JAMB

Economics
Past questions

Paper Type: Objective (PT. 6-10)

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 JAMB ECONOMICS PAST QUESTIONS (PT.6)

1. A country embarks on deficit 4. According to the demographic

financing in order to _____ transition theory, Africa can be
said to be at stage _____
A. reduce aggregate demand
B. increase revenue A. 2 and 3
C. stimulate investment B. 3 only
D. curb inflation C. 2 only
D. 1 and 3
2. The money market provides
business firms with the avenue to 5. The Economic Community of
_____ West African States (ECOWAS) is
an example of _____
A. purchase goods and services
B. purchase capital equipment’s A. globalization
C. obtain short- term funds B. regional marketing board
D. obtain long-term funds C. economic integration
D. economic union
3. The optimum level of output for
pure monopolist occurs where 6. Given: 32, 18, 24, 17, 16, 32,
_____ 28, 68, 71 and 15, the mode of
the distribution is _____
A. P is highest
B. P = AC A. 71
C. P = MC B. 56
D. MR = MC C. 32
D. 15

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7. The major determinant of A. be at minimum
income elasticity of demand is B. rise
_____ C. be at maximum
D. fall
A. government policy
B. the availability of substitutes 11. The demand curve for a
C. the price of the good normal good is negatively sloped
D. the level of consumer's income because _____

8. Given: 2, 4, 6, 8, 4 and 6, the A. price is an incentive to

absolute mean deviation is _____ producers
B. price is an incentive to
A. 6.00 consumers
B. 1.67 C. demand always exceeds supply
C. 30.00 D. price and quantity move in the
D. 0.60 same direction

9. The precautionary demand for 12.

money is determined by _____

A. the level of savings

B. the rate of interest
C. general price level
D. the level of income

The average total cost when 20

10. If the output of a firm
units are produced is _____
experiencing economies of scale
increases, the average cost would
A. ₦45.30kg
_____
B. ₦50.00kg
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C. ₦47.50kg C. marginal efficiency of
D. ₦5.00kg investment
D. total productivity of Labour
13. The major role of
multinational companies in the 16. The choice of how to produce
Nigerian petroleum industry is in a command economy is
_____ determined by _____

A. oil marketing only A. consumers

B. oil marketing and prospecting B. government
C. establishment of refineries C. industries
D. oil prospecting only D. labour unions

14. Life insurance companies 17. The co-efficient of price

contribute to economic elasticity of supply is _____
development by holding a part of
their assets in _____ A.
% change in supply
% change in price
% change in quantity supplied
B.
A. long-term financial instruments % change in price
% change in quantity supplied
B. equipment C.
% change in income

C. cash and near money D.

% change in quantity demanded
% change in income
D. money-market instruments

18. A change in supply of a

15. The wage rate is mostly
commodity is due to a change in
related to _____
the _____

A. marginal productivity of labour

A. price of the commodity
B. average productivity of labour
B. cost of production
C. price of substitute
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D. population growth rate. 22. The growth and development
of small and medium scale
19. In a limited liability company, enterprises in Nigeria is hampered
the greatest risk is borne by the by _____
_____
A. poor regulatory framework
A. preference shareholders B. poor access to credit facilities
B. debentures shareholders C. poor management
C. ordinary shareholders D. the small size of the market
D. board of directors
23. A major determinant of
20. A market characterized by demand is _____
absence of close substitutes of
goods and services is an example A. incentives to workers
of _____ B. level of technology
C. population
A. a monopoly D. cost of production
B. an oligopoly
C. a perfect competition 24. Which of the following can be
D. a monopolistic competition used to measure the Gross
National Product?
21. An inflation that co-exists with
high rate of unemployment is A. C+I+G-F(X+M)
_____ B. C+I+G+(X-M)
C. C+I+G+X
A. hyperinflation D. C+I+G
B. cost-push inflation
C. stagflation
D. demand-pull inflation

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25. Find the median of the D. 62.0
following set of data 35, 10, 14,
38, 15, 18, 22, 30 and 28. 27. The problem of what to
produce is determined by _____
A. 10
B. 22 A. consumption pattern
C. 38 B. the distribution pattern
D. 35 C. the state of technology
D. the volume of production
26.
28. The main function NNPC is to
Unit of output Total output _____
(Kg)
1 13 A. develop the oil producing areas
2 43 B. oversee the development of
3 123 the oil sector

4 243 C. ensure regular supply of

5 353 products

6 483 D. fix the prices of petroleum

7 563 products

8 663
29. A major feature of an

From the table above, determine underdeveloped economy is

the average product of the 5th _____

unit of capital.
A. low rate of population growth

A. 310.5 B. excess capacity utilization

B. 176.5 C. low level of unemployment

C. 70.6 D. low level of standard living

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30. A tax on land will ultimately D. reduce exports
fall _____
33. A nation's net export is
A. partly on agents and users negative when her _____
B. partly on users and owners
C. entirely on owners A. export is adjusted upwards
D. entirely on users B. external reserves deplete
C. depreciation exceeds
31. The deregulation on the investments
petroleum sector in Nigeria will D. imports exceeds exports
bring about _____
34. Given: Qd = 30 — 3P and Qs
A. efficiency in pricing and = 9P — 15, determine the
distribution of the products equilibrium price.
B. fixing appropriate production
quotas A. ₦12.00
C. an end to the importation of B. ₦3.75
fuel C. ₦2.80
D. an end to foreign firms' D. ₦3.00
dominance
35. The problem of economic
32. One of the ways of correcting development in Nigeria is that of
a deficit balance of payments is to _____
_____
A. poor weather conditions
A. devalue a country's currency B. overpopulation
B. predenominate a country's C. surplus skilled manpower
currency D. inadequate infrastructure
C. reduce imports

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36. The combination of two 39. When diminishing returns sets
commodities that yield the same in, the total variable cost begins
level of satisfaction is illustrated to _____
by _____
A. rise at an increasing rate
A. a budget line B. fall at a decreasing rate
B. an isocost curve C. rise at a decreasing rate
C. a production possibility curve D. fall at an increasing rate
D. an indifference curve
40.
37. The demand for inferior goods
is inversely related to change in Unit of output Total output
_____ (Kg)
1 13
A. income 2 43
B. price 3 123
C. supply 4 243
D. taste 5 353
6 483
38. The minimum number of 7 563
shareholders for partnership is 8 663
_____

From the table above, the

A. 7 marginal product of the 7th Unit
B. 4 of Capital is _____
C. 2
D. 3 A. 80kg
B. 100kg
C. 310kg

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D. 173kg A. 64.5
B. 42.0
41. Given: 32, 18, 24, 17, 16, 32, C. 2.4
28, 68, 71, and 15, what is the D. 30.0
range?
44. When a consumer is at
A. 26 equilibrium, The MRS x is equal to
B. 32 the _____
C. 56
D. 68 A. product of the two prices
B. sum of the two prices
42. C. ratio of the two prices
D. difference of the two prices

45. One of the major factors

militating against industrialization
in Nigeria is _____

From the diagram above, the

consumer is at equilibrium at A. low level of foreign investment

point _____ B. frequent break-down of

equipment

A. G C. inadequacy of infrastructural

B. F facilities

C. K D. government participation

D. M
46. One of the factors that is

43. If P = 1/4 (Qs + 30), what is considered in the location of a

the quantity supplied at ₦18? cement industry is nearness to

_____

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A. market A. under population
B. raw materials B. over-population
C. infrastructural facilitates C. high population density
D. skilled manpower D. optimum population

47. A problem facing the 50. One of the causes of

development of the Nigerian instability in farmers' income is
Petroleum industry in Nigeria is _____
_____
A. high level of illiteracy
A. persistent gas flaring B. unfriendly land tenure
B. instability in demand for the C. unfavourable weather condition
products D. poor management of extension
C. dominance of multinationals services
D. declining oil reserves

CHECK YOUR ANSWERS

48. At full employment level, a
contractionary monetary policy
Would you like to get or confirm
will lead to a _____
the correct answer(s) with
explanations to any or all of
A. rise in aggregate supply
these questions?
B. rise in aggregate demand
C. rise in level of inflation rate
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D. fall in the level of inflation

49. A country where the available

population is unable to guarantee
efficient utilization of available
resources is experiencing _____

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 JAMB ECONOMICS PAST QUESTIONS (PT.7)

1. If the arithmetic mean of 2, 3, 4. Scale of preference is referred

5, 8, Z, 10 and 12 is 7, what is to as the _____
the value of Z?
A. choices consumers make
A. 8 B. array of consumer's needs
B. 9 C. consumer preference for
C. 10 luxurious goods
D. 7 D. consumer wants in order of
priority
2. The most important function of
agriculture to the Nigerian 5. One of the basic assumptions
economy is _____ of monopoly is _____

A. the guarantee of food security A. perfect information of the

B. technical skill development market condition
C. technological development B. the ability to either control
D. industrial development price or output
C. perfect mobility of factors of
3. Given that Qd=15-2P and production
Qs=5+3P, determine the D. large number of buyers and
equilibrium price. sellers

A. ₦3.00 6. The major advantage of a

B. ₦5.00 public limited liability company
C. ₦2.00 over a private limited liability
D. ₦6.00 company is _____

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A. limited liability enjoyed by A. determine the exchange rate
owner B. provide the government with
B. separate legal entity statistics on the prevailing
C. easy transferability of shares interest rate
D. perpetual existence C. reveals the cost of living
D. provides the government with
7. The main activity in the statistics on present size of the
upstream oil sector in Nigeria is labour force
_____
10. If the demand for palm oil is
A. marketing of petroleum for the purpose of soap
products production and cooking, the
B. distribution of petroleum demand is said to be _____
products
C. extraction of crude oil A. competitive
D. refining of crude oil B. complementary
C. composite
8. The natural growth of D. derived
population is calculated as _____
11. The institution established to
A. birth rate + death rate enhance the activities of Nigeria's
B. labour force + dependant exports is _____
C. death rate - birth rate
D. birth rate - death rate A. Nigerian Export and Import
Bank
9. The study of age structure of a B. Import-substitution strategy
population is important because it C. Nigeria Export Promotion
_____ Council
D. Bank of Industry

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 B. rent
C. profit
D. wage

15. The type of inflation that

emanates from excess demand
over supply is _____

12. From the pie chart above, the

A. galloping inflation
percentage contribution of
B. cost-push inflation
entrepreneur is _____
C. demand-pull inflation
D. imported inflation
A. 2.77%
B. 33.33%
16. Which of the following
C. 27.70%
problems is associated with
D. 3.33%
national income measurement?

13. A sustained increase in per

A. High interest rate
capita income accompanied by an
B. Inflation and deflation
increase in output is _____
C. Overpopulation
D. population growth
A. economies of scale
B. economic efficiency
17. Freedom of consumption and
C. economic development
production are characteristics of
D. economic growth
_____

14. The reward for capita as a

A. socialism
factor of production is _____
B. feudalism
C. capitalism
A. interest
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D. communism capital if the total contribution of
all factors is _____
18. Cost of raw materials in
production is an example of ____ A. ₦12.50 million
B. ₦142.50 million
A. marginal cost C. ₦50 million
B. variable cost D. ₦7.50 million
C. total cost
D. fixed cost 21. The volume of output in an
economy is determined by _____
19. Foreign exchange control in
Nigeria is administered by the A. the foreign exchange rate
_____ B. the standard of living of
citizens
A. Money deposit banks C. population density of a country
B. Central Bank of Nigeria D. efficiency in the use of factors
C. Discount houses of production
D. Security and Exchange
Commission 22. Given Qd = 30 - 3P, Qs = 9P
– 18. Determine the equilibrium
quantity.

A. 18
B. 20
C. 25
D. 27

20. From the pie chart above,

determine the contribution of
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23. In Nigeria, industrial 27. One of the important qualities
development can be enhanced by that money must possess is ____
_____
A. heterogeneity
A. ensuring stable prices for B. easy availability
manufactured goods C. homogeneity
B. reducing government D. flexibility in value Price
expenditure on imported goods
C. providing efficient
infrastructure
D. increasing the rate of interest

25. Capital gains tax is an

example of _____

A. Value Added Tax

28. The graph above represents
B. purchase tax
_____
C. sales tax
D. income tax
A. a decrease in quality supplied
B. an increase in supply
26. Which of the following is NOT
C. an increase in quantity
a source of government revenue?
supplied
D. a decrease in supply Wages
A. Taxes, fees, licenses and fines
B. Interest, dividends, profits and
earnings
C. Personal income, disposable
income and transfer earnings
D. Grants, aids and borrowing

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29. From the diagram above, the B. 0.30
arrow marked M indicates _____ C. 0.33
D. 0.04
A. payments made for foods and
services 32. One of the functions of money
B. payments made to factors of deposit banks in economic
production development is _____
C. the flow of capital goods
D. the flow of economics rent A. that it is banker to the
government
30. A change in the quantity B. the provision of credits facilities
supplied of a commodity is C. the formulation of monetary
influenced by _____ policies
D. issuing of currency notes
A. the price of substitutes
B. the price of the commodity 33. One of the arguments against
C. consumer's tastes the practice of monopoly is _____
D. technological know-how
A. merging of producers
31. B. competition
Price (₦) Quantity C. exploitation
Demanded D. non-government ownership
6 20
5 16 34. The main reason why
countries engaged in international
From the table above, calculate trade is the _____
the elasticity of demand.
A. opportunity to earn high profit
A. 0.03 in trading

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B. use of capital-intensive method 36.
of productions Quantity Total Marginal
C. difference in their endowment consumed Utility utility
of economic resources 0 0 --
D. difference in the population 1 10 10
structure 2 15 5
3 17 2
35. 4 18 1
Cup of Total Marginal 5 18 0
milk taken utility utility
1 18 18 From the table above, it can be
2 24 6 inferred that there is _____
3 29 5
4 X 3 A. diminishing returns to scale
5 34 2 B. excess of demand
6 35 1 C. diminishing marginal utility
7 35 0 D. diminishing marginal
productivity
From the table above, what is the
value X? 37. A well conducted census is
important for _____
A. 32
B. 35 A. economic planning
C. 34 B. providing economic
D. 30 opportunities in the rural areas
C. distribution of educational
materials in the cities
D. revenue generation

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38. The cost-saving advantages B. finance private businesses in
which a large firm can achieve on member nations
its own is called _____ C. facilitate the development of
infrastructure in member nations
A. internal economies of scale D. solve the problem of balance of
B. diseconomies of large scale payments of member nations
C. external diseconomies of scale
D. external economies of scale CHECK YOUR ANSWERS

39. A country uses the foreign

Would you like to get or confirm
exchange control measure to
the correct answer(s) with
eliminate balance of payments
explanations to any or all of
deficit by _____
these questions?

A. limiting her imports to its

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currency value of exports
B. limiting her exports to its
currency value of imports
C. overvaluing the country's
currency
D. reducing the nation's domestic
price level

40. The role of IBRD as an

international institution is to
_____

A. improve trading among

member nations

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 JAMB ECONOMICS PAST QUESTIONS (PT.8)

1. Occupational distribution of 4. Mortgage banks give loans to

population is mainly influenced by investors on a long- term basis to
_____ _____

A. economic factors A. finance agriculture

B. religious factors B. establish banks
C. geographical factors C. acquire machinery
D. social factors D. build houses

2. The reward for capital is _____ 5. In a capitalist economy, factors

of production are owned and
A. interest controlled by the _____
B. rent
C. risk A. citizens
D. premium B. businessmen
C. government
3. The reduction in the value of a D. foreigners
country's currency in relation to
the value of the currencies of 6. The establishment of industries
other nations is known as _____ in rural areas will help to reduce
_____
A. deflation
B. inflation A. urban-rural migration
C. devaluation B. rural-urban migration
D. revaluation C. rural-rural migration
D. urban-urban migration

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7. International trade is an 10. The Economic Community of
application of the principle of West African States (ECOWAS)
_____ has been slow in achieving its
objectives because of _____
A. industrial production
B. mass production A. the activities of multinationals
C. regional production B. inadequate personnel at the
D. comparative cost advantage secretariat
C. political instability
8. The number of people who are D. inadequate international
qualified to work and who offer support
themselves for employment is
called _____ 11. Joint ventures are partnership
involving _____
A. migrant labour
B. working population A. the poor and the rich
C. labour turnover B. employers and workers
D. mobility of labour C. government and private
investors
9. Which of the following is an D. multinationals and individuals
advantage of localisation of
industry? 12. In which of the following
business units are the owners
A. Development of subsidiary mostly the customers?
firms
B. creation of parallel markets A. co-operatives
C. Development of slums B. limited liability companies
D. Attraction of foreign capital C. partnership
D. public corporations

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13. The formula
index of export prices
× 15. Which of the following is an
index of import prices
invisible item?
100, is used to measure the
_____
A. Petroleum services
B. Processed rice
A. volume of trade between
C. Processed milk
countries
D. Banking services
B. direction of international trade
C. commodity terms of trade
16. The full meaning of OPEC is
D. volume of imports
_____

Use the table below to answer

A. Oil and Petroleum Exporting
question 14.
Countries
B. Original Petroleum Exporting
Products Ghana Sierra
Countries
Leone
C. Organisation of Petrol
Coffee 8 tonnes 2 tonnes
Exporting Countries
Cocoa 7 tonnes 9 tonnes
D. Organisation of Petroleum
Exporting Countries
14. If specialisation should take
place, then _____
17. The main concern of
economists is to _____
A. Ghana should produce coffee
and cocoa
A. control the growth of
B. Ghana would benefit by
population
producing cocoa only
B. redistribute income between
C. Sierra Leone should not
the rich and the poor
produce any of the products
C. satisfy all human wants
D. Sierra Leone should produce
cocoa and Ghana coffee
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D. allocate scarce resources to C. composite demand
satisfy human wants D. independent demand

18. Productive resources can also 21. The population density of a

be called _____ town made up of 50 square
kilometre land area and 100
A. principles of production million people is _____
B. factors of production
C. items of production A. 50,000 people per square
D. labour and materials resource kilometre
B. 0.2 million people per square
19. The study of Economics kilometre
becomes necessary because of C. 0.5 million people per square
the _____ kilometre
D. 20 million people per square
A. large population size of the kilometre
world
B. scarcity of resources Use the table below to answer
C. opportunity cost of goods and question 22 and 23.
services
D. need to satisfy every desire of X 2 3 4 5
man F 2 5 2 1

20. The type of demand that 22. From the table, the mean of
exists between torchlight and the distribution is _____
battery is _____
A. 2.2
A. competitive demand B. 2.5
B. complementary demand C. 3.2

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D. 4.5

23. What is the median of the

distribution?

A. 5
B. 4
C. 3
D. 2

24. Human wants are insatiable 25. If the budget of the country
because wants are _____ was $7,200.00, how much is
allocated to education?
A. limited while means are scarce
B. unlimited and means are also A. $2,400.00
unlimited B. $2,000.00
C. limited and means are also C. $200.00
limited D. $1,000.00
D. unlimited while means are
scarce 26. What is the ratio of
expenditure on health to
A country's budget allocation Agriculture?
to various sectors of the
economy is shown in the pie A. 2:3
chart below. Use it to answer B. 3:4
question 25 and 26 C. 4:3
D. 5:4

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27. Which of the following items is 30. Efficiency of labour in a
not an example of circulating country is determined by the
capital? following except the _____

A. Raw material A. social attitude to work

B. Money B. education and training
C. Fuel C. total population
D. Machinery D. working conditions of workers

28. The principle of comparative 31. The diagram below represents

cost advantage was propounded a production function. At which of
by _____ the points does diminishing
returns set in?
A. David Ricardo
B. Alfred Marshal
C. J.S. Mill
D. Adam Smith

29. The rate at which a country's

exports is exchanged for her
imports is _____

A. R
A. trade balance B. S
B. balance of payments C. T
C. terms of trade D. V
D. balance of currency account

32. Taxes and government

expenditures are instruments of
_____

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A. monetary policy A. UNO
B. tax policy B. ECOWAS
C. economic policy C. OAU
D. fiscal policy D. IMF

33. A situation in which a Use the histogram below to

commodity is sold abroad below answer question 36 and 37.
its cost of production in the home
country is known as _____

A. dumping
B. counter trade
C. bilateral trade
D. trade liberalisation

34. The Family Support 36. If the pass mark was 40, how

Programme in Nigeria essentially many students passed the

focuses on _____ examination?

A. the generation of employment A. 100

B. the alleviation of poverty B. 120

C. agricultural and industrial C. 160

development D. 200

D. economic emancipation of
women 37. How many students took the
examination?

35. The Economic Commission for

Africa was set up by the _____ A. 280
B. 240

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C. 200 C. share revenue between the
D. 80 different tiers of government
D. divert revenue from areas of
38. Utility is the satisfaction surplus to areas of needs
derived from _____

CHECK YOUR ANSWERS

A. production
B. distribution
Would you like to get or confirm
C. consumption
the correct answer(s) with
D. demand
explanations to any or all of
these questions?
39. When a union is composed of
workers with the same skill it is
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called _____

A. an industrial union
B. a workers' union
C. a craft union
D. a technical union

40. The major objective, 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

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 JAMB ECONOMICS PAST QUESTIONS (PT.9)

1. A major assumption in a 3. The Nigerian Bank for

perfectly competitive market is Commerce and Industry is _____
that _____
A. a commercial bank
A. the number of buyers and B. a development bank
sellers is small C. an industrial bank
B. individuals cannot influence D. a merchant bank
prices
C. the quality of products remain 4. In a public company, shares
the same are _____
D. prices will always remain
constant A. sold to one person only
B. distributed freely
2. The price index computed C. advertised to members of the
between two term periods is public for subscription
given as 128%. This implies that D. disposed of by the Chief
the _____ Executive

A. disposable incomes have 5. Which of the following is used

increased by 28% by the Central Bank to control the
B. living standards have fallen by rate of interest?
128%
C. living standards have risen by A. Bill of Exchange
128% B. Banker's order
D. living standards have risen by C. Fixed deposit account
28% D. Open market operation

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6. Given that the cash reserve C. total tax and interest payments
ratio is 10 percent, what is the D. net income from abroad
maximum amount of money that
the banking system can create 9. A nation's distribution of
from an initial cash deposit of income shows _____
₦100.00?
A. the value of all goods produced
A. ₦100.00 in the economy
B. ₦1,000.00 B. how income is divided among
C. ₦9,000.00 different groups
D. ₦10,000.00 C. where the economy system is
on its production possibility curve
7. Which of the following D. the consumption behaviour of
strategies will provide more the people
employment opportunities for
Nigerians? 10. The study of the economic
behaviour of individual decision-
A. Investment in social services making units (consumers,
B. Industrialisation resources owners and business
C. Economic planning firms) in a free-enterprises
D. Eradication of poverty economy is known as _____

8. The difference between the A. micro economic

Gross Domestic Product and the B. macro economics
Gross National Product is the C. production
_____ D. indifference curve

A. Allowance for total depreciation 11. Market is defined as _____

B. total interest payments

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A. one geographical location A. 10.20
where people meet to buy and B. 3.57
sell C. 1.25
B. the demand and supply of D. 0.80
goods and services
C. a group of people whose sole 14. What form of market is found
interest is to make profit in an imperfect competition where
D. any organisational framework there are few buyers and many
which links the buyers and sellers sellers?
of a good or service
A. Oligopoly
12. A shift in the demand curve B. Monopoly
for a commodity when the supply C. Duopoly
curve is vertical will lead to a D. Oligopsony
change in the _____
15. The main reason for charging
A. price only interest is to _____
B. quantity only
C. quality only A. reward entrepreneurial effort
D. price and quantity B. redistribute profits
C. reward investors for present
13. Given an original price of use of capital
₦3.50 per kilogram of rice and a D. mobilise more funds for
change in price of ₦1.40, and development
given the quantity purchased at
the old price as 10kg and a 16. In the Keynesian model,
change in supply as 5kg after the _____
price change, the elasticity is
_____

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A. the demand for money is C. deficit
inversely related to the rate of D. inflationary
interest
B. investment is directly related 19. Ad valorem tax means _____
to the rate of interest
C. investment is not related to the A. a certain percentage tax based
rate of interest on the value of the commodity
D. the demand for money is B. a certain percentage tax based
directly related to the rate of on the volume of the commodity
interest C. a tax on the income of the
consumer
17. If inflation is anticipated to D. payment of a tax on the profits
continue, _____ made

A. people will lose confidence in 20. Which of the following applies

goods to a commodity sold abroad at a
B. Lenders will demand higher price lower than that in the
interest rates producing country?
C. the growth of full employment
output will be accelerated A. Dumping
D. people will want to hold more B. Countertrade
money C. Bilateral trade
D. Trade liberalisation
18. A budget with a projected
revenue in excess of its 21. Economic development is
expenditure is said to be _____ defined as _____

A. balance A. positive change plus growth

B. surplus

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B. availability of more goods and B. increase its liabilities to
services foreigners
C. outward shift of the production C. reduce its foreign exchange
possibility curve reserves
D. growth in the national income D. devalue its national currency.

22. Price leadership is _____ 25.

Price of X
A. a form of tacit collusion
B. used to explain price rigidity
C. illegal in Nigeria
D. a form of overt collusion

O
23. Restriction on credit creation Quantity demanded of Y

by commercial banks can be

effective through _____ If the curve above shows the
relationship between the price of
A. an overdraft commodity X and the quantity
B. loans and advances demanded of commodity Y, then
C. demand deposits X and Y are _____
D. liquidity ratio
A. complementary goods
24. When a nation is experiencing B. substitutes
a balance of payment surplus, it is C. inferior goods
in a better position to _____ D. luxury goods

A. increase its foreign exchange 26. A perfect example of a public

reserves good is _____

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A. air A. limiting her imports to its
B. education currency value of exports
C. defence B. reducing the nation's domestic
D. transport price level
C. limiting her exports to its
27. currency value of imports
D. overvaluing the country's
ITEM AMOUNT
currency
(Million naira)

Visible exports 55.54 29. A sustained increase in the

Visible imports 53.32 per capita income of a country
Invisible exports 30.56 over a period of time is called
Invisible imports 28.70 _____

BALANCE 4.08 A. economic growth

B. economic development
The amount, N4.08 million, shown C. structural change
as balance in the table represents D. stagflation
_____
30. Economies of scale operate
A. terms of payments only when _____
B. balance on current accounts
C. balance of trade A. marginal cost is falling with
D. terms of trade input
B. average cost is falling with
28. By using exchange controls, a output
country tries to eliminate a C. fixed cost is variable
balance of payments deficit by D. variable cost is less than fixed
_____ cost

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 31. If the same same basket of to a progressive tax is shown by
goods which cost ₦12.00 in 1985 _____
cost ₦15.00 in 1987, the price
index for 1987 is _____ A. curve X
B. curve Y
A. 25 C. curve Z
B. 80 D. curves X and Z
C. 10
D. 125 34. The relationship between tax
rate and income which is relevant
32. Which of the following is likely to a proportional tax is depicted
to be inflationary? by _____

A. Tax increase A. curves Z and Y

B. Increase in unemployment B. curve X
C. Budget surplus C. curve Z
D. Wages increase D. curve Y

Use the figure below to 35. Firms are often set up close to
answer questions 33 and 34. each other in order to take
advantage of _____

Y
Z
A. supply of skilled labour
B. agglomeration economies
Tax rate

C. internal economies of scale

X D. external economies of scale
Income

33. The relationship between tax 36. The necessity of choice is due
rate and income which is relevant to the fact that _____

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A. human wants are insatiable B. guaranteed money
B. consumers like to maximise C. seigniorage
satisfaction D. legal tender
C. resources are abundant
D. consumers are selective 40. The Economic Commision for
Africa was set up by the _____
37. A company's expenditure on
raw materials is regarded as A. UNO
_____ B. ECOWAS
C. OAU
A. explicit cost D. IMF
B. implicit cost
C. prime cost CHECK YOUR ANSWERS
D. average cost

Would you like to get or confirm

38. Labour productivity is the
the correct answer(s) with
ratio of _____
explanations to any or all of
these questions?
A. labour output
B. man-hours to output
Download it NOW!
C. output to man-hours
D. average product to man-hours

39. An issue of bank-notes not

backed by gold but by
government securities is known
as _____

A. fiduciary issue

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 JAMB ECONOMICS PAST QUESTIONS (PT.10)

1. Scarcity in Economics means B. Export and imports.

that _____ C. Merchandise.
D. Bullion.
A. human wants are limitless.
B. the economy has very few 4. A major factor affecting the
resources. value of money is the _____
C. the economy can scarcely
produce anything. A. price level.
D. resources are limited in B. banking habits.
relation to wants. C. transaction motive.
D. divisible nature of money.
2. Economics is often described as
a science because _____ 5. The Nigerian Bank for
Commerce and Industry is _____
A. laboratory experiments are
performed. A. a commercial bank.
B. it makes use of controlled B. a development bank.
experiments. C. an industrial bank.
C. it uses scientific methods to D. a merchant bank.
explain observed phenomena and
predict future events. 6 To control inflation, the
D. it makes use of field work. monetary authorities of a country
can _____
3. Which of the following is a
good example of invisible item on A. reduce taxes.
balance of payments account? B. advise government to increase
its expenditure.
A. Shipping and aviation.

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C. engage in expansive monetary B. surplus.
policy. C. deficit.
D. engage in restrictive monetary D. inflationary.
policy.
10. In order to raise more
7. Which of the following is used revenue for a certain period,
by the Central Bank to control the government should impose higher
rate of interest? taxes on goods whose demand is
_____
A. Bill of exchange.
B Banker's order. A. elastic.
C. Fixed deposit account. B. inelastic.
D. Open market operation. C. perfectly elastic.
D. unitary elastic
8. What form of market is found
in an imperfect competition where 11. If aggregate income is
there are few buyers and many ₦500.00 and aggregate
sellers? consumption is ₦400.00, this
means that the average
A. Oligopoly propensity to consume is _____
B. Monopoly.
C. Duopoly. A. 0.20
D. Oligopoly. B. 0.80
C. 1.25
9. A budget with a projected D. 2.00
revenue in excess of its
expenditure is said to be _____ 12. The group of unemployed
members of a community, who
A. balanced. are physically handicapped or

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disabled, is generally classified 15. In economic life, choice
under unemployment as _____ among alternatives depends on
the _____
A. frictional.
B. cyclical. A income of the decision maker.
B. residual. B. scarcity of resources.
D. hidden. C. scale of preference of the
decision maker.
13. Collectivism refers to the D. status of the decision maker.
system of management of state
enterprises in a _____ 16. The law of diminishing
marginal utility indicates that if a
A. mixed economy. consumer increases his
B. co-operative organisation. consumption of a commodity
C. capitalist economic system. continuously, his _____
D. socialist economy.
A. total utility must fall.
14. Efficiency in production B. marginal utility must fall.
involves _____ C. marginal utility may rise even
though his total utility is falling.
A. reducing the size of the work D. marginal utility may fall even
force though his total utility may be
B. producing a given output with rising.
the lowest cost combination of
factors of production. 17. Which of the following
C. adoption of capital intensive rewards is associated with
technology. entrepreneurship as a factor of
D. increasing the quantity of the production?
fixed factors of production.

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 A. Salaries C. curve Z.
B. Profits D. curves X and Z.
C. Interests
D. Rent 20. The relationship between tax
rate and income which is relevant
18. Which of the following is likely to a proportional tax is depicted
to be inflationary? by _____

A. Tax increase A. curves Z and Y.

B. Increase in unemployment B. curve X.
C. Budget surplus C. curve Z.
D. Wages increase D. curve Y.

Use the diagram below to 21. Fiduciary issue is that part of

answer questions 19 and 20. _____

Y A. the issue of notes backed

Z
entirely by gold.
B. a country's currency which is
Tax rate

not negotiable.
X C. the issue of notes not backed
Income
by gold.
19. The relationship between tax D. a country's currency officially
rate and income which is relevant issued.
to a progressive tax is shown by
_____ 22. The type of business finance
that entitles the holder to a fixed
A. curve X. rate of dividend is _____
B. curve Y.

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A. preference stock. B. counter trade.
B. common stock. C. bilateral trade.
C. debenture. D. trade liberalisation.
D. bank loan.
26. The problems of conducting
23. Firms are often set up close to census include _____
each other in order to take
advantage of _____ A. high rate of rural-urban
migration.
A. supply of skilled labour. B. poor geographical distribution
B. agglomeration economies. C. high birth rate in the country.
C. internal economies of scale. D. poor town planning in urban
D. external economies of scale. areas.

24. A company's expenditure on 27. The factor of production that

raw materials is regarded as has the highest degree of mobility
_____ is _____

A. explicit cost. A. land.

B. implicit cost B. labour.
C. prime cost. C. capital.
D. average cost. D. entrepreneurship.

25. A situation in which a 28. In recent times, agriculture in

commodity is sold abroad below Nigeria tends to lose its vital
its cost of production in the home labour force as a result of _____
country is known as _____
A, lack of an effective agricultural
A. dumping. policy.

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B. employment opportunities in 31. Plywood industries are often
the oil sector. located near the source of _____
C. rural-urban drift.
D. low prices of agricultural A finance.
products. B. labour.
C. power supply.
29. The most important goal of D. raw material.
OPEC is to _____
32. The most important attribute
A. present a united front for the of money is _____
purpose of raising prices of crude
oil. A. homogeneity.
B. bring unity among the B. relative scarcity.
petroleum exporting countries. C. divisibility.
C. ensure political stability among D. general acceptability.
member states.
D. ensure that rules on quota 33. The use of legally permissible
production are strictly followed. means to reduce tax liabilities is
known as tax _____
30. When a country's population
is experiencing increasing returns, A. evasion.
that country is said to be _____ B. avoidance.
C. relief.
A. overpopulated. D. exemption.
B. economically poor.
C. over-producing goods and 34. The Economic Commission for
services. Africa was set up by the _____
D. under-populated.
A. UNO.

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B. ECOWAS. 38. One of the major criticisms of
C. OAU. the 1962-1968 National
D. IMF. Development Plan was that _____

35. One of the techniques of A. it failed to incorporate lessons

monetary control used by the gained from earlier plans to
Central Bank of Nigeria is _____ enhance its efficiency.
B. it came too quick after the
A. selective credit control. country's independence.
B. budget deficit. C. planned expenditure was based
C. foreign exchange control. too heavily on expected earnings
D. monitoring the general price from crude oil.
level. D. its execution was based largely
on foreign-sourced financial
36. Crude petroleum is a good resources.
example of a _____
39. Utility is the satisfaction
A. lasting asset. derived from _____
B. wasting asset.
C. synthetic product. A. production.
D. costless resource. B. distribution.
C. consumption.
37. A major effect of a long D. demand.
distribution chain is _____
40. Economic growth is different
A. scarcity of commodities. from economic development
B. high retail prices. because economic growth _____
C. low retail prices.
D. low producer earnings.

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A. describes expansion and
change.
B. is measurable but not
objective.
C. describes expansion and not
change.
D. is not measurable objective.

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 DISCLAIMER

These are not JAMB expo questions for this year,

but past questions of previous years.

You are advised to study these past questions

and know their correct answers as well as how

the answer to each question was gotten to be

well-prepared for your JAMB exam.

Speaking of which,

Would you like to download this JAMB Economics

past questions & answers with step-by-step

explanation for each correct answer?

Click on the link below...

www.examministry.com