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

Question 61:

• JAMB 2004

The diagram above shows the shifts in both demand supply curves. What is the new equilibrium point after the shifts?

A. E₃
B. E₁
C. E₄
D. E₂

Question 62:

• JAMB 2005

A buyer who haggles in the market is applying the principle of

A. Choice
B. Price mechanism
C. Opportunity cost
D. Utilty maximization

Question 63:

• JAMB 2005

An inverse relationship between price and quantity demanded implies that

A. The two variables change in opposite directions
B. The two variables change in the same direction
C. Only one variable changes
D. The two variables remain unchanged

Question 64:

• JAMB 2006

Given that demand and price remain unchanged an outward shift of the supply curve will lead to

A. Hoarding
B. Excess supply
C. Excess demand
D. A blank market

Question 65:

• JAMB 2006

Minimum wage legislation will result in

A. Reduced income
B. Greater supply labour
C. Reduced labour productivity
D. Greater demand for labour