JAMB Economics Past Questions & Answers - Page 112

556.

The information that rank a consumer preferences is given by

A.

Scale of preference

B.

Indifference map

C.

Demand schedule

D.

Supply schedule

Correct answer is A

An indifference map represents different quantities of two goods between which a consumer is indifferent. this means that, the consumer has no preference for one combination or bundle of goods over a different combination.

 

While scale of preference refers to the arrangement or ranking of a consumer wants in the order of imortance or urgency.

557.

A line in commodity space which shows the constraints imposed by his budget, his money income and the price of goods purchased is

A.

Supply curve

B.

Liquidity preference

C.

Budget line

D.

Demand curve

Correct answer is C

The Budget Line, also called as Budget Constraint shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level.

558.

The financial institution known as a building society is

A.

Commercial bank

B.

Central bank

C.

Mortgage bank

D.

Development bank

Correct answer is C

Mortgage bank is a financial institution which grant loans for building purpose.

559.

Which of the following is not a type of unemployment

A.

Factory unemployment

B.

Structural unemployment

C.

Mass unemployment

D.

Frictional unemployment

Correct answer is A

There are three main types of unemployment: structural, frictional, and cyclical. The first two make up the natural unemployment rate.

560.

Mr. Patrick’s income is N900 while that of Mr. Shodawe is N1,300. if Mr. Patrick and Shodawe pay N90 and N130 as taxes, the tax system is

A.

Direct

B.

Progressive

C.

Regressive

D.

Proportional

Correct answer is D

A Proportional tax applies the same tax rate to all individuals regardless of income.