Jamb Economics 1989 Past Questions and Answers

Question 11:

• JAMB 1989

If, as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is?

A. Static
B. Infinitely elastic
C. Externally determined
D. Perfectly inelastic

Question 12:

• JAMB 1989

Which of the following factors is an important determinant of the magnitude of price elasticity of demand?

A. The production period
B. Cost of storage
C. Durability of the product
D. Availability of factors of production

Question 13:

• JAMB 1989

The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?

A. Utility
B. Productivity
C. Rate of substitution
D. Revenue

Question 14:

• JAMB 1989

In order to increase its profit margin, the monopolist can manipulate

A. Both price and output
B. Either price or output
C. Only its price
D. Only its output

Question 15:

• JAMB 1989

For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?

A. Downward sloping and price inelastic
B. Perfectly price elastic
C. Downward sloping but price inelastic
D. Perfectly price inelastic