In national income accounting, tax is determined by the
Level of income
Level of consumption
Level of investment
Rate of savings
Correct answer is A
National income accounting is a double-entry accounting system used by the government to measure how well a country's economy is performing.
The level of income are the important metrics used to determined tax in national income accounting.
An agreement among firms on price and segmentation is termed
Cartel
Collusion
Haggling
Specialization
Correct answer is A
A cartel is an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition. It is a group of similar companies who agree prices between them in order to increase profits and limit competition.
The demand curve for factors of production
Is perfect elastic
Slopes upwards
Slopes of downwards
Is perfectly inelastic
Correct answer is C
The factors of production demand curve indicates the quantity of a factor demanded at alternative factor prices. The demand curve is downwards sloping from left to right.
An example is given below for the demand curve of labour, showing how wage rate affect the demand for labour.
One of the characteristics of monopolistic competition is that
There is mobility of factors of production
No single seller dominates the market
The firms are price-takers
Consumers have perfect knowledge of price
Correct answer is B
Monopolistic competition is an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.
The following are Characteristics of monopolistic competition
- Product differentiation.
- Many firms.
- Freedom of Entry and Exit.
- No single seller dominates the market
- Independent decision making.
- Some degree of market power.
- Buyers and sellers do not have perfect information (Imperfect Information)
An industry's supply curve is more likely to be elastic when firms are
Enjoying free entry and exit
Operating at full capacity
Operating below capacity
Maximizing profits
Correct answer is A
Elastic supply curves indicate that the quantity supplied responds to price changes in a greater than proportional manner. An industry supply curve would most likely be elastic if the industry is operating in a market where there is free entry and exit.
The industry may decide to exit the market if the prices offered for its products are not good enough, and decide to come back when the products are well priced.
JAMB Subjects
Aptitude Tests