Economics Past Questions

Exam Body:

Question 1

if X represent the factors of production and Y represent the factor price, which of the following sets of association is correct?


A) (land, rent) (capital, wage), (labour, profit)

B) (land, interest) (capital,profit), (labour, wage),

C) (land, wage), (capital, interest), (labour,rent),

D) (land,rent), (capital, interest), (labour, wage),

Exam Body: JAMB

Question 2

If the cost of production for a firm continues to increase as it output rises, the firm is said to be experiencing?


A) large-scale production

B) profit maximization

C) economies of scale

D) diseconomies of scale

Exam Body: JAMB

Question 3

Given perfect competition in the capital market, the opportunity cost of capital is adequately reflected by the?


A) interest rate

B) returns on capital

C) alternative capital foregone

D) shadow price of foreign exchange

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Question 4

If a 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were purchased, the resultant point elasticity of demand is?


A) 0.33

B) 0.0001

C) 1

D) 10,000

Exam Body: JAMB

Question 5

If, as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is?


A) static

B) infinitely elastic

C) externally determined

D) perfectly inelastic

Exam Body: JAMB

Question 6

Which of the following factors is an important determinant of the magnitude of price elasticity of demand?


A) The production period

B) Cost of storage

C) Durability of the product

D) Availability of factors of production

Exam Body: JAMB

Question 7

The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?


A) utility

B) productivity

C) rate of substitution

D) revenue

Exam Body: JAMB

Question 8

In order to increase its profit margin, the monopolist can manipulate


A) both price and output

B) either price or output

C) only its price

D) only its output

Exam Body: JAMB

Question 9

For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?


A) downward sloping and price inelastic

B) perfectly price elastic

C) downward sloping but price inelastic

D) perfectly price inelastic

Exam Body: JAMB

Question 10

The merging of firms engage in different stages of production and marketing is called?


A) external economies of scale

B) vertical intergration

C) horizontal intergration

D) economic unoin

Exam Body: JAMB

Question 11

which of the following is an important function of the retailer?


A) Grant credit to the wholesaler

B) Breaks bulk and sales product in small units

C) Reduces cost of distribution

D) Generates demand for production through advertisement

Exam Body: JAMB

Question 12

One of the purposes of advertisement in marketing is to?


A) change the quality of the product

B) raise the quantity of the product demanded as its price falls

C) shift the demand curve for the product to the right

D) raise production cost

Exam Body: JAMB