Jamb Economics 2007 Past Questions and Answers

Question 6:

• JAMB 2007

A firm operating at full capacity will have a

A. Perfectly inelastic supply curve
B. Perfectly elastic supply curve
C. Fairly elastic supply curve
D. Fairly inelastic supply curve

Question 7:

• JAMB 2007

The major determinant of cross elasticity of demand is the

A. Price of the good
B. Degree of necessity of the good
C. Level of income of consumers
D. Closeness of the substitutes

Question 8:

• JAMB 2007

A commodity is described as inferior when the

A. Income effect is negative
B. Income effect is positive
C. Substitution effect is negative
D. Substitution effect is positive

Question 9:

• JAMB 2007

The coefficient of the price elasticity of supply is always

A. Positive
B. Negative
C. Constant
D. Zero

Question 10:

• JAMB 2007

The world market for crude oil refers to the

A. Total supply by OPEC members
B. Total demand for and supply of crude oil
C. Excess crude oil produced in the world
D. Difference between the supply of and demand for oil