10 questions from the JAMB 1991 Economics paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 1991Question 1 · Agriculture, Industry, and Petroleum Economics
Industries tend to be located closer to market centers than to the sources of major raw materials if the?
A.products are relatively cheap to transport to market centers
B.products are relatively more expensive to transport than the major raw materials
C.raw marterials are bulky
D.raw marterials can also be imported
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Answer: B. products are relatively more expensive to transport than the major raw materials
A firm is market-oriented when the finished product costs more to transport than the inputs, minimizing shipment of the expensive product.
JAMB 1991Question 2 · Basic Economic Concepts and Systems
If a society is operating on the production possibility curve, this implies that the resources are?
A.fully and efficiently utilized
B.fully but inefficiently utilized
C.efficiently but not fully utilized
D.abundant
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Answer: A. fully and efficiently utilized
A point on the production-possibility frontier represents full and productively efficient use of available resources.
JAMB 1991Question 3 · Demand, Supply, and Market Structures
If the price of a ball point pen falls from ₦1.00 to ₦0.60 and the quantity demanded increases from 200 to 300, the point elasticity of demand is equal to?
A.1.25
B.0.80
C.0.50
D.0.40
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Answer: A. 1.25
Using the initial point, elasticity is |(100/-0.40) × (1.00/200)| = 1.25.
JAMB 1991Question 4 · General Past Questions
A school girl who needs a book and mirror, each coasting five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determined the real cost of her book.
A.The five naira she spent on the book
B.Five naira real cash value
C.the mirror
D.The book
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Answer: C. the mirror
Opportunity or real cost is the best alternative forgone, here the mirror she sacrifices in order to buy the book.
JAMB 1991Question 5 · General Past Questions
To perform its function as a store of wealth and standard for deferred payment, money must be
A.portable
B.in attractive form
C.stable in value
D.spent more on capital goods than on consumer goods
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Answer: C. stable in value
A store of value and a basis for deferred contracts require purchasing power to remain reasonably stable over time.
JAMB 1991Question 6 · General Past Questions
A tax that takes an increasing fraction of income as income goes down is called?
A.conditional
B.regressive
C.progressive
D.proportional
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Answer: B. regressive
A regressive tax absorbs a larger percentage of income from lower-income earners, so its effective fraction rises as income falls.
JAMB 1991Question 7 · General Past Questions
Personal distribution of income implies?
A.the way in which income is distributed among specific households or spending units
B.the distribution of income according to basic resources
C.dividing income according to industries
D.dividing income between personal taxes, consumption expenditures and savings
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Answer: A. the way in which income is distributed among specific households or spending units
Personal distribution examines how total income is shared among persons or households rather than among factors or industries.
JAMB 1991Question 8 · General Past Questions
A major obstacle to economic development is?
A.a rise in industrial output
B.low farm productivity
C.free trade
D.ineffective trade unions
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Answer: B. low farm productivity
Low agricultural productivity constrains food supply, rural income, savings and the release of resources for industrial development.
JAMB 1991Question 9 · National Income and Economic Planning
It is important to measure the National Income of a country because?
A.it is a major determinant of the standard of living
B.it reveals hazards of development like pollution and congestion
C.it reveals the distribution of the citizen's savings in foreign banks
D.its size determines the extent of political stability
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Answer: A. it is a major determinant of the standard of living
National-income measurement indicates the economy's output and income per person, central evidence for assessing material living standards.
JAMB 1991Question 10 · Theory of Production and Distribution
If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of?
A.increasing returns to the variable factor
B.increasing returns to scale
C.constant returns to variable factor
D.external economies of scale
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Answer: A. increasing returns to the variable factor
With the fixed input unchanged, a rising marginal product from successive units of the variable input is increasing returns to that variable factor.
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