JAMB Economics Past Questions (2003)

Q1. If the quantity demanded of a commodity increases from 20 to 30 units when there is an increase in price from 4 naira to 5 naira, the elasticity of demand is

A. 0

B. 1

C. 2

D. 5

Answer: C

Q2. Cost-push inflation is likely to arise when

A. there is an increase in government spending

B. there is an increase in direct taxes

C. demand for higher wages is granted

D. there is a decrease in bank lending

Answer: C

Q3. Which of the following is not an advantage of tabular presentation of data?

A. enables easy location of required figures

B. makes for easy comparison of figures

C. occupies more space than mathematical equation

D. shows whether the figures are increasing or decreasing

Answer: C

Q4. One major function of the entrepreneur is

A. bearing of risk

B. maximizing profits

C. taking charge of day to day management

D. determining the selling price of his products

Answer: C

Q5. The additional satisfaction derived from the consumption of one more unit of a good is called

A. marginal product

B. marginal utility

C. marginal revenue

D. marginal cost

Answer: B

Q6. Efficient distribution of goods in West Africa will be facilitated by

A. poor storage facilities

B. adequate transportation system

C. high standard of living

D. high cost of living

Answer: B

Q7. The tax whose rate increases as the level of income increases is known as

A. regressive tax

B. proportional tax

C. progressive tax

D. company tax

Answer: C

Q8. The most common type of business in West African countries is

A. joint stock companies

B. sole proprietorships

C. partnerships

D. public enterprises

Answer: B