JAMB Economics Past Questions & Answers - Page 321

1,601.

If demand is relatively inelastic and sellers are able to raise the price of their commodity, then there we be a

A.

Fall in both quantity of demand and total revenue

B.

Fall in the quantity demanded and rise in total revenue

C.

Fall in the quantity demanded and rise in marginal revenue

D.

Rise in both the quantity demanded and the marginal revenue

Correct answer is A

No explanation has been provided for this answer.

1,602.

The price mechanism is more effective in achieving efficient performance of the economy than the planning mechanism because of the

A.

Role of supply and demand

B.

Role of material incentive

C.

Existence of buyers and sellers

D.

Role of money

Correct answer is A

No explanation has been provided for this answer.

1,603.

The U-shape of the long run average cost curve can be explained by the

A.

Law of increasing returns

B.

Law of constant returns

C.

Law of diminishing returns

D.

Concepts of economies and diseconomies of scale

Correct answer is A

No explanation has been provided for this answer.

1,604.

The higher the price of capital relative to the price of labour, the more production techniques should be?

A.

Labour-intensive

B.

Capital-intensive

C.

Fixed

D.

Technology-intensive

Correct answer is B

No explanation has been provided for this answer.

1,605.

BY definition, variable cost (VC) is related to total costs (TC) and fixed costs (FC) by the equation

A.

VC = TC + FC

B.

VC = TC - FC

C.

VC = TC/FC

D.

VC = (TC) (FC)

Correct answer is B

No explanation has been provided for this answer.