2017 JAMB Economics Past Questions & Answers

Question 1

Given that Qd = 10 - 2p while Qs = 5 + 3P, if P = N 1 determine the equilibrium quantity

Accepted Answer

D. 8

Answer

A. 7

Answer

B. 6

Answer

C. 5

Question 2

Which of the following is NOT illustrated by the production possibility curve

Accepted Answer

A. Risk

Answer

B. Scarcity

Answer

C. Opportunity cost

Answer

D. Allocative efficiency

Question 3

In economics, the “how” or input question refers to:

Accepted Answer

B. The way in which factors of production may be combined to produce output

Answer

A. The problem of allocating scarce resources among competing uses

Answer

C. The way in which a firm decides on its profit maximising rate of output

Answer

D. The problem of how output is distributed among individuals and groups in society.

Question 4

The basic aim of Economic Community of West African States is the

Accepted Answer

D. liberalization of trade among member states

Answer

A. discouragement of trade among member states

Answer

B. encouragement of revolts against former colonial masters

Answer

C. establishment of its headquarters in each members state

Question 5

Given that ∑fx = 340 and N = 20, find the arithmetic mean.

Accepted Answer

B. 17

Answer

A. 20

Answer

C. 32

Answer

D. 9

Question 6

Cost - push inflation occurs when_______

Accepted Answer

A. production cost is high

Answer

B. government embarks on deficits financing

Answer

C. factors decrease

Answer

D. there is too much in circulation

Question 7

Which of the following is not a function of the money market?

Accepted Answer

C. creation of long term loans

Answer

A. Provision of finance

Answer

B. enhance loan savings

Answer

D. Provision of finance

Question 8

The production within domestic territory of a country is called the _____

Accepted Answer

B. gross domestic product

Answer

A. net national product

Answer

C. net income

Answer

D. disposable income

Question 9

Which of the following institutions does not operate in the money market?

Accepted Answer

B. mortgage banks

Answer

A. central bank

Answer

C. money deposit banks

Answer

D. insurance companies

Question 10

Localization of industry is encouraged because of ________

Accepted Answer

B. improvements in infrastructure

Answer

A. low interest charges on loans

Answer

C. low foreign exchange rate

Answer

D. high standard of living

Question 11

Petro-chemical industries are located in the Rivers State of Nigeria because of ________?

Accepted Answer

C. crude oil deposit

Answer

A. favourable soil

Answer

B. coal deposit

Answer

D. favourable climate

Question 12

The economic questions about what and how to produce in an economy is solely answered by the _______?

Accepted Answer

D. system of economy practised

Answer

A. government

Answer

B. labour union

Answer

C. private and public enterpriser

Question 13

One of the functions of the price system is that it

Accepted Answer

D. regulates production and consumption

Answer

A. encourages high volume of production

Answer

B. dictates what the citizens will consume

Answer

C. discourages the consumption of harmful goods

Question 14

The following are Methods of measuring National Income of a country EXCEPT; ?

Accepted Answer

D. Output method

Answer

A. Expenditure method

Answer

B. Consumption method

Answer

C. Input Method

Question 15

The law of diminishing marginal utility states:

Accepted Answer

B. Your utility grows at a slower and slower rate as you consume more and more unit of a good.

Answer

A. The supply curve slopes downward

Answer

C. The elasticity of demand is infinite

Answer

D. None of the above

Question 16

Which of these is a type of partnership in business?

Accepted Answer

A. Limited partnership

Answer

B. limited liability company

Answer

C. private partnership

Answer

D. joint stock partnership

Question 17

Opportunity cost helps the government to:

Accepted Answer

D. prepare budget

Answer

A. Distribute money to citizens

Answer

B. support better production

Answer

C. remove competition

Question 18

Given that the total production of Bandako farmers with one worker is 10kg. When the workers increased to 2, 3, and 4, the total production increases to 20, 36 and 60kg respectively. Calculate the average product (AP) of the 4th unit of labour.

A.20
B.13
C.15
D.10

Show answer

Answer: C. 15

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Accepted Answer

C. 15

Answer

A. 20

Answer

B. 13

Answer

D. 10

Question 19

One of the major causes of farmers' unstable income in Nigeria is _________

Accepted Answer

A. the effect of diseases and pests

Answer

B. industrial pollution

Answer

C. mining and extraction activities

Answer

D. population growth

Question 20

The basic principle of cooperative societies is to ________

Accepted Answer

B. protect the interest and pursue the welfare of members

Answer

A. maintain the integrity of their members

Answer

C. ensure better working conditions for members

Answer

D. provide voluntary services to the members

Question 21

Completely competitive market exist when each member is a —

Accepted Answer

B. price taker

Answer

A. price maker

Answer

C. price seeker

Answer

D. a and b

Question 22

Other products gotten from Petroleum include the following EXCEPT:

Accepted Answer

A. Rubber

Answer

B. fuel

Answer

C. paints

Answer

D. insecticides

Question 23

A country's terms of trade can be improved by ____?

Accepted Answer

C. revelation of currency

Answer

A. collective bargaining

Answer

B. imposing lower export duties

Answer

D. reducing demand for imported goods

Question 24

A firm owned and managed by a family is an example of ______?

Accepted Answer

D. partnership

Answer

A. joint stock exchange

Answer

B. cooperative society

Answer

C. sole proprietorship

Question 25

Goods sold in perfectly competitive markets are generally

Accepted Answer

A. homogenous

Answer

B. intermediate and final

Answer

C. durable and non-durable

Answer

D. heterogeneous

Question 26

Changing the structure of a commodity in order to increase its utility is called?

Accepted Answer

B. form utility

Answer

A. Time utility

Answer

C. marginal utility

Answer

D. place utility

Question 27

Given a consumption function C = 10 + 0.6Y, determine the value of C if Y is 20

Accepted Answer

B. 22.00

Answer

A. 36.60

Answer

C. 30.60

Answer

D. 26.00

Question 28

Which of the following is NOT an instrument in the money market?

Accepted Answer

C. Stocks and shares

Answer

A. Treasury bill

Answer

B. Bill of exchange

Answer

D. Call money fund

Question 29

Which of the following source of income is spectacular only to Government ?

Accepted Answer

C. Tax

Answer

A. Payment from business transfer

Answer

B. Bonuses

Answer

D. Wages

Question 30

Which of the following budgets will increase government expenditure?

Accepted Answer

C. deficit budget

Answer

A. zero base budget

Answer

B. surplus budget

Answer

D. balanced policy

Question 31

One of the reasons why Nigeria is a mono-economy is because of her _______

Accepted Answer

A. huge volume of petroleum activities in the country

Answer

B. diversification system of economic activities

Answer

C. high demand for foreign commodities

Answer

D. high rate of unemployment

Question 32

Which modal of the factor is inelastic?

Accepted Answer

D. land

Answer

A. Wages

Answer

B. capital

Answer

C. labour

Question 33

Excess supply over demand will place a price advantage on _____

Accepted Answer

D. consumers

Answer

A. government

Answer

B. foreign investors

Answer

C. suppliers

Question 34

Which of the following is correct?

Accepted Answer

C. Traditional budgeting starts with last year’s funding appropriation

Answer

A. Traditional budgeting focuses on goals and objectives

Answer

B. Zero based budgeting produces a single level of appropriation for an activity

Answer

D. Zero based budgeting does not systematically consider alternatives to current operations

Question 35

Which of the following is not an indicator of economic growth?

Accepted Answer

D. High Level of Unemployment

Answer

A. CPI

Answer

B. PPI

Answer

C. GDP

Question 36

Which of the following is an indicator of economic growth?

Accepted Answer

C. High gross domestic product

Answer

A. High tax rate

Answer

B. Technology development

Answer

D. High interest rate

Question 37

The equilibrium price clears the market; it is the price at which___________

Accepted Answer

C. Excess demand is zero

Answer

A. Everything is sold

Answer

B. Buyers spend all their money

Answer

D. None of the above

Question 38

The population theory that is concerned with the cases of over population and shortage of food production is ______

Accepted Answer

B. Malthusian population theory

Answer

A. population density

Answer

C. national population theory

Answer

D. demographical transition theory

Question 39

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

Accepted Answer

D. personal income, disposable income and transfer earnings

Answer

A. Grants, aids and borrowing

Answer

B. Taxes, fees, licenses and fines

Answer

C. Interest, dividends, profits and earnings

Question 40

Which of the following statement is TRUE about ECOWAS?

Accepted Answer

A. The aim of ECOWAS is to ensure economic stability

Answer

B. Bigger state in the community dominate the small state

Answer

C. Members of the ECOWAS community can form cartel and create monopolies

Answer

D. English is the only official language of ECOWAS

Question 41

The bowed shape of the Production possibilities curve illustrates _________

Accepted Answer

D. the law of increasing marginal cost

Answer

A. that production is inefficient

Answer

B. that demand is relatively inelastic

Answer

C. that production is unattainable

Question 42

When the government fix the price of essential commodities, this is referred to as:

Accepted Answer

B. Price control

Answer

A. Price equilibrium

Answer

C. Demanded price

Answer

D. Asking price

Question 43

Which of the following is an indirect tax?

Accepted Answer

D. excise duties

Answer

A. Poll tax

Answer

B. personal income tax

Answer

C. Company tax

Question 44

A partnership sourcing for funds to expand its business would approach _______

Accepted Answer

B. a money market

Answer

A. a central bank

Answer

C. an insurance

Answer

D. a stock exchange

Question 45

The modal value of 3, 8, 4, 6, 3, 5, 2, 7, 3 and 5 is

Accepted Answer

B. 3

Answer

A. 6

Answer

C. 4

Answer

D. 5

Question 46

One of the unique features that distinguishes the perfect and imperfect market condition is _________

Accepted Answer

D. number of sellers and buyers

Answer

A. profit motive principles

Answer

B. absence of price control board

Answer

C. price determines production and distribution

Question 47

$\frac{∑f(x-x̄)}{N}$ Is a formula used to calculate for ____________

Accepted Answer

D. mean deviation

Answer

A. variance

Answer

B. the quartile

Answer

C. standard deviation

2017 JAMB Economics Past Questions

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