JAMB Economics Past Questions & Answers - Page 399

1,991.

Which of the following enterprises does NOT pursue the sole objective of profit maximization?

A.

Roads of Nigeria Ltd

B.

Union Bank of Nigeria Ltd

C.

Nigeria Electric Power Authority

D.

Volkswagen (VW) Nigeria Ltd

E.

Kingsway Nigeria Ltd

Correct answer is C

No explanation has been provided for this answer.

1,992.

In a sole proprietorship, decisions are made by the

A.

Government

B.

Board of directors

C.

Management

D.

Shareholder’s conference

E.

Owner

Correct answer is E

No explanation has been provided for this answer.

1,993.

Retailers in an economy performs the function of

A.

Production

B.

Exchange

C.

Distribution

D.

Hoarding

E.

Investment

Correct answer is C

No explanation has been provided for this answer.

1,994.

\(\begin{array}{c|c}
\text{Unit of output} & \text{Table cost}\\
\hline
1 & 20 \\
2 & 32 \\
3 & 42 \\
4 & 48 \\
5 & 50 \\
\end{array}\)

in the above table, the marginal cost of the 3rd unit of output is

A.

12

B.

6

C.

10

D.

2

E.

9

Correct answer is C

The marginal cost is the additional cost incurred in the production of an extra unit of a commodity.

From the table above, the firm incurred an extra cost of N10 to produce an extra unit of the commodity at 3 units.

At 2 units, it spent N32. When it increased the unit of output from 2 to 3, it was produced at N42 thereby incurring an additional cost of N10 in the production cost.

That is, 42 - 32 = 10

1,995.

In an inflationary period which of the following statements is NOT true?

A.

Wages rise simultaneously with prices

B.

The purchasing power of money diminishes

C.

More money runs after a limited quantity of goods

D.

Money supply increases

E.

Aggregate real demand exceeds aggregate real supply

Correct answer is A

No explanation has been provided for this answer.