The Theory of Price Determination - Jamb Economics Past Questions and Answers

Question 56:

• JAMB 2001

The fixing of the price of an item above or below the equilibrium price is most likely to take place in a?

A. Centrally planned economy
B. Free market economy
C. Developed economy
D. Mixed economy

Question 57:

• JAMB 2001

If government fixes price below the equilibrium price, what effect will it have on demand?

A. Quantity demanded and supplied will be equal
B. Quantity supplied will be greater than quantity demanded
C. Quantity demanded will increase
D. Quantity demanded will decrease

Question 58:

• JAMB 2003

For an inferior good, a decreased in real income will lead to?

A. A lower equilibrium price
B. A change in quantity demanded
C. An outward shift of the demand curve
D. An inward shift of the demand curve

Question 59:

• JAMB 2003

Fixing the prices of agricultural products can be a problem because of the

A. Activities of marketing boards
B. Size of agricultural exports
C. Instability of government policies
D. Unpredicatable output of farmers

Question 60:

• JAMB 2004

A black market can occur when

A. Supply is in excess of demand
B. Consumption of the commodity is restricted
C. Prices are set by government above the equilibrum
D. Prices are set by government below the equilibrium