JAMB Economics Past Questions & Answers - Page 85

421.

The price index is calculated as

A.

\(\frac{\text{weighted price}}{\text{current price}}\) x \(\frac{100}{1}\)

B.

\(\frac{\text{base year price}}{\text{current price}}\) x \(\frac{100}{1}\)

C.

\(\frac{\text{current price}}{\text{weighted price}}\) x \(\frac{100}{1}\)

D.

\(\frac{\text{current price}}{\text{base year price}}\) x \(\frac{100}{1}\)

Correct answer is D

No explanation has been provided for this answer.

424.

A company's expenditure on raw materials is termed as_______?

A.

Prime cost

B.

Explicit cost

C.

Average cost

D.

Implicit cost

Correct answer is A


prime cost is the total direct costs of production including raw materials and labour.

425.

Localization of industry is encouraged because of

A.

Low interest charges on loans

B.

High standard of living

C.

Low foreign exchange rate

D.

Improvements in infrastructure

Correct answer is D

i) Nearness to raw material.

(ii) Availability of source of power.

(iii) Physical and climate conditions. 

(iv) Growth of local industries and infrastructure

(v) Supply of trained labor.

(vi) Availability of capital.

(vii) Momentum of an early start.