JAMB Economics Questions and Answers
JAMB Economics, JAMB Economics Questions, JAMB Economics Questions and Answers 2023 | ddomiscum team will be showing you past JAMB Economics repeated questions for free. You will also understand how JAMB Economics questions are set and many other examination details.
Today’s JAMB Economics questions and answers are set like other JAMB questions and tomorrow’s JAMB Economics questions and answers will still take the same format.
Knowing the right thing to do would make you stand a better chance of scoring high in this 2022 JAMB examination.
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ddomiscum team has taken quality time to provide JAMB Economics questions and answers for 2023 to enable JAMB candidates to perform well in their JAMB Economics examination in order to get admission at ease.
JAMB Economics Questions and Answers (Expo)
Note: The questions and answers below are for practice.
- Developments outside a given firm that reduce the firm’s costs are called
A. internal economics
B. external economics
C. external diseconomies
D. optimum effects
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ANSWER: B (external economics)
2. If at 10K per kg, 1000kg of yam were purchased, the resultant point elasticity of demand is
A. 0.33
B. 0.0001
C. 1
D.10000
ANSWER: C (1)
3. A situation in which all inputs are doubled and output also doubles is known as
A. constant proportions
B. increasing returns to scale
C. constant returns
D. constant returns to scale.
ANSWER: D (constant returns to scale)
4. Economic goods are termed scarce when they are
A. not available in sufficient quantities to satisfy all wants for them
B. not produced in sufficient quantities to satisfy the effective demand for them
C. of high quality
D. of primary importance in satisfying the needs of society.
ANSWER: A (not available in sufficient quantities to satisfy all wants for them)
5. Which of the following situations can give rise to economic problems
A. unlimited human wants
B. wants of varying importance
C. limited means available for satisfying wants
D. means used in different ways
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ANSWER: C (limited means available for satisfying wants)
6. In the long run, all production factors are
A. fixed
B. semi-fixed
C. variable
D. semi-variable
ANSWER: C (variable)
7. The advantage which firms obtain directly from expanding their operations are referred to as
A. internal economies of scale
B. external economies of scale
C. economics of localization
D. economies of resource allocation
ANSWER: A ( internal economies of scale)
8. The effect of changes in the condition of demand on a demand schedule with the price constant is a
A. movement along the demand curve
B. deflation of the demand curve
C. hyperbola formation by the demand curve
D. shift of the demand curve
ANSWER: D (shift of the demand curve)
9. If a demand curve that intersects a perfectly inelastic supply shifts rightward, then
A. the equilibrium price and quantity will increase
B. only the price will increase
C. only quantity will increase
D. the price will remain constant
ANSWER: B (only the price will increase)
10. If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing
A. a large scale of production
B. profit maximization
C. economies of scale
D. diseconomies of scale
ANSWER: D ( diseconomies of scale)
11. Economic goods are termed scarce goods when they are
A. not available in sufficient quantity to satisfy all wants for them
B. not produced in sufficient quantities to satisfy the effective demand of them
C. of high quality
D. of primary importance in satisfying the needs of a society
ANSWER: A (not available in sufficient quantity to satisfy all wants for them)
12. If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under condition of
A. increasing returns to the variable factor
B. increasing returns to scale
C. constant return to the variable factor
D. external economies of scale
ANSWER: B (increasing returns to scale)
13. The ordinary partner in a partnership
A. takes no active part in the management of the business
B. has limited liability in case of business
C. has unlimited liability in case of business failure
D. cannot be sued personally on matters relating to the business
ANSWER: C (has unlimited liability in case of business failure)
14. A possible factor which limits the extent of growth of a firm is the
A. existence of a monopoly
B. bureaucratic delays in decision making
C. use of by-products
D. unwillingness to share ownership and control
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ANSWER: D ( unwillingness to share ownership and control)
15. A disadvantage of a joint-stock company is
A. unlimited liability
B. limited liability
C. continuity
D. loss of controlling interest
ANSWER: D (loss of controlling interest)
16. An effect of inflation is that it
A. discourages trade by barter
B. favours debtors at the expense of creditors
C. increases the real income of salary earners
D. increases the value of a country’s export
ANSWER: B ( favours debtors at the expense of creditors)
17. Budget deficit is the amount by which
A. total expenditure exceeds revenue
B. recurrent expenditure exceeds revenue
C. capital expenditure exceeds revenue
D. recurrent expenditure exceeds capital expenditure
ANSWER: B (recurrent expenditure exceeds revenue)
18. Under flexible exchange rates, a deficit could be corrected by
A. freezing the gold point
B. appreciation of other currencies
C. removing export subsidies
D. removing tariffs
ANSWER: B (appreciation of other currencies)
19. If W stands for wages/salaries, P for profits, R for interest and Z for rent on land and real estate, then national income is
A. WPRZ
B. W+P+Z-R
C. PRZ+W
D. W+P+R+Z
ANSWER: D (W+P+R+Z)
20. A made obstacle to economic development is
A. a rise in industrial output
B. low farm productivity
C. free trade
D. ineffective trade union
ANSWER: B (low farm productivity)
21. IBRD as an international monetary institution is concerned with the
A. balance of payments problems of member nations
B. financing of private business in member nations
C. development of infrastucture in member nations
D. improvement of trade among member nation
22. An advantage of the sole proprietorship over the partnership form of business organization is that
A. it enjoys limited liability for debt in the event of failure
B. Its existence is limited by an individual’s life span
C. It relies on the decision of friends to succeed
D. The possibility of conflict is management in virtually non-existent
23. The distinction between capital and recurrent expenditure lies in the
A. amount of expenditure involved
B. source of the revenue generated
C. nature of the goods and services to be provided
D. time frame of the expenditure
24. Under a floating exchange rate regime, the determinant of the exchange rate is
A. the system of government
B. demand for and supply of foreign goods
C. the highest denomination of the currency an act of the national assembly
25. To compare the standard of living among nations, the most widely used economic indicator is the
A. per capital nominal income
B. real domestic output
C. real gross national income
D. real per capital income
26. Statutory organisations usually established by Acts of parliament are called
A. public enterprises
B. public corporations
C. cooperative societies
D. joint-stock companies
27. A greater burden of the taxes on essential goods is borne by the
A. higher income group
B. newly recruitment workers
C. lower income group
D. contract workers
28. Privatization and commercialization of public enterprises in Nigeria is necessitated by
A. the IMF conditions
B. the IBRD conditions
C. the government’s loss of interest in them
D. their operational inefficiency
29. The theory of comparative advantage states that a commodity should be produced in that nation where the
A. absolute cost is least
B. absolute money cost is least
C. opportunity cost is least
D. production possibility curve increases
30. The effect of an increase in the personal income tax is to
A. raises the absolute price level
B. distort the economy
C. reduce unemployment
D. reduce the disposable income
31. An important factor hindering the rapid development of the industrial sector in Nigeria.
A. excessive demand for finished products
B. the dominance of the oil sector
C. rural-urban migration
D. inadequate infrastructure facilities
32. The demand for labour is an example of
A. competitive demand
B. derived demand
C. composite demand
D. joint demand
33. The major role of multi-national companies in the petroleum industry in Nigeria is
A. oil prospecting only
B. oil marketing only
C. the establishment of refineries
D. oil marketing prospecting
34. An important factor hindering the rapid development of the industrial sector in Nigeria.
A. excessive demand for finished products
B. the dominance of the oil sector
C. rural-urban migration
D. inadequate infrastructure facilities
35. The demand for labour is an example of
A. competitive demand
B. derived demand
C. composite demand
D. joint demand
36. The major role of multi-national companies in the petroleum industry in Nigeria is
A. oil prospecting only
B. oil marketing only
C. the establishment of refineries
D. oil marketing prospecting
37. Fixing the prices of agricultural products can be a problem because of the
A. unpredictable output of farmers
B. instability of government policies
C. activities of marketing boards
D. size of agricultural exports
38. Occupational mobility as applied to factors of production means the case by which
A. factors can be transferred from one place to another
B. factors can be transferred from one form move users to another
C. resources can be transferred from one place to another
D. resources can be transformed from one form to another
Still on Jamb Economics Questions And Answers
1. The price of a good rises from N5 to N8 and the quantity demanded falls from 200 to 190 units. Over this price range, the demand curve is
A. fairly inelastic
B. fairly elastic
C. perfectly inelastic
D. perfectly elastic
2. In economis analysis, a statement is said to be normalize if, it
A. can be tested scientifically
B. relates to value judgment
C. is contradictory
D. is incorrect
3. Utility is the satisfaction derived from
A. production
B. distribution
C. consumption
D. demand
4. If there is an increase in demand without a corresponding increase in supply, there will be
A. fall in price
B. rise in price
C. shift in supply curve to the right
D. shift in demand curve to the left
Use the production possibility curve of a country represented in the diagram below to answer questions 5 and 6
5. An improvement in technology will enable the country to produce at
A. V B. W C. X D. Z
6. If the country is currently producing at point Y, it can increase production of producer goods by moving to the point
A. v
B. W
C. X
D. Z
7. In the table above, the price of commodity y is N2 and that of x is N1 while the individual has an income of N12. Determine the combination of the two commodities the individual should consume to maximize his utility
A 3y and 3x
B. 6y and 4x
C. 3y and 6x
D. 5y and 5x
8. When two variables are positively related, the graph of the relationship
A. is a straight line
B. is a downward-sloping curve
C. is an upward sloping curve
D. has a negative intercept
9. For an inferior good, a decrease in real income lead to
A. an outward shift of the demand curve
B. an inward shift of the demand curve
C a lowed equilibrium price
D. a change in quantity demanded
10. In a planned economy the emphasis is on
A. individual choice and decisions
B. public ownership and control
C. private ownership and control
D. prices and competition
11. Price elasticity of supply is a ratio of the change in
A. quantity supplied to the c change in demand
B. original quantity to a change in new quantity
C. quantity supplied to the change in price
D. price to the change in quantity supplied.
12. the long-run average cost curve is called a planning curve because it shows what happens to costs when.
A. variable inputs are increased
B. fixed factors are increased
C. different sizes of plants are built
D. a bigger size of plants is built
13. Imperfect market is characterized by
A. many buyers and few sellers
B. a large number of buyers and sellers
C. non-preferential treatment
D. perfect mobility of factors of production
14. Short-run period in production is a period for a firm to be able to change its
A. variable inputs
B. total outputs
C. total revenue
D. scale of operation
Use the table below to answer questions 15 and 16
| Output Producedper day (unit) | Fixed Costper day (N) | Total Costper day (N) |
| 20 | 60 | 100 |
| 30 | 60 | 120 |
| 40 | 60 | 130 |
| 50 | 60 | 135 |
| 60 | 60 | 150 |
| 70 | 60 | 170 |
| 80 | 60 | 190 |
15. The ATC at 30 units of output is
A. 120.000
B.N60.00
C.N40.00
D.N3.00
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16. At 60 units of output, the AVC is
A. N150.00
B. N90.00
C.N2.50
D.N1.50
17. If the demand curve facing a frim is sharply downward sloping, the firm is likely to be
A. a perfect competitor
B. a monopolistic competitor as it can have a limited influence as it can have a limited influence on price
C. an oligopolist as it can collude with other firms to have some influence on price
18. A normal supply curve is usually positively sloped
A. because the relationship between
B. supply and price is negative
C. price and demand is negative
D. price and supply is positive
19. The best method of production in an under-populated country is
A. labour-extensive
B. land-intensive
C. capital-intensive
D. labour-intensive
20. Insurance companies, pension and provident funds and unit trusts are all examples of
A government financial agencies
B. non-govenmental organizations
C. non-bank financial institutions
D. rural-based revenue mobilisers
21. For a firm, value added can be defined as the difference between the
A. value of its output and the cost of production
B. total revenue and total cost
C. input prices and product prices
D. value of its output and inputs purchased from other firms
22. Securities are described as listed when they are:
A. bought and sold purely for development purposes
B. mobilized as short-term debt instruments
C. Mobilized as long-term debt instrument
D. Traded on a recognized stock market
23. The commercial banks differ from non-bank financial institutions because they
A. accept deposits withdrawable by cheque
B. mobilize savings
C. invest surplus plus
D. contribute to economic development
24. Inflation that is usually associated with periods of trade boom is
A. cost-push inflation
B. demand-pull inflation
C. creeping inflation
D. stagnation
25. The term “Near Money” is best described as
A. a financial assets that is convertible to cash
B. a financial instrument that is readily convertible to cash
C. government financial instrument that is convertible to cash
D. time deposits with low interest rates
More Jamb Economics Questions And Answers
26. The distinguishing characteristic between the money market and the capital market lies in whether the
A. finds mobilized are private or public
B. securities are primary or secondary
C. debt instruments provided are long-term or short-term
D. securities are in debentures of ordinary shares.
27. If Nigeria’s composite price index in 1999 was 140.03% and 144.05% in 2000, the rate of inflation in 2000 was
A. 4.02% B. 2.10% C. 2.06% D. 1.03%
28. The monetary control instrument most effectively used by the Central Bank of Nigeria is the
A. discount rate
B. reserve ration
C. margin requirements
D. open market operations
29. The major objectives of a revenue allocation formula in a country is to
A. share revenue between the public and private sectors
B. ensure the financial viability of the country
C. share revenue between the different tiers of government
D. divert revenue from areas of surplus to areas of need
30. The effectiveness of devaluation as a solution to a balance of payments problems depends on the
A. relative elasticities of demand
B. foreign investments of business
C. value of visible and invisible goods
D. value of invisible items of both domestic and foreign trades
31. IBRD as an international monetary institution is concerned with the
A. balance of payments problems of member nations
B. financing of private business in member nations
C. development of infrastucture in member nations
D. improvement of trade among member nation
32. An advantage of the sole proprietorship over the partnership form of business organization is that
A. it enjoys limited liability for debt in the event of failure
B. Its existence is limited bty an individual’s life span
C. It relies on the decision of friends to succeed
D. The possibility of conflict is management in virtually non-existent
33. The distinction between capital and recurrent expenditure lies in the
A. amount of expenditure involved
B. source of the revenue generated
C. nature of the goods and services to be provided
D. time frame of the expenditure
34. Under a floating exchange rate regime, the determinant of the exchange rate is
A. the system of government
B. demand for and supply of foreign goods
C. the highest denomination of the currency an act of the national assembly
35. To compare the standard of living among nations, the most widely used economic indicator is the
A. per capital nominal income
B. real domestic output
C. real gross national income
D. real per capital income
36. Statutory organisations usually established by Acts of parliament are called
A. public enterprises
B. public corporations
C. cooperative societies
D. joint-stock companies
37. A greater burden of the taxes on essential goods is borne by the
A. higher income group
B. newly recruitment workers
C. lower income group
D. contract workers
38. Privatization and commercialization of public enterprises in Nigeria is necessitated by
A. the IMF conditions
B. the IBRD conditions
C. the government’s loss of interest in them
D. their operational inefficiency
39. The theory of comparative advantage states that a commodity should be produced in that nation where the
A. absolute cost is least
B. absolute money cost is least
C. opportunity cost is least
D. production possibility curve increases
40. The effect of an increase in the personal income tax is to
A. raises the absolute price level
B. distort the economy
C. reduce unemployment
D. reduce the disposable income
41. An important factor hindering the rapid development of the industrial sector in Nigeria.
A. excessive demand for finished products
B. the dominance of the oil sector
C. rural-urban migration
D. inadequate infrastructure facilities
42. The demand for labour is an example of
A. competitive demand
B. derived demand
C. composite demand
D. joint demand
43. The major role of multi-national companies in the petroleum industry in Nigeria is
A. oil prospecting only
B. oil marketing only
C. the establishment of refineries
D. oil marketing prospecting
44. Fixing the prices of agricultural products can be a problem because of the
A. unpredictable output of farmers
B. instability of government policies
C. activities of marketing boards
D. size of agricultural exports
45. Occupational mobility as applied to factors of production means the case by which
A. factors can be transferred from one place to another
B. factors can be transferred from one form move use to another
C. resources can be transferred from one place to another
D. resources can be transformed from one form to another
46. The labor force of a country can be determine by examining the
A. Sex distribution of the population
B. Occupations distribution of the population
C. age structure of the population
D. geographical distribution of the population
47. Two basis features common to an industry are
A. similarity of products and production processes
B. similarity of products and source of raw materials
C. production processes and source of capital
D. source of capital and labour supply
48. A country is said to be over populated when
A. there are too many able-bodied men and women in the country
B. the resources are more than enough to cater for the population
C. the size of the population is greater than the annual budget
D. the resources are inadequate to cater for the population
49. When a union is composed of workers with same
skill, it is called
A. an industrial union
B. a workers’ union
C. a craft iunion
D. a technical union
50. An adverse environmental impact of the petroleum industry on the economy is
A. the vandalization of oil equipment
B. oil spillage
C. communal riots
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