1989

JAMB Economics 1989 past questions

45 questions from the 1989 JAMB UTME Economics paper. Free, with answers where available.

Practice with CBT mock -> All Economics years
Economics JAMB 1989 Q2
The need to construct a scale of preference is necessitated by
A
The need to satisfy wants
B
Scarcity and the need for choice
C
Scarcity of resources
D
Non-availability of factors of production
Economics JAMB 1989 Q2
In economic life. Choice among alternative depends on the
A
Income of the decision make
B
Scarcity of resources
C
Scale of preference of the decision maker
D
Status of the decision maker Use the diagram below to answer question 3 and 4 GOODS AND SERVICES BUSINESS FIRM AND GOVERNMENT HOUSE HOLD Y PAYMENT FOR GOODS AND SERVICES A simple circular flow of income diagram
Economics JAMB 1989 Q3
The flow labelled Y refers to
A
Real income
B
Factor payments
C
Factors input
D
National income
Economics JAMB 1989 Q4
The primary problem of economics is
A
To obtain a more equitable distribution of money income
B
Production a given output with the lowest cost combination of factors of production
C
Adoption of capital-intensive technology
D
Increasing the quantity of the fixed factor of production
Economics JAMB 1989 Q4
The lower half of the diagram indicates
A
The flow of goods and services
B
Payment for goods and services
C
The flow income
D
Government transaction
Economics JAMB 1989 Q5
Efficiency in production involves
A
Reducing the size of the work force
B
Producing a given output with the lowest cost combination of factors of production
C
Adoption the quantity of the fixed factors of production
D
Increasing the quantity of the fixed factor of production
Economics JAMB 1989 Q5
One of the major advantage of specialization is that
A
The worker becomes a tender of machines
B
It causes more employment of labour
C
Less machinery is required for production
D
The worker waster less time between operation
Economics JAMB 1989 Q6
If X represents the factors of production and Y represents the factor price, which of the following sets of association is correct?
A
(Land, rent), (capital, wage), (labour, profit),
B
(Land, interest), (capital, profits), (labour, wage),
C
(Land, wage), (capital, interest), (labour, rent),
D
(Land, rent), (capital, interest), (labour, wage).
Economics JAMB 1989 Q6
Which of the following reward is associated with entrepreneurship as a factor of production?
A
Salaries
B
Profits
C
Interests
D
Rent
Economics JAMB 1989 Q7
If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing
A
Large-scale production
B
Profit maximization
C
Economies of scale
D
Diseconomies of scale
Economics JAMB 1989 Q8
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 rice of foreign exchange
Economics JAMB 1989 Q9
If at 10k per kg, 1000kg of yam were purchased and a t 5k per kg, 1,500 kg were purchased, the resultant point elasticity of demand is
A
0.33
B
0.0001
C
1
D
10 000
Economics JAMB 1989 Q10
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
Economics JAMB 1989 Q11
Wages D S W S D Labour In the diagram above what happens when the minimum wage is fixed at OW?
A
Unemployment is reduced
B
Unemployment results
C
The demand schedule will shift
D
The supply schedule will become steeper
Economics JAMB 1989 Q12
Price of X Quantity demanded of Y If the curve above shows the relationship between the price of commodity X and the quantity demanded fo commodity Y, then X and are
A
Complementary goods
B
Substitutes
C
Inferior goods
D
Luxury goods
Economics JAMB 1989 Q13
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
Economics JAMB 1989 Q14
The marginal theory of distribution makes an asser tion that the price of any factor depends upon its marginal
A
Utility
B
Productivity
C
Rate of substitution
D
Revenue
Economics JAMB 1989 Q15
In order to increase its profit margin, the monopolist can manipulate
A
Both price and output
B
Either price or output
C
Only it price
D
Only its output
Economics JAMB 1989 Q16
For a 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 [PAGE 24]
Economics JAMB 1989 Q17
The merging of firms engaged in different stages of production and marketing is called
A
External economies of scale
B
Vertical integration
C
Horizontal integration
D
Economic union
Economics JAMB 1989 Q18
Which of the following is an important function of the retailer?
A
Grants credit to the wholesaler
B
Breaks bulk and sells products in small units
C
Reduces cost of distribution
D
Generates demand for products through advertisement
Economics JAMB 1989 Q19
Q(ton) 400 500 600 700 800 900 1000 TC(N) 16000 18000 19800 21000 24000 31500 4000 TR(N) 2000 22500 24000 24500 24500 18000 15000 The table above gives the various levels of output (Q) and its corresponding total cost of production (TC) and total revenue (TR) for a firm. Which output level Q results in maximum profit?
A
400
B
500
C
600
D
700
Economics JAMB 1989 Q20
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 costs
Economics JAMB 1989 Q21
The size of a business unit tends to be small if theactivity
A
Involves mass production of goods
B
Requires a large capital
C
Requires division of labour
D
Involves the provision of direct services
Economics JAMB 1989 Q22
Which type of business organization has the attribute of effectively combining management with control?
A
Sole proprietorship
B
Partnership
C
Limited liability company
D
Co-operatives
Economics JAMB 1989 Q23
The co-operatives as a form of business organization differs from partnership by having
A
Several sources of capital for business financing
B
Ability to issue preferred stocks to members
C
Entrenched democratic control in the conduct of business
D
Established rules and regulations governing the activities of its members.
Economics JAMB 1989 Q24
The type of business finance that entitles the holder to a fixed rate of dividend is
A
Preferred stock
B
Common stock
C
Debenture
D
Bank loan
Economics JAMB 1989 Q25
Which of the business organizations listed below is characterized by limited authority and liability of the individual owners?
A
Sole proprietorship
B
Partnership
C
Joint Stock companyD. Co-operative society
Economics JAMB 1989 Q27
Industries that can be randomly located are characterized by
A
Relatively low transport cost for both raw materials and output and factor mobility
B
Relatively heavy transport cost for raw material or output
C
Constant returns to scaled
D
Significant economy of scale
Economics JAMB 1989 Q28
The term ‘double coincidence' of wants is usually associated with a
A
Bilateral exchange mechanism
B
Monetary exchange mechanism
C
Stock exchange system
D
Barter exchange mechanism
Economics JAMB 1989 Q30
Cost-puch inflation is caused by
A
Growth of government expenditure
B
Increase in factor prices
C
Increase in money supply
D
Hoarding
Economics JAMB 1989 Q31
The stock exchange market is where
A
Businessmen borrow some capital
B
The federal government trades on treasury bills
C
Existing bonds and stocks are traded
D
New stocks and shares are bought or sold
Economics JAMB 1989 Q32
Commercial bank reserves at the Central Bank have the effect of
A
Controlling credit and money supply
B
Discouraging banking operations
C
Advancing trade prospects
D
Reducing bank frauds
Economics JAMB 1989 Q34
Government intervention in an economy is often justified on the on the ground that
A
Wants are unlimited while resources are scarce
B
Productivity is higher in the public than in the private sector
C
Free market may not work or produce desire results
D
Opportunity cost of government expenditure is zero
Economics JAMB 1989 Q35
The three major groups of government revenue are
A
Investments income, direct tax and indirect tax
B
Import duties, excise tax and export duties
C
Company tax, personal income tax and import duties
D
Company tax, import duties and excise tax
Economics JAMB 1989 Q36
The main objectives of public expenditures does NOT include
A
Stabilization of national economy
B
Achievement of a more equitable income distribution
C
Meeting the social heeds of the people
D
Revenue sharing and profit maximization.
Economics JAMB 1989 Q39
ITEM AMOUNT (Million Naira) Visible exports 55.54 Visible imports 53.32 Invisible exports 30.56 Invisible imports 28.70 Balance 4.08 The amount, N4.08 million, shown as balance in the table above represents
A
Terms of payments
B
Balance on current account
C
Balance of trade
D
Terms of trade
Economics JAMB 1989 Q40
By using exchange controls, a country tries to eliminate a balance of payments deficit by
A
Limited her imports to its currency value of exports
B
Reducing the nations domestic price level
C
Limiting her exports to its currency value of imports
D
Overvaluing the country's currency
Economics JAMB 1989 Q41
The law of comparative advantage states that a country should spcialize in the production of a commodity
A
For which local demand is greatest
B
In which its opportunity cost is lower than that of the trade partner
C
For which foreign demand is greatest
D
For which there is abundant supply of raw materials
Economics JAMB 1989 Q42
International and inter - regional trade differ primarily because.
A
comparative advantage is relevant to the former but not the latter.
B
products flow across national boundaries
C
there are different resources supplies among countries of the world
D
of regulation from GATT.
Economics JAMB 1989 Q43
Optimum population is the population level at which
A
Death rate is at a minimum
B
Per capita income is at maximum
C
Population is at a miximum
D
Death rate is equal to birth rate
Economics JAMB 1989 Q44
The group of people engaged in banking or insurance services by occupational distributions are claasified as
A
Primary producers
B
Secondary producers
C
Tertiary producers
D
Technical producers
Economics JAMB 1989 Q45
The difference between gross national product and net national product is equal to
A
Gross investment
B
Net investment
C
Net foreign income
D
Capital depreciation
Economics JAMB 1989 Q46
The value of the total output produced within Nigeria by all residents (citizens and non-citizens) is referred to as the
A
Gross national product
B
Disposable income
C
National income
D
Gross domestic product
Economics JAMB 1989 Q50
The primary goal of development planning in Nigeria is to
A
Increase profitability of enterprises
B
Achieve a rapid increase in the welfare and standard of living of Nigerians
C
Increase the level of gross domestic product
D
Make Nigeria a super-power Economics 1990