Jamb 2019 ECONOMICS likely exam questions and answers

1. The tax takes an increasing fractional of income as income goes down is called (a) Conditional b) Regressive (c) Progressive.(d)Proportional Right choice – Option C

2. A greater burden of the takes on essential goods is borne by the (a) higher income group (b) Newly recruited workers (c) Lower income workers (d) Contract work Right choice – Option B

3. The effect of an increase in the personal income tax is to (a) Raise the absolute price level (b) Distort the economy (c) reduce unemployment (d) Reduce the disposable income Right choice – Option C

4. The most important advantage of cooperative societies is (a) Their high degree of democracy (b) The increase in the cost of marketing (c) That members art encouraged to save money (d) the possibility of raising loans for the members Right choice – Option D

5. In a public company. shares are (a) Sold to one person only (b) Distributed freely (c) Advertised to members of the public for subscription (d) Disposed off by tire chief executive Right choice – Option A

6. Which of the following is characteristic of the private limited liability company? (a) its shares can be sold to the public (b) The number of share holders ranges from 50 to 100 (c)all shareholders have equal power and responsibilities (d) The number of shareholders ranges from 2 to 50 Right choice – Option C

7. An important functions for the retailer is to (a) Grant credit to the wholesaler (b) Break bulk and sell product in small units (c) Reduce cost of distribution (d) Generate demand for product through advertisement Right choice – Option B

8. The main handicap of sole proprietorship is (a) Limited liability (b) Lack of technical know – how (c) Low profit margin (d)Inadequate capital Right choice – Option C

9. This type of business organization mostly used for producing public goods in Nigeria is (a) Sole Proprietorship (b) Limited liability companies (c) Cooperative societies (d) Statutory corporation Right choice – Option D

10. The type of business finance that entitles the hold to fixed rate of dividend is (a) preferred stock (b) common stock (c)Debenture (d) Bank loan Right choice – Option D

11. A debenture shares entities its holders to (a) Participate in the annual general meeting of the company (b) Share in the dividend declared (c) Receive a fixed interest on sums invested (d) have a representative on the board of directors. Right choice – Option A

12. traffics on imports are meant to (a) Prevent a country from becoming a dumping ground for foreign goods (b) Discourage exports (c) Encourage exports (d) increase the level of external dependency Right choice – Option C

13. If a country has a balance of payment crisis which of the following measures can best bring about an improvement in the short run? (a) Large – scale importation on foreign goods (b) Investment in capital market abroad (c) Large scale export of locally made goods (d) Repayment of debt to her creditors Right choice – Option A

14. The terms of trade of a country is defined as (a) index of import price / index of export price x 100 (b) index of exploration / Index of importation x 100 (c) Index of visible of import / Index of visible export x 100 (d) index of export prices /Index of import prices 100 Right choice – Option B

15. One of the gains by members state of the economic community of West African states is (a) Mono-culture dependency (b) Trade creation (c) Trade inversion (d) Economic independency Variable Right choice – Option D

16. Deflation is a persistent fail in the general price level and is usually Factors caused by (a) A reduction in total demand.(b) An increase in government spending (c) An increase in the money supply {d) An increase in aggregate demand. Right choice – Option D

17. Price can be defined as (a) A rate of exchange (b) A medium of exchange (c) The cost of a product (d) The standard of accounting.Right choice – Option A

18. Money market differ from capital market in that it (a) Uses interest rate while capital market does not (b) Is limited in scope while capital market is not (c)Deals with short-term loan while capital market deals with long – term funds Right choice – Option A

19. The objective of economics is to (a) Make the best use of scarce resource (b) Decide under what circumstance in the economy (c) Organize production at the lowest cost (d) Make effort understand how the economy works Right choice – Option D

20. What to produce in any society is determiner by the (a) Competition among different producer (b) Competition different consumer (c) Supply and demand in the factor market (d) Expenditure of the people different commodities Right choice – Option A

21. One of the fundamental difference between a capitalist and a socialist economy is that while (a) The former is characterized by complete government ownership of resource the later is characterized by complete private ownership (b) In the former price act as signals in the allocation of resource. it is the central authority that perform this function in the (c) Taxes are levied in a capitalist economy, there is no taxation in a socialist economy. (d) Income and wealth are equally, distributed in the socialist
economy this is not so in a capitalist economy Right choice – Option C

22. If at #50 per kg. 1000kg of yam level purchased and at #30perkg, 1500kg were purchased, the resultant point elasticity of demand is (a) 2 (b) 1.25 (c) 0.00125 (d)1000 Right choice – Option B

23. If as the price of a commodity rises the quantity demand of the commodity remain the same, then the demand for the commodity is Economic development may be defined as economic growth (a) infinitely elastic (b) static (c) perfectly inelastic (d) Externally determined(a) In a given country (b) Over a long period (c) and improved health facilities (d) and improved distribution of wealth. Right choice – Option B

24. If the price of ball point pen falls from #20 to #15 and the quantity demanded increase from 200 to 300 the point elasticity of demand is equal to (a) 2 (b) 1.25 (c) 0.5 (d) 4 Right choice – Option C

25. If the equilibrium price of a certain commodity is less than unity, then (a) An increase in the price of the commodity n ill rise the total revenue of the producer (b) An increase in price leaves the total revenue unchanged (c)A decrease in price raise the total revenue of the supplier (d) A decrease in price leaves the total revenue constant Right choice – Option D

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