Jamb Economics 1995 Past Questions and Answers

Question 16:

• JAMB 1995

In a free market economy, available resources are more efficiently allocated by complete reliance on?

A. Development planning
B. Strategic planning
C. Capital budgeting
D. Price system

Question 17:

• JAMB 1995

In order to maximize his profit, a businessman who faces a very elastic demand for his product is advised to?

A. Slightly increase the price of his product
B. Slightly reduce the price of his products
C. Leaves his price unchanged
D. Discriminate his prices

Question 18:

• JAMB 1995

What is the elasticity of demand for commodity X, if at a price of N25 the quantity demanded is 80 and when the price is reduced to N20 the quantity demanded is 100?

A. 1.25
B. 1.45
C. 0.25
D. 0.15

Question 19:

• JAMB 1995

If y represents the income earned by workers in a factory, find the range of their income which satisfies the following inequality: 4Y - 300 > 500.

A. Y > 300
B. Y > 250
C. Y > 200
D. Y > 150

Question 20:

• JAMB 1995

Both in the short run and in the long run, a firm maximizes its profits when?

A. MC = MR
B. AC = MC
C. AVC = AC
D. MC = AVC