JAMB Economics Past Questions & Answers - Page 30

146.

A major characteristic of natural resources is they

A.

Are unlimited in supply

B.

Have high cost of production

C.

Are free gifts of nature

D.

Do not command any price

Correct answer is C

Natural resources exist naturally unlike man made resources that are created by human beings. The existence of natural resources is not attributed to any human activities, they are acts of nature.

147.

There is unemployment of resources when production is

A.

Within the production possibility curve

B.

Outside the production possibility curve

C.

Along the production possibility curve

D.

Adequate to meet market demand

Correct answer is A

Point inside the production possibility curve indicate that resources are not fully employed or inefficient use of resources or there is widespread unemployment.

148.

Scale of preference shows

A.

Incomes of consumers in order of size

B.

Utilities enjoyed by consumers

C.

Opportunity cost of goods consumed

D.

Consumer's wants in order of priority

Correct answer is D

Scale of preference is a table showing an individual wants arranged in a chronological order or it shows an individual wants in order of priority.

149.

In a free market economy, the rationing of scarce goods is done principally by

A.

The government

B.

Business organizations

C.

The price mechanism

D.

Consumers

Correct answer is C

No explanation has been provided for this answer.

150.

Marginal cost is?

A.

The lowest cost of producing goods

B.

The cost of production of the most efficient firm in an industry

C.

The cost of production of the most inefficient firm in an industry

D.

The cost of production of the last or extra unit of goods produced by a firm

Correct answer is D

Marginal cost is the additional cost incurred in the production of an additional unit of a product or service.