Study and practice Economics past questions with answers and detailed explanations. Then test your knowledge using our interactive CBT practice platform and prepare confidently for your upcoming examinations.
One major difference between monopoly and perfect competition is that?
Athe perfect competitor is a price taker while the monopolist determines his own output
Bhomogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exist for the monopolist
Csellers are located all over the world in the perfect competition but sellers are only in one country in the case of the monopolist
Dthere is free entry and exist in perfect competition but no free exist in monopoly
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Question 1062
jamb1986
Which of the following is an important function of prices in a market economy?
AEnsuring that resources are used in the most efficient manner
BEnsuring an equitable distribution of goods and services
CEnsuring that all industries are perfectly competitive in the long run
DEquating level of purchases with level of needs
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Question 1063
jamb1986
The revenue accruing to the seller of commodity X as a result of a fall in price will
Aincrease `
Bfall
Cfirst fall but will increase later
Dremain unchanged
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Question 1064
jamb1986
Use the table below to answer question 17 and 18.
Market Demand Schedule for Commodity X. \(\begin{array}{c|c}
\text{ Price N} & \text{Quantity(Million units)} \\ 60 & 100 \\
50 & 140 \\
40 & 220 \\
30 & 260 \\
20 & 300 \\
10 & 340 \\
\end{array}\)
If the price of commodity X falls from N40.00 to N30.00 what is the price elasticity of demand?
A0.62
B0.73
C1.00
D1.50
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Question 1065
jamb1986
The main function of price mechanism is to?
Alimit consumer demand
Benable producers make profit
Callocate scarce resources among competing ends
Densure consumer sovereignty
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Question 1066
jamb1986
Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?
Ainduce greater demand for beef
Binduce greater demand for fish
Cinduce lower demand for fish
Dequate demands for beef and fish
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Question 1067
jamb1986
In drawing an individual's demand curve for a commodity, which of the following is not kept constant? The
Aindividual's money income
Bprice of subtitutes
Cprice of complementary goods
Dprice of the commodity under consideration
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Question 1068
jamb1986
Which of the following statements describes a mixed economy?
AThe government and the private sector interact in solving the basic economic problems
BThe invisible hand solves the basic economic problems
CThe government produces and distributes all goods and services
DSociety answers the 'what', 'how', and 'for whom' questions only through the market system
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Question 1069
jamb1986
What fundamentally determines how much a consumer spends in a producer's shop?
AIndividual's propensity to consume
Blevel of his taxation
Clevel of his income
DIndividual's taste or fashion
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Question 1070
jamb1986
Population density refers to?
Adensely populated urban centres
Bthe total area divided by the total population
Cdensely populated rural areas
Dthe total population divided by the total area
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Question 1071
jamb1986
A country has a population distribution as shown below:
\(\begin{array}{c|c}
\text{Age Group years} & \text{ Corresponding percentage} \\
\text{Above 60} & 22 \\
15 - 60 & 60 \\
0 - 14 & 15 \\
\end{array}\)
The dependency ratio is?
A3:2
B1:3
C2:3
D1:5
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Question 1072
jamb1986
Mobility of labour is NOT affected by
Aoptimum size of population
Bmarriage and family
Cregulation of trade unions
Dperiod of training
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Question 1073
jamb1986
If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving
Arent
Bprofit
Cinterest
Dsurtax income
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Question 1074
jamb1986
A firm achieves least cost in production by substituting factors until
Atheir factor prices are equal
Btheir marginal-physical products are each equal to their factor prices
Ctheir marginal-physical products are each zero
Dthe ratio of their marginal-physical products equals the ratio of their prices
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Question 1075
jamb1986
Production in Economics can be defined as the
Atotality of producing, buying and consuming
Btransformation of raw materials and services in order to provide ultimate utility
Ctransformation of raw materials and services in order to make maximum profit
Dproduction of goods and services for consumption
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Question 1076
jamb1986
The degree of specialization is limited by the
Aavalibility of specialized skills and machinery
Bmarginal cost exceeding marginal revenue
Cextent of the market
Ddisadvantage of standardization
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Question 1077
jamb1986
A firm is at its optimum size when?
Ait produce the greatest output at a minimum cost
Bit has a motive to increase output
Cmarginal cost equals marginal revenue
Dmarginal cost is less than marginal revenue
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Question 1078
jamb1986
Under normal circumstances, the concept of consumers sovereignty implies that
Athe consumer and not the producer owns the means of production
Bthe producer and not the consumer determines what is to be produced
Cthe consumer and not the producer determines what is to be produced
Dboth the consumer and the producer determines what should be produced
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Question 1079
jamb1986
Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?
