Economics 1998 Jamb Past Questions and Answers

Question 6 :

• JAMB 1998

Specialization often improves economic performance because it?

A. Permits exploitation of economies of scale
B. Incorporates external economies
C. Is based on the law of variable proportions
D. Allocates resources according to absolute advantage

Question 7 :

• JAMB 1998

Which of the following statements best describes the relationship between average product and marginal products?

A. Marginal product and average product curves rise and falls together
B. Marginal product equals average product at the minimum point of the latter
C. Average product curve will rise as product is greater than average product
D. Marginal product at the maximum point of the fomer

Question 8 :

• JAMB 1998

When a firm is reaping economies of large-scale production, it experiences a fall in its?

A. Long-run marginal cost
B. Long-run average cost
C. Long-run total cost
D. Short-run marginal cost

Question 9 :

• JAMB 1998

If an increase in the price of a commodity leads to increase in total revenue, then it means that the demand for this commodity is?

A. Normal
B. Elastic
C. Inelastic
D. Abnormal

Question 10 :

• JAMB 1998

Given that the elasticity of demand for a commodity is 2.5, the percentage change in the quantity demanded as a result of a 10 percent change in it price is?

A. 0.25
B. 0.40
C. 4.00
D. 25.00