JAMB Economics Past Questions & Answers - Page 80

396.

The modal value of 3, 8, 4, 6, 3, 5, 2, 7, 3 and 5 is

A.

6

B.

3

C.

4

D.

5

Correct answer is B

The Mode refers to the most occurring number in a set of numbers or data. It is the most occurring value in a distribution.

397.

In economics, the “how” or input question refers to

A.

The problem of allocating scarce resources among competing uses

B.

The way in which factors of production may be combined to produce output

C.

The way in which a firm decides on its profit maximising rate of output

D.

The problem of how output is distributed among individuals and groups in society.

Correct answer is B

The economic question of "how to produce" refers to, which techniques are to be adopted? This question is important because the choice of technique depends on the prices of the factors of production. 

That is, if labour is cheap and capital is expensive, a labor-intensive technique would be considered and vice-versa. The prices of labour and capital are determined by the demand for and supply of labour and capital respectively.

398.

One of the unique features that distinguishes the perfect and imperfect market condition is _________

A.

Profit motive principles

B.

Absence of price control board

C.

Price determines production and distribution

D.

Number of sellers and buyers

Correct answer is D

A perfect market may be defined as one in which buyers or sellers cannot influence the price of goods and services. An imperfect market however is the market in which price of goods or services can easily be influenced by the seller or buyers.

399.

Which of the following is not an indicator of economic growth?

A.

CPI

B.

PPI

C.

GDP

D.

High Level of Unemployment

Correct answer is D

The following are some indicators of economic growth:

  1. GDP. Gross Domestic Product, or GDP, is the total market value of all goods and services produced by a country in a specific time period, typically a year. This includes earnings from foreign investments.

  2. Money Supply. Money supply is a representation of the total amount of money a country has in circulation. M2 is slightly more specific.

  3. CPI. Consumer Price Index, or CPI, measures changes in consumer prices, or the retail prices paid for about 80,000 specific goods and services (called the market basket) by urban consumers for a specific month. 

  4. PPI. Called the Wholesale Price Index until 1978, the Producer Price Index, or PPI, measures and tracks the changes over time of the average selling price of domestically-produced goods and services. 

  5. CCI Consumer Confidence Index (CCI), or what is sometimes referred to as the Consumer Confidence Survey, measures how consumers feel about the current and future economic conditions.

  6. Employment Current Employment Statistics, or CES, provide data on national employment, unemployment, and wages and earnings across all non-agricultural industries, including civilian government workers.

400.

Changing the structure of a commodity in order to increase its utility is called?

A.

Time utility

B.

Form utility

C.

Marginal utility

D.

Place utility

Correct answer is B

Form utility refers to the change in the form or structure of a commodity during its manufacturing process in other to increase its utility. For example, a change in the form of raw cotton to clothing material. Cotton in its raw form does not give satisfaction until it is changed to a clothing.