Jamb Economics 1984 Past Questions and Answers

Question 16:

• JAMB 1984

A demand curve slopes downwards because of ?

A. An increase inthe money income of the consumer
B. A decrease inthe money income of the consumer
C. The substitution effect and the rise in real income of the consumer
D. The rise in demand for the complementary goods
E. The increase in the demand for factors and production

Question 17:

• JAMB 1984

An imperfectly competitive market is one where?

A. A large number of firms sell homogenous products
B. Input and output prices are unaffected
C. Each firm faces aa horizontal demand curve
D. Each firm maximize profit by selecting an output level at
E. Commodities are differentiated

Question 18:

• JAMB 1984

In taxation, the benefit principle requires that?

A. Everybody must draw benefit from taxation
B. All those who earn more income must pay more taxes
C. Only those who derive benefit from services provided from public revenue should be taxed
D. Taxes paid by businesses should be shifted to those consumers benefiting from such consumer commodities
E. Everybody pays an equal amount

Question 19:

• JAMB 1984

A perfectly competitive firm does not influence the demand for its commodities by lowering its price below the market price because?

A. It is illegal price cutting
B. Other competitors will be angry
C. Total revenue will decline due to its elastic demand curve
D. It is able to sell all it wants at the market price
E. It does not maximize profit

Question 20:

• JAMB 1984

pricing and output decisions of sellers are highly interdependent in markets known as?

A. Oligopoly
B. Perfect competition
C. Monopoly
D. Monopolistic competition
E. Imperfect competititon