JAMB Economics Past Questions & Answers - Page 174

866.

One of the limitations PPC assumption is that there is

A.

No indication of technological development

B.

No recognition of preferred goods for countries

C.

Technical inefficiency

D.

Abundant resources

Correct answer is B

No explanation has been provided for this answer.

867.

An effective way of controlling inflation in a mixed economy is to

A.

Increase productivity

B.

Reduce income tax

C.

Ration available output

D.

Increase imports

Correct answer is A

No explanation has been provided for this answer.

868.

The amount of labour hired depends on the

A.

Number of skilled labour available

B.

Skill of labour

C.

Marginal productivity of labour

D.

Price of the inputs

Correct answer is C

The demand for an additional amount of labour depends on the Marginal Revenue Product (MRP). Firms will hire more labour when the marginal revenue product of labor is greater than the wage rate, and stop hiring as soon as the two values are equal.

869.

The choice of the method of production in an economy is determined by the

A.

Level of technical know-how

B.

Rate of propulation growth

C.

Availability of natural resources

D.

Level of income

Correct answer is A

The method of production has to do with Processes and techniques that are used to manufacture a product. The preferred production method used in production is mainly determined by the level of technological advancement of the firm or industry as a whole. For an economy that is embracing technological changes and advancements, the technical know-how will greatly influnce the production technique.

870.

One of the objectives of AfDB is to

A.

Provide subsidies on imported goods to member countries

B.

Mobilize short-term loans for member countries

C.

Promote economic and social development of member countries

D.

Provide technical assistance to only poor member countries

Correct answer is C

The main aim of the Africa development bank is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that are likely to contribute to the economic and social development of the region.