Jamb Economics 2010 Past Questions and Answers

Question 16:

• JAMB 2010

In perfect competition,price is determined by the

A. Government
B. Sellers
C. Buyers
D. Market

Question 17:

• JAMB 2010

In order to reduce hardship faced by consumers due to high prices government can introduce

A. Maximum prices
B. Commodity boards
C. Minimum prices
D. Price control boards

Question 18:

• JAMB 2010

Average product is less than marginal product when

A. There is constant returns to scale
B. There is increasing returns to scale
C. There is decreasing returns to scale
D. Diminishing returns set in

Question 19:

• JAMB 2010

A firm enjoying economies of scale is said to be

A. Reducing average cost as production increases
B. Benefiting from the activities of other firms
C. Maximizing profits as production increases
D. Having an upward-sloping average cost curve

Question 20:

• JAMB 2010

The rising portion of the long-run average cost curve of a firm is an indication that it is experiencing

A. Increasing efficiency
B. Economies of scale
C. Diseconomies of scale
D. Increasing marginal returns