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Economics 2013 JAMB Past Questions

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11

One of the assumptions of the cardinal approach is

  • A. diminishing marginal rate of substitution
  • B. the consistency and transitivity of choice
  • C. that total utility depends on the quantity of the commodities consumed
  • D. unstable marginal utility of money
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12

Utility is the satisfaction derived from the

  • A. distribution of goods and services
  • B. use of goods and services
  • C. demand of goods and services
  • D. production of goods and services
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13

One of the major factors that brings about changes in supply is

  • A. market discrimination
  • B. availability of storage facilities
  • C. the cost of storage
  • D. incentives granted to workers
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14

If the supply of a product is elastic, a small reduction in price will

  • A. reduce the cost of production
  • B. reduce the quantity supplied
  • C. increase the quantity supplied
  • D. lead to no change in the quantity supplied
View Answer & Discuss (3) JAMB 2013
15

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
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