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

Question 16:

• JAMB 2014

When price is set below equilibrium, this will lead to

A. An increase in the quantity supplied
B. A new equilibrium
C. A decrease in the quantity supplied
D. A fall in price

Question 17:

• JAMB 2014

Price mechanism determines the prices of commodities through

A. Auctioning
B. Market forces
C. The sales of treasury bills
D. Government legislation

Question 18:

• JAMB 1978

Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be

A. The same as equilibrium supply
B. Greater than equilibrium supply
C. Less than the equilibrium supply
D. Determined later by government
E. None of these

Question 19:

• JAMB 1978

Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be

A. The same as equilibrium supply
B. Greater than equilibrium supply
C. Less than the equilibrium supply
D. Determined later by government
E. None of these

Question 20:

• 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