2020 JAMB Economics Past Questions & Answers

Question 1

Collectivism refers to the management of state enterprises in a?

Accepted Answer

D. socialist economy

Answer

A. mixed economy

Answer

B. co-operative organizations

Answer

C. capitalist economic system

Question 2

When a country's population is experiencing increasing returns, that country is said to be?

Accepted Answer

D. under-populated

Answer

A. overpopulated

Answer

B. economically poor

Answer

C. over-producing goods and services

Question 3

Fiduciary issue is that part of?

Accepted Answer

C. the issue of notes not backed by gold

Answer

A. the issue of notes backed entirely by gold

Answer

B. a country's currency that is not negotiable

Answer

D. a country's currency officially issued

Question 4

Scarcity in economics means?

Accepted Answer

D. resources are limited in relation to wants

Answer

A. human wants are limitless

Answer

B. the economy has very few resources

Answer

C. the economy can scarcely produce anything

Question 5

In economic life, the choice among alternatives depends on the?

Accepted Answer

C. the scale of preference of the decision-maker

Answer

A. income of the decision maker

Answer

B. scarcity of resources

Answer

D. status of the decison maker

Question 6

Which of the following is likely to be inflationary

Accepted Answer

D. wages increase

Answer

A. taxes increase

Answer

B. increase in unemployment

Answer

C. budget surplus

Question 7

Firms are often set up close to each other in order to take advantage of?

Accepted Answer

D. external economies of scale

Answer

A. supply of skilled labour

Answer

B. agglomeration economies

Answer

C. internal economies of scale

Question 8

Plywood industries are often located near the source of?

Accepted Answer

D. raw materials

Answer

A. finance

Answer

B. labour

Answer

C. power supply

Question 9

The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continously

Accepted Answer

B. marginal utility must fall

Answer

A. total utility must fall

Answer

C. marginal utility may rise

Answer

D. marginal utility may fall even though his total utility may be rising

Question 10

A company's expenditure on raw materials is regarded as?

Accepted Answer

A. explicit cost

Answer

B. implicit cost

Answer

C. prime cost

Answer

D. average cost

Question 11

The group of unemployed members of a community who are physically handicapped or disable, is generally classified under unemployment as?

Accepted Answer

C. residual

Answer

A. frictional

Answer

B. cyclical

Answer

D. hidden

Question 12

A budget with a projected revenue in excess of its expenditure is said to be?

Accepted Answer

B. surplus

Answer

A. balanced

Answer

C. deficit

Answer

D. inflationary

Question 13

Which of the following rewards is associated with entrepreneurship

Accepted Answer

B. profits

Answer

A. salaries

Answer

C. interest

Answer

D. rent

Question 14

The most important goal of OPEC is to?

Accepted Answer

A. present a united front for the purpose of raise prices of crude oil

Answer

B. bring unity among the petroleum exporting countries

Answer

C. ensure political stability among member states

Answer

D. ensure that rules on quota production are strictly followed

Question 15

A situation in which a commodity is sold abroad below its cost of production in the home country is known as?

Accepted Answer

A. dumping

Answer

B. counter trade

Answer

C. bilateral trade

Answer

D. trade liberalization

Question 16

The type of business finances that entitles the holder to a fixed rate of dividend is?

Accepted Answer

A. preference stock

Answer

B. common stock

Answer

C. debentures

Answer

D. bank loan

Question 17

Crude petroleum is a good example of a

Accepted Answer

B. wasting asset

Answer

A. lasting asset

Answer

C. synthetic product

Answer

D. costless resources

Question 18

If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?

Accepted Answer

B. 0.80

Answer

A. 0.20

Answer

C. 1.25

Answer

D. 2.00

Question 19

Which of the following is used by the central bank to control the rate of interest

Accepted Answer

D. open market operation

Answer

A. bill of exchange

Answer

B. banker's order

Answer

C. fixed deposit account

Question 20

To control inflation, the monetary authorities of a country can

Accepted Answer

D. engage in restrictive monetary policies

Answer

A. reduce taxes

Answer

B. advise the government to increase its expenditure

Answer

C. engage in expansive monetary policies

Question 21

The relationship between tax rate and income which is relevant to a proportional tax is depicted by?

Accepted Answer

D. curve Y

Answer

A. curve Z and Y

Answer

B. curve X

Answer

C. curve Z

Question 22

The problem of conducting census include

Accepted Answer

D. poor town planning in urban areas

Answer

A. high rate of rural-urban migration

Answer

B. poor geographical distribution of population

Answer

C. high birth rate in the country

Question 23

Which of the following is an example of an invisible item on the balance of payments account

Accepted Answer

A. shipping and aviation

Answer

B. exports and imports

Answer

C. merchandise

Answer

D. Bullion

Question 24

The Nigerian bank for commerce and industry is?

Accepted Answer

B. a development bank

Answer

A. a commercial bank

Answer

C. an industrial bank

Answer

D. a merchant bank

Question 25

The relationship between the tax rate and income which is relevant to progressive tax is shown by?

Accepted Answer

C. curve Z

Answer

A. curve X

Answer

B. curve Y

Answer

D. curve X and Z

Question 26

Economics is often described as a social science because?

Accepted Answer

C. It uses scientific methods to explain an observed phenomenon and predict future events

Answer

A. laboratory experiments are performed

Answer

B. It makes use of controlled experiments

Answer

D. It makes use of fieldwork

Question 27

The use of legally permissible means to reduce tax liabilities is known as tax?

Accepted Answer

B. avoidance

Answer

A. evasion

Answer

C. relief

Answer

D. exemption

Question 28

What form of market is found in an imperfect competition where there are few buyers and many sellers

Accepted Answer

D. oligopsony

Answer

A. monopoly

Answer

B. oligopoly

Answer

C. duopoly

Question 29

Economic growth is different from economic development because economic growth

Accepted Answer

C. describes expansion and not change

Answer

A. describes expansion and changes

Answer

B. is measurable but not objective

Answer

D. is not measurable but objective

Question 30

Efficiency in production means?

Accepted Answer

B. producing a given output with the lowest cost of combination of factors of production

Answer

A. reducing the size of the work force

Answer

C. adoption of capital intensive technology

Answer

D. increasing the quantity of the fixed factors of production

Question 31

Utility is the satisfaction derived from?

Accepted Answer

C. consumption

Answer

A. production

Answer

B. distribution

Answer

D. demand

Question 32

The most important attribute of money is?

Accepted Answer

D. general acceptance

Answer

A. homogeneity

Answer

B. relative scarcity

Answer

C. divisibility

Question 33

One of the techniques of monetary control used by the central bank of Nigeria is

Accepted Answer

A. selective credit control

Answer

B. budget deficit

Answer

C. foreign exchange control

Answer

D. monitoring the general price level

Question 34

In recent times, agriculture in Nigeria tends to lose its vital labour force as a result of?

Accepted Answer

C. rural-urban drift

Answer

A. lack of an effective agricultural policy

Answer

B. employment opportunities in the agricultural sector

Answer

D. low prices of agricultural products

Question 35

In order to raise more revenue for a certain period, the government should impose higher taxes on goods whose demand

Accepted Answer

B. inelastic

Answer

A. elastic

Answer

C. perfectly elastic

Answer

D. unitary elastic

Question 36

One of the major criticism of the 1962 -1968 National Development Plan was that?

Accepted Answer

D. its execution was based largely on foregn-sourced financial resources

Answer

A. it failed to incorporate lessons gained from earlier plans to enhance its efficiency

Answer

B. it came too quickly after the country's independence

Answer

C. planned expenditure was based too heavily on expected earnings from crude oil

Question 37

The factor of production that has the highest degree of mobility is?

Accepted Answer

C. capital

Answer

A. land

Answer

B. labour

Answer

D. entrepreneur

Question 38

The Economic Commission for Africa was set up by the?

Accepted Answer

A. UNO

Answer

B. ECOWAS

Answer

C. OAU

Answer

D. IMF

Question 39

A major effect of a long distribution chain is

Accepted Answer

B. high retail

Answer

A. scarcity of commodities

Answer

C. low retails prices

Answer

D. low producer earnings

Question 40

A major factor affecting the value of money is the?

Accepted Answer

A. price level

Answer

B. banking habits

Answer

C. transaction motive

Answer

D. divisible nature of money

2020 JAMB Economics Past Questions and Answers

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2020 JAMB Economics Past Questions and Answers

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