JAMB Economics Past Questions & Answers - Page 8

36.

The decision to consume more of one product under normal circumstances will apply

A.

Less of another product will be consumed

B.

More of another product will be consumed

C.

Less of the product will be consumed

D.

No other products will be consumed

Correct answer is A

Getting more of one commodity allows a consumer to demand less of the other product. The demand for substitute products shows a negative correlation. That is, consumption of one product reduces or replaces the need for the other.

37.

Indicator of underdevelopment is

A.

High life expectancy

B.

Low birth rate

C.

Low population growth rate

D.

Low per capita income

Correct answer is D

The indicators of underdevelopment include: high birth rates, high infant mortality, low per capita GDP, high levels of illiteracy, and low life expectancy.

38.

Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?

A.

Unemployment will fall

B.

Unemployment will remain constant

C.

Unemployment will increase

D.

Unemployment will fluctuate

Correct answer is C

In general, Okun's findings demonstrated that when unemployment falls, the production of a country will increase and vice versa.

39.

Part-time workers who desire full-time employment are:

A.

Underemployed and contribute to the unemployment statistic

B.

Underemployed but do not contribute to the unemployment statistic

C.

Not part of the labour force and do not contribute to the unemployment statistic

D.

Cyclical unemployment

Correct answer is B

Underemployment includes three groups of people which are: Unemployment workers, Involuntary part-time workers and marginally attached workers. There is currently no data that track this form of unemployment.

40.

An increase in total production (real GDP) causes the demand for money to ______and the interest rate to _________

A.

Increase; decrease

B.

Decrease; decrease

C.

Increase; increase

D.

Decrease; increase

Correct answer is C

An increase in the real GDP will increase the demand for money and also the interest rate will also increase.