity cost is the _____.

1. price of scarce goods
2. resources required for making a commodity
3. cost of luxury goods
4. accrual of financial losses by chance
5. alternative that is forgone in order to satisfy a want

 

17. The quantity supplied of a commodity increases while _____.

1. production increases
2. demand increases
3. price of the commodity increases
4. population of the country increases
5. more commodities are imported

 

18. In the above diagram, Do Do is the original demand curve. D1 D1 is _____.

1.  a fall in the demand curve
2. A rise in the demand curve
3. An extension in the demand curve
4. A contraction in the demand curve
5. None of these curves

 

19. The country will be overpopulated when _____.

1. the birth rate is high
2. the death rate is low
3. the growth rate is high
4. the population is increasing more than the resources of the country
5. unemployment is high in the country

 

20. The value of money is generally measured by reference to _____.

1. the interest rate charged on bank loans
2. the general price level
3. the price of the country’s gold stock
4. the level of economic development in the country
5. the price of stocks and shares on the stock exchange                   

 

21. If the quantity demanded of a commodity increases from 20 to 30 when there is an increase in price from N4 to N5, the elasticity of demand is _____.

1. 0
2. 1
3. 2
4. 5
5. 10

 

22. The total value of goods and services sold and bought by a country across its border during a given period, usually a year is known as _____.

1. visible trade
2. invisible trade
3. balance of payments
4. balance of trade
5. terms of trade

 

23. Which of the following types of capital is NOT rewarded by means of dividends?

1. Ordinary shares
2. Preference shares
3. Cumulative preference shares
4. Participating preference shares
5. Debentures

 

24. Which of the following is NOT usually a function of the wholesaler?

1. Transport
2. Storage
3. Advertising
4. After sales service
5. Branding

 

25. Net National income is _____.

1. gross national income minus depreciation
2. gross domestic product plus net income from abroad
3. nominal national income deflated by price the level
4. gross national income divided by the total population
5. gross national product plus subsidies minus indirect tax

 

Please read questions 26 – 50 here. [Answers are present here]

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