JAMB Economics Past Questions 1990
10 questions from the JAMB 1990 Economics paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 1990Question 1 · Basic Economic Concepts and Systems
In economic life, choice among alternatives depends on the?
- A.income of the decision maker
- B.scarcity of resources
- C.scale of preference of the decision maker
- D.status of the decision maker
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Answer: C. scale of preference of the decision maker
A scale of preference ranks competing wants and therefore determines which alternative is chosen first.
JAMB 1990Question 2 · General Past Questions
If one orange costs 20k and one kilogram of beef costs ₦10.00, the opportunity cost of one kilogram of beef is?
- A.50 oranges
- B.10 oranges
- C.5 oranges
- D.9.80
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Answer: A. 50 oranges
One naira is 100 kobo so ten naira buys 1000 divided by 20 which is 50 oranges.
JAMB 1990Question 3 · General Past Questions
If an increase in income induces a reduction in the demand for beans, beans can be referred to as?
- A.a normal good
- B.an inferior good
- C.a substitute good
- D.a giffen good
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Answer: B. an inferior good
Demand for an inferior good falls when consumer income rises.
JAMB 1990Question 4 · General Past Questions
In the distribution channels for goods and services, the middleman's mark-up margin provides a rough measure for the ?
- A.quantity discounts allowed final consumer
- B.reward for business enterpreneurship
- C.effectiveness of government control over the economy's marketing channels
- D.extent of exploitation of the final consumer
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Answer: B. reward for business enterpreneurship
The middleman's mark-up is the gross reward for undertaking the entrepreneurial risks and functions of distribution.
JAMB 1990Question 5 · General Past Questions
Which of the following factors is the most important in siting a petrol-chemical plants?
- A.Nearness to the source of raw materials
- B.Nearness to the source of power
- C.Availability of labour
- D.Proximity to financial institutions
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Answer: A. Nearness to the source of raw materials
Petrochemical production depends heavily on bulky petroleum feedstock so proximity to raw materials is crucial.
JAMB 1990Question 6 · General Past Questions
Under a system of freely floating exchange rates an increase in the international value of a country's currency will cause?
- A.its exports to rise
- B.its imports to rise
- C.gold to flow into that country
- D.its currency to be in surplus
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Answer: B. its imports to rise
Currency appreciation makes foreign goods cheaper to residents and therefore raises imports.
JAMB 1990Question 7 · General Past Questions
If birth rate is constant and death rate declines, population?
- A.falls
- B.expands
- C.stabilizes
- D.oscilates
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Answer: B. expands
A constant birth rate combined with a falling death rate increases natural population growth.
JAMB 1990Question 8 · International Trade
Balance of trade is the difference between?
- A.exports and imports of goods and services
- B.capital inflows and capital outflows
- C.visible and invisible balances
- D.exports and imports of goods
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Answer: D. exports and imports of goods
Balance of trade compares the value of visible merchandise exports with visible merchandise imports.
JAMB 1990Question 9 · National Income and Economic Planning
The system of measurement of national income as the sum of all final demands is called?
- A.income approach
- B.expenditure approach
- C.value-added
- D.final demands approach
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Answer: B. expenditure approach
The expenditure approach sums final consumption investment government spending and net exports.
JAMB 1990Question 10 · Theory of Consumer Behaviour
The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continuously, his?
- A.total utility must fall
- B.marginal utility must fall
- C.marginal utility may rise even though his total utility is falling
- D.marginal utility may fall even though his total utility may be rising
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Answer: B. marginal utility must fall
Each additional unit consumed yields less extra satisfaction so marginal utility falls.
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