JAMB Economics, 1978:
1. Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00. The supply will be _____.
- the same as the equilibrium supply
- greater than the equilibrium supply
- less than the equilibrium supply
- determined later by government
- none of the above
2. A budget deficit means _____.
- that a country is buying more than it is selling
- that a country is selling more than it is buying
- a government is spending more than it takes in taxation
- a government is spending less than it takes in taxation
- a government is spending as much as it takes in taxation
3. When elasticity is zero, the demand curve is _____.
- perfectly elastic
- perfectly inelastic
- downward sloping
4. Which of the following is NOT a reason for the existence of small firms?
- Scale of production is limited by the size of the market
- Expansion brings diminishing returns
- Large firms can cater for wide markets
- Small firms can provide personal services
- All of the above
5. Inferior goods are defined in Economics as goods _____.
- whose quality is low
- consumed by very poor people
- whose consumption falls when consumers’ income rises
- which satisfy only the basic needs
- none of the above
6. Malthus became known through his popular theory which may be stated simply as _____.
- the death rate may become so high that people may not be able to produce
- the population may outgrow the means of subsistence
- the people will eventually decide not to have children
- migration of people from one place to another may leave some parts of the world barren
- all of the above
7. A commercial bank is unique in that it is the only institution that _____.
- makes loans available to private people and business men
- accepts deposits
- can store people’s valuables
- can transfer money from one place to another for its customers
- saves money through the granting of credits
8. Which is an example of an invincible item in the Trade Account of Ghana?
- Export of cocoa from Ghana
- Import of oil from Nigeria
- A gift of Peugeot 504 by a firm in Nigeria to another firm in Ghana
- Payment for shipping and insurance by a Ghanaian company to companies outside Ghana
- None of the above
9. Which of the following is NOT a direct effort to increase agricultural production in Nigeria?
- Operation feed the Nation
- Nigerian Youth Service Corps
- Increased loans to farmers and cooperatives
- Research in agriculture and extension services
- Mechanization in Agriculture
10. If a company doubles all its output and discovers that its output is more than doubled, we can say that the company is experiencing _____.
- increasing marginal utility
- diseconomies of scale
- increasing costs
- constant-returns to scale
- increasing returns to scale
11. Price control cannot work in Nigeria because _____
- the population is too large
- the policemen hate to arrest people
- while it is fairly easy to control the producers and the importing firms, the small distributors are too many to be controlled
- control cannot work under a military rule
- too many things are produced in the country
12. A country has a surplus in its balance of visible trade if _____.
- the value of imports exceeds the value of exports of goods
- the value of exports exceed the value of imports of goods
- the value of goods exported is equal to the value of goods imported
- it is able to spend a lot on capital programmes
- commercial banks’ assets increases
13. The Foreign Exchange Market is a market where _____.
- graded commodities like wheat, coffee etc. are sold and bought
- currencies are sold and bought
- treasury bills are sold and bought
- Government bonds are sold and bought
- Treasury certificates are sold
14. Which of the following financial assets carry the lowest rate of interest in Nigeria?
- Commercial bills
- Call money
- Treasury bills
- Development Loan Stocks
- Deposits with Federal Savings Bank
15. The effect on the demand for product A caused by a change in price of product B is called _____.
- cross-elasticity of demand
- elasticity of supply
- competitive demand
- composite demand
- joint demand
16. Which of the followings can be regarded as a liability of a commercial bank?
- Treasury bills
17. A tax which takes a higher percentage from higher incomes is called _____.
- a regressive tax
- a progressive tax
- a proportional tax
- an indirect tax
- a direct tax
18. Which of the following statements is true?
- A proportional tax is one which takes from high-income people a larger fraction of their income than it takes from low-income people
- Taxes on commodities or services which can be shifted elsewhere are usually called direct taxes
- The sole proprietor is a legal entity
- The influence on demand on price will be smallest in the short-run
- The cost of production is the most important determining factor of supply in the long run
19. The largest liability appearing on the books of a commercial bank is _____.
- loans and advances
- capital and reserves
- treasury bills
20. The Lagos clearing house is _____.
- a commodity market
- an import licensing center
- another name for the Lagos Stock Exchange
- an insurance and underwriting center
- a cheque sorting center
21. The biggest source of government revenue in Nigeria is _____.
- mining rents and royalties
- company income tax
- import duties
- export duties
- petroleum profit tax
22. An increase in liquid reserve requirements by the Central Bank of Nigeria will result in _____.
- a reduction in commercial banks’ excess reserves
- more commercial bank loans to members of the public
- an increase in commercial banks’ excess reserves
- no change in commercial banks’ excess reserves
- a reduction in central bank’s gold reserve
23. A distinguishing characteristics of the consumers’ cooperative is the fact that _____.
- the customers are the owners
- the customers are the workers
- the customers are the managers
- the customers are low income people
- the customers are high income people
24. Disposable income is the same thing as _____.
- personal income minus personal savings
- personal income minus taxes
- national income minus depreciation
- exports minus imports
- savings plus investments
25. Marginal cost is _____.
- the lowest cost of producing goods
- the cost of production of the most efficient firm in an industry
- the cost of production of the most inefficient firm in an industry
- the cost of production of the last or extra unit of goods produced by a firm
- the cost of production at which the minimum is obtained by a firm
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