Economics 2019 Jamb Examination
Economics 2019 Jamb Examination
Question 1
A demand which gives rise to the reverse of the law of demand is ___
This type of demand occurs when the quantity demanded increases as the price increases, and decreases as the price falls.
It contradicts the normal law of demand, which states that consumers buy more at lower prices. Abnormal demand is usually linked to prestigious, rare or speculative goods where higher prices may increase desirability.
Such goods include Veblen goods or Giffen goods depending on the circumstances, all of which fall under abnormal demand behaviour.
It contradicts the normal law of demand, which states that consumers buy more at lower prices. Abnormal demand is usually linked to prestigious, rare or speculative goods where higher prices may increase desirability.
Such goods include Veblen goods or Giffen goods depending on the circumstances, all of which fall under abnormal demand behaviour.
Not clear enough?
Question 2
If two commodities are unrelated, a change in the price of one will ___
Unrelated goods have no connection in consumption or production. Therefore, the price movement of one does not influence the quantity demanded of the other.
This is because they are neither substitutes nor complements, so consumers treat them independently.
This is because they are neither substitutes nor complements, so consumers treat them independently.
Not clear enough?
Question 3
|
Price (₦) |
Quantity Demanded |
| 8 | 10 |
| 6 | 12 |
If the price moves from 8 to 6, the elasticity of demand is ___
Elasticity of demand is calculated using:\[ E_d = \dfrac{\% \; \text{change in quantity demanded}}{\% \; \text{change in price}} \]Quantity changes from 10 to 12:\[ \%\Delta Q = \dfrac{12 - 10}{10} = 0.2 = 20\% \]Price changes from 8 to 6:\[ \%\Delta P = \dfrac{6 - 8}{8} = -0.25 = -25\% \]Thus:\[ E_d = \dfrac{25}{20} = 1.25 \]The value is taken as positive in interpretation even though demand elasticity is technically negative. The magnitude shows demand is elastic.
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Question 4
In perfect competition, the market price is determined by ___
In a perfectly competitive market, no single buyer or seller can influence the price. Price is determined exclusively by the intersection of market supply and market demand.
This equilibrium point establishes the uniform price that all firms must accept.
This equilibrium point establishes the uniform price that all firms must accept.
Not clear enough?
Question 5
In the short-run, the monopoly makes ___
A monopolist has significant market power and faces no close competition. In the short run, this allows the firm to set prices above average cost, enabling the earning of abnormal (supernormal) profit.
Even if costs rise, the monopolist can still maintain profit by adjusting price because of the absence of rivals.
Even if costs rise, the monopolist can still maintain profit by adjusting price because of the absence of rivals.
Not clear enough?
Question 6
The demand curve facing the monopolist in the foreign market is ___
When a monopolist sells in foreign markets, it usually faces intense competition from other global suppliers. This results in a perfectly elastic demand curve because buyers can easily switch to other producers if the monopolist raises its price.
Thus the firm becomes a price taker in the international market.
Thus the firm becomes a price taker in the international market.
Not clear enough?
Question 7
Supply is ___
Supply is defined as the quantity of a commodity that producers are willing and able to offer for sale at various prices over a period of time.
Because it is measured over time, it is classified as a flow concept rather than a stock concept.
Because it is measured over time, it is classified as a flow concept rather than a stock concept.
Not clear enough?
Question 8
A rise in the supply of a commodity causes ___
An increase in supply shifts the supply curve to the right. This creates excess supply at the original price, forcing the price downward until a new equilibrium is reached.
At the lower price, consumers buy more, so equilibrium quantity rises while equilibrium price falls.
At the lower price, consumers buy more, so equilibrium quantity rises while equilibrium price falls.
Not clear enough?
Question 9
The method obtained by adding all the rewards of factors of production in national income is ___
The income approach sums all incomes earned by the factors of production: wages, rent, interest and profit. This gives the total national income generated within the economy.
It measures earnings rather than spending or output.
It measures earnings rather than spending or output.
Not clear enough?
Question 10
An economy in which the whole income is not consumed is referred to as ___
A frugal economy is characterised by saving rather than complete consumption of income. Part of the income is set aside, leading to capital formation and future investment.
This distinguishes it from spend-thrift economies where consumption dominates.
This distinguishes it from spend-thrift economies where consumption dominates.
