1992

JAMB Economics 1992 past questions

44 questions from the 1992 JAMB UTME Economics paper. Free, with answers where available.

Practice with CBT mock -> All Economics years
Economics JAMB 1992 Q1
It is impossible to satisfy all human wants because
A
Areas of fertile land are very limited
B
Oceans and seas limit land space for farming
C
Resources are not equitably distributed
D
Available resources are limited Use the diagram below to answer question 2 and 3 Y Quantity of good y x Quantity of good x The above diagram showing th e maximum possible combination of commodities X and Y produced in Nigeria is called the
Economics JAMB 1992 Q3
How many units of goods X is produced for 8 units of commodity Y
A
80
B
40
C
20
D
0
Economics JAMB 1992 Q4
The main function of the price system is to
A
Distribute resources equally among compet ing ends
B
ensure efficient allocation of resources in the economic system
C
allocate goods and services equally
D
minimize cheating.
Economics JAMB 1992 Q6
Population Food Production (Million) (million tonnes) In the data above, what is the optimum population is million?
A
50
B
70
C
90
D
100
Economics JAMB 1992 Q7
The major objective of the current campaign for family planning in Nigeria is to
A
Reduce the death rate
B
Limit the number of women a man can marry
C
Keep the population growth rate constant
D
Raise the standard of living of the popula tion
Economics JAMB 1992 Q8
The migration of young people from rural to urban areas in Nigeria should help to raise the
A
Standard of living in the urban areas
B
Total productivity of labour in the rural areas
C
Marginal productivity of labour in the rural areas
D
marginal productivity of labour in the urban area
Economics JAMB 1992 Q9
By definition, variable cost (VC) is related to total costs (TC) and fixed cost (FC) by the equation.
A
VC = TC + FC
B
VC = TC - FC
C
VC = TC/FC
D
VC = (TC)(FC)
Economics JAMB 1992 Q10
The higher the price fo capital relative tot he price of labour, the more production techniques should be
A
Labour-intensive
B
Capital-intensive
C
Fixed
D
Technology-intensive Use the following production and cost data of a profit-maximizing firm to answer questions 11 and 12 Unit of Total Total Total Total Output Fixed Variable Input Cost Cost Calculate the marginal physical product of the last unit of input
Economics JAMB 1992 Q11
At what level of input has diminishing marginal returns set in?
A
3
B
16
C
20
D
22
Economics JAMB 1992 Q13
The U-shape of the long-run average cost curve can be experience by the
A
Law of increasing returns
B
Law of constant returns
C
Law of diminishing returns
D
Concepts of economics and diseconomics of scales
Economics JAMB 1992 Q14
Quantity of Short-run Singlets total costs(N) 1 000 1 200 1 400 1 600 1 800 The short-run total costs for different level of output for a firm producing singlets are shown above. Calculate the variable cost per unit at an output of 20
A
N1000
B
N 400
C
N 70
D
N 20
Economics JAMB 1992 Q15
The price mechanism is more effective in achieving efficient performance of the economy than the planning mechanism because of the
A
Role of supply and demand
B
Role of material incentive
C
Existence of buyers and sellers
D
Role of money
Economics JAMB 1992 Q16
If demand is relatively inelastic and sellers are able ro raise the price of their commodity, then there will be a
A
Fall in both quantity demanded and total revenue
B
Fall in the quantity demanded and a rise in total revenue
C
fall in the quantity demanded and a rise in marginal revenue
D
rise in both the quantity demanded and the marginal revenue
Economics JAMB 1992 Q18
If in the graph above, it is assumed that the price is initially P1, it can be deduced that price will
A
Fall because there is a surplus
B
Remain constant because it is the equilibrium [PAGE 34] price
C
Rise because there is a shortage
D
Double
Economics JAMB 1992 Q19
I II P MR AR Q Q1 Q2 Q3 In the diagram above, the profit maximizing output is
A
Q1 while 1 = AC and II = MC
B
Q1 while 1 = MC and II =AC
C
Q2 while 1 = MC and II = AC
D
Q3 while 1 = AC and II = MC
Economics JAMB 1992 Q21
An important function for the retailer is to
A
Grant credit tot he wholesaler
B
Break bulk and sell products in small units
C
Reduce cost of distribution
D
Generate demand for products through advertisement
Economics JAMB 1992 Q22
The main handicap of sole proprietorship is
A
Limited liability
B
Lack of technical know-how
C
Low profit margin
D
Inadequate capital
Economics JAMB 1992 Q23
The type of business organization mostly used for producing public goods in Nigeria is
A
Sole proprietorships
B
Limited liability companies
C
Co-operative societies
D
Statutory corporations.
Economics JAMB 1992 Q24
The main reason for the current programme of privatization and commercialization of public enter prises in Nigeria is to
A
Reduce public expenditure
B
Encourage efficiency in the performance of such enterprises
C
Reduce the number of public enterprises
D
Raise the prices of goods and services produced by the enterprises
Economics JAMB 1992 Q25
The types 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 1992 Q26
Farmer's income may fall if they produce more cash crops for export because
A
Foreign demand is inelastic
B
The price of the crops will rise
C
Of domestic currency depreciation
D
Of export duties
Economics JAMB 1992 Q27
Under the Nigerian structural adjustment programme, the marketing of agricultural commodities in Nigeria has been placed under
A
The marketing boards
B
The commodity boards
C
The river basin authorities
D
Private investors and individuals
Economics JAMB 1992 Q28
The primary barrier to land reform in developing countries is the
A
Frequent opposition by the landlords
B
Realization that output levels might fall
C
Fear that peasants will be cut off from credits
D
General contentment with the present arrangement
Economics JAMB 1992 Q29
Firms are often set up close to each other in order to take advantage of
A
Supply of skilled labour
B
Agglomeration economies
C
Internal economies of scale
D
External economies of scale
Economics JAMB 1992 Q30
The consumer-goods industry is predominant in the industrial sector of the Nigerian economy because of
A
Availability of market and most of the raw materialsrequired
B
Availability of the necessary machinery required
C
Experience of Nigerian producers
D
Relatively lower cost of production of such goods
Economics JAMB 1992 Q32
Because most of her crude oil is exported, the foreign exchange earnings and the forward linkage effects Nigeria realizes from her oil production are
A
Both high
B
Respectively high and low
C
Respectively low and high
D
Both low
Economics JAMB 1992 Q33
Which of the following is NOT directly concerned with dealings in treasury bills?
A
The Stock Exchange
B
The Central Bank [PAGE 35]
C
Commercial banks
D
Discount houses
Economics JAMB 1992 Q34
Monetization refers to the ratio of
A
Total transactions to monetary transactions
B
Monetary assets to total assets
C
Monetary transactions to total transactions
D
Money in circulation to total income
Economics JAMB 1992 Q35
The best way to reduce the supply of money in the economy is to
A
Increase the liquidity ratio
B
Increase the number of bank notes and cheques produced
C
Decrease treasury bills
D
Liberalize access to credit
Economics JAMB 1992 Q36
The total amount of money in circulation includes cash
A
And current account balance owned by the non-bank public
B
Owned by banks and the non-bank public
C
And current account balances owned by banks and the non-bank public
D
Owned by banks, the government and the non-bank public
Economics JAMB 1992 Q37
To reduce the high rate of inflation in the economy, Government should
A
Increase taxes and have a budget surplus
B
Increase taxes and have a budget deficit
C
Decrease taxes and have budget deficits
D
Decrease taxes and have a balanced budget
Economics JAMB 1992 Q38
When interest are high and still rising the least-cost method used by public limited companies to obtain additional funds for their operations is by
A
Obtaining long-term loans from merchant bank
B
Obtaining short-term loans from commercial banks
C
Selling floating-rate debenture stocks to the general public
D
Selling new ordinary shares to the general
Economics JAMB 1992 Q39
The objective of public finance is to promote
A
Full employment, national income and price stability
B
Government revenue drive and expenditure to as high a level as possible
C
The expansion of government social- services
D
Government revenue drive and minimise government expenditure
Economics JAMB 1992 Q40
An account from which allocations are made to the three tiers of government in Nigeria is called the
A
National Income Account
B
Public Sector Account
C
Federation Account
D
National Revenue Mobilization Account Use the information below to answer question 41 and Year 1 Year2 GNP at current prices (Nm)20,000 27,000 Population (million)
Economics JAMB 1992 Q41
What is the percentage increase in GNP between year 1 and year 2?
A
3.5%
B
14.0%
C
20.0%
D
35.0%
Economics JAMB 1992 Q42
Calculate the GNP per head of the population in year 1 and year 2
A
N2000.00; N1000.00
B
N1125.0; N2000.00
C
N1000.00; N2000.00
D
N1000.00; N1125.00
Economics JAMB 1992 Q43
In national income accounting, aggregate saving in any year is defined as
A
All disposable income not spent on con sumption
B
All savings deposits in all banks during the year
C
All savings and time deposits in all banks during the year
D
The value of inventory change for the year
Economics JAMB 1992 Q44
Which of the following combination is a veritable set of development indicators?
A
Growth of government expenditure and imports
B
Growth of population and national income
C
High fertility, literacy and school enrolment rates
D
Low infant mortality and high per capita income and literacy rate
Economics JAMB 1992 Q45
If an economy grows at an annual rate of 5% of which 3% is deemed to be due to improvement in the productivity of labour and capital combined, the remaining 2% is generally attributed to
A
The size of the population
B
Technical progress
C
The environment
D
The amount of natural resources
Economics JAMB 1992 Q46
If a country has a balance of payment crisis, which of the following measures can best bring about an improvement in the short run?
A
Large-scale importation on foreign goods
B
Investments in capital market abroad
C
Large-scale export of locally made goods
D
Repayment of debt to her creditors
Economics JAMB 1992 Q47
The terms of trade of a country is defined as
A
Index of import price Index of export price x 100 [PAGE 36]
B
Index of exportation Index of importable x 100
C
Index of visible imports Index of visible exports x 100
D
Index of export prices Index of import price x 100
Economics JAMB 1992 Q48
When a foreigner on a visit to Nigeria, pays for hotel accommodation and meals with some foreign cur rency, the amount paid should be recorded in Nigeria's balance of payments as an item of
A
Nigeria's invisible export trade
B
Nigeria's import trade C Nigeria's visible trade
D
Foreign capital inflow into Nigeria.
Economics JAMB 1992 Q49
The Nigerian Trust Fund is managed on behalf of Nigeria by the
A
World Bank
B
International Monetary Fund
C
African Development Bank
D
Economic Commission for Africa
Economics JAMB 1992 Q50
One of the gains by member states of the Economic Community of West African States is
A
Monocultural dependency
B
Trade creation
C
Trade inversion
D
Economic independency Economics 1993