JAMB Economics Past Questions (2013)

Q1. A 50% increase in the quantity demanded of a commodity, following a 100% decrease in its price, shows that the commodity has

A. Fairly elastic demand

B. Unitary elastic demand

C. Inelastic demand

D. Perfectly elastic demand

Answer: C

Q2. The law of comparative cost and absolute cost advantage are not the same is that;

A. Former require that one of the countries has absolute advantage in the two goods but latter does not

B. Former requires one country to have at least absolute advantage in one of the trading goods over the other country but latter does not.

C. Former does not require any of the country to have absolute advantage in any of the two goods but latter require that one of the countries should have absolute advantage in all the goods.

D. Former does not require any of the country to have absolute advantage in any of the two goods but latter require that one of the countries should have absolute advantage in at least one of the goods.

Answer: D

Q3. When demand for a product is price inelastic, the following can happen

A. Consumers suffer the entire increase in tax on the product

B. producer suffers the entire increase in tax on the product

C. producer suffers larger proportion of the increase in tax on the product

D. consumers suffer larger proportion of the increase in tax on the product

Answer: D

Q4. A total utility is increasing, marginal utility is

A. Negative and decreasing

B. Positive and increasing

C. positive and decreasing

D. Zero

Answer: C