JAMB Economics Past Questions & Answers - Page 50

246.

John an apprentice, engineer and amateur trumpet player, was earning ₦30 per week before accepting Full-time employment in a top orchestra, for which he now receives ₦150 per week. ₦120 of his current weekly earnings can be described as_______

A.

Marginal physical productivity

B.

Marginal income productivity

C.

Consumer's surplus

D.

Economic rent

Correct answer is D

Economic rent is a surplus arrived at by deducting marginal product and opportunity cost.

247.

The last link in the channel of distribution is____________

A.

Producer

B.

Retailer

C.

Consumer

D.

Wholesaler

Correct answer is C

Goods are moved from the producer/manufacturer to the wholesaler, from the wholesaler to the retailer and from the retailer to the consumer, which is the last link in trade.

248.

An economy system that uses what is regarded as the "Market mechanism" is called_______

A.

Mixed economy

B.

Socialism

C.

Command economy

D.

Capitalism

Correct answer is D

The market mechanism is solved through the Forces of demand and supply in the capitalist economy which is also known as free enterprises or free market economy.

249.

The determination of price by bargaining between buyers and sellers is_______

A.

Sales by Auction

B.

Tender

C.

Higgling and Haggling

D.

Price control

Correct answer is C

Higgling and Haggling is one of the ways price are determined in an imperfect market. The buyer's maximum price and the seller's minimum price provide the "price range of bargaining".

250.

Economics is a social science concerned with the proper use and_____

A.

Production of goods and services

B.

Distribution of wealth

C.

Allocation of resources for growth

D.

Creation of utility

Correct answer is C

Economics study scarcity because the resources are limited. Also, it helps to study how resources are allocated or used up by the government, firm and individual.