JAMB Economics Past Questions & Answers - Page 14

66.

The development of an economic hypothesis through intuition, insight, or logic is associated with

A.

Deduction

B.

Policy economics

C.

Normative economics

D.

Induction

Correct answer is C

Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios. It expresses ideological judgments about what may results in economic activity if public policy changes are made.

67.

One major problem facing West African countries is

A.

Relations with Colonial Masters

B.

Joint Military operations in Member States

C.

Political integration

D.

Financial crunch of Member States

Correct answer is A

One of the major problem of West African state is the relation of West African states with the colonial masters.

68.

If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn

A.

A normal profit of N750,000

B.

An economic profit of N750,000

C.

A normal profit o N1,750,000

D.

An economic profit of N250,000

Correct answer is D

Economic profit = Total revenue(Output) - Opportunity cost of input

= 1,000,000 - 750,000

= 250,000

69.

The theory of ............... was propounded by ..................

A.

Comparative advantage; Mercantilists

B.

Absolute advantage; Adam Smith

C.

Comparative advantage; Adam Smith

D.

Absolute advantage; David Ricardo

Correct answer is B

The theory of absolute advantage was propounded by Adam Smith while the theory of comparative advantage was propounded by David Ricardo.

70.

The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is

A.

Structural unemployment

B.

Cyclical unemployment

C.

Seasonal unemployment

D.

Frictional unemployment

Correct answer is A

Structural unemployment occurs when production structure changes or changes in demand or technology. It also occurs when a worker loses job because their jobs are transferred to other countries.