JAMB Economics Past Questions & Answers - Page 329

1,641.

Resources are efficiently allocated when production takes place at that output where price equals

A.

Marginal revenue

B.

Average variable cost

C.

Marginal cost

D.

Total cost

Correct answer is A

No explanation has been provided for this answer.

1,642.

The cross-elasticity of demand between complementary goods is

A.

Unitary

B.

Positive

C.

Zero

D.

Negative

Correct answer is D

The cross elasticity of demand for complementary goods is negative because, as the price for one item (say the main commodity) increases, the demand for an item closely related to that item also decreases due to the decrease in demand for the main commodity.

Just like the law of demand states that people will be willing to buy more of a commodity at a lower price, it is the same way a rise in the price of a complementary good will affect the demand for its complement.

1,643.

A market is in disequilibrium if

A.

The quantity purchased is greater than quantity sold

B.

The quantity sold differs from the quantity purchased

C.

At a lower price, a large quantity is sold

D.

The quantity demand differs from the quantity supplied

Correct answer is D

No explanation has been provided for this answer.

1,644.

If a society is operating on the production possibility curve, this implies that the resources are

A.

Fully and efficiently utilized

B.

Fully but inefficiently utilized

C.

Efficiently but not fully utilized

D.

Abundant

Correct answer is A

No explanation has been provided for this answer.