Free enterprise economy - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1978

Which of these should determine, in a planned economy how the factor of production are to be allocated among different production activities

A. Fairness
B. The distribution of income and wealth
C. Public need which is determined by the government
D. Private needs determined by the market
E. The ability of individual to make profit

Question 7:

• JAMB 1980

In a free market economy, the rationing of scarce goods is done principally by

A. The government
B. Business organizations
C. The price mechanism
D. Consumers
E. Both A and B

Question 8:

• JAMB 1985

In market economies, resources are allocated through the?

A. Government authorities
B. Price system
C. Banking system
D. Central planning bureau
E. Revenue allocation formula

Question 9:

• JAMB 1986

Which of the following is an important function of prices in a market economy?

A. Ensuring that resources are used in the most efficient manner
B. Ensuring an equitable distribution of goods and services
C. Ensuring that all industries are perfectly competitive in the long run
D. Equating level of purchases with level of needs

Question 10:

• JAMB 1991

in market economy, the question of what, how and for whom to produce are solved the

A. Elected representative of the solved
B. Planning committe
C. Price mechanism
D. Government