Jamb Economics 1987 Past Questions and Answers

Question 11:

• JAMB 1987

The form of capital which is usually consumed or transformed into finished goods and services in the production process is called?

A. Industrial capital
B. Social capital
C. Fixed capital
D. Circulating capital

Question 12:

• JAMB 1987

The shut-down point for a firm in the short run is the output at which?

A. The pricr of the product is lowest
B. Marginal Cost is constant
C. Average Variable Cost is not covered
D. Average Cost is minimum

Question 13:

• JAMB 1987

In the long run a firm will leave an industry if price?

A. Does not cover at at least Average Total Cost
B. Is not equal to Marginal Cost
C. Is higher than Average Varriable Cost
D. Is not at least equal to the minimum of Marginal Cost curve

Question 14:

• JAMB 1987

In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the?

A. Substitution effect of a price change
B. Income effect of a price change
C. Opportunity cost of a price change
D. Inflation effect of a price change

Question 15:

• JAMB 1987

Price can be defined as?

A. A rate of exchange
B. A mediumof exchange
C. The cost of product
D. The standard of accounting