Economics 2004 Jamb Examination
Question 1
By advertising, a monopolistic competitive firm tries to shift its
Correct Option: B. demand curve to the right
In monopolistic competition, firms use advertising to differentiate their products and increase consumer awareness. This aims to increase demand, effectively shifting the demand curve to the right as more consumers become willing to buy the product at the same price.
Not clear enough?
Question 2
Given than Y = C + I and C = bY where b = 0.8, what is the multiplier?
Given:Y = C + I and C = bY where b = 0.8
\[ \text{Multiplier } = \dfrac{1}{1 - b} \]\[= \dfrac{1}{1 - 0.8} = \dfrac{1}{0.2} = \boxed{5}\]
Not clear enough?
Question 3
The role of the Central Bank in the economic development of Nigeria is to
Correct Option: D. maintain a stable price system
The Central Bank of Nigeria plays a key role in maintaining price stability through monetary policy, which helps control inflation and supports sustainable economic development.
Not clear enough?
Question 4
The primary function of non-bank financial institutions is to
Correct Option: B. mobilize saving for investment
Non-bank financial institutions (e.g., insurance companies, pension funds) primarily help in mobilizing savings from individuals and channeling them into productive investments, thereby supporting economic growth.
Not clear enough?
Question 5
At the maximum point of the total product curve of a firm,marginal revenue is
Correct Option: D. zero
At the maximum point of the total product (TP) curve, marginal product (MP) is zero — not marginal revenue.
Not clear enough?
Question 6
In a n open economy, the GNP is measured as
Correct Option: B. C + I + G + (X − M)
In an open economy, Gross National Product (GNP) includes:
C: ConsumptionI: Investment
G: Government spending
X: Exports
M: Imports
To account for net exports, imports are subtracted:
GNP = C + I + G + (X - M)
Not clear enough?
Question 7
The diagram above represents the short-run position of a monopolist. The profit-maximizing output is
Correct Option: A. Q₃
A monopolist maximizes profit where Marginal Cost (MC) = Marginal Revenue (MR). From the diagram, this condition occurs at quantity Q₃, where the MC curve intersects the MR curve. Hence, the profit-maximizing output is Q₃.
Not clear enough?
Question 8
The capital market provides business firm with the avenue to
Correct Option: B. obtain long-term funds
The capital market is designed to provide long-term funding to businesses and governments through instruments like shares and bonds, unlike the money market which deals with short-term funds.
Not clear enough?
Question 9
Which of the financial institution is charged with the formulation of monetary policies in Nigeria?
Correct Answer: A. The Central Bank of Nigeria
The Central Bank of Nigeria (CBN) is the financial institution responsible for formulating and implementing monetary policies in Nigeria. Its roles include regulating the supply of money, managing inflation, stabilizing the currency, and ensuring financial system stability.
Not clear enough?
Question 10
GDP differs from GNP because GDP
Correct Answer: C. produced within the country at a particular period
Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country’s borders over a specific period, regardless of the nationality of the producers. In contrast, Gross National Product (GNP) accounts for production by the nationals of a country, whether the production occurs domestically or abroad.
