1986

JAMB Economics 1986 past questions

39 questions from the 1986 JAMB UTME Economics paper. Free, with answers where available.

Practice with CBT mock -> All Economics years
Economics JAMB 1986 Q1
Choice in economic life is necessitated by
A
The need to construct scale of preference
B
The opportunity cost of consumption
C
Unlimited wants
D
Scarcity of economic resources
Economics JAMB 1986 Q2
Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
A
Variable cost
B
Opportunity cost
C
Total cost
D
Prime cost
Economics JAMB 1986 Q3
Under normal circumstances the concept of consumer sovereignty implies that
A
The consumer and not the producer owns the means of production
B
The producer and not the consumer determines what is to be produced
C
The consumer and not the producer determines what is to be produced
D
Both the consumer and the producer determine what isto be produced
Economics JAMB 1986 Q6
Production in Economics can be defined as the
A
Totality of producing, buying and consuming
B
Transformation fo raw materials and services in order to provide ultimate utility
C
Transformation of raw materials and services in order to make maximum profit
D
Production of goods and services for consumption
Economics JAMB 1986 Q8
If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving
A
Rent
B
Profit
C
Interest
D
Period of training
Economics JAMB 1986 Q9
Mobility of labour is NOT affected by
A
Optimum size of population
B
Marriage and family
C
Regulation trade unions
D
Period of training
Economics JAMB 1986 Q11
Population density refers to
A
Densely populated urban centre
B
The total area divided by the total population
C
Densely populated rural areas
D
The total population divided by the total area.
Economics JAMB 1986 Q12
What fundamentally determines how much a consumer spends in a producer's shop?
A
Individual's propensity to consume
B
Level of his taxation
C
Level of his income
D
Individual's taste or fashion
Economics JAMB 1986 Q13
Which of the following statements describes a mixed economy?
A
The government and the private sector interact in solving the basic economic problems
B
The invisible hand solves the basic economic problems
C
The government produces and distributes all goods and services
D
Society answers the ‘what', ‘how', and ‘for whom' questions only through the market system.
Economics JAMB 1986 Q14
In drawing an individual's demand curve for a commodity, which of the following is NOT kept constant? The
A
Individual's money income
B
Price for substitutes
C
Price of complementary goods
D
Price of the commodity under consideration
Economics JAMB 1986 Q15
Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will
A
Induce greater demand for beef
B
Induce greater demand for fish
C
Induce lower demand for fish
D
Equate demands for beef and fish
Economics JAMB 1986 Q16
The main function of price mechanism is to
A
Limit consumer demand
B
Enable producers make profits
C
Allocate scarce resources among competing ends
D
Ensure consumer sovereignty Use the table below to answer 17 and 18 Market Demand Schedule for Commodity X
Economics JAMB 1986 Q17
If the price of commodity X falls from N40.00 to N3.00 what is the price elasticity of demand?
A
0.62
B
0.73
C
1.00
D
1.50
Economics JAMB 1986 Q18
The revenue accruing to the seller of commodity X as a result of a fall in price will
A
Increase
B
Fall
C
First fall but will increase later
D
Remain unchanged
Economics JAMB 1986 Q19
Which of the following is an important function of prices in a market economy?
A
Ensuring that resources are used in the most efficient manner
B
Ensuring an equitable distribution of goods and services
C
Ensuring that all industries are perfectly competitive in the long run
D
Equating level of purchases with level of needs.
Economics JAMB 1986 Q20
One major difference between monopoly and perfect competition is that
A
the perfect competitor is a price taker while the monopolist determines his own output
B
Homogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exists for the monopolist
C
Sellers are located all over the world in the case of perfect competition but sellers are located only in one country in the case of the monopolist
D
There is free entry and exit in perfect competi tion but no free exit in monopoly
Economics JAMB 1986 Q23
In the normal channels of distribution the breaking of bulk is performed by the
A
Producer
B
Wholesaler
C
Retailer
D
Consumer
Economics JAMB 1986 Q24
The most important advantage of co-operative societies is
A
Their high degree of democracy
B
The increase in the cost of marketing
C
That members are encouraged to save money
D
The possibility of raising loans for the members [PAGE 15]
Economics JAMB 1986 Q25
In a public company, shares are
A
Sold to one person only
B
Distributed freely
C
Advertised to members of the public for subscription
D
Disposed of by the Chief Executive
Economics JAMB 1986 Q26
Which of the following is a characteristic of a private limited liability company?
A
Its shares can be sold to the public
B
The number of shareholders ranges from fifty to one hundred
C
All shareholders have equal powers and responsibilities
D
The number fo shareholders ranges from two to fifty
Economics JAMB 1986 Q27
One of the advantages of a partnership over a sole proprietorship is that
A
It is the most popular form of business organization
B
The partner can easily withdraw from the business
C
It makes an increase in the capital of the business possible
D
There is no limit to the number of people who may bring in capital
Economics JAMB 1986 Q28
Which of the following is an external economy derived by a firm?
A
Low cost opportunities enjoyed by being in a place where other producers concentrate
B
Technical economies enjoyed by varying the factors of production
C
Economies of management by putting administrators where they are most efficient
D
Marketing advantages attained through preferential treatment in the purchase and distribution of produce
Economics JAMB 1986 Q29
Which of the following advantages of localization of industries may also be a disadvantage?
A
External economies
B
Concentration of industries and of people
C
Development of organized markets
D
Reduced cost of research
Economics JAMB 1986 Q31
To control inflation, the monetary authorities of a country can
A
Reduce taxes
B
Advise government to increase its expenditure
C
Engage in expansive monetary policy
D
Engage in restrictive monetary policy
Economics JAMB 1986 Q32
Which of the following is used by the Central Bank to control the rate of interest?
A
Bill of Exchange
B
Banker's order
C
Fixed deposit account
D
Open market operation
Economics JAMB 1986 Q33
Gresham's law in Economics shows that
A
Bad money drives good money out of circulation
B
Good money drives bad money out of circulation
C
Gold must be available to maintain the value of paper money
D
The price level varies directly with the quantity of money
Economics JAMB 1986 Q34
Given that the cash reserve ratio is 10 percent, what is the maximum amount of money that the banking system can create from an initial cash deposit of N1 000.00?
A
N100.00
B
N1 000.00
C
N9 000.00
D
N10 000.00
Economics JAMB 1986 Q35
The most important economic characteristic differenti ating commercial banks from other financial institutions is their.
A
Function as a safe and profitable store place for savings
B
Role in financing balance of payments deficits
C
Status as an intermediary between savers and borrowers
D
Ability to create and destroy money
Economics JAMB 1986 Q37
Which of the following causes of inflation is related to demand-pull inflation?
A
Low productivity on farms and in firms
B
Poor storage facilities
C
Poor distribution system
D
Increase in government expenditure on construction
Economics JAMB 1986 Q38
Which of the following is NOT a goal of modern budgets?
A
The control of inflation
B
The reduction in income inequlaity
C
The shift of all resources from the private to the public sector
D
Economic development
Economics JAMB 1986 Q39
The best technical description of a progressive tax is a
A
Tax which takes money from the rich than from the poor
B
More equitable tax than a regressive one
C
Tax which takes higher proportion of extra naira received as income rises
D
Tax which falls directly on those in the high income brackets. [PAGE 16]
Economics JAMB 1986 Q40
Tax incidence is the analysis of
A
How progressive a tax is
B
How a tax is collected
C
How distorting a tax is
D
Who ultimately pays the tax
Economics JAMB 1986 Q42
Balance of payments deficit in Nigeria CANNOT be solved by
A
Importing more goods and services
B
Devaluation of the currency
C
Imposing import duties
D
Imposing import bans on some commodities
Economics JAMB 1986 Q43
The term, balance of trade, can be defined as the
A
Relation between value of exports and value of imports over a given period of time
B
Balance owed to the rest of the world in payment for imports
C
Price paid for imports in terms of exports
D
Relation between payments of all kinds made by a country to the rest of the world, over a given period of time.
Economics JAMB 1986 Q44
The terms of trade is often measured by the ratio of the index of export prices
A
Divided by the index of import prices multiplied by 100
B
Multiplied by the index of import prices
C
Plus the index of import prices multiplied by 100
D
Minus the index of import prices
Economics JAMB 1986 Q48
The table below illustrates the law of diminishing returns on a farm. Fixed Unit Variable Total Marginal Of land Unit of Output Product (Hectares) Labour (TO) (MP) X Y Which pair of the following answers is appropriate for the missing information in the spaces marked X and Y?
A
X = 20, Y = 6
B
X = 38, Y = 9
C
X = 46, Y = 9
D
X = 46, Y = 14
E
X = 10, Y = 10
Economics JAMB 1986 Q48
The differences between the Gross Domestic Product and the Gross National Production is the
A
Allowance for total depreciation
B
Total interest payments
C
Total tax and interest payments
D
Net income from abroad 49.. Which of the following strategies will provide more employment opportunities for Nigerians?
Economics JAMB 1986 Q49
The unemployment associated with a recession is called
A
Voluntary
B
Frictional
C
Cyclical
D
Structural
E
Disguise
Economics JAMB 1986 Q50
When total revenue is a t a maximum, marginal revenue is
A
Constant
B
Negative
C
Zero
D
Positive
E
Maximum