2019 JAMB Economics Past Questions & Answers

Question 1

John an apprentice, engineer and amateur trumpet player, was earning ₦30 per week before accepting Full-time employment in a top orchestra, for which he now receives ₦150 per week. ₦120 of his current weekly earnings can be described as________

Accepted Answer

D. economic rent

Answer

A. marginal physical productivity

Answer

B. marginal income productivity

Answer

C. consumer's surplus

Question 2

Which of the following persons is engaged in "Secondary Production"? I - a bricklayer II - an automobile assembly-line worker III - an accountant IV - a cinema projectionist

Accepted Answer

B. I, II

Answer

A. I only

Answer

C. II, III

Answer

D. I, II, III, IV

Question 3

The lands that belong to the community is referred to as__________

Accepted Answer

C. communal land

Answer

A. sacred land

Answer

B. individual land

Answer

D. rent land

Question 4

Whatever form an economic system may take, choice is essential for members of the community because resources are__________

Accepted Answer

A. scarce

Answer

B. unlimited

Answer

C. free

Answer

D. many

Question 5

Price (₦) Quantity Demanded 8 10 6 12 If we move from 8 to 6, the elasticity of demand is_______

Accepted Answer

C. 0.8

Answer

A. -1.25

Answer

B. 0.62

Answer

D. 1

Question 6

Which of the following is not a cause of unemployment_______

Accepted Answer

C. good government planning

Answer

A. poor education

Answer

B. lack of skills

Answer

D. corruption

Question 7

The second equation of exchange is__________

Accepted Answer

B. P = $\frac {M}{KR}$

Answer

A. MV = PT

Answer

C. P = $\frac {MV}{T}$

Answer

D. P=MV

Question 8

In the short-run, the monopoly makes_______

Accepted Answer

B. Abnormal Profit

Answer

A. Normal profit

Answer

C. Loss

Answer

D. Sales

Question 9

Given two substitute goods (X and Y) with demand and supply function; Qd = 7p - 12 Qs = 4p + 9 Find the magnitude of excess demand when p = ₦18

Accepted Answer

D. 33

Answer

A. 303

Answer

B. 30

Answer

C. 114

Question 10

The basic and essential economic problems in a community are related to choice and________

Accepted Answer

B. Scarcity

Answer

A. Freedom

Answer

C. Social class

Answer

D. Politics

Question 11

When of the following matters may account for changes in supply?   I - technological advances in an industry II - changes in labour costs III - changes in source of supply IV - changes in levels of taxation

Accepted Answer

D. I, II, III, IV

Answer

A. I, II

Answer

B. I, III

Answer

C. II, III, IV

Question 12

The determination of price by bargaining between buyers and sellers is________

Accepted Answer

C. Higgling and Haggling

Answer

A. Sales by Auction

Answer

B. Tender

Answer

D. Price Control

Question 13

The demand for labour is a________

Accepted Answer

A. Derived demand

Answer

B. Joint demand

Answer

C. Complementary demand

Answer

D. Composite demand

Question 14

A supply curve slopes upwards from the left to the right indicating__________

Accepted Answer

B. a positive slope

Answer

A. a negative slope

Answer

C. a backward sloping supply curve

Answer

D. short-run supply curve

Question 15

One of these is not a way by which government encourage industrialization?

Accepted Answer

C. Low Productivity and inefficiency

Answer

A. Protection of Infant industries

Answer

B. Establishment of Nigeria Enterprises Promotion Decree

Answer

D. Establishment of higher institutions

Question 16

An example of a market which approaches fairly near to perfection is____________

Accepted Answer

D. the foreign exchange market

Answer

A. the retail market

Answer

B. the house market

Answer

C. the labour market

Question 17

The demand curve facing the monopolist in the foreign market is__________

Accepted Answer

C. Perfectly elastic

Answer

A. Elastic

Answer

B. Inelastic

Answer

D. Unitary

Question 18

Supply is________

Accepted Answer

B. A Flow

Answer

A. A stock

Answer

C. Constant

Answer

D. A table

Question 19

The method obtained by adding all the reward of factors of production in national income is________

Accepted Answer

A. income approach

Answer

B. expenditure approach

Answer

C. value added method

Answer

D. output approach

Question 20

Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)

Accepted Answer

B. 104

Answer

A. 208

Answer

C. 54

Answer

D. 4

Question 21

Economics is a social science concerned with the proper use and______

Accepted Answer

C. allocation of resources for growth

Answer

A. production of goods and services

Answer

B. distribution of wealth

Answer

D. creation of utility

Question 22

Among the disadvantages of the one-man business is the fact that______

Accepted Answer

B. the proprietor is personally liable for the firm's debts

Answer

A. its capital may not be increased without government permission

Answer

C. the proprietor is not able to obtain credit

Answer

D. the proprietor may not sue for bad debts

Question 23

Most of the National debts is "dead weight" in the sense that is____

Accepted Answer

D. not covered by any real asset

Answer

A. bound to increase from year to year

Answer

B. accumulated as the result of past capital investment

Answer

C. the responsibility of the treasury

Question 24

A permit that allows an importer to bring a certain quantity of foreign goods into a country is_________

Accepted Answer

B. Import licence

Answer

A. Import monopoly

Answer

C. Import quota

Answer

D. Embargo

Question 25

The purchasing power of money depends upon the__________

Accepted Answer

C. Price Level

Answer

A. Value

Answer

B. Index

Answer

D. Wages

Question 26

Restrictive monetary policy is designed to curtail aggregate demand and to overcome________

Accepted Answer

D. Inflationary gap

Answer

A. Deflation

Answer

B. Reinflation

Answer

C. Disinflation

Question 27

An economy in which the whole income is not consumed is referred to as______

Accepted Answer

A. Frugal economy

Answer

B. Spend thrift economy

Answer

C. Capitalist economy

Answer

D. Mixed economy

Question 28

An economic condition in which much reduced economic activity co-exists with inflation is referred to as__________

Accepted Answer

A. stagflation

Answer

B. inflationary spiral

Answer

C. slump inflation

Answer

D. inflationary gap

Question 29

The term "Money at call and short notice" in a bank's assets represents the bank's loans to______

Accepted Answer

D. the money markets

Answer

A. industry and commerce

Answer

B. overseas central banks

Answer

C. the capital market

Question 30

An Instrument used by the central bank to fix commercial and merchant banks total credit to domestic economy is________

Accepted Answer

C. credit ceiling

Answer

A. monetary policy

Answer

B. fiscal policy

Answer

D. open market operation

Question 31

Adam Smith's Theory of value stated that the value of a commodity depended on________

Accepted Answer

C. The amount of labour expended on its production

Answer

A. The market price in a free market over a long period

Answer

B. The over-all cost of production of the commodity

Answer

D. Its relative scarcity at any given time

Question 32

If the demand for a commodity is perfectly elastic, the incidence of a tax on that commodity will be, other things being equal, entirely on the_______

Accepted Answer

B. seller

Answer

A. buyer

Answer

C. government

Answer

D. local authority

Question 33

One of these is not a problem of agriculture___________

Accepted Answer

A. provision of employment

Answer

B. lack of preservation and storage facilities

Answer

C. land tenure system

Answer

D. poor transportation systems

Question 34

A retailer is distinguished by the nature of its sales, which is in___________

Accepted Answer

C. Units

Answer

A. Bulk

Answer

B. Large

Answer

D. Chain

Question 35

Let the quantity demanded in units of a particular commodity be represented as Qd = 80 - 2P, find the quantity demanded when P = ₦3.

Accepted Answer

C. 74

Answer

A. 70

Answer

B. 47

Answer

D. 40

Question 36

ECOWAS was formed for the purpose of________

Accepted Answer

A. promoting co-operation and integration

Answer

B. to facilitate the expansion of international trade

Answer

C. to provide insurance

Answer

D. to insure new investment

Question 37

A commodity is defined as normal when its demand changes in the same direction as______

Accepted Answer

A. income

Answer

B. price

Answer

C. taste

Answer

D. preferences

Question 38

The last link in the channel of distribution is____________

Accepted Answer

C. Consumer

Answer

A. Producer

Answer

B. Retailer

Answer

D. Wholesaler

Question 39

Which of the following matters may account for changes in demand?   I - changes in consumer preferences II - changes in real income III - changes in distribution of incomes IV - changes in levels of taxation

Accepted Answer

D. I, II, III, IV

Answer

A. I, II

Answer

B. II, III

Answer

C. I, III, IV

Question 40

The term M $^3$ comprises M $^1$ together with deposits on deposit account held by_______

Accepted Answer

C. banks and discount houses

Answer

A. banks only

Answer

B. discount houses only

Answer

D. banks, discount houses and stock, exchanges

Question 41

If wage rate is less than the average revenue product, the firms would be earning________

Accepted Answer

B. super normal profit

Answer

A. loss

Answer

C. normal profit

Answer

D. higher revenue

Question 42

The shape of the production possibility frontier is determined by the_________

Accepted Answer

B. law of diminishing returns

Answer

A. law of returns to scale

Answer

C. factors of productions

Answer

D. technology

Question 43

Consider the following figures which refer to a firm's production department during one week: Wage bill ₦6,000, Rent, Rates, Depreciation ₦200, raw materials ₦800, Power ₦300. Total variable costs incurred during the week are

Accepted Answer

B. ₦7,100

Answer

A. ₦7,300

Answer

C. ₦1,300

Answer

D. ₦1,100

Question 44

A method of analysis that draws conclusions from data rather than general Principles already known is________

Accepted Answer

B. Inductive reasoning

Answer

A. Deductive reasoning

Answer

C. Normative reasoning

Answer

D. Positive reasoning

Question 45

The money market equilibrium is defined as_________

Accepted Answer

A. when the demand and supply of money are equal

Answer

B. when demand is greater than supply of money

Answer

C. when demand is less than supply of money

Answer

D. when supply is greater than demand for money

Question 46

A form of tax that is mildly progressive and regressive is_______

Accepted Answer

D. Digressive tax

Answer

A. Proportional tax

Answer

B. Progressive tax

Answer

C. Regressive tax

Question 47

The basic principle underlying location of industry is the tendency for production of a commodity to be located on the basis of______

Accepted Answer

C. relative costs and benefits

Answer

A. division of labour

Answer

B. employment trends

Answer

D. immobility of skilled labour

Question 48

The average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run due to________

Accepted Answer

A. Economies of scale

Answer

B. Money cost

Answer

C. Opportunity cost

Answer

D. Cost functions

Question 49

An example of a vertical combination is the merger of_________

Accepted Answer

A. a spinning firm and a wearing firm

Answer

B. two meat retailing firms

Answer

C. two very large wholesale textile distributors

Answer

D. three secretarial employment agencies in one town

Question 50

The use of government income and expenditure instrument to regulate the economy is termed______

Accepted Answer

C. fiscal policy

Answer

A. monetary policy

Answer

B. physical policy

Answer

D. public finance

Question 51

Whether a monopolist is able to increase his revenue by restricting his output depends on the shape of the_________

Accepted Answer

C. demand curve

Answer

A. marginal product

Answer

B. marginal cost curve

Answer

D. average cost curve

Question 52

The oil boom between 1970 - 1980 caused the oil sector to become____________

Accepted Answer

A. the main source of government

Answer

B. management of spillage and pollution

Answer

C. protection to the local operators in the petroleum industry

Answer

D. decrease in the rate of inflation

Question 53

The most important cost curve for the firm is_________

Accepted Answer

A. MC

Answer

B. AC

Answer

C. TC

Answer

D. FC

Question 54

Poverty simply refers to the low level of________

Accepted Answer

B. per capita income

Answer

A. planning

Answer

C. rich people

Answer

D. labour face

Question 55

A rise in the supply of a commodity cause__________

Accepted Answer

C. a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold

Answer

A. an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold

Answer

B. an increase in both equilibrium

Answer

D. a decrease in both equilibrium

Question 56

External economies arises essentially from__________

Accepted Answer

B. localisation of industry

Answer

A. a firm's individual policies

Answer

C. government economic policy

Answer

D. free transferability of shares

Question 57

The release of a liquid petroleum hydrocarbon into the environment is_______

Accepted Answer

B. Oil spill

Answer

A. Oil glut

Answer

C. Oil shock

Answer

D. Oil wastage

Question 58

When a member's currency is declared "scarce", it is the duty of the IMF to______

Accepted Answer

D. ration it among the countries demanding it

Answer

A. suspend the member state indefinitely

Answer

B. ban all exports from that state

Answer

C. suspend dealings in that currency for one year

Question 59

The arithmetic mean of 5, 8, 10, 15, 24 and 28 is_______

Accepted Answer

B. 15

Answer

A. 145

Answer

C. 90

Answer

D. 6

Question 60

Let capital formation = CF, Production = P, C = consumption. Then CF =_______

Accepted Answer

A. P - C

Answer

B. P + C

Answer

C. PC

Answer

D. P/C

Question 61

The sector which contribute highly to the economy is___________

Accepted Answer

A. Primary sector

Answer

B. Secondary sector

Answer

C. Tertiary sector

Answer

D. Education sector

Question 62

A demand which gives rise to the reverse of the law of demand is__________

Accepted Answer

C. Abnormal demand

Answer

A. Derived demand

Answer

B. Joint demand

Answer

D. Composite demand

Question 63

A contractionary monetary policy is used to control__________

Accepted Answer

B. Inflation

Answer

A. Deflation

Answer

C. Recession

Answer

D. Balance of Payment deficit

Question 64

Effective demand for a commodity is desire for that commodity backed by_______

Accepted Answer

B. ability and willingness to pay

Answer

A. a wish for the lowest possible price

Answer

C. cash in one's pocket

Answer

D. a promise to make payment

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