JAMB UTME — Economics

Question 1

The law of demand states that, other things being equal, as price rises

Accepted Answer

quantity demanded falls

Answer

quantity demanded rises

Answer

demand curve shifts right

Answer

supply falls

Question 2

Which term describes the exchange of goods directly for other goods, without the use of money?

Accepted Answer

the barter system

Answer

a standard of deferred payment

Answer

a unit of account

Answer

token money

Question 3

The factor of production that receives interest as its reward is

Accepted Answer

capital

Answer

land

Answer

labour

Answer

entrepreneur

Question 4

Which term describes the marking off of one firm's product from its rivals' by brand, packaging or design?

Accepted Answer

product differentiation

Answer

a barrier to entry

Answer

price discrimination

Answer

a natural monopoly

Question 5

In the theory of costs, total cost is:

Accepted Answer

the whole cost of producing a given output, fixed and variable costs taken together

Answer

the least return that will keep an entrepreneur in the industry, and therefore counted as a cost

Answer

a payment actually made to an outsider for a factor or an input

Answer

the total cost divided by the number of units produced

Question 6

In international trade, a customs union is:

Accepted Answer

a free trade area whose members also apply one common tariff to countries outside it

Answer

an arrangement under which member countries remove tariffs on trade among themselves

Answer

trade in physical goods that can be seen crossing a country's borders

Answer

a deliberate lowering of the official value of a currency, which makes exports cheaper abroad

Question 7

In the study of markets, a cartel is:

Accepted Answer

an agreement among firms to fix the price or to share out the market between them

Answer

anything that makes it difficult for new firms to enter an industry

Answer

the marking off of one firm's product from its rivals' by brand, packaging or design

Answer

an industry in which one firm can supply the whole market more cheaply than several firms could

Question 8

The fundamental economic problem facing every society is

Accepted Answer

scarcity

Answer

unemployment

Answer

inflation

Answer

corruption

Question 9

In public finance, recurrent expenditure is:

Accepted Answer

government spending on salaries and running costs, which comes round again every year

Answer

the total that a government owes to lenders at home and abroad

Answer

government spending on assets such as roads and buildings, which last for many years

Answer

the question of who finally bears the burden of a tax, whoever hands over the money

Question 10

If a 10% fall in price causes a 30% rise in quantity demanded, demand is

Accepted Answer

elastic

Answer

inelastic

Answer

unitary elastic

Answer

perfectly inelastic

Question 11

In the study of inflation, an incomes policy is:

Accepted Answer

an attempt to hold down inflation by restraining the growth of wages

Answer

a slow and steady rise in the general level of prices

Answer

a fall in the RATE at which prices are rising, while prices themselves still rise

Answer

the year against which a price index is compared, and whose index is set at 100

Question 12

A production possibility curve shifts outward when

Accepted Answer

resources or technology improve

Answer

unemployment rises

Answer

prices increase

Answer

wants increase

Question 13

Which term describes the rule that each successive unit consumed yields less satisfaction than the one before it?

Accepted Answer

the law of diminishing marginal utility

Answer

an indifference curve

Answer

total utility

Answer

the equi-marginal principle

Question 14

In public finance, the incidence of a tax is:

Accepted Answer

the question of who finally bears the burden of a tax, whoever hands over the money

Answer

the use of government revenue and spending to influence the level of activity in the economy

Answer

the total that a government owes to lenders at home and abroad

Answer

a budget in which planned revenue is exactly equal to planned expenditure

Question 15

In economics, a planned economy is:

Accepted Answer

a system in which the state decides what is produced and how it is distributed

Answer

a good produced not for direct enjoyment but to help produce other goods

Answer

a diagram of the combinations of two goods an economy can produce with all its resources fully employed

Answer

a good that is scarce in relation to the want for it, and therefore commands a price

Question 16

In international trade, a free trade area is:

Accepted Answer

an arrangement under which member countries remove tariffs on trade among themselves

Answer

trade in physical goods that can be seen crossing a country's borders

Answer

a complete ban on trade with a particular country or in a particular good

Answer

selling in a foreign market at a price below the cost of production at home

Question 17

In market analysis, a price ceiling is:

Accepted Answer

a legal maximum price, set below the equilibrium, which leaves buyers unsatisfied

Answer

the illegal trade that springs up when a price is held below the level that would clear the market

Answer

a tax on a good that shifts its supply curve inward and raises the price buyers pay

Answer

a legal minimum price, set above the equilibrium, which leaves sellers with unsold stock

Question 18

Which term describes the total that a government owes to lenders at home and abroad?

Accepted Answer

the national debt

Answer

a direct tax

Answer

a balanced budget

Answer

fiscal policy

Question 19

Which term describes the function that allows a debt agreed today to be settled in stated amounts later?

Accepted Answer

a standard of deferred payment

Answer

near money

Answer

a unit of account

Answer

the medium of exchange

Question 20

Which term describes the rule that satisfaction is greatest when the last naira spent on each good yields the same addition to it?

Accepted Answer

the equi-marginal principle

Answer

an indifference curve

Answer

consumer equilibrium

Answer

the law of diminishing marginal utility

1. The law of demand states that, other things being equal, as price rises

2. Which term describes the exchange of goods directly for other goods, without the use of money?

3. The factor of production that receives interest as its reward is

4. Which term describes the marking off of one firm's product from its rivals' by brand, packaging or design?

5. In the theory of costs, total cost is:

6. In international trade, a customs union is:

7. In the study of markets, a cartel is:

8. The fundamental economic problem facing every society is

9. In public finance, recurrent expenditure is:

10. If a 10% fall in price causes a 30% rise in quantity demanded, demand is

11. In the study of inflation, an incomes policy is:

12. A production possibility curve shifts outward when

13. Which term describes the rule that each successive unit consumed yields less satisfaction than the one before it?

14. In public finance, the incidence of a tax is:

15. In economics, a planned economy is:

16. In international trade, a free trade area is:

17. In market analysis, a price ceiling is:

18. Which term describes the total that a government owes to lenders at home and abroad?

19. Which term describes the function that allows a debt agreed today to be settled in stated amounts later?

20. Which term describes the rule that satisfaction is greatest when the last naira spent on each good yields the same addition to it?

21. In the theory of production, productivity is:

22. In the theory of production, secondary production is:

23. In population studies, a population pyramid is:

24. Which term describes a line joining the combinations of two goods that give a consumer equal satisfaction?

25. In the petroleum industry, which term describes the part of the oil industry concerned with exploration, drilling and production?

26. In population studies, overpopulation is:

27. In international trade, an embargo is:

28. An industry dominated by a few large firms whose decisions affect one another is

29. Which term describes the function of money that removes the need for a double coincidence of wants?

30. Which term describes measuring national income by adding together all the incomes earned by the factors of production?

31. In the theory of consumer behaviour, total utility is:

32. The record of a country's transactions with the rest of the world over a period is the

33. Which term describes a measure that combines income, life expectancy and schooling into one figure?

34. Which term describes the supply of two goods that necessarily come from one and the same process?

35. Which term describes the year against which a price index is compared, and whose index is set at 100?

36. In the petroleum industry, a petroleum subsidy is:

37. In the theory of consumer behaviour, consumer equilibrium is:

38. In population studies, the population growth rate is:

39. In agriculture, which term describes the replacement of hand tools by machines in the work of the farm?

40. The main function of a central bank is to

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