Functions of the price system - Jamb Economics Past Questions and Answers

Question 1:

• JAMB 2019

A demand which gives rise to the reverse of the law of demand is__________

A. Derived demand
B. Joint demand
C. Abnormal demand
D. Composite demand

Question 2:

• JAMB 2017

One of the functions of the price system is that it

A. Encourages high volume of production
B. Dictates what the citizens will consume
C. Discourages the consumption of harmful goods
D. Regulates production and consumption

Question 3:

• JAMB 2015

The practice of selling goods overseas and often below the cost of production is known as

A. Retailing
B. Dumping
C. Internal trade
D. Advertising

Question 4:

• JAMB 2014

Price mechanism determines the prices of commodities through

A. Auctioning
B. Market forces
C. The sales of treasury bills
D. Government legislation

Question 5:

• JAMB 1979

The price mechanism

A. Regulates supply and demand
B. Rations the consumers
C. Rewards the producers
D. Allocates scarce resources
E. Does all of the above