Price Legislation And Its Effects Jamb Economics Past Questions
Question 6
Price mechanism determines the prices of commodities through
- A. auctioning
- B. market forces
- C. the sales of treasury bills
- D. government legislation
Question 7
At equilibrium, one of the distinctive features of monopoly compared with perfect competition is that in the former?`
- A. price is always equal to marginal cost
- B. supply is always equal to demand
- C. price is always higher than marginal cost
- D. there are always many buyers and many sellers
Question 8
The control of prices by legislation usually produces a number of consequences. Which of the following is NOT an association problem of maximum price control?
- A. Excess supply
- B. Favouritism
- C. Bribery and corruption
- D. Bllack marketing
- E. Hoarding
Question 9
If in the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?
- A. An increase in demand for X will increase the supply of Y
- B. An increase in demand for X will shift the supply of Y
- C. An increase in demand for Y will raise the price of X
- D. An increase in demand for X will cause less of Y to be produced
- E. A probable tax on Y will cause more of X to be supplied
Question 10
Which of the following is a term used to describe a payment representing a surplus in excess of transfer costs?
- A. Interest rates
- B. Opportunity costs
- C. Economic rent
- D. Indirect costs
- E. Wages
