JAMB Economics Past Questions & Answers - Page 37

181.

The petro-chemical industries are located in Rivers State of Nigeria due to _______

A.

Coal deposit

B.

Palm oil products

C.

Favourable soil

D.

Oil deposits

Correct answer is D

No explanation has been provided for this answer.

182.

Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a Visa for a period of ________

A.

100 days

B.

30 days

C.

90 days

D.

14 days

Correct answer is C

No explanation has been provided for this answer.

183.

A firm is at its optimum size when __________

A.

It has a motive to increase output

B.

It produces the greatest output at a minimum cost

C.

Marginal cost equals marginal revenue

D.

Marginal cost is less than marginal revenue

Correct answer is B

No explanation has been provided for this answer.

184.

Price
(₦)
Quantity Demanded
8 10
6 12

If we move from 8 to 6, the elasticity of demand is_______

A.

-1.25

B.

0.62

C.

0.8

D.

1

Correct answer is C

The elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price

%Change in quantity = 12 - 10 = 2
Percentage change = \(\frac{2}{10}\) = 0.2

Change in price = 8 - 6 = 2
Percentage change = \(\frac{2}{8}\) = 0.25

Elasticity of demand = \(\frac{0.2}{0.25}\) = 0.8

185.

The second equation of exchange is__________

A.

MV = PT

B.

P = \(\frac {M}{KR}\)

C.

P = \(\frac {MV}{T}\)

D.

P=MV

Correct answer is B

The second equation of exchange of money is P = \(\frac {M}{KR}\)

Where : P = Price level of consumer goods
K = The proportion of the community's total income held in money
R = The real income
M = The stock of money.