All 50 questions from the Joint Admissions and Matriculation Board (JAMB) Economics 2008 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
The production possibility curve can be used to explain the underlying concepts of
A. scale of preference and choice
B. opportunity cost and choiceCorrect
C. wants and means
D. opportunity cost and scale of preference
Explanation
PPC can be used to explain the concepts of choice and opportunity cost. The country has different points on the PPC which represents different combinations of two goods out of which they choose one based on priority. When the country makes a choice, one commodity will be sacrificed to produce more units of the other as the country moves from one point to another on the PPC.
The deregulation of telecommunication services in Nigeria is a characteristic of
A. command economy
B. traditional economy
C. market economyCorrect
D. feudal economy
Explanation
Deregulation is an attempt to remove governmental control over the operation of a sector of an economy. This is a characteristic of a market economy where individuals own and control means of production and distribution.
A major determinant of the demand for a luxury good is
A. the price of the good
B. the price of other goods
C. the income of consumersCorrect
D. tastes and fashion
Explanation
Luxury goods are not necessary. They are just additional goods which show status of the consumer. The income level is the major determinant of demand for such goods.
One of the factors affecting the supply of manufactured goods is
A. weather
B. technologyCorrect
C. consumer tastes
D. availability of inputs
Explanation
Manufactured goods require the use of modern technology in most cases. The level of the technology therefore, availability of technology affects the supply more.
If the required reserves of a bank is 20% and N10000 is paid into its demand deposit account, what is the excess reserves?
A. #2000
B. #8000Correct
C. #12000
D. #18000
Explanation
The deposit is N10000 and the reserve ratio is 20% i.e. 20% of N10,000 = N2000. Deduct that from the deposit = N10,000 - N2,000 = N8,000 (excess reserve).
A good indicator of economic development is an increase in
A. gross national product
B. per capita income
C. real national income
D. real per capita incomeCorrect
Explanation
Real per capital income is a better measure because it takes inflation as well as population into consideration. Ordinary per capital income does not account for price changes.
One of the effects of instability in farmer's income in Nigeria is
A. lack of infrastructural facilities
B. rural-urban migrationCorrect
C. inadequate supply of fertilizer
D. low level of technology
Explanation
Poor technological level in the country is one of the factors responsible for the instability in farmers' income. Modern techniques that can be used on the farm to smoothen out fluctuations in natural factors, to put good storage facilities in place and boost outputs are lacking.
The activities in the oil and gas industry are classified into
A. exploration and transportation
B. upstream and downstreamCorrect
C. discovery and extraction
D. onshore and offshore
Explanation
The activities in the oil and gas industry are divided into downstream which involves exploration and mining of crude oil; and upstream activities which include transportation of the final product and marketing.
A high rent on land will affect the cost of producing maize
A. positively
B. negativelyCorrect
C. at the early stage of production
D. at the later stage of production
Explanation
High rent on land will have negative effect on the production of maize because land is an input in the production of maize. An increase in the price of input is going to increase the cost of production.
