Jamb Economics Past Questions For Year 1988
Question 1
Which of the following occurs in the circular flow of economic activities with no leakages
- A. Consumption equals saving
- B. Saving equals investment
- C. Imports equal exports
- D. National income equals national expenditure
Question 2
The demand and supply equations for a commodity are given respectively as D = 20 - 1/2P; S = 8 + 1/4P. Recalling that at equilibrium, D = S, the equilibrium (P) and quantity (Q) can be obtained as
- A. P = 12, Q = 16
- B. P = 15, Q = 10
- C. P = 12, Q = 14
- D. P = 16, Q = 12
Question 3
If in this demand-supply diagram, the quantity supplied is OQ, then
- A. price will be OP
- B. there will be excess demand of RT
- C. price will be ON
- D. price will tend to rise
Question 4
A textile firm operates a plant in the North (where capital expensive relative to labour)as well as a plant in the South (where labour is expensive relative to capital ). In this diagram above the Southern plant will minimize cost by combining labour and capital in the amounts indicated by
- A. P
- B. Q
- C. X
- D. Y
Question 5
Scarcity in economics means that?
- A. human wants are limitless
- B. the economy has very few resources
- C. the economy can scarcely produce anything
- D. resources are limited in relation to wants
