JAMB Economics Past Questions & Answers - Page 132

656.

If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index

A.

100

B.

200

C.

240

D.

300

Correct answer is B

Price index is gotten by diving the current market price by the base year price. Hence we have;

 

Price index = 240/120

 x 100 = 200

657.

The investment expenditure of an economy changes by N2 million and MPC is 0.75

What is the change in income?

A.

N0.5m

B.

N1.5m

C.

N2.6m

D.

N8.0m

Correct answer is A

MPC is a proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

 

Investment expenditure = 2,000,000

MPC = 0.75

0.75 x 2,000,000 = 1,500,000

 

change in income = 2,000,000 - 1,500,000 = 500,000

658.

The investment expenditure of an economy changes by N2 million and MPC is 0.75

The multiplier is

A.

8

B.

4

C.

3

D.

2

Correct answer is B

The Multiplier is calculated as ( 1 divided by 1 minus the MPC. That is; 

 

Multiplier = 1 ÷ (1 - 0.75) = 0.25

 

1 ÷ 0.25 = 4

659.

Net National Product is derived by deducting

A.

Net exports from GNP

B.

Subsidies from GDP

C.

Taxes from GDP

D.

Depreciation from GNP

Correct answer is D

Net national product is gotten by adding;

 

The market value of all finished goods + the market value of all finished services - the depreciation of those goods and services = net national product. 

660.

A discriminatory monopoly is characterized by

A.

A common elasticity in different markets

B.

Different elasticities in different markets

C.

A finite elasticity in all markets

D.

Zero elasticity in all markets

Correct answer is A

No explanation has been provided for this answer.