Jamb Economics 1986 Past Questions and Answers

Question 16:

• JAMB 1986

Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?

A. Induce greater demand for beef
B. Induce greater demand for fish
C. Induce lower demand for fish
D. Equate demands for beef and fish

Question 17:

• JAMB 1986

The main function of price mechanism is to?

A. Limit consumer demand
B. Enable producers make profit
C. Allocate scarce resources among competing ends
D. Ensure consumer sovereignty

Question 18:

• JAMB 1986

Use the table below to answer question 17 and 18.
Market Demand Schedule for Commodity X. \(\begin{array}{c|c}
\text{ Price N} & \text{Quantity(Million units)} \\ 60 & 100 \\
50 & 140 \\
40 & 220 \\
30 & 260 \\
20 & 300 \\
10 & 340 \\
\end{array}\)
If the price of commodity X falls from N40.00 to N30.00 what is the price elasticity of demand?

A. 0.62
B. 0.73
C. 1.00
D. 1,50

Question 19:

• JAMB 1986

The revenue accruing to the seller of commodity X as a result of a fall in price will

A. Increase `
B. Fall
C. First fall but will increase later
D. Remain unchanged

Question 20:

• JAMB 1986

Which of the following is an important function of prices in a market economy?

A. Ensuring that resources are used in the most efficient manner
B. Ensuring an equitable distribution of goods and services
C. Ensuring that all industries are perfectly competitive in the long run
D. Equating level of purchases with level of needs