Price legislation and its effects - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1978

Price control cannot work in Nigeria because

A. The population is too large
B. The policemen hate to arrest people
C. While it is fairly easy to control producers and importing firms, smaller distributors are too many to be controlled
D. Control cannot work under military rule
E. Too many things are produced in the country

Question 7:

• JAMB 1982

The control price for a carton of beer in Nigeria is N7.20. But a carton of beer is sold in parts of the country for as much N15.00 The cause of this exorbitant price is that?

A. There is a Government ban on the importation of beer
B. Beer distributors want more profit
C. Nigeria is a large country
D. Middlemen hoard beer
E. The demand for beer exceeds the supply

Question 8:

• JAMB 1984

The control of prices by legislation usually produces a number of consequences. Which of the following is NOT an association problem of maximum price control?

A. Excess supply
B. Favouritism
C. Bribery and corruption
D. Bllack marketing
E. Hoarding

Question 9:

• JAMB 1987

In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the?

A. Substitution effect of a price change
B. Income effect of a price change
C. Opportunity cost of a price change
D. Inflation effect of a price change

Question 10:

• JAMB 1987

Price can be defined as?

A. A rate of exchange
B. A mediumof exchange
C. The cost of product
D. The standard of accounting