2022 JAMB Economics Past Questions & Answers (Part 2)

Question 1

A consumer of a single commodity is in equilibrium when

Accepted Answer

B. he equates marginal utility and price

Answer

A. he can equate his demand with price

Answer

C. he can equate his marginal and total utilities

Answer

D. his marginal utility is equal to zero

Question 2

A major characteristic of natural resources is they

Accepted Answer

C. are free gifts of nature

Answer

A. are unlimited in supply

Answer

B. have high cost of production

Answer

D. do not command any price

Question 3

The sufficient condition for a firm to be in equilibrium is that the

Accepted Answer

D. marginal cost curve cuts the marginal revenue curve from below

Answer

A. firm must show that it is profitable

Answer

B. marginal cost must be equal to average revenue

Answer

C. marginal revenue curve is above the average revenue curve

Question 4

In a country with large population of full-time house wives, national income

Accepted Answer

D. figures will be grossly under-estimated

Answer

A. will be composed of goods produced by women

Answer

B. figures will be grossly over-stated

Answer

C. statistics will be difficult to calculate

Question 5

Wholesalers play an important in the distribution of goods and services because they

Accepted Answer

B. finance both producers and retailers

Answer

A. are located very close to consumers

Answer

C. pass information on from retailers to consumers

Answer

D. sell in small units to consumers

Question 6

A minimum price legislation is also called

Accepted Answer

B. price floor

Answer

A. price ceiling

Answer

C. price control

Answer

D. price mechanism

Question 7

PN equals average revenue or marginal revenue cure of

Accepted Answer

C. a perfectly competitive firm

Answer

A. An imperfect competitive firm

Answer

B. a monopoly

Answer

D. a monopolistic competitive firm

Question 8

In manufacturing, division of labour may be hindered by

Accepted Answer

B. low level of technology

Answer

A. excessive demand for the product

Answer

C. excess supply of labour

Answer

D. increase in the export of goods

Question 9

If inflation is anticipated, people may

Accepted Answer

B. spend more money

Answer

A. save more money

Answer

C. give out more loans

Answer

D. spend less money

Question 10

The supply curve of a locally-produced good may shift to the right if

Accepted Answer

B. government increases subsidies

Answer

A. there is an increase in taxes on inputs

Answer

C. rural-urban migration is encouraged

Answer

D. the price of the commodity increases

Question 11

A firm's average cost decreases in the long-run because of

Accepted Answer

A. increasing returns to scale

Answer

B. diminishing average returns

Answer

C. decreasing marginal returns

Answer

D. decreasing average fixed cost

Question 12

There is unemployment of resources when production is

Accepted Answer

A. within the production possibility curve

Answer

B. outside the production possibility curve

Answer

C. along the production possibility curve

Answer

D. adequate to meet market demand

Question 13

A baker bought flour and other ingredients for S250.00, spent S52.00 on distribution, sold the bread for S320.00. The value added by the baker.

Accepted Answer

C. $18.00

Answer

A. $302.00

Answer

B. $52.00

Answer

D. $622.00

Question 14

An electrical engineer who is teaching physics in a secondary school is said to be

Accepted Answer

A. under-employed

Answer

B. unemployed

Answer

C. fully employed

Answer

D. technologically unemployed

Question 15

The production cost that varies inversely with output is the

Accepted Answer

C. average fixed cost

Answer

A. total fixed cost

Answer

B. marginal cost

Answer

D. average cost

Question 16

If the price of commodity X rises and consumers shift to commodity Y, then commodities X and Y are

Accepted Answer

A. substitutes

Answer

B. complements

Answer

C. inferior goods

Answer

D. bought together

Question 17

A positive effect of a rapid population increase is

Accepted Answer

C. a wider market for goods and services

Answer

A. an excessive budget deficit

Answer

B. a reduction in standard of living

Answer

D. a higher dependency ratio

Question 18

If the marginal utility of commodity is equal to its price, then

Accepted Answer

A. the consumer is in equilibrium

Answer

B. more of the commodity can be consumed

Answer

C. total utility is also equal to its price

Answer

D. the market is not in equilibrium

Question 19

Holding money to take care of contingencies is

Accepted Answer

C. a precautionary motive

Answer

A. a speculative motive

Answer

B. a transactions motive

Answer

D. an expansionary motive

Question 20

One benefit a country can derive from the extraction of crude oil is increase in

Accepted Answer

B. employment

Answer

A. population

Answer

C. money supply

Answer

D. demand for imports

Question 21

The International Bank for Reconstruction and Development(IBRD) performs the following functions except-------

Accepted Answer

C. reducing tariff among members

Answer

A. granting long-term loans

Answer

B. assisting with technical expertise

Answer

D. developing human resource

Question 22

Which of the following factors may not affect the efficiency of labour?

Accepted Answer

C. Race and colour of workforce

Answer

A. Education and training

Answer

B. Provision of welfare service

Answer

D. Quality of other factor inputs

Question 23

If workers at the school canteen cannot sell during the holidays, this is example of

Accepted Answer

C. seasonal unemployment

Answer

A. structural unemployment

Answer

B. frictional unemployment

Answer

D. residual unemployment

Question 24

Which of the following cannot be classified as a natural resource?

Accepted Answer

A. Iron rod

Answer

B. Wild life

Answer

C. Solar energy

Answer

D. Gold

Question 25

A supply curve parallel to the X-axis indicates

Accepted Answer

B. infinitely elastic supply

Answer

A. fairly elastic supply

Answer

C. fairly inelastic supply

Answer

D. perfectly inelastic supply

Question 26

The stock exchange is an example of the

Accepted Answer

D. capital market

Answer

A. labour market

Answer

B. money market

Answer

C. commodity market

Question 27

An example of transfer payments in national income accounting is

Accepted Answer

B. unemployment allowance paid to the citizens

Answer

A. money transferred to another country

Answer

C. the amount paid to a worker on transfer

Answer

D. transfer of funds from one bank to another

Question 28

A disadvantage of a jont-stock company is

Accepted Answer

D. limited control in management by shareholders

Answer

A. unlimited liability

Answer

B. limited liability

Answer

C. lack of continuity when a shareholder dies

Question 29

Cooperative societies are formed mainly to

Accepted Answer

C. promote and maintain the welfare of members

Answer

A. assist producers to maximize their profits

Answer

B. encourage thrift and credit among members

Answer

D. break the monopolies of private companies

Question 30

Which of the following industries will add more value to primary products?

Accepted Answer

D. Processing industry

Answer

A. Service industry

Answer

B. Construction industry

Answer

C. Mining industry

Question 31

Economics problems arise in all societies because

Accepted Answer

C. resource are not in adequate supply

Answer

A. resources are mismanaged by leaders

Answer

B. there is no proper planning

Answer

D. the services of economists are not employed

Question 32

If the government imposes a minimum price on a commodity

Accepted Answer

A. market surplus occurs

Answer

B. the market will be cleared in the short-run

Answer

C. excess demand occurs

Answer

D. government regulation is no longer needed

Question 33

The price mechanism

Accepted Answer

E. does all of the above

Answer

A. regulates supply and demand

Answer

B. rations the consumers

Answer

C. rewards the producers

Answer

D. allocates scarce resources

Question 34

Gross National Product (GNP) less the provision for the wear and tear of assets is the

Accepted Answer

B. net national product

Answer

A. net present value

Answer

C. net factor income

Answer

D. net indirect taxes

Question 35

If a housewife has meat and wants tomatoes, she must find someone who has tomatoes to give and wants meat. This concept is described as

Accepted Answer

D. double coincidence of wants

Answer

A. scale of preference

Answer

B. opportunity cost

Answer

C. complementary demand

Question 36

Marginal cost is?

Accepted Answer

D. the cost of production of the last or extra unit of goods produced by a firm

Answer

A. the lowest cost of producing goods

Answer

B. the cost of production of the most efficient firm in an industry

Answer

C. the cost of production of the most inefficient firm in an industry

Question 37

The main objective of marketing boards is to

Accepted Answer

C. stabilize the incomes of cash crop farmers

Answer

A. accumulate revenue for government

Answer

B. educate farmers on pricing of cash crops

Answer

D. provide warehousing facilities

Question 38

A price floor is usually fixed

Accepted Answer

D. above the equilibrium and causes surpluses

Answer

A. at the equilibrium and causes no shortage

Answer

B. above the equilibrium and causes shortage

Answer

C. below the equilibrium and causes surpluses

2022 JAMB Economics Past Questions — Part 2

Questions 43–83

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2022 JAMB Economics Past Questions — Part 2

Questions 43–83

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