Economics as a Science - UTME/JAMB Standard Multiple-Choice Questions

Answer the following multiple-choice questions by selecting the correct option (A, B, C, or D).

1. 1. Which of the following best describes the concept of scarcity in economics?

A) Unlimited resources to satisfy unlimited wants

B) Limited resources to satisfy unlimited wants
C) Limited wants with limited resources
D) Unlimited wants with unlimited resources

• **Answer:** B

1. 2. The concept of opportunity cost is best illustrated by which of the following?

A) The amount of money paid for a product

B) The benefit of the next best alternative foregone
C) The resources used to produce goods and services
D) The amount of time spent on an activity

• **Answer:** B

1. 3. What is the primary focus of economics as a science?

A) Studying money and its circulation

B) Managing unlimited resources to satisfy limited wants
C) Making rational choices with scarce resources
D) Measuring government expenditures

• **Answer:** C

1. 4. A scale of preference helps an individual to:

A) Increase his resources

B) Rank his wants in order of priority
C) Reduce his wants
D) Make efficient use of his resources

• **Answer:** B

1. 5. Which of the following represents a basic economic problem?

A) What, how, and for whom to produce

B) When to produce
C) How much to save
D) How much to consume

• **Answer:** A

1. 6. The Production Possibility Frontier (PPF) illustrates:

A) The maximum combination of goods and services that can be produced
B) The minimum amount of goods produced
C) The income distribution of a country
D) The resources required to produce one good

• **Answer:** A

1. 7. Which of the following is a feature of a rational consumer?

A) Spending without regard for future needs

B) Making choices to maximize satisfaction
C) Preferring luxury goods over necessities
D) Consuming goods without a budget

• **Answer:** B

1. 8. The economic term for 'satisfaction derived from consuming a good' is:

A) Production
B) Utility
C) Demand
D) Supply

• **Answer:** B

1. 9. In economics, the term 'distribution' refers to:

A) The allocation of produced goods and services among consumers

B) The exchange of goods in the market
C) The production of goods and services
D) The consumption of goods by households

• **Answer:** A

1. 10. Which of these best defines a market?

A) A place where goods and services are exchanged

B) A large organization that produces goods
C) A collection of wants and desires
D) An area where money is saved

• **Answer:** A

• 11. What is the main purpose of a scale of preference?

• A) To reduce the cost of production

• B) To help allocate scarce resources efficiently

• C) To increase production
• D) To measure income distribution

• Answer: B

• 12. In economics, "consumption" means:

• A) The saving of goods for future use

• B) The satisfaction derived from producing goods

• C) The use of goods and services to satisfy wants

• D) The production of goods for resale

• Answer: C

• 13. The concept of "what to produce" in economics addresses:

• A) Types of goods needed in an economy

• B) Factors influencing consumption

• C) Methods for distributing goods

• D) Resource availability

• Answer: A

• 14. Which of the following is considered an economic resource?

• A) Money only

• B) Time only

• C) Land, labor, and capital

• D) Wants and needs

• Answer: C
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• 15. A trade-off in economics refers to:

• A) A decision to produce more of one good and less of another

• B) The allocation of resources for maximum output

• C) The sacrifice of time in a production process

• D) All resources being fully employed

• Answer: A

• 16. The idea of "for whom to produce" addresses:

• A) The people who will use the goods and services produced

• B) The methods of production

• C) The scale of production

• D) The allocation of resources

• Answer: A

• 17. A point inside the Production Possibility Frontier (PPF) indicates:

• A) Efficient use of resources

• B) Underutilization of resources

• C) Maximum output level

• D) Future production possibilities

• Answer: B

• 18. Opportunity cost is essential in economic decision-making because it helps to:

• A) Determine the value of money

• B) Allocate resources for maximum satisfaction

• C) Increase the production of goods

• D) Minimize waste in production

• Answer: B

• 19. Wants are said to be unlimited because:

• A) They can always be satisfied

• B) They can never be fully satisfied

• C) Resources are abundant

• D) People always need money

• Answer: B

• 20. A Production Possibility Curve (PPC) is also known as a:

• A) Budget line

• B) Demand curve

• C) Indifference curve

• D) Transformation curve

• Answer: D

• 21. The concept of "choice" in economics arises because:

• A) Wants are limited

• B) Resources are unlimited

• C) Resources are limited

• D) People always need luxuries

•

• Answer: C

• 22. Rationality in economics assumes that consumers:

• A) Make choices that reduce their utility

• B) Spend all their income on luxury goods

• C) Make decisions to maximize satisfaction

• D) Ignore opportunity costs

• Answer: C

• 23. The economic term for the "next best alternative forgone" is:

• A) Utility

• B) Scarcity

• C) Scale of preference

• D) Opportunity cost

• Answer: D

• 24. Efficiency in resource use ensures that:

• A) Resources are saved for future use

• B) Resources are used to maximize output

• C) Consumption is minimized

• D) Wants are unlimited

• Answer: B

•
• 25. A graph that shows possible combinations of two goods that an economy can produce is
known as:

• A) Production graph

• B) Opportunity cost curve

• C) Demand curve

• D) Production Possibility Frontier

• Answer: D

• 26. The idea that resources are limited in supply and cannot satisfy all human wants refers to:

• A) Scarcity

• B) Surplus

• C) Demand

• D) Utility

• Answer: A

• 27. A rational consumer will always choose:

• A) The cheapest goods

• B) Goods with the highest utility per unit

• C) Imported goods

• D) The most advertised products

• Answer: B

• 28. If a country's resources are fully utilized, any increase in production of one good will:

• A) Decrease production of another good

• B) Increase the total output

• C) Have no effect on other goods

• D) Eliminate scarcity

• Answer: A

• 29. The concept of "how to produce" relates to:

• A) The efficiency of production methods

• B) The preferences of consumers

• C) The allocation of goods to consumers

• D) The amount of resources available

• Answer: A

• 30. Which of the following is NOT a basic economic problem?

• A) What to produce

• B) Where to save

• C) How to produce

• D) For whom to produce

• Answer: B

• These questions cover basic definitions, concepts, problem-solving, and graphical

interpretations, challenging candidates to understand core principles in Economics as a Science.

•
•

• You said:

• please generate the remaining question 31 to 50

• ChatGPT said:

• ChatGPT

• Here are the remaining questions (31-50) based on the topics provided on Economics as a
Science:

• 31. When a point lies on the Production Possibility Frontier (PPF), it indicates:

• A) Underutilization of resources

• B) Unemployment of resources

• C) Efficient use of resources

• D) Inefficient use of resources

• Answer: C

• 32. Which of these statements best explains the concept of scarcity?

• A) Wants are greater than resources

• B) All wants are satisfied by production

• C) Resources are greater than wants

• D) The need for goods and services is limited

• Answer: A

• 33. The concept of "choice" in economics is due to:

• A) Excess resources

• B) Lack of wants

• C) Scarcity of resources
• D) Limited production

• Answer: C

• 34. A movement along the Production Possibility Curve implies:

• A) Changes in technology

• B) Changes in the allocation of resources between two goods

• C) Inefficiency in resource utilization

• D) A change in the demand for goods

• Answer: B

• 35. In economics, consumption refers to:

• A) Producing goods for sale

• B) Distributing resources across sectors

• C) Utilizing goods and services to satisfy wants

• D) Increasing production levels

• Answer: C

• 36. A rational consumer allocates resources to:

• A) Minimize satisfaction

• B) Maximize utility

• C) Eliminate production

• D) Decrease scarcity

• Answer: B
•

• 37. What does the "scale of preference" help an individual to do?

• A) Identify the most expensive goods

• B) Rank wants in order of importance

• C) Reduce the amount of goods needed

• D) Determine resources to produce goods

• Answer: B

• 38. Opportunity cost is best described as:

• A) The cost of production

• B) The value of the next best alternative foregone

• C) The money spent on luxury goods

• D) The resources saved for the future

• Answer: B

• 39. Which of the following is NOT a factor of production?

• A) Land

• B) Capital

• C) Money

• D) Labour

• Answer: C

• 40. The economic question "for whom to produce" addresses:

• A) Resource allocation
• B) Methods of production

• C) Distribution of goods

• D) Profit maximization

• Answer: C

• 41. A shift of the Production Possibility Frontier (PPF) outward indicates:

• A) A decrease in resource availability

• B) An improvement in technology or resources

• C) A decline in production efficiency

• D) An increase in consumer preference

• Answer: B

• 42. Wants in economics are said to be insatiable because:

• A) Resources are available to satisfy all wants

• B) They vary by income

• C) Human desires are unlimited

• D) Needs are always the same

• Answer: C

• 43. The cost of the next best alternative forgone when a choice is made is known as:

• A) Scale of preference

• B) Opportunity cost

• C) Market price

• D) Total utility
•

• Answer: B

• 44. Efficiency in resource allocation is achieved when:

• A) Only one good is produced

• B) Production meets maximum potential on the PPF

• C) Resources are underutilized

• D) All resources are saved

• Answer: B

• 45. Which of the following best describes a mixed economy?

• A) An economy where the government controls all resources

• B) An economy with only private sector activities

• C) An economy with both private and government involvement

• D) An economy where only natural resources are used

• Answer: C

• 46. In economics, production is defined as:

• A) The use of goods and services

• B) The creation of goods and services to satisfy human wants

• C) The act of saving resources for future use

• D) The exchange of goods and services

• Answer: B

•
• 47. When a country’s resources are fully utilized, producing more of one good results in:

• A) A proportional increase in all goods

• B) An increase in opportunity cost

• C) No effect on other goods

• D) A decrease in efficiency

• Answer: B

• 48. Which of the following best defines scarcity?

• A) Limited resources to meet unlimited wants

• B) Unlimited wants to meet limited resources

• C) Availability of resources to meet all needs

• D) Abundance of goods and services

• Answer: A

• 49. The Production Possibility Curve (PPC) illustrates:

• A) The trade-offs in production choices

• B) The exact needs of consumers

• C) Only one type of good produced

• D) Constant production of all goods

• Answer: A

• 50. Which of the following would cause an inward shift of the Production Possibility Frontier?

• A) An increase in population

• B) A decrease in available resources

• C) An improvement in technology
• D) An increase in consumer demand

• Answer: B