JAMB Economics Past Questions & Answers - Page 205

1,021.

The choice of what to produce in a command economy is determined by

A.

Industrial establishments

B.

Labour unions

C.

The government and labour unions

D.

The central government

Correct answer is D

A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale.

1,022.

An economic system in which the producer and the consumer are the same is referred to as a

A.

Mixed economy

B.

Subsistence economy

C.

Capitalist economy

D.

Socialist economy

Correct answer is B

No explanation has been provided for this answer.

1,023.

Product differentiation in monopolistic competition implies that

A.

Different buyers pay different prices for the same product

B.

Different products are sold to the same buyer

C.

Sellers determine whom to sell their products to

D.

The same product is available in different forms

Correct answer is D

No explanation has been provided for this answer.

1,024.

A perfectly competitive firm is advised to close down when the

A.

Price is below the marginal cost

B.

Price is equal to the marginal revenue

C.

Marginal revenue is equal to the marginal cost

D.

Price is below the average variable cost

Correct answer is D

No explanation has been provided for this answer.

1,025.

If the short-run cost curve of a firm is U-shaped, the marginal and average cost are equal where the

A.

Average variable cost is minimum

B.

Marginal cost is falling

C.

Average cost is minimum

D.

Average fixed cost is falling

Correct answer is C

No explanation has been provided for this answer.