JAMB Economics Past Questions & Answers - Page 90

446.

If price of yams decreases from N15.00 per tuber to N13.50 and the quantity supplied decreases by 20%. What is the elasticity of supply?

A.

2.00

B.

0.50

C.

1.50

D.

1.00

Correct answer is B

Percentage change in price divided by % change in quantity supply 15.00-13.50=1.5

 

1.5 ÷13.50 x (100)

=11.11% ÷ 20%= 0.1111 ÷ 0.2

0.55555..

=0.5ans

447.

The study of economics is necessary mainly because of

A.

Unemployment

B.

Unlimited resources

C.

Scarcity of resources

D.

Overpopulation

Correct answer is C

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

448.

One of the ways of improving the marketing of agricultural produce is by

A.

Reviewing the land tenure system

B.

Ensuring even distribution of farm inputs

C.

Embarking on irrigation farming

D.

Establishing agricultural marketing boards

Correct answer is D

Improving the marketing of agricultural produce

 

1. Identify your farm's market. 

2. Set your farm apart. 

3. Create a farm logo. 

4. Write a tagline. 

5. Launch a website.

6. Join farm associations.

7. Attend farm-related events.

8. Begin advertising.

449.

If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?

A.

Nigeria produces cocoa more cheaply than Ghana

B.

Nigeria and Ghana produce at the same level

C.

Ghana produces cocoa more than Nigeria

D.

Nigeria produces more cocoa than Ghana

Correct answer is A

Comparative advantage is the ability of an individual or group (Nigeria as the case maybe) to carry out a particular economic activity (such as making a specific product) more efficiently than another activity. Comparative advantage is when a country produces a good or service for a lower opportunity cost than other countries.

450.

Which of the following is a major determinant of price elasticity of demand?

A.

The price of the commodity

B.

Availability of factors of production

C.

The prices of factors of production

D.

Income of the consumers

Correct answer is D

The Proportion of Consumer’s Income Spent:

 

An important determinant of the elasticity of demand is how much it accounts for in a consumer’s budget. In other words, the proportion of a consumer’s income spent on a particular commodity also influences the elasticity of demand for it. The greater the proportion of income spent on a commodity, the greater will be generally its elasticity of demand, and vice versa.