JAMB Economics Past Questions & Answers - Page 113

561.

The frequent value that occurs most in a data is

A.

Median

B.

Mean

C.

Mode

D.

rangeT

Correct answer is C

Mode is the frequently occurring value in a given data.

562.

The ordinalist approach of utility postulated that utility can be

A.

Rank

B.

Measurable

C.

Rise

D.

Fall

Correct answer is A

The ordinalist approach explains that an individual can rank boundless of goods in order of preference with regard to the satisfaction they give him or her. Ordinalist approach is explained by means of different curves and budget lines.

563.

The relationship between the cost of living and standard of living is

A.

A rise in cost of living gives a corresponding rise in standard of living

B.

A lower cost of living give a higher standard of living

C.

A lower cost of living give a lower standard of living

D.

None of the above

Correct answer is B

Cost of living is the amount of money individuals spent on consumption while the standard of living is the state of economic well being. Therefore, a fall in the cost of living leads to a rise in standard of living.

564.

The following equations relate to an open economy with a government sector. E = aggregate expenditure on domestically produced goods, C = Consumption, I = Investment, G = Government expenditure, T = taxes, M = imports, X = Exports. Which equation is correct

A.

E = C + I + G

B.

E = C + I + G + M – X

C.

E = C + I + G + X – M

D.

E = C + I + G – T + M – X

Correct answer is C

The national income of a country can be estimated as aggregate expenditure, consumption, investment, government expenditure, export less import. Import will be deducted because it is the money paid on importation of goods from other countries.

565.

The income elasticity of demand of normal goods is

A.

Negative

B.

Positive

C.

Zero

D.

Fixed

Correct answer is B

A positive income elasticity of demand is associated with normal goods; an increase in income will lead to a rise in demand.