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

Question 41:

• JAMB 1990

Technical progress that leads to a reduction in costs results in?

A. An increase in equilibrium price and quantity
B. A decrease in equilibrium price and quantity
C. An increase in equilibrium price and decrease in equilibrium quantity
D. A decrease in equilibrium price and increase in equilibrium quantity

Question 42:

• 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 43:

• JAMB 1992

if in the graph, it is assumed that the price is initially P₁, it can be deduced that price will

A. Fall because there is a surplus
B. Remain constant because it is the equilibrium price
C. Rise because there is a shortage
D. Double

Question 44:

• JAMB 1993

The main function of the price system is to?

A. Distribute resources equally among competing ends
B. Ensure efficient allocation of resources in the economic system
C. Allocate goods and services equally
D. Minimize cheating

Question 45:

• JAMB 1993

If the equilibrium price of a certain commodity is N120.00 and the government fixed its price at N110.00, the supply will be?

A. Greater than the equilibrium supply
B. Smaller than the equilibrium supply
C. The same as the equilibrium supply
D. A determinant of the market forces of equilibrium