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

Question 31:

• JAMB 1983

What is the market equilibrium price?

A. 5.00
B. 8.00
C. 9.00
D. 7.00
E. 6.00

Question 32:

• 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 33:

• JAMB 1986

The main function of price mechanism is to?

A. Limit consumer demand
B. Enable producers make profit
C. Allocate scarce resources among competing ends
D. Ensure consumer sovereignty

Question 34:

• 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 35:

• 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