JAMB Economics Past Questions & Answers - Page 43

211.

Given two substitute goods (X and Y) with demand and supply function;
Qd = 7p - 12
Qs = 4p + 9
Find the magnitude of excess demand when p = ₦18

A.

303

B.

30

C.

114

D.

33

Correct answer is D

To find quantity demanded when p = ₦18
Qd = 7p - 12
7(18) - 12
126 - 12
Qd = 114units
To find quantity supplies at ₦18
Qs = 4p + 9
4(18) + 9
Qs = 72 + 9
Qs = 81 units
To find the magnitude of excess demand
Excess demand = 114 - 81 = 33 units

212.

The basic and essential economic problems in a community are related to choice and________

A.

Freedom

B.

Scarcity

C.

Social class

D.

Politics

Correct answer is B

Every society is faced with the economic problem of choice and scarcity.

213.

When a member's currency is declared "scarce", it is the duty of the IMF to______

A.

Suspend the member state indefinitely

B.

Ban all exports from that state

C.

Suspend dealings in that currency for one year

D.

Ration it among the countries demanding it

Correct answer is D

The clause provided that if the IMF ran out of sticks of a country's currency, this could be declared a "scarce currency", upon which members would be entitled and expected to discriminate against the country's goods in their trade policies.

214.

The oil boom between 1970 - 1980 caused the oil sector to become___________

A.

The main source of government

B.

Management of spillage and pollution

C.

Protection to the local operators in the petroleum industry

D.

Decrease in the rate of inflation

Correct answer is A

The oil booms caused the oil sector to become the ministry of the nigeria economy not only in terms of foreign exchange earnings but also the main source of government revenue.

215.

Poverty simply refers to the low level of_______

A.

Planning

B.

Per capita income

C.

Rich people

D.

Labour face

Correct answer is B

Poverty refers to the low level of per capital income of a country when the average income of the people in a country is low there will be high poverty and vice versa.