2016 JAMB Economics Past Questions & Answers

Question 1

One of the characteristics of private enterprises is ______?

Accepted Answer

D. Individual funding of business activities

Answer

A. Provision of welfare to the citizens

Answer

B. That tax payers bear all the risks

Answer

C. Public ownership of shares

Question 2

Public ownership of productive factors is a feature of_______?

Accepted Answer

A. Socialism

Answer

B. Capitalism

Answer

C. Feudalism

Answer

D. Mixed economy

Question 3

In the theory of the consumer behavior, a consumer is said to maximize utility when

Accepted Answer

A. Marginal utility of a commodity is equal to the price paid for it

Answer

B. Marginal utility of a commodity X is equal to the price of commodity Y

Answer

C. Average utility of a commodity is equal to the price paid for it

Answer

D. Total utility of a commodity is equal to the price paid for it

Question 4

The type of inflation that emanates from excess demand overs supply is___________?

Accepted Answer

C. Demand-pull inflation

Answer

A. Galloping inflation

Answer

B. Imported inflation

Answer

D. Cost-push inflation

Question 5

If price of yams decreases from N15.00 per tuber to N13.50 and the quantity supplied decreases by 20%. What is the elasticity of supply?

Accepted Answer

A. 2.00

Answer

B. 0.50

Answer

C. 1.50

Answer

D. 1.00

Question 6

If additional unit of a variable factor input causes a fall in the marginal product, this implies that

Accepted Answer

C. Diminishing returns has set in

Answer

A. Total product starts declining

Answer

B. Average product has become zero

Answer

D. Increasing returns is operating

Question 7

Which of the following can cause oil glut in the International market?

Accepted Answer

C. Excess supply over demand

Answer

A. Excess demand over supply

Answer

B. Under- capacity utilization

Answer

D. Economic boom

Question 8

In Nigeria, unemployment can be minimized through______?

Accepted Answer

A. Diversification of the economy

Answer

B. Strict immigration law

Answer

C. Paying unemployment benefits

Answer

D. Restrictive fiscal policy

Question 9

One major problem encountered by ECOWAS is_______?

Accepted Answer

A. Conflict of interest among members

Answer

B. Increasing population

Answer

C. Weakness in the trade relationship

Answer

D. Language barrier

Question 10

All pairs of quantities from which a consumer derives equal satisfaction can be plotted on__________?

Accepted Answer

A. An indifference curve

Answer

B. An exceptional demand curve

Answer

C. A budget line

Answer

D. An isoquant map

Question 11

One of the factors limiting the effectiveness of division of labour in the production process is the

Accepted Answer

B. Level of technology

Answer

A. Prevailing wage rate

Answer

C. Unemployment rate

Answer

D. Population size

Question 12

If the marginal propensity to save is 0.8, calculate the multiplier?

Accepted Answer

A. 1.25

Answer

B. 5.00

Answer

C. 1.30

Answer

D. 2.25

Question 13

Which of the following is NOT among the financial institutions in Nigeria?

Accepted Answer

D. Federal Ministry of Finance

Answer

A. Federal Mortgage Bank

Answer

B. Microfinance Banks

Answer

C. Insurance Banks

Question 14

One of the major uses of national income statistics in Nigeria is to

Accepted Answer

D. Estimate per capita income

Answer

A. Equally distribute national income among citizens

Answer

B. Determine the total population

Answer

C. Compare population growth among nations

Question 15

If Mr Wale took a loan for the purpose of investment, the demand for money is________________?

Accepted Answer

C. Speculative motive

Answer

A. Precautionary motive

Answer

B. Transactionary and Precautionary motive

Answer

D. Speculative and Transactionary motives

Question 16

Localization of industry is encouraged because of

Accepted Answer

D. Improvements in infrastructure

Answer

A. Low interest charges on loans

Answer

B. High standard of living

Answer

C. Low foreign exchange rate

Question 17

The study of economics is necessary mainly because of

Accepted Answer

C. Scarcity of resources

Answer

A. Unemployment

Answer

B. Unlimited resources

Answer

D. Overpopulation

Question 18

The price elasticity of supply of perishable goods is_________?

Accepted Answer

C. Inelastic

Answer

A. Elastic

Answer

B. Unitary

Answer

D. Zero

Question 19

Which of the following is a major determinant of price elasticity of demand?

Accepted Answer

D. Income of the consumers

Answer

A. The price of the commodity

Answer

B. Availability of factors of production

Answer

C. The prices of factors of production

Question 20

The supply curve above is

Accepted Answer

C. Unitary elastic

Answer

A. Fairly inelastic

Answer

B. Perfectly inelastic

Answer

D. Perfectly elastic

Question 21

One of the ways of improving the marketing of agricultural produce is by

Accepted Answer

D. Establishing agricultural marketing boards

Answer

A. Reviewing the land tenure system

Answer

B. Ensuring even distribution of farm inputs

Answer

C. Embarking on irrigation farming

Question 22

A government budget proposing to spend more than its expected revenue in a year will create_______?

Accepted Answer

D. Opportunity for full employment

Answer

A. Opportunity for combating inflation

Answer

B. Depression in the economy

Answer

C. Shortage in money supply

Question 23

If Nigeria has comparative advantage over Ghana in producing cocoa, this means_________?

Accepted Answer

A. Nigeria produces cocoa more cheaply than Ghana

Answer

B. Nigeria and Ghana produce at the same level

Answer

C. Ghana produces cocoa more than Nigeria

Answer

D. Nigeria produces more cocoa than Ghana

Question 24

A country's terms of trade can be improved by________?

Accepted Answer

A. Revaluation of currency

Answer

B. Collective bargaining

Answer

C. Reducing demand for imported goods

Answer

D. Imposing lower export duties

Question 25

The interest charged on loans is determined by the __________?

Accepted Answer

C. Risk associated with the loan

Answer

A. Exchange rate

Answer

B. Fiscal policy

Answer

D. Rate of production in the country

Question 26

One of the problems facing the Nigerian oil and gas industry is____________________?

Accepted Answer

C. Shortage of indigenous manpower

Answer

A. Over-capacity utilization

Answer

B. The discovery of alternative oil sources

Answer

D. The excess supply of petroleum products

Question 27

The overall demand for crude oil for various uses is an example of __________?

Accepted Answer

C. composite demand

Answer

A. derived demand

Answer

B. competitive demand

Answer

D. complementary demand

Question 28

One of the important features of perfect competition is_____?

Accepted Answer

A. Adequate knowledge of existing prices

Answer

B. The influence on prices by individual economic units

Answer

C. The restriction in terms of movement of goods and services

Answer

D. The administration of a centralized price system

Question 29

A country that is over-populated will face the problem of

Accepted Answer

B. Low per capita income

Answer

A. Low birth rate

Answer

C. High wage rate

Answer

D. Full employment

Question 30

What effect would a change in price of a commodity have on its supply?

Accepted Answer

D. A change in the quantity supplied

Answer

A. An increase in supply

Answer

B. No change in supply

Answer

C. A decrease in supply

Question 31

The slow pace of industrial growth in Nigeria can be attributed to__________?

Accepted Answer

C. inadequate skilled labour

Answer

A. lack of raw materials

Answer

B. lack of market for produce

Answer

D. over-dependence on the oil sector

Question 32

The demand for two or more commodities to satisfy a particular want is _____?

Accepted Answer

D. Joint

Answer

A. Derived

Answer

B. Composite

Answer

C. Competitive

Question 33

The concept of marginal utility indicates the relationship between utility and _________?

Accepted Answer

A. Price

Answer

B. Satisfaction

Answer

C. Cost

Answer

D. Revenue

Question 34

Given 0.25, 1.25, 1.80, 1.110, 10.20, 10.15 and 1.55. Determine the range?

Accepted Answer

D. 9.95

Answer

A. 0.25

Answer

B. 10.00

Answer

C. 1.55

Question 35

Development plans fail in Nigeria mainly because of

Accepted Answer

A. Corruption and political instability

Answer

B. Over-dependence on foreign aid

Answer

C. High cost of plan implementation

Answer

D. Shortage of personnel

Question 36

A company's expenditure on raw materials is termed as_______?

Accepted Answer

B. Explicit cost

Answer

A. Prime cost

Answer

C. Average cost

Answer

D. Implicit cost

Question 37

One of the factors affecting change in demand for a commodity is the _______?

Accepted Answer

B. Availability of the substitutes

Answer

A. Supply of the commodity

Answer

C. Price of the commodity

Answer

D. Technical know-how

Question 38

Public limited liability companies are owned by__________?

Accepted Answer

B. Private and individual organizations

Answer

A. The federal government

Answer

C. The state government

Answer

D. The federal and state governments

Question 39

One of the factors that determine the supply of agricultural produce in Nigeria is

Accepted Answer

B. Technological development

Answer

A. Price of substitutes

Answer

C. Consumers choice

Answer

D. Consumers income

Question 40

The additional cost incurred by producing an additional unit of output is known as

Accepted Answer

D. Marginal cost

Answer

A. Fixed cost

Answer

B. Total cost

Answer

C. Average cost

Question 41

Which of the following is NOT a source of government revenue?

Accepted Answer

B. Personal income, disposable income and transfer earnings

Answer

A. Taxes, Fees, licenses and fines

Answer

C. Interest, dividends, profits and earnings

Answer

D. Grants, aids and borrowing

Question 42

The demand curve faced by a monopolist is_____?

Accepted Answer

B. Vertical

Answer

A. Positively sloped

Answer

C. downward sloping

Answer

D. Negatively Sloped

Question 43

The major characteristics of an undeveloped nation is

Accepted Answer

A. Over-dependence on foreign products

Answer

B. Dominance of the industrial sector

Answer

C. High per capita income

Answer

D. Efficient and sensitive financial sector

Question 44

Population growth is determined by_______?

Accepted Answer

D. Net migration

Answer

A. Dependency ratio

Answer

B. Labour force

Answer

C. Per capita

Question 45

Consumers allocate their resources based on the ______?

Accepted Answer

A. Law of diminishing marginal utility

Answer

B. Value in use and value in exchange principle

Answer

C. Law of returns to scale

Answer

D. Diamond and water paradox

Question 46

In Nigeria, most agricultural policies are aimed at______?

Accepted Answer

D. Achieving self-sufficiency in food production

Answer

A. Ensuring equitable distribution of income

Answer

B. Liberalizing all sectors of the nation's economy

Answer

C. Encouraging the development of manufacturing sector

2016 JAMB Economics Past Questions

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