All 49 questions from the Joint Admissions and Matriculation Board (JAMB) Economics 2011 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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[Table: Price(N) 1-100kg,2-120kg,3-150kg,4-180kg,5-200kg] The graph of the schedule below will depict
It will produce an abnormal demand curve because quantity increased as price increased - it will be an upward sloping curve.
If demand increases without a change in supply, equilibrium price and quantity will
Both price and quantity will rise if it is only demand that increases while supply remains constant.
In the process of production, total output is at maximum when
When Total Product is at its maximum, the marginal product (MP) is zero.
The median of an odd-numbered set of scores is the
When the number of observations in a set of data is an odd number, the median is the one at the middle after arranging the data in ascending or descending order.
If the demand for one commodity excludes another, it is said to be
Competitive demand is the demand in which the two commodities are substitutes. The demand for one excludes the use of the other.
One of the limitations of PPC assumption is that there is
On a PPC, two goods are represented, but there is no indication for the one that is preferred out of the two goods. Technical progress or development is indicated with a shift of the curve to the right. Technical inefficiency can be shown with a point inside the PPC, which completely rules out abundance of resources.
Demand patterns are determined by the market on the basis of
The price that consumers are willing to pay for a commodity shows how much they want it, hence the pattern of demand is determined by the price of the commodity.
A consumer surplus measures the
The consumers' surplus is the difference between total expenditure of a consumer and its expected (planned) expenditure. The planned expenditure is the total utility; it can be represented as consumers' surplus = pq - ∫qdp, where p = price and q = quantity.
A major disadvantage of the arithmetic mean is that it is
The mean is usually affected by extreme values - when a value in a distribution is too high or too small, it affects the mean value and makes it a biased representative.
An effective way of controlling inflation in a mixed economy is to
If productivity is increased, there will be an increase in total output, and the problem of too much money chasing few goods will be solved.
The optimal range of output for a perfectly competitive firm is where
The first condition for profit maximization is MC=MR; however, this is necessary but not sufficient. The second condition states that MC must be rising - the firm produces within the range where MC is increasing.
Ranking is the method used in measuring
The ordinal approach is one of the approaches used in determining the equilibrium of the consumer. It advocates ranking of utility, as opposed to the cardinalist approach which advocates measuring utility numerically.
A firm will experience diseconomies of scale when
Diseconomies of scale occur in the long run when the firm becomes too big such that production coordination becomes a problem.
[Diagram: PPC with points R, S, T, U] From the diagram above, the optimal point of production is
At point S, the isoquant is tangent to the isocost, which satisfies the condition for equilibrium.
Minimum price legislation by government will
Minimum price legislation occurs when the price is fixed above equilibrium price. This will increase supply and create a supply surplus (reducing demand and creating surplus).
The law of variable proportions is applicable only
The law of variable proportion is applicable only in the short-run.
When a consumer is at equilibrium, the MRS is equal to the
The MRS, which is the slope of the indifference curve, will be equal to the slope of the budget line, i.e. the ratio of the two prices.
If a firm is faced with an elastic supply curve, its revenue will
An elastic supply means that the percentage change in quantity is greater than the percentage change in price, so revenue increases by more than the percentage increase in price.
[Table: Price(N) 1-60(bags), 2-120(bags)] From the table above, the price elasticity of supply is
%Δq/%Δp = (120-60)/(2-1) x 1/60, i.e. Δq/Δp x p/q = 60/1 x 1/60 = 1.
Bank consolidation policy in Nigeria is a measure to increase
Bank consolidation is aimed at increasing the capital base of banks.
In national income accounts, an item counted as part of government spending is
Salaries and wages are part of government spending on production of goods and services in the current period; pensions, scholarships and social welfare are transfer payments, not counted this way.
The profit of a monopolist can be eliminated where price equals
When price and average cost (AC) are equal, only normal profit is made, eliminating any abnormal/monopoly profit.
An increase in the circulation of money without a corresponding increase in output will lead to
When money supply (money in circulation) increases without a corresponding increase in output, inflation results.
One of the characteristics of oligopoly is the availability of
One of the distinguishing characteristics of an oligopoly market is a few number of sellers.
During the era of barter, money was generally in the form of
During the era of barter, money was generally in the form of commodities.
If aggregate demand is lower than total output in an economy, national income will
When aggregate demand is lower than the total output, there is a tendency that output will fall, and national income will also fall as a result.
If real income increases while nominal income remains the same, it can be inferred that
A decrease in general price level will make goods more affordable, hence the increase in real income while nominal income stays the same.
[Diagram: Price/Cost graph with MC, ATC, AVC curves] When 20 units of output is produced, TC will be
Total cost is the product of the average cost and the quantity produced, i.e. 15 x 20 = 300.
[Same diagram as above] The average total cost when 20 units are produced is
The average total cost when 20 units are produced is #15.
Agricultural production in Nigeria is constrained by
Policy implementation in Nigeria is poor, though there were several policies made to revive the agricultural sector, but there is a lack of implementation.
Upstream oil activities involve the
Upstream activities in the oil sector include exploration and extraction of crude oil.
A country achieves economic development when there is
When the income attributed to an average person in an economy increases and it is sustained, it is an indication of development.
The main function of NNPC is to
NNPC is to see to the development of the oil sector in the country.
Industrial development in Nigeria can be encouraged through
Infrastructural facilities are very instrumental to a meaningful industrial development.
An indicator of growth over a period of time is the
Economic growth is a sustained increase in output. The GDP at market price is used to measure the growth.
The deflationary gap is defined by
The range over which output exceeds the aggregate demand is shown by K, which is called the deflationary gap.
[Same AS/AD diagram] What does X represent?
The inflationary gap is represented by X. It is the range over which the AD exceeds the AS.
The import-substitution strategy of industrialisation is to encourage
The import-substitution strategy is aimed at replacing imports with locally produced goods.
A country embarks on deficit financing in order to
Deficit financing is used to stimulate investment. It is an act of financing public expenditure on some projects through borrowing.
Investing heavily in the agricultural sector will lead to
Revamping the agricultural sector will lead to sufficient food production.
A change from one industry to another by a worker is an example of
Moving from one industry to another to perform operations at the same level by a worker is an example of horizontal mobility.
Optimum population enables an economy to attain the highest level of
Optimum population is the population that is just sufficient to exploit the available resources. It enables the economy to attain the highest per capita output, hence the highest per capita (per head) income.
Trade takes place because of
Comparative advantage determines whether trade should take place or not. When the opportunity cost of production of a commodity is high relative to another country, that commodity should be produced by the country with lower opportunity cost.
The money paid per hour for work done is
Wage rate is the money paid per hour of work.
A condition in which official and autonomous exchange rates coexist is
Managed floating rate system is one in which the flexible (floating) exchange rate and fixed (official) exchange rate are used together, with the forces of demand/supply and government both determining the exchange rate.
The World Trade Organisation is responsible for
WTO aims at removing barriers to international trade, minimizing obstacles to international trade and investment.
The record of a country's transactions in international trade is her
Balance of payments is the summary of all transactions between a country and other countries of the world.
In modern economies, the Malthusian theory of population is ineffective because of
Technical progress has made it possible for countries to increase food production rapidly and increase the means of subsistence, rendering the Malthusian theory invalid.
The transfer of public shareholding in corporations to private enterprises is
When public corporations are taken over by private enterprises, it is called privatization.
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