DTW Economics JAMB Preparatory Mock

1. Which of the following is NOT a characteristic of a perfectly competitive market?

• a) Homogeneous products

• b) Barriers to entry

• c) Many buyers and sellers

• d) Price taker behavior

2. What does the term "opportunity cost" refer to in economics?

• a) The cost of production

• b) The value of the next best alternative forgone

• c) The price of a good or service

• d) The total cost of resources used

3. In a production possibilities frontier (PPF) graph, a point inside the curve indicates:

• a) Efficient allocation of resources

• b) Unattainable production levels

• c) Inefficient use of resources

• d) Economic growth

4. Which of the following is an example of a regressive tax?

• a) Income tax

• b) Property tax

• c) Sales tax

• d) Corporate tax

5. In macroeconomics, the term "GDP" stands for:

• a) Gross Domestic Product

• b) General Demand Price

• c) Government Debt Payment

• d) Growth Development Potential

6. What is the formula for calculating price elasticity of demand?

• a) (Change in Quantity Demanded)/(Change in Price)

• b) (Change in Price)/(Change in Quantity Demanded)

• c) (Initial Price - Final Price)/Initial Price

• d) (Initial Quantity Demanded - Final Quantity Demanded)/Initial Quantity Demanded

7. Which market structure is characterized by a single seller with significant control over price?

• a) Perfect competition

• b) Monopoly

• c) Oligopoly

• d) Monopolistic competition

12. What is the formula for calculating consumer surplus?

• a) Total revenue - Total cost

• b) Total cost - Total revenue

• c) Marginal utility - Total cost

• d) Total utility - Total expenditure

In the context of international trade, what does the term "tariff" refer to?

• a) Quota on imports

• b) Tax on exports

• c) Tax on imports

• d) Subsidy on exports

What is the main function of the World Trade Organization (WTO)?

• a) Set monetary policies for member countries

• b) Regulate international labor standards

• c) Facilitate trade negotiations and resolve disputes

• d) Provide financial assistance to developing countries