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

Question 21:

• JAMB 2011

Minimum price legislation by government will

A. Reduce supply
B. Increase supply
C. Reduce demand and create surplus
D. Increase demand and create scarcity

Question 22:

• JAMB 2013

If the price of a commodity is fixed below equilibrium, this will lead to

A. Excess demand
B. A decrease in price
C. An increase in price
D. Excess supply

Question 23:

• JAMB 2013

One of the criticisms of the price mechanism is that

A. Producers are sovereign
B. It provides low degree of freedom
C. It widens the inequitable gap
D. Consumers are sovereign

Question 24:

• JAMB 2013

In Nigeria, government can reduce the cost of accommodation by fixing rent

A. At the prevailing rate
B. At the equilibrium price
C. Above the equilibrium price
D. Below the equilibrium price