2023 JAMB Economics Past Questions & Answers

Question 1

Overpopulation is caused by

Accepted Answer

C. low Literacy rates

Answer

A. emigration

Answer

B. disease

Answer

D. war and conflicts

Question 2

The principle that specified that the amount, when and how to pay tax should be made known to tax payer is known as

Accepted Answer

D. Principle of certainty

Answer

A. Principle of economy

Answer

B. Principle of convenience

Answer

C. Principle of simplicity

Question 3

A major factor contributing to productivity is

Accepted Answer

B. The labour force

Answer

A. Immigration of young workers

Answer

C. The baby boom of generation

Answer

D. The rate of GDP per year

Question 4

Real cost is

Accepted Answer

A. Alternative commodities forgone

Answer

B. Amount of money spent on goods and services

Answer

C. Cost of goods and services

Answer

D. True cost

Question 5

Among all the determinants of economic growth, the most important one is

Accepted Answer

A. Human capital

Answer

B. Increased GDP

Answer

C. Land and Natural resources

Answer

D. Technologies

Question 6

Government uses all of the following ways to redistribute income, except

Accepted Answer

C. Limited liability

Answer

A. Market intervention

Answer

B. Transfer earnings

Answer

D. Taxation

Question 7

The demand for a good is price inelastic if

Accepted Answer

A. The price elasticity is less than one

Answer

B. The price elasticity is one

Answer

C. The price elasticity is negative

Answer

D. The price elasticity is greater than one

Question 8

The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is

Accepted Answer

D. Perfectly inelastic

Answer

A. Perfectly elastic

Answer

B. Infinitely elastic

Answer

C. Inelastic

Question 9

A ............ in the price of the domestic currency in terms of a foreign currency is referred to as .............

Accepted Answer

C. Decrease, depreciation

Answer

A. Decrease, appreciation

Answer

B. Increase, de-appreciation

Answer

D. Increase, consolidation

Question 10

Economists refer to private goods as

Accepted Answer

B. rivalrous and excludable

Answer

A. rivalrous and non-excludable

Answer

C. non rival and non- excludable

Answer

D. non rival and excludable

Question 11

The theory of ............... was propounded by ..................

Accepted Answer

B. Absolute advantage; Adam Smith

Answer

A. Comparative advantage; Mercantilists

Answer

C. Comparative advantage; Adam Smith

Answer

D. Absolute advantage; David Ricardo

Question 12

If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?

Accepted Answer

A. 1.14

Answer

B. 7.1

Answer

C. 14.1

Answer

D. 1.7

Question 13

The law of supply states that, other things being constant, as price increases

Accepted Answer

C. Quantity supplied increases

Answer

A. Supply increases

Answer

B. Supply decreases

Answer

D. Quantity supplied decreases

Question 14

The short run can be defined as the period of time during which

Accepted Answer

B. At least one of the firm's input is fixed

Answer

A. All inputs are fixed

Answer

C. At least two inputs are fixed

Answer

D. All inputs are variable

Question 15

The following are economic agents in any economy EXCEPT

Accepted Answer

A. Central Bank

Answer

B. House hold

Answer

C. Firm

Answer

D. Government

Question 16

When a kilogram of carrot is #8.00, 20 kilograms are demanded and when the price decreased to #6.000 per kilogram, 30 kilograms are demanded. The elasticity of demand equals to

Accepted Answer

D. 2

Answer

A. 11

Answer

B. 12

Answer

C. $\frac{1}{2}$

Question 17

A persistence rise in the prices of inputs will lead to

Accepted Answer

A. cost push inflation

Answer

B. demand pull inflation

Answer

C. hyperinflation

Answer

D. stagflation

Question 18

Which of the following would not be a reason for a government to impose a quota on imports?

Accepted Answer

C. To decrease tax revenue

Answer

A. To support strategic industry

Answer

B. To prevent dumping

Answer

D. Employment oppourtunity

Question 19

The demand for money will fall if

Accepted Answer

C. Real interest rates rise

Answer

A. People expect deflation soon

Answer

B. Real GDP rises

Answer

D. The GDP deflator rises

Question 20

The rate of output per worker (or group of workers) per unit time is called

Accepted Answer

A. labour productivity

Answer

B. total output

Answer

C. individual output

Answer

D. workdone

Question 21

Macroeconomics focuses on the following units in an aggregative manner

Accepted Answer

A. household, firms, government, corporate sector and external sector

Answer

B. individual consumers, individual firms, government and external sector

Answer

C. government, household firms, individual consumers and external sector

Answer

D. individual consumers, household firms and manufacturing sector

Question 22

An increase in money income with constant price results in

Accepted Answer

A. Outward shift in the budget line

Answer

B. Inward parallel shift in the budget line

Answer

C. Options A and C

Answer

D. Budget line remain constant

Question 23

If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn

Accepted Answer

D. An economic profit of N250,000

Answer

A. A normal profit of N750,000

Answer

B. An economic profit of N750,000

Answer

C. A normal profit o N1,750,000

Question 24

Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?

Accepted Answer

C. Unemployment will increase

Answer

A. Unemployment will fall

Answer

B. Unemployment will remain constant

Answer

D. Unemployment will fluctuate

Question 25

One major problem facing West African countries is

Accepted Answer

D. Financial crunch of Member States

Answer

A. Relations with Colonial Masters

Answer

B. Joint Military operations in Member States

Answer

C. Political integration

Question 26

Institutions serving as links between surplus and deficit units can be identified as

Accepted Answer

C. financial intermediates

Answer

A. tax officers

Answer

B. pension offices

Answer

D. acceptance houses

Question 27

All of the following describes conditions necessary for existence of a perfect market EXCEPT

Accepted Answer

A. lack of homogeneity of goods

Answer

B. perfect knowledge

Answer

C. large buyers and sellers

Answer

D. portability of goods

Question 28

Indicator of underdevelopment is

Accepted Answer

D. low per capita income

Answer

A. high life expectancy

Answer

B. low birth rate

Answer

C. low population growth rate

Question 29

What is the lowest price the monopolist can charge

Accepted Answer

B. P1

Answer

A. P2

Answer

C. P3

Answer

D. P4

Question 30

The development of an economic hypothesis through intuition, insight, or logic is associated with

Accepted Answer

A. Deduction

Answer

B. Policy economics

Answer

C. Normative economics

Answer

D. Induction

Question 31

The part of income after tax that is not consumed is defined as

Accepted Answer

B. Saving

Answer

A. Wages and salaries

Answer

C. Capital investment

Answer

D. Nondurable goods expenditure

Question 32

If the supply curve of labour market is given as S = 4L + 8. What is L when s = 20?

Accepted Answer

D. 3

Answer

A. 2

Answer

B. 4

Answer

C. 5

Question 33

The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is

Accepted Answer

A. Structural unemployment

Answer

B. Cyclical unemployment

Answer

C. Seasonal unemployment

Answer

D. Frictional unemployment

Question 34

Which of the following Age group belongs to active Labour force?

Accepted Answer

D. 18 - 64yrs

Answer

A. 15 - 25yrs

Answer

B. 0 - 17yrs

Answer

C. 65yrs and above

Question 35

Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?

Accepted Answer

A. Marginal propensity to save has fallen

Answer

B. Actual investment had fallen

Answer

C. Average propensity to invest has fallen

Answer

D. Actual saving has fallen

Question 36

The fundamental problem of economics is

Accepted Answer

B. The scarcity of productive resources relative to society's unlimited wants

Answer

A. Finding striking determinants between the forces of supply and demand

Answer

C. The establishment of a political framework to determine the what, how and for whom of production

Answer

D. To establish an equitable distribution of income

Question 37

40 men were employed in a farm, and they produced an average of 30 tonnes of cassava per person. Calculate the total product.

Accepted Answer

C. 1,200 tonnes

Answer

A. 1,300 tonnes

Answer

B. 1,100 tonnes

Answer

D. 1,400 tonnes

Question 38

Multiplier can be described as

Accepted Answer

C. the ratio of change in output to a change in autonomous spending

Answer

A. the ratio of change in an endogenous variable to the change spending

Answer

B. the ratio of variables that multiplies autonomous spending plus tax

Answer

D. the ratio of variables that multiplies autonomous spending

Question 39

Calculate the equilibrium level of national income (Y) where Y = C + I + G; C = 100 + 0.75Y; I = 50; G = 200

Accepted Answer

D. 1400

Answer

A. 2000

Answer

B. 100

Answer

C. 1500

Question 40

Which one of the following measures the natural growth rate of population?

Accepted Answer

B. Birth rate - Death rate

Answer

A. Natural increase - Birth rate + Net migration

Answer

C. Birth rate/Death rate

Answer

D. Birth + Net migration = Death

Question 41

Which of the following is an example of free good?

Accepted Answer

B. Water in the ocean

Answer

A. Free education

Answer

C. Dinner you did not pay for

Answer

D. Your rented apartment

Question 42

The quantity of commodity a consumer is willing and able to buy at a particular time is called

Accepted Answer

C. demand

Answer

A. supply

Answer

B. wish

Answer

D. desire

Question 43

Which of the following is NOT one of the characteristics of developing countries?

Accepted Answer

C. High capital formation

Answer

A. High unemployment

Answer

B. Mono- product economy

Answer

D. Low saving

Question 44

Business cycle is associated with

Accepted Answer

A. Recession

Answer

B. Unemployment

Answer

C. Seasonal variation

Answer

D. Inflation

Question 45

Money could be defined as

Accepted Answer

A. Options A, B and C

Answer

B. Medium of exchange

Answer

C. Settlement of debt

Answer

D. Medium of payment

Question 46

If commodities X and Y are substitute, their cross elasticity of demand will be

Accepted Answer

B. positive

Answer

A. One

Answer

C. negative

Answer

D. zero

Question 47

The term 'investment' in macroeconomics means

Accepted Answer

C. The total amount of capital goods in the country

Answer

A. Profit

Answer

B. Total amount of money invested in bonds and stocks

Answer

D. The production of goods for immediate consumption

Question 48

Agriculture accounts for about 60% of the

Accepted Answer

C. active labour force in West Africa

Answer

A. commodity market in West Africa

Answer

B. arable land in West Africa

Answer

D. service sector activities in West Africa

Question 49

Economics is often described as a science because it

Accepted Answer

B. use scientific methods to explain observed phenomena

Answer

A. employs the use of laboratory experiments

Answer

C. make use of controlled experiments

Answer

D. engages accurate predication of human beings

Question 50

The decision to consume more of one product under normal circumstances will apply

Accepted Answer

A. less of another product will be consumed

Answer

B. more of another product will be consumed

Answer

C. less of the product will be consumed

Answer

D. no other products will be consumed

Question 51

Part-time workers who desire full-time employment are:

Accepted Answer

B. Underemployed but do not contribute to the unemployment statistic

Answer

A. Underemployed and contribute to the unemployment statistic

Answer

C. Not part of the labour force and do not contribute to the unemployment statistic

Answer

D. Cyclical unemployment

Question 52

The marginal propensity to consume is

Accepted Answer

A. Options A, B and C

Answer

B. ΔC/ΔY

Answer

C. The slope of the consumption function

Answer

D. Coefficient c in the equation C = C + cYd

Question 53

When a generalization is made based on observed facts, it is

Accepted Answer

A. inductive reasoning

Answer

B. normative reasoning

Answer

C. theoretical reasoning

Answer

D. deductive reasoning

Question 54

.............is presently used in Nigeria to measure inflation

Accepted Answer

B. Consumer price index

Answer

A. GNP implicit price deflator

Answer

C. Wholesale price index

Answer

D. Real Gross Domestic Product

Question 55

An industry is

Accepted Answer

C. A group of firms producing related goods

Answer

A. A group of firms producing differentiated products

Answer

B. A group of firms producing distinct commodities

Answer

D. A group of firms producing unrelated goods

Question 56

The "velocity" of money is

Accepted Answer

D. The ratio of real GDP to the real money supply

Answer

A. The real money supply divided by the real GDP

Answer

B. The money supply multiplied by the price level

Answer

C. The money supply divided by the price level

Question 57

..................... is the highest body in ECOWAS organogram

Accepted Answer

A. Authority of Head of State and Government

Answer

B. The Executive Secretariat

Answer

C. The Defense Council

Answer

D. Council of Ministers

Question 58

An increase in nominal income without increase in price will result to

Accepted Answer

A. increased real income

Answer

B. increased GDP

Answer

C. decreased real income

Answer

D. decreased GNP

Question 59

A tariff is a tax imposed on

Accepted Answer

C. Imported goods

Answer

A. Consumer goods

Answer

B. Domestic goods

Answer

D. Exported goods

Question 60

Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?

Accepted Answer

D. Buying Treasury securities from commercial banks

Answer

A. Lowering income taxes

Answer

B. Increasing the discount rate

Answer

C. Increasing the reserve ratio

Question 61

One major criticism of foreign aid to developing countries is that it

Accepted Answer

B. Encourages growth in government bureaucracy

Answer

A. Gives too much power and control to world bank

Answer

C. Is capital using rather than capital saving

Answer

D. Provides incentives for capital flight

Question 62

In a two by two model of international trade, it is assumed that

Accepted Answer

B. both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade

Answer

A. both countries could gain from trade at the same time, but term of trade is inconsequential for the distribution of the gains

Answer

C. neither country could ever gain from trade since term of trade is depends on the distribution of the gains from trade

Answer

D. both countries could gain from trade at the same time, and the volume of the gains does not depend on terms of trade

Question 63

Identify one of the following which can NOT be used to close deflationary gap

Accepted Answer

A. Increased interest rate

Answer

B. Increased money supply

Answer

C. Increase government expenditure

Answer

D. Reduction in taxes

Question 64

Public corporation is financed with

Accepted Answer

B. Tax payer's money

Answer

A. Capital raised from shareholders

Answer

C. Capital raised from stock exchange

Answer

D. Capital contributed by owners

2023 JAMB Economics Past Questions and Answers

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2023 JAMB Economics Past Questions and Answers

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