2003

JAMB Economics 2003 past questions

54 questions from the 2003 JAMB UTME Economics paper. Free, with answers where available.

Practice with CBT mock -> All Economics years
Economics JAMB 2003 Q1
The price of a good rises from N5 to N8 and the quantity demanded falls from 200 to 190 units. Over this price range, the demand curve is
A
fairly inelastic
B
fairly elastic
C
perfectly inelastic
D
perfectly elastic
Economics JAMB 2003 Q1
By advertising, a monopolistic competitive firm tries to shift its
A
supply curve to the right
B
demand curve to the right
C
supply curve to the left
D
demand curve to the left
Economics JAMB 2003 Q2
In economis analysis, a statement is said to be normalize if,it
A
can be tested scientifically
B
relates to value judgment
C
is contradictory
D
is incorrect
Economics JAMB 2003 Q2
Given than Y = C + I and C = bY where b = 0.8, what is the multiplier?
A
5
B
10
C
4
D
2
Economics JAMB 2003 Q3
Utility is the satisfaction derived from
A
production
B
distribution
C
consumption
D
demand
Economics JAMB 2003 Q3
The role of the Central Bank in the economic development of Nigeria is to
A
give short-and medium-term loans to the public
B
give financial and technical advice to customers
C
use the cheques and bank drafts to facilitate business transactions
D
maintain a stable price system
Economics JAMB 2003 Q4
If there is and increase in demand without a corresponding increase in supply, there will be
A
fall in price
B
rise in price
C
shift in supply curve to the right
D
shift in demand curve to the left Use the production possibility curve of a country represented in the diagram below to answer questions 5 and 6
Economics JAMB 2003 Q4
The primary function of non-bank financial institutions is to
A
manage investment portfolios for government
B
mobilize saving for investment
C
grant loans to banks
D
receive deposits from banks
Economics JAMB 2003 Q5
An improvement in technology will enable the country to produce at
A
V
B
W
C
X
D
Z
Economics JAMB 2003 Q6
If the country is currently producing at point Y, it can increase production of producer goods by moving to the point
A
v
B
W
C
X
D
Z
Economics JAMB 2003 Q6
In a n open economy, the GNP is measured as
A
C+I+G+X
B
C+I+G+(X-M)
C
C+I+G+M
D
C+I+G
Economics JAMB 2003 Q7
The diagram above represents the short-run position of a monopolist. The profit-maximizing output is
A
Q3
B
Q4
C
Q1
D
Q2
Economics JAMB 2003 Q8
When two variables are positively related, the graph of the relationship
A
is a straight line
B
is a downward-sloping curve
C
is an upward sloping curve
D
has a negative intercept [PAGE 66]
Economics JAMB 2003 Q8
The capital market provides business firm with the avenue to
A
lease capital equipment
B
obtain long-term funds
C
obtain short-term fundsD.purchase capital equipment
D
the resources are inadequate to cater for the population
Economics JAMB 2003 Q9
For an inferior good, a decrease in real income lead to
A
an outward shift of the demand curve
B
an inward shift of the demand curve C a lowed equilibrium price
D
a change in quantity demanded
Economics JAMB 2003 Q10
In a planned economy the emphasis is on
A
individual choice and decisions
B
public ownership and control
C
private ownership and control
D
prices and competition
Economics JAMB 2003 Q11
Price elasticity of supply is a ratio of the change in
A
quantity supplied to the c change in demand
B
original quantity to a change in new quantity
C
quantity supplied to the change in price
D
price to the change in quantity supplied.
Economics JAMB 2003 Q12
the long-run average cost curve is called a planning curve because it shows what happens to costs when
A
variable inputs are increased
B
fixed factors are increased
C
different sizes of plants are built
D
a bigger size of plants is built
Economics JAMB 2003 Q13
Imperfect market is characterized by
A
many buyers and few sellers
B
a large number of buyers and sellers
C
non-preferential treatment
D
perfect mobility of factors of production
Economics JAMB 2003 Q14
Short-run period in production is a period for a firm to be able to change its
A
variable inputs
B
total outputs
C
total revenue
D
scale of operation Use the table below to answer questions 15 and 16 Output produced Fixed cost Total cost per day (unit) per day (N) per day (N) 60 100 60 120 60 130 60 135 60 150 60 170 60 190
Economics JAMB 2003 Q17
If the demand curve facing a frim is sharply downward sloping, the firm is likely to be
A
a perfect competitor
B
a monopolistic competitor as it can have a limited influence as it can have a limited influence on price
C
an oligopolist as it can collude with other firms to have some influence on price
Economics JAMB 2003 Q19
The best method of production in an under-populated country is
A
labour-extensive
B
land-intensive
C
capital-intensive
D
labour-intensive
Economics JAMB 2003 Q21
For a firm, value added can be defined as the difference between the
A
value of its output and the cost of production
B
total revenue and toatla cost
C
input prices and product prices
D
value of its output and inputs purchased from other firms
Economics JAMB 2003 Q22
Securities are described as listed when they are:
A
bought and sold purely for development purposes
B
mobilized as short-term debt instruments
C
Mobilized as long-term debt instrument
D
Traded on a recognized stock market
Economics JAMB 2003 Q23
The commercial banks differ from non-bank financial institutions because they
A
accept deposits withdrawable by cheque
B
mobilize savings
C
invest surplus plus
D
contribute to economic development
Economics JAMB 2003 Q25
The term "Near Money" is best described as
A
a financial assets that is convertible to cash
B
a financial instrument that is readily convertible to cash
C
government financial instrument that is convertible to cash
D
time deposits with low interest rates
Economics JAMB 2003 Q26
The distinguishing characteristic between the money market and the capital market lies in whether the
A
finds mobilized are private or public
B
securities are primary or secondary
C
debt instruments provided are long-term or short-term
D
securities are in debentures of ordinary shares. [PAGE 67]
Economics JAMB 2003 Q27
If Nigeria's composite price index in 1999 was 140.03% and 144.05% in 2000, the rate of inflation in 2000 was
A
4.02%
B
2.10%
C
2.06%
D
1.03%
Economics JAMB 2003 Q28
The monetary control instrument most effectively used by the Central Bank of Nigeria is the
A
discount rate
B
reserve ration
C
margin requirements
D
open market operations
Economics JAMB 2003 Q29
The major objectives of a revenue allocation formula in a country is to
A
share revenue between the public and private sectors
B
ensure the financial viability of the country
C
share revenue between the different tiers of government
D
divert revenue from areas of surplus to areas of need
Economics JAMB 2003 Q30
The effectiveness of devaluation as a solution to a balance of payments problems depends on the
A
relative elasticities of demand
B
foreign investments of business
C
value of visible and invisible goods
D
value of invisible items of both domestic and foreign trades
Economics JAMB 2003 Q31
IBRD as an international monetary institution is concerned with the
A
balance of payments problems of member nations
B
financing of private business in member nations
C
development of infrastucture in member nations
D
improvement of trade among member nation
Economics JAMB 2003 Q32
An advantage of the soleproprietorship over the partnership form of business organization is that
A
it enjoys limited liability for debt in the event of failure
B
Its existence is limited bty an individual's life span
C
It relies on the decision of friends to succeed
D
The possibility of conflict is management in virtually non-existent
Economics JAMB 2003 Q33
The distinction between capital and recurrent expenditure lies in the
A
amount of expenditure involved
B
source of the revenue generated
C
nature of the goods and services to be provided
D
time frame o the expenditure
Economics JAMB 2003 Q34
Under a floating exchange rate regime, the determinant of the exchange rate is
A
the system of government
B
demand for and supply of foreign goods
C
the highest denomination of the currency an act of the national assembly
Economics JAMB 2003 Q35
To compare the standard of livingamong nations, the most widely used economic indicator is the
A
per capital nominal income
B
real domestic output
C
real gross national income
D
real per capital income [PAGE 68]
Economics JAMB 2003 Q36
Statutory organisations usually established by Acts of parliament are called
A
public enterprises
B
public corporations
C
cooperative societies
D
joint-stock companies
Economics JAMB 2003 Q38
Privatization and commercialization of public enterprises in Nigeria is necessitated by
A
the IMF conditions B.the IBRD conditions
C
the government's loss of interest in them
D
their operational inefficiency
Economics JAMB 2003 Q39
The theory of comparative advantage states that a commodity should be produced in that nation where the
A
absolute cost is least B.absolute money cost is least
C
opportunity cost is least
D
production possibility curve increases
Economics JAMB 2003 Q40
The effect of an increase in the personal income tax is to
A
raise the absolute price level B.distort the economy
C
reduce unemployment
D
reduce the disposable income
Economics JAMB 2003 Q41
An important factor hindering the rapid development of the industrial sector in Nigeria.
A
excessive demand for finished products
B
the dominance of the oil sector
C
rural-urban migration
D
inadequate infrastructure facilities
Economics JAMB 2003 Q42
The demand for labour is an example of
A
competitive demand
B
derived demand
C
composite demand
D
joint demand
Economics JAMB 2003 Q43
The major role of multi-national companies in the petroleum industry in Nigeria is
A
oil prospecting only
B
oil marketing only
C
the establishment of refineries
D
oil marketing prospecting
Economics JAMB 2003 Q44
Fixing the prices of agricultural products can be a problem because of the
A
unpredictable output of farmers
B
instability of government policies
C
activities of marketing boards
D
size of agricultural exports
Economics JAMB 2003 Q45
Occupational mobility as applied to factors of production means the case by which
A
factors can be transferred from one place to another
B
factors can be transferred from one form mof use to another
C
resources can be transferred from one place to another
D
resources can be transformed from one form to another
Economics JAMB 2003 Q46
Liquidity preference refers to the
A
wish to hold more funds for precautionary purposes
B
need to increase the money supply in order to lower the interest rate
C
demand to hold money as assets rather than as stocks
D
need to borrow money for short periods to meet some temporary crises.
Economics JAMB 2003 Q46
The labour force of a country can be determine by xamining the
A
Sex distribution of the population
B
Occupations distribution of the population
C
age structure of the population
D
geographical distribution of the population
Economics JAMB 2003 Q47
If the country's GNP in the current year is N65 billion and the GNP deflator is
A
30.0
B
130.0.
C
15.0
D
1.3
Economics JAMB 2003 Q47
Two basis features common to an industry are
A
similarity of products and production processes
B
similarity of products and source of raw materials
C
production processes and source of capital
D
source of capital ands labour supply
Economics JAMB 2003 Q48
Insurance companies invest mainly in instruments traded on the
A
commodity market
B
open market
C
capital market
D
money market
Economics JAMB 2003 Q49
The solution to the problem of double coincidence of wants requires a buyer and a seller whose demands are precisely
A
complementary
B
supplementary
C
composite
D
competitive
Economics JAMB 2003 Q49
When a union is composed of workers with same skill, it is called
A
an industrial union
B
a workers' union
C
a craft iunion
D
a technical union
Economics JAMB 2003 Q50
The stock exchange is a market for the buying and selling of
A
existing shares
B
monetary instruments
C
new shares
D
treasury bills.
Economics JAMB 2003 Q50
An adverse environmental impact of the petroleum industry on the economy is
A
the vandalisation of oil equipment
B
oil spillage
C
communal riots Economics 2004