JAMB Economics Past Questions & Answers - Page 95

471.

Development plans fail in Nigeria mainly because of

A.

Corruption and political instability

B.

Over-dependence on foreign aid

C.

High cost of plan implementation

D.

Shortage of personnel

Correct answer is A

No explanation has been provided for this answer.

472.

Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.

A.

34

B.

32

C.

36

D.

16

Correct answer is C

Equilibrium price = quantity demanded = quantity supplied

Equilibrium price = Qd = 40-2P = 6P+24 = Qs

40 - 2p = 6p+ 24 
-2p - 6p = -8

24 - 40 = - 16
16/8 = 2

substitute '2' in the equation for 'p'

Qd = 40-2(2) = 6(2)+24 
40 - 4 = 36
12 + 24 = 36

Equilibrium price = 36

473.

Optimum population enables an economy to attain the highest level of

A.

Industrial development

B.

Income per head

C.

Revenue generation

D.

Economic development

Correct answer is B

The optimum population is a concept where the human population is able to balance maintaining a maximum population size with optimal standards of living for all people. The standard of living is measured by the per capita income of individuals. Optimum population yields maximum returns per head because people would be fully employed and adequately compensated and remunerated.

474.

If real income increases while nominal income remains the same, it can be inferred that

A.

Unemployment rate has decreased

B.

General prices has fallen

C.

Employment rate has risen

D.

General prices have risen

Correct answer is B

To better understand this, we need to know what real and nominal income is all about.

Nominal value is measured in terms of money, whereas real value is measured against the purchasing power of money for goods or services. If real income increases while nominal income remains the same, it means that the price of goods and services has fallen. This invariably means the purchasing power of money has increased.

475.

The optimal range of output for a perfectly competitive firm is

A.

AC is lowest

B.

AVC is lowest

C.

MC is rising

D.

MC is falling

Correct answer is D

The key goal for a perfectly competitive firm in maximizing its profits is to calculate the optimal level of output at which its Marginal Cost (MC) = Market Price (P). Output will be optimal where MC is falling.