2015 JAMB Economics Past Questions & Answers

Question 1

Which of the following are examples of transfer payment

Accepted Answer

A. gift and donations

Answer

B. rents and rates

Answer

C. profit and dividends

Answer

D. internal and external debts

Question 2

The tax levied on locally produced goods is

Accepted Answer

B. excise duty

Answer

A. import duty

Answer

C. company tax

Answer

D. value added tax

Question 3

The income elasticity of demand of normal goods is

Accepted Answer

B. positive

Answer

A. negative

Answer

C. zero

Answer

D. fixed

Question 4

The term of trade can be expressed as

Accepted Answer

C. (Price index of export ÷ Price index of import)× 100

Answer

A. (Price index of export ÷ Price index of export)× 100

Answer

B. (price index of import ÷ price index of export) × 100

Answer

D. (Price index of export + Price index of import)× 100

Question 5

Which of the following is not a type of unemployment

Accepted Answer

A. factory unemployment

Answer

B. structural unemployment

Answer

C. mass unemployment

Answer

D. frictional unemployment

Question 6

$\begin{array}{c|c} \text{Units of labour} & \text{Fixed capital} & \text{Total product} & \text{Average product} & \text{Marginal product} \\ \hline 0 & 10 & - & - & - \\ \hline 1 & 10 & 10 & 10 & 10 \\ \hline 2 & 10 & 25 & ? & 15 \\ \hline 3 & 10 & 50 & 16.7 & 25 \\ \hline 4 & 10 & 80 & 20.0 & 30 \\ \hline 5 & 10 & 106 & 21.2 & 26 \\ \end{array}$ Calculate the average product when the 2nd labour was employed 12.5

A.12.5
B.12
C.15
D.10

Show answer

Answer: A. 12.5

Get a step-by-step AI explanation in the app Get a step-by-step AI explanation in the app

Accepted Answer

A. 12.5

Answer

B. 12

Answer

C. 15

Answer

D. 10

Question 7

A major limiting factor of mass production is

Accepted Answer

C. small size of the market

Answer

A. efficient management

Answer

B. adequate labour supply

Answer

D. adequate supply of raw materials

Question 8

The curve labeled II illustrates a system of taxation

Accepted Answer

C. value added

Answer

A. proportional tax

Answer

B. regressive tax

Answer

D. progressive tax

Question 9

The ordinalist approach of utility postulated that utility can be

Accepted Answer

A. Rank

Answer

B. Measurable

Answer

C. Rise

Answer

D. Fall

Question 10

Which of the following business units can issue shares?

Accepted Answer

B. Public limited liability company

Answer

A. Partnership

Answer

C. Sole proprietorship

Answer

D. Central bank

Question 11

In which of the following economic systems do we have the means of production and exchange controlled by private individuals

Accepted Answer

C. capitalist system

Answer

A. socialist system

Answer

B. mixed system

Answer

D. traditional system

Question 12

The relationship between the cost of living and standard of living is

Accepted Answer

B. A lower cost of living give a higher standard of living

Answer

A. A rise in cost of living gives a corresponding rise in standard of living

Answer

C. A lower cost of living give a lower standard of living

Answer

D. None of the above

Question 13

A line in commodity space which shows the constraints imposed by his budget, his money income and the price of goods purchased is

Accepted Answer

C. Budget line

Answer

A. supply curve

Answer

B. liquidity preference

Answer

D. demand curve

Question 14

In which situation is it likely that the demand for labour would be inelastic?

Accepted Answer

B. Labour costs are only a small proportion of total costs

Answer

A. Labour and capital are close substitutes

Answer

C. Demand for the final product that the labour produces is elastic

Answer

D. A large quantity of unemployed labour is available in the economy

Question 15

What does the accelerator principles state?

Accepted Answer

C. Investment is a function of the rate of change of income

Answer

A. Consumption is a function of the rate of change of income

Answer

B. income is a function of the rate of change of investment

Answer

D. Investment is a function of the rate of interest

Question 16

A monopolist has the power to influence the prices of goods and services. Therefore, he is a

Accepted Answer

A. price maker

Answer

B. price taker

Answer

C. price system

Answer

D. price competition

Question 17

$\begin{array}{c|c} \text{Units of quantity} & \text{Total utility} & \text{Marginal utility} \ \hline 0 & - & - \ \hline 1 & 10 & 10 \ \hline 2 & 15 & 5 \ \hline 3 & 17 & 2 \ \hline 4 & 18 & 1 \ \hline 5 & 18 & 0 \ \end{array}$ The table illustrate the law of

Accepted Answer

C. diminishing marginal utility

Answer

A. admonishing returns

Answer

B. increasing returns

Answer

D. increasing marginal utility

Question 18

All the following are factors that would bring about a change in supply except

Accepted Answer

D. Price of the commodity

Answer

A. level of technology

Answer

B. government policy

Answer

C. Entry of new firms

Question 19

The practice of selling goods overseas and often below the cost of production is known as

Accepted Answer

B. dumping

Answer

A. retailing

Answer

C. internal trade

Answer

D. advertising

Question 20

In a situation where Mux represent the marginal utility of product X while Px represent the price respectively. Utility can be maximized when

Accepted Answer

B. MUX = PX

Answer

A. MUX = MUA

Answer

C. PX = X

Answer

D. PX = PY

Question 21

The financial institution known as a building society is

Accepted Answer

C. mortgage bank

Answer

A. commercial bank

Answer

B. central bank

Answer

D. development bank

Question 22

The curve labeled III illustrate a system of taxation

Accepted Answer

D. proportional tax

Answer

A. regressive tax

Answer

B. progressive tax

Answer

C. value added tax

Question 23

In a situation when a firm is operating in a perfectly competitive firm and the total cost is given perfectly competitive firm and the total cost is given as N75.00. If the market price is N7.00 determine the profit. When 25 units are produced

Accepted Answer

B. N100

Answer

A. N75.00

Answer

C. N175.00

Answer

D. N125.00

Question 24

Petroleum has the following positive contributions to the Nigerian economy except

Accepted Answer

C. development of mono economy

Answer

A. Generate employment

Answer

B. Source of government revenue

Answer

D. Infrastructure development

Question 25

All the following are problems identified with agriculture in West Africa except

Accepted Answer

D. provision of food for the teeming population

Answer

A. land tenure system

Answer

B. ignorance of the farmers

Answer

C. use of crude implement

Question 26

The combination of two commodities each yielding the same level of satisfaction to the consumer is

Accepted Answer

B. indifference curve

Answer

A. consumer surplus

Answer

C. budget constant

Answer

D. goods of necessity

Question 27

The headquarter of the Organization Of Petroleum Exporting Countries (OPEC) is in

Accepted Answer

D. Vienna, Austria

Answer

A. Paris, France

Answer

B. Geneva, Switzerland

Answer

C. Lagos, Nigeria

Question 28

A smaller industry that grows to cater for the need of the major industry is

Accepted Answer

A. subsidiary industry

Answer

B. constructive industry

Answer

C. manufacturing industry

Answer

D. infant industry

Question 29

Mr. Patrick’s income is N900 while that of Mr. Shodawe is N1,300. if Mr. Patrick and Shodawe pay N90 and N130 as taxes, the tax system is

Accepted Answer

D. Proportional

Answer

A. Direct

Answer

B. Progressive

Answer

C. Regressive

Question 30

The source of all economic problems arises from

Accepted Answer

B. Scarcity

Answer

A. wants

Answer

C. Opportunity Cost

Answer

D. Scale of Preference

Question 31

How can a firm benefit from external economies?

Accepted Answer

C. Locating in an area in which the industry is already established

Answer

A. Increasing its expenditure on advertising

Answer

B. Increasing the workforce

Answer

D. Merging with another domestic firm engaged in the same industry

Question 32

The quantity theory of money states that a reduction in the quantity of money in circulation would bring about

Accepted Answer

D. A proportionate fall in price

Answer

A. A constant change in price

Answer

B. A rise in prices

Answer

C. An unequal fall in prices

Question 33

What will increase the likelihood that the firms in an industry will conclude to maximize their joint profit?

Accepted Answer

D. There are significant barriers to prevent firms entering the market

Answer

A. The industry has many differentiated products

Answer

B. The industry is characterized by rapid technological change

Answer

C. The industry consist of large number of producers

Question 34

Which of the following will shift the demand curve for Bournvita to the right

Accepted Answer

B. an increase in income

Answer

A. a rise in price of Bournvita

Answer

C. a tax on cocoa producer

Answer

D. a fall in price of Bournvita

Question 35

What would be likely to increase inflation in any economy?

Accepted Answer

A. Increase in demand

Answer

B. Reduce public spending

Answer

C. Control excessive import

Answer

D. Increase in direct tax

Question 36

The law of variable proportions is also known as

Accepted Answer

B. law of diminishing returns

Answer

A. law of demand

Answer

C. law of diminishing marginal utility

Answer

D. law of returns to scale

Question 37

All the following are the canons of taxation given by Adam Smith except

Accepted Answer

A. objective

Answer

B. economy

Answer

C. convenience

Answer

D. certainty

Question 38

The information that rank a consumer preferences is given by

Accepted Answer

B. Indifference map

Answer

A. Scale of preference

Answer

C. Demand schedule

Answer

D. Supply schedule

Question 39

The technical relationship between the physical inputs and the physical outputs of a firm is

Accepted Answer

D. Production function

Answer

A. Utility

Answer

B. Cost

Answer

C. Demand

Question 40

Disposable income is total income

Accepted Answer

A. less tax

Answer

B. divided by tax

Answer

C. plus tax

Answer

D. multiplied by tax

Question 41

The demand and supply functions of commodity x are given as follows: Qd = 20- 2p, Qs = 6p - 12 where p = price, Qd = quantity demanded and Qs = quantity supplied. Determine the equilibrium price

Accepted Answer

A. N4

Answer

B. N8

Answer

C. N2

Answer

D. N10

Question 42

Census can be classified as

Accepted Answer

A. defacto and dejure

Answer

B. increasing and decreasing

Answer

C. over and under

Answer

D. optimum

Question 43

The concentration of industries in a particular geographical area is

Accepted Answer

A. localization of industries

Answer

B. roles of industrialization

Answer

C. location of industry

Answer

D. strategies of industrialization

Question 44

A firm that charges the maximum price without attracting competition from new entrants is

Accepted Answer

C. Monopolistic firm

Answer

A. Oil firms

Answer

B. Monopolistic competitive firm

Answer

D. Perfectly competitive firm

Question 45

What would encourage the growth of international division of labour?

Accepted Answer

A. Improvement in transport system

Answer

B. Instability in international exchange rate

Answer

C. Restrictions on the movement of resources

Answer

D. increase in tariff

Question 46

The study of broad economic aggregates is

Accepted Answer

A. Macro economics

Answer

B. deductive method of economic analysis

Answer

C. micro economics

Answer

D. Inductive method of economics analysis

Question 47

The following equations relate to an open economy with a government sector. E = aggregate expenditure on domestically produced goods, C = Consumption, I = Investment, G = Government expenditure, T = taxes, M = imports, X = Exports. Which equation is correct

Accepted Answer

C. E = C + I + G + X – M

Answer

A. E = C + I + G

Answer

B. E = C + I + G + M – X

Answer

D. E = C + I + G – T + M – X

Question 48

A market will be at equilibrium when

Accepted Answer

A. demand and supply are equal

Answer

B. demand is greater than supply

Answer

C. price is higher

Answer

D. supply is greater than demand

Question 49

The total stock of money available for use in an economy is

Accepted Answer

A. supply of money

Answer

B. value of money

Answer

C. demand for money

Answer

D. attribute of money

Question 50

Revenue can be expressed as

Accepted Answer

C. total money realized from sales

Answer

A. total Profit made after sales

Answer

B. amount of goods produced

Answer

D. amount spent on purchases

Question 51

A commercial bank can create money by

Accepted Answer

D. lending to borrowers

Answer

A. issuing currency

Answer

B. increasing cash ratio

Answer

C. issuing cheque

Question 52

Find the range in the following data 9, 15, 6, 20, 24, 18, 12, 8, 20, 10, 5.

Accepted Answer

C. 19

Answer

A. 24

Answer

B. 5

Answer

D. 12

Question 53

The theory of comparative cost advantage is associated with

Accepted Answer

D. David Ricardo

Answer

A. Adam Smith

Answer

B. Reverend Thomas Malthus

Answer

C. Professor trum fisher

Question 54

All the following are properties of an indifference curves except

Accepted Answer

A. it can intersect

Answer

B. it slopes downward from left to right like that of a normal demand curve

Answer

C. as it shift rightward it indicate higher and higher level of satisfaction

Answer

D. it does not intersect

Question 55

The situation whereby the government of a country spends more than its budgets for a given financial year is known as

Accepted Answer

B. deficit budget

Answer

A. surplus budget

Answer

C. balanced budget

Answer

D. minus budget

Question 56

Isocost and isoquant can be attributed to

Accepted Answer

C. Theory of production

Answer

A. Theory of consumer behaviour

Answer

B. Theory of cost

Answer

D. Theory of value

Question 57

The frequent value that occurs most in a data is

Accepted Answer

C. mode

Answer

A. median

Answer

B. mean

Answer

D. range

Question 58

Given that the prices and quantities supplied in litres of petrol is expressed as Qs = 25 + 0.25P. Qs is the quantity supplied and P is the price. Determine the quantity supplied when the price per liter is N30

Accepted Answer

B. 32.5litres

Answer

A. 50litres

Answer

C. 30litres

Answer

D. 35litres

Question 59

If the quantity supplied of a commodity increases from 20 to 30 units when there is an increase in price from N4 to N5, the elasticity of supply is

Accepted Answer

C. 2

Answer

A. 4

Answer

B. 1

Answer

D. 5

Question 60

When elasticity is zero, demand curve is

Accepted Answer

B. perfectly inelastic

Answer

A. perfectly elastic

Answer

C. down-ward sloping

Answer

D. upward sloping

Question 61

The income of an individual increases from N150 to N250 and his consumption rate increases from N100 to N150. Calculate the Marginal Propensity to Consume

Accepted Answer

D. 0.5

Answer

A. 2

Answer

B. 0.4

Answer

C. 1

Question 62

The market in which the operators are many and none of them can influence the price is

Accepted Answer

C. perfect market

Answer

A. stock exchange market

Answer

B. imperfect market

Answer

D. exchange market

Question 63

$\begin{array}{c|c} \text{Units of variable factor} & \text{Total Product} \ \hline 1 & 25 \ \hline 2 & 31 \ \hline 3 & 40 \ \hline 4 & 48 \ \hline 5 & 55 \ \end{array}$ The marginal product at the fifth variable factor is

Accepted Answer

A. 7

Answer

B. 6

Answer

C. 5

Answer

D. 9

Question 64

All the following are types of specialization except

Accepted Answer

A. Manager Specialization

Answer

B. Product specialization

Answer

C. Specialization by sex

Answer

D. Geographical specialization

2015 JAMB Economics Past Questions

Questions

Frequently asked questions

How do I prepare for JAMB Economics?

Where can I find JAMB Economics past questions?

How close is the DeeepSolve CBT simulator to the real JAMB?

Are the AI explanations accurate?