JAMB Economics Past Questions & Answers - Page 412

2,056.

One of the probable effects of an increased minimum wage in Nigeria is?

A.

To create volunteer unemployment

B.

To decrease the wage rate

C.

To increase the level of unemployment

D.

To create involuntary unemployment

E.

To increase the demand for labour

Correct answer is D

No explanation has been provided for this answer.

2,057.

Unlimited liability means?

A.

The government can tax a company without limit

B.

The debts of a company must be paid out of it assets

C.

A company ceases to exist at the death of one of its owners

D.

A firm must pay its debts from business as well as private funds

E.

None of the above

Correct answer is D

No explanation has been provided for this answer.

2,058.

When a nation’s exports are greater than its imports

A.

The net foreign trade is zero

B.

An unfavourable balance of payment exist

C.

A favourable balance of payment exists

D.

An unfavourable balance of trade exist

E.

A favourable balance of trade exists

Correct answer is E

No explanation has been provided for this answer.

2,059.

An equilibrium price?

A.

Keeps excess demand within limits

B.

Keeps excess supply within limits

C.

Generates the greatest possible demand and supply

D.

Generates the greatest possible profits

E.

Equates the quantity supplied to be equal to the quantity demanded.

Correct answer is E

No explanation has been provided for this answer.

2,060.

An increase in the price of butter causes an increase in the demand for margarine. This indicate that butter and margarine are?

A.

Substitute goods

B.

Complementary goods

C.

Elastic goods

D.

Inelastic goods

E.

Inferior goods

Correct answer is A

A substitute good is a good that can be used in place of another. In consumer theory, substitute goods or substitutes are products that a consumer perceives as similar or comparable, so that having more of one product makes them desire less of the other product. Formally, X and Y are substitutes if, when the price of X rises, the demand for Y rises.