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

Question 16:

• 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

Question 17:

• JAMB 2006

Minimum wage legislation will result in

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

Question 18:

• JAMB 2006

The diagram above shows the effect of

A. Excess demand over supply at q₃
B. Excess supply over demand at q₂
C. Minimum price legislation at P₂
D. Maximum price legislation at P₂

Question 19:

• JAMB 2008

To protect farmers during a bumper harvest,. the government usually

A. Set a mximum price
B. Release products from the buffer stock
C. Sell the excess to consumers
D. Set a minimum price

Question 20:

• JAMB 2010

In order to reduce hardship faced by consumers due to high prices government can introduce

A. Maximum prices
B. Commodity boards
C. Minimum prices
D. Price control boards