2021 JAMB Economics Past Questions & Answers

Question 1

Inflation can be curbed by _______

Accepted Answer

D. Reducing aggregate demand

Answer

A. Deficit budget

Answer

B. Paying higher wages

Answer

C. Increased aggregate demand

Question 2

In a sole proprietorship, the decisions are made by the ______

Accepted Answer

C. Owner

Answer

A. Government

Answer

B. Management

Answer

D. Board of Directors

Question 3

Units of Quality Consumes Total Utility Marginal Utility 0 1 2 3 4 5 - 10 15 17 18 18 - 10 5 2 1 0 This table illustrates the law of _________

Accepted Answer

C. Diminishing marginal utility

Answer

A. Increasing returns

Answer

B. Diminishing returns

Answer

D. Increasing total utility

Question 4

Surplus in balance of payments leads to ________

Accepted Answer

B. Increase in foreign reserves

Answer

A. Government budget surplus

Answer

C. Decrease in foreign reserves

Answer

D. None of the above

Question 5

Economics may be defined as ________

Accepted Answer

A. The study of human behaviour in the allocation of scarce resources

Answer

B. The study of money and banking

Answer

C. The study of markets and prices

Answer

D. The study of production and distribution

Question 6

When a nation's exports are greater than its imports,_________

Accepted Answer

B. A favourable balance of trade exists

Answer

A. The net foreign trade is zero

Answer

C. A favourable balance of payment exists

Answer

D. An unfavourable balance of trade exists

Question 7

Which of the following sets fully represents factors of production?

Accepted Answer

D. Land, labour, capital, enterprise, technology

Answer

A. Sunlight, machinery, man, land

Answer

B. Land, water, weather

Answer

C. Money, market, middlemen

Question 8

Division of Labour is limited by the________

Accepted Answer

A. Size of labour firm

Answer

B. Availability of raw material

Answer

C. Size of the labour force

Answer

D. Absolute size of the country's population

Question 9

What is the most important factor influencing the location of the iron and steel industry at Ajaokuta?

Accepted Answer

C. Nearness of raw material

Answer

A. Availability of labour in the area

Answer

B. Availability of power

Answer

D. Access to transport facilities

Question 10

The Power Holding Company of Nigeria (PHCN) is a ________

Accepted Answer

C. Public Corporation

Answer

A. Public limited company

Answer

B. Private authority

Answer

D. Public Liability company

Question 11

Retailers in an economy perform the function of ______

Accepted Answer

A. Distribution.

Answer

B. Exchange

Answer

C. Investment

Answer

D. Production

Question 12

In a free market economy. the rationing of scarce goods is done principally by_______

Accepted Answer

C. The price mechanism

Answer

A. Consumers

Answer

B. The government

Answer

D. All of the above

Question 13

Which of these is not a cause of high population growth in Nigeria?

Accepted Answer

C. Family planning unit of Nigeria

Answer

A. Improved hygiene

Answer

B. Reduction in death rate

Answer

D. Increased birth rate

Question 14

An economic problem arises when________

Accepted Answer

B. Scarcity and choices are involved

Answer

A. Sellers are few

Answer

C. Buyers are many

Answer

D. Money is in short supply

Question 15

In Nigeria, cheques are not money because________

Accepted Answer

D. They are not generally acceptable as a medium of exchange

Answer

A. Most Nigerians cannot identity them

Answer

B. They are not legal tender

Answer

C. There are no banks in rural areas

Question 16

Pricing and Output decisions of sellers are highly inter-dependent in markets known as _________

Accepted Answer

B. Oligopoly

Answer

A. Monopoly

Answer

C. Monopolistic competition

Answer

D. Perfect competition

Question 17

Palm oil industry is located in Old Bendel State because the state______

Accepted Answer

B. Is a palm tree growing area

Answer

A. Land is suitable for oil

Answer

C. Soil is unsuitable for other crops

Answer

D. Imports raw materials for palm oil industry

Question 18

If the quantity demanded of a commodity increases from 20 to 30 when there is an increase in price from N4 to N5, the elasticity of deman is_______

Accepted Answer

C. 2

Answer

A. Zero

Answer

B. 10

Answer

D. 1

Question 19

Petroleum 'glut' in international trade means______

Accepted Answer

B. An Oversupply of petroleum.

Answer

A. Higher prices for the Consumption of petroleum.

Answer

C. A fall in in petroleum production.

Answer

D. A higher petroleum price offered by the buyer.

Question 20

Which of these is not usually the function of a wholesaler?

Accepted Answer

A. Branding

Answer

B. Storage

Answer

C. Transport

Answer

D. Advertising

Question 21

Which of the following is NOT a character of perfect competition?

Accepted Answer

A. Supply and demand are equal

Answer

B. Products are identical

Answer

C. There is perfect knowledge

Answer

D. There is no advertising

Question 22

Inflation is likely to benefit_______

Accepted Answer

A. Debtors

Answer

B. Persons with back savings

Answer

C. Creditors

Answer

D. Persons who lived on fixed pension funds

Question 23

Mono production economies are those that____

Accepted Answer

A. Produce one main commodities

Answer

B. Have a rich cultural heritage.

Answer

C. Specialize in agricultural industries.

Answer

D. Produce only raw materials.

Question 24

Money becomes a very poor store of value in a period of _______

Accepted Answer

D. Inflation

Answer

A. Harvest

Answer

B. Deflation

Answer

C. Recession

Question 25

A firm is at its optimum size when ___________

Accepted Answer

B. It produces the greatest output at a minimum cost

Answer

A. It has a motive to increase output

Answer

C. Marginal cost equals marginal revenue

Answer

D. Marginal cost is less than marginal revenue

Question 26

The PAYE ( Pay As You Earn) in Nigeria is an example of ______

Accepted Answer

D. Progressive tax

Answer

A. Flat rate Tax

Answer

B. Community tax

Answer

C. Regressive tax

Question 27

The price mechanism______

Accepted Answer

D. Allocates scarce resources.

Answer

A. Rations the consumers

Answer

B. Rewards the producers

Answer

C. Regulates supply and demand

Question 28

By utility we mean________

Accepted Answer

B. Power of satisfying a want

Answer

A. Uselessness

Answer

C. Beneficial

Answer

D. Consumable

Question 29

A good measure of the standard of living usually used for international comparison is_______

Accepted Answer

A. Per capita income (PCI)

Answer

B. Gross national product (GND)

Answer

C. Net national income (NNI)

Answer

D. Gross domestic product (GDP)

Question 30

The petro-chemical industries are located in Rivers State of Nigeria due to ________

Accepted Answer

D. Oil deposits

Answer

A. Coal deposit

Answer

B. Palm oil products

Answer

C. Favourable soil

Question 31

Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a Visa for a period of ________

Accepted Answer

C. 90 days

Answer

A. 100 days

Answer

B. 30 days

Answer

D. 14 days

Question 32

If Mr. A earns N2.000 a year while Mr. B earns N8000 but Mr. A pays N200 in tax per annum while Mr. B pays N400, such tax is_______

Accepted Answer

D. Regressive

Answer

A. Progressive

Answer

B. Proportional

Answer

C. Indirect

Question 33

If the price of a commodity falls and the quantity purchased does not rise, the commodity can be described as________

Accepted Answer

D. Inferior

Answer

A. Scarce

Answer

B. Normal

Answer

C. Superior.

Question 34

Which of the following countries is not a member of the Economic Community of West African States?

Accepted Answer

A. Sudan

Answer

B. Gambia

Answer

C. Togo

Answer

D. Nigeria

Question 35

A typical corporate form of business organization is owned by ______

Accepted Answer

A. Shareholders

Answer

B. A local government

Answer

C. The president of a country

Answer

D. Foreigners and citizens of the country.

Question 36

The value of money depends primarily on _________

Accepted Answer

B. The general price level

Answer

A. The gold backing of the currency

Answer

C. Government decree that it is legal tender

Answer

D. None of the above

Question 37

Full employment is a situation in which _______

Accepted Answer

D. All those who are able and eligible can find employment

Answer

A. Every adult is employed.

Answer

B. Only the disable are not employed.

Answer

C. All adults who can work are employed.

2021 JAMB Economics Past Questions and Answers

Questions

Frequently asked questions

2021 JAMB Economics Past Questions and Answers

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?