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

Question 11:

• JAMB 1992

The price mechanism is more effective in achieving efficient performance of the economy than the planning mechanism because of the?

A. Role of supply and demand
B. Role of material incentive
C. Existence of buyers and sellers
D. Role of money

Question 12:

• JAMB 1995

The government can influence the price of agriculture products by?

A. Fixing minimum prices when agricultural output is low
B. Fixing maximum prices in years of bumper harvest
C. The use of buffer stock and stabilization funds
D. Paying all farmers producing identical crops a uniform amount of money

Question 13:

• JAMB 1998

In the diagram above, the price P₂ in price control situation, is referred to as

A. Minimum price
B. Markup price
C. Maximum price
D. Mark-down price

Question 14:

• 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 15:

• 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