JAMB

Economics
Past questions

Years: 2016 2017

2018 2019 2020

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 2016 JAMB ECONOMICS QUESTIONS

1. A country embarks on deficit A. 2 and 3

financing in order to B. 3 only
C. 2 only
A. reduce aggregate demand D. 1 and 3
B. increase revenue
C. stimulate investment 5. The Economic Community of
D. curb inflation West African States (ECOWAS) is
an example of
2. The money market provides
business firms with the avenue to A. globalization
B. regional marketing board
A. purchase goods and services C. economic integration
B. purchase capital equipment’s D. economic union.
C. obtain short- term funds
D. obtain long-term funds 6. Given: 32, 18, 24, 17, 16, 32,
28, 68, 71 and 15, the mode of
3. The optimum level of output for the distribution is
pure monopolist occurs where
A. 71
A. P is highest B. 56
B. P = AC C. 32
C. P = MC D. 15
D. MR = MC
7. The major determinant of
4. According to the demographic income elasticity of demand is
transition theory, Africa can be
said to be at stage A. government policy
B. the availability of substitutes

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C. the price of the good 11. The demand curve for a
D. the level of consumer's income normal good is negatively sloped
because
8. Given: 2, 4, 6, 8, 4 and 6, the
absolute mean deviation is A. price is an incentive to
producers
A. 6.00 B. price is an incentive to
B. 1.67 consumers
C. 30.00 C. demand always exceeds supply
D. 0.60 D. price and quantity move in the
same direction.
9. The precautionary demand for
money is determined by 12.

A. the level of savings

B. the rate of interest
C. general price level
D. the level of income.

The average total cost when 20

10. If the output of a firm
units are produced is
experiencing economies of scale
increases, the average cost would
A. ₦45.30kg
B. ₦50.00kg
A. be at minimum
B. rise C. ₦47.50kg

C. be at maximum D. ₦5.00kg

D. fall.
13. The major role of
multinational companies in the
Nigerian petroleum industry is
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A. oil marketing only B. government
B. oil marketing and prospecting C. industries
C. establishment of refineries D. labour unions.
D. oil prospecting only.
17. The co-efficient of price
14. Life insurance companies elasticity of supply is
contribute to economic
development by holding a part of A.
their assets in
B.

A. long-term financial instruments C.

B. equipment D.
C. cash and near money
D. money-market instruments.
18. A change in supply of a
commodity is due to a change in
15. The wage rate is mostly
the
related to

A. price of the commodity

A. marginal productivity of labour
B. cost of production
B. average productivity of labour
C. price of substitute
C. marginal efficiency of
D. population growth rate.
investment
D. total productivity of Labour.
19. In a limited liability company,
the greatest risk is borne by the
16. The choice of how to produce
in a command economy is
A. preference shareholders
determined by
B. debentures shareholders
C. ordinary shareholders
A. consumers
D. board of directors.
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20. A market characterized by 23. A major determinant of
absence of close substitutes of demand is
goods and services is an example
of A. incentives to workers
B. level of technology
A. a monopoly C. population
B. an oligopoly D. cost of production.
C. a perfect competition
D. a monopolistic competition. 24. Which of the following can be
used to measure the Gross
21. An inflation that co-exists with National Product
high rate of unemployment is
A. C+I+G-F(X+M)
A. hyperinflation B. C+I+G+(X-M)
B. cost-push inflation C. C+I+G+X
C. stagflation D. C+I+G
D. demand-pull inflation.
25. Find the median of the
22. The growth and development following set of data 35, 10, 14,
of small and medium scale 38, 15, 18, 22, 30 and 28.
enterprises in Nigeria is hampered
by A. 10
B. 22
A. poor regulatory framework C. 38
B. poor access to credit facilities D. 35
C. poor management
D. the small size of the market. 26.

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 28. The main function NNPC is to
Unit of output Total output
(Kg) A. develop the oil producing areas
1 13 B. oversee the development of
2 43 the oil sector
3 123 C. ensure regular supply of

4 243 products

5 353 D. fix the prices of petroleum

6 483 products

7 563
8 663 29. A major feature of an
underdeveloped economy is

From the table above, determine

the average product of the 5th A. low rate of population growth

unit of capital B. excess capacity utilization

C. low level of unemployment

A. 310.5 D. low level of standard living.

B. 176.5
C. 70.6 30. A tax on land will ultimately

D. 62.0 fall

27. The problem of what to A. partly on agents and users

produce is determined by B. partly on users and owners

C. entirely on owners

A. consumption pattern D. entirely on users.

B. the distribution pattern

C. the state of technology 31. The deregulation on the

D. the volume of production petroleum sector in Nigeria will

bring about

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A. efficiency in pricing and 34. Given: Qd = 30 — 3P and Qs
distribution of the products = 9P — 15, determine the
B. fixing appropriate production equilibrium price
quotas
C. an end to the importation of A. ₦12.00
fuel B. ₦3.75
D. an end to foreign firms' C. ₦2.80
dominance D. ₦3.00

32. One of the ways of correcting 35. The problem of economic

a deficit balance of payments is to development in Nigeria is that of

A. devalue a country's currency A. poor weather conditions

B. predenominate a country's B. overpopulation
currency C. surplus skilled manpower
C. reduce imports D. inadequate infrastructure.
D. reduce exports.
36. The combination of two
33. A nation's net export is commodities that yield the same
negative when her level of satisfaction is illustrated
by
A. export is adjusted upwards
B. external reserves deplete A. a budget line
C. depreciation exceeds B. an isocost curve
investments C. a production possibility curve
D. imports exceeds exports. D. an indifference curve

37. The demand for inferior goods

is inversely related to change in

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A. income 4 243
B. price 5 353
C. supply 6 483
D. taste. 7 563
8 663
38. The minimum number of From the table above, the
shareholders for partnership is marginal product of the 7th Unit
of Capital is
A. 7
B. 4 A. 80kg
C. 2 B. 100kg
D. 3 C. 310kg
D. 173kg
39. When diminishing returns sets
in, the total variable cost begins 41. Given: 32, 18, 24, 17, 16, 32,
to 28, 68, 71, and 15, what is the
range?
A. rise at an increasing rate
B. fall at a decreasing rate A. 26
C. rise at a decreasing rate B. 32
D. fall at an increasing rate. C. 56
D. 68
40.

42.
Unit of output Total output
(Kg)
1 13
2 43
3 123

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From the diagram above, the A. low level of foreign investment
consumer is at equilibrium at B. frequent break-down of
point equipment
C. inadequacy of infrastructural
A. G facilities
B. F D. government participation.
C. K
D. M 46. One of the factors that is
considered in the location of a
43. If P = 1/4 (Qs + 30), what is cement industry is nearness to
the quantity supplied at ₦18?
A. market
A. 64.5 B. raw materials
B. 42.0 C. infrastructural facilitates
C. 2.4 D. skilled manpower.
D. 30.0
47. A problem facing the
44. When a consumer is at development of the Nigerian
equilibrium, The MRS x is equal to Petroleum industry in Nigeria is
the
A. persistent gas flaring
A. product of the two prices B. instability in demand for the
B. sum of the two prices products
C. ratio of the two prices C. dominance of multinationals
D. difference of the two prices. D. declining oil reserves.

45. One of the major factors 48. At full employment level, a

militating against industrialization contractionary monetary policy
in Nigeria is will Lead to a

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A. rise in aggregate supply 19. C 20. A 21. C 22. B 23. C
B. rise in aggregate demand 24. B 25. B
C. rise in level of inflation rate
D. fall in the level of inflation 26. C 27. A 28. B 29. D 30. C
31. A 32. A 33. D 34. B 35. D
49. A country where the available 36. D 37. A 38. C 39. A 40. A
population is unable to guarantee 41. C 42. D 43. B 44. C 45. C
efficient utilization of available 46. B 47. A 48. D 49. A 50. C
resources is experiencing

A. under population
B. over-population
C. high population density
D. optimum population.

50. One of the causes of

instability in farmers' income is

A. high level of illiteracy

B. unfriendly land tenure
C. unfavourable weather condition
D. poor management of extension
services

ANSWER KEYS:

1. B 2. C 3. D 4. C 5. C 6. C 7. D
8. B 9. D 10. D 11. B 12. D 13.
B 14. A 15. A 16. B 17. B 18. B

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 2017 JAMB ECONOMICS QUESTIONS

1. If the arithmetic mean of 2, 3, 4. Scale of preference is referred

5, 8, Z, 10 and 12 is 7, what is to as the
the value of Z?
A. choices consumers make
A. 8 B. array of consumer's needs
B. 9 C. consumer preference for
C. 10 luxurious goods
D. 7 D. consumer wants in order of
priority
2. The most important function of
agriculture to the Nigerian 5. One of the basic assumptions
economy is of monopoly is

A. the guarantee of food security A. perfect information of the

B. technical skill development market condition
C. technological development B. the ability to either control
D. industrial development price or output
C. perfect mobility of factors of
3. Given that Qd=15-2P and production
Qs=5+3P, determine the D. large number of buyers and
equilibrium price. sellers

A. N3.00 6. The major advantage of a

B. N5.00 public limited liability company
C. N2.00 over a private limited liability
D. N6.00 company's

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A. limited liability enjoyed by B. provide the government with
owner statistics on the prevailing
B. separate legal entity interest rate
C. easy transferability of shares C. reveals the cost of living
D. perpetual existence D. provides the government with
statistics on present size of the
7. The main activity in the labour force
upstream oil sector in Nigeria is
10. If the demand for palm oil is
A. marketing of petroleum for the purpose of soap
products production and cooking, the
B. distribution of petroleum demand is said to be
products
C. extraction of crude oil A. competitive
D. refining of crude oil B. complementary
C. composite
8. The natural growth of D. derived
population is calculated as
11. The institution established to
A. birth rate + death rate enhance the activities of Nigeria's
B. labour force + dependant exports is
C. death rate - birth rate
D. birth rate - death rate A. Nigerian Export and Import
Bank
9. The study of age structure of a B. Import-substitution strategy
population is important because it C. Nigeria Export Promotion
Council
A. determine the exchange rate D. Bank of Industry

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 C. profit
D. wage

15. The type of inflation that

emanates from excess demand
over supply is
A. galloping inflation
12. From the pie chart above, the
B. cost-push inflation
percentage contribution of
C. demand-pull inflation
entrepreneur is
D. imported inflation

A. 2.77%
16. Which of the following
B. 33.33%
problems is associated with
C. 27.70%
national income measurement?
D. 3.33%

A. High interest rate

13. A sustained increase in per
B. Inflation and deflation
capita income accompanied by an
C. Overpopulation
increase in output is
D. population growth

A. economies of scale
17. Freedom of consumption and
B. economic efficiency
production are characteristics of
C. economic development
D. economic growth
A. socialism
B. feudalism
14. The reward for capita as a
C. capitalism
factor of production is
D. communism

A. interest
B. rent
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18. Cost of raw materials in B. ₦142.50 million
production is an example of C. ₦50 million
D. ₦7.50 million
A. marginal cost
B. variable cost 21. The volume of output in an
C. total cost economy is determined by
D. fixed cost
A. the foreign exchange rate
19. Foreign exchange control in B. the standard of living of
Nigeria is administered by the citizens
C. population density of a country
A. Money deposit banks D. efficiency in the use of factors
B. Central Bank of Nigeria of production
C. Discount houses
D. Security and Exchange 22. Given Qd = 30 - 3P, Qs = 9P
Commission – 18. Determine the equilibrium
quantity

A. 18
B. 20
C. 25
D. 27

23. In Nigeria, industrial

20. From the pie chart above,
development can be enhanced by
determine the contribution of
capital if the total contribution of
A. ensuring stable prices for
all factors is
manufactured goods

A. ₦12.50 million
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B. reducing government C. homogeneity
expenditure on imported goods D. flexibility in value Price
C. providing efficient
infrastructure
D. increasing the rate of interest

25. Capital gains tax is an

example of

A. Value Added Tax

28. The graph above represents
B. purchase tax
C. sales tax
A. a decrease in quality supplied
D. income tax
B. an increase in supply
C. an increase in quantity
26. Which of the following is NOT
supplied
a source of government revenue?
D. a decrease in supply Wages

A. Taxes, fees, licenses and fines

B. Interest, dividends, profits and
earnings
C. Personal income, disposable
income and transfer earnings
D. Grants, aids and borrowing
29. From the diagram above, the
arrow marked M indicates
27. One of the important qualities
that money must possess is
A. payments made for foods and
services
A. heterogeneity
B. payments made to factors of
B. easy availability
production

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C. the flow of capital goods A. that it is banker to the
D. the flow of economics rent government
B. the provision of credits facilities
30. A change in the quantity C. the formulation of monetary
supplied of a commodity is policies
influenced by D. issuing of currency notes

A. the price of substitutes 33. One of the arguments against

B. the price of the commodity the practice of monopoly is
C. consumer's tastes
D. technological know-how A. merging of producers
B. competition
31. C. exploitation
Price (₦) Quantity D. non-government ownership
Demanded
6 20 34. The main reason why
5 16 countries engaged in international
trade is the
From the table above, calculate
the elasticity of demand A. opportunity to earn high profit
in trading
A. 0.03 B. use of capital-intensive method
B. 0.30 of productions
C. 0.33 C. difference in their endowment
D. 0.04 of economic resources
D. difference in the population
32. One of the functions of money structure
deposit banks in economic
development is

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35. From the table above, it can be
Cup of Total Marginal inferred that there is
milk taken utility utility
1 18 18 A. diminishing returns to scale
2 24 6 B. excess of demand
3 29 5 C. diminishing marginal utility

4 X 3 D. diminishing marginal

5 34 2 productivity

6 35 1
7 35 0 37. A well conducted census is
important for

From the table above, what is the

value X? A. economic planning
B. providing economic

A. 32 opportunities in the rural areas

B. 35 C. distribution of educational

C. 34 materials in the cities

D. 30 D. revenue generation

36. 38. The cost-saving advantages

Quantity Total Marginal which a large firm can achieve on

consumed utility utility its own is called

0 0 --
1 10 10 A. internal economies of scale

2 15 5 B. diseconomies of large scale

C. externa diseconomies of scale
3 17 2
D. external economies of scale
4 18 1
5 18 0

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39. A country uses the foreign ANSWER KEYS:
exchange control measure to
eliminate balance of payments 1. B 2. A 3. C 4. D 5. B 6. C 7. C
deficit by 8. D 9. D 10. C 11. C 12. B 13.
C 14. A 15. C 16. B 17. C 18. B
A. limiting her imports to its 19. B 20. B
currency value of exports
B. limiting her exports to its 21. D 22. A 23. C 24. 25. D 26.
currency value of imports C 27. C 28. C 29. A 30. B 31. C
C. overvaluing the country's 32. B 33. C 34. C 35. A 36. C
currency 37. A 38. A 39. A 40. C
D. reducing the nation's domestic
price level

40. The role of IBRD as an

international institution is to

A. improve trading among

member nations
B. finance private businesses in
member nations
C. facilitate the development of
infrastructure in member nations
D. solve the problem of balance of
payments of member nations

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 2018 JAMB ECONOMICS QUESTIONS

1. Occupational distribution of A. finance agriculture

population is mainly influenced by B. establish banks
C. acquire machinery
A. economic factors D. build houses.
B. religious factors
C. geographical factors 5. In a capitalist economy, factors
D. social factors. of production are owned and
controlled by the
2. The reward for capital is
A. citizens
A. interest B. businessmen
B. rent C. government
C. risk D. foreigners.
D. premium.
6. The establishment of industries
3. The reduction in the value of a in rural areas will help to reduce
country's currency in relation to
the value of the currencies of A. urban-rural migration
other nations is known as B. rural-urban migration
C. rural-rural migration
A. deflation D. urban-urban migration.
B. inflation
C. devaluation 7. International trade is an
D. revaluation application of the principle of

4. Mortgage banks give loans to A. industrial production

investors on a long- term basis to B. mass production
C. regional production

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D. comparative cost advantage. B. inadequate personnel at the
secretariat
8. The number of people who are C. political instability
qualified to work and who offer D. inadequate international
themselves for employment is support.
called
11. Joint ventures are partnership
A. migrant labour involving
B. working population
C. labour turnover A. the poor and the rich
D. mobility of labour. B. employers and workers
C. government and private
9. Which of the following is an investors
advantage of localisation of D. multinationals and individuals.
industry?
12. In which of the following
A. Development of subsidiary business units are the owners
firms mostly the customers?
B. creation of parallel markets
C. Development of slums A. co-operatives
D. Attraction of foreign capital. B. limited liability companies
C. partnership
10. The Economic Community of D. public corporations.
West African States (ECOWAS)
has been slow in achieving its 13. The formula
objectives because of
, is used to measure the

A. the activities of multinationals

A. volume of trade between
countries

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B. direction of international trade C. Processed milk
C. commodity terms of trade D. Banking services
D. volume of imports. 16. The full meaning of OPEC is

Use the table below to answer A. Oil and Petroleum Exporting

question 14. Countries
B. Original Petroleum Exporting
Products Ghana Sierra Countries
Leone C. Organisation of Petrol
Coffee 8 tonnes 2 tonnes Exporting Countries
Cocoa 7 tonnes 9 tonnes D. Organisation of Petroleum
Exporting Countries
14. If specialisation should take
place, then 17. The main concern of
economists is to
A. Ghana should produce coffee
and cocoa A. control the growth of
B. Ghana would benefit by population
producing cocoa only B. redistribute income between
C. Sierra Leone should not the rich and the poor
produce any of the products C. satisfy all human wants
D. Sierra Leone should produce D. allocate scarce resources to
cocoa and Ghana coffee. satisfy human wants.

15. Which of the following is an 18. Productive resources can also

invisible item? be called

A. Petroleum services A. principles of production

B. Processed rice B. factors of production

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C. items of production A. 50,000 people per square
D. labour and materials kilometre
resources. B. 0.2 million people per square
kilometre
19. The study of Economics C. 0.5 million people per square
becomes necessary because of kilometre
the D. 20 million people per square
kilometre
A. large population size of the
world Use the table below to answer
B. scarcity of resources question 22 and 23.
C. opportunity cost of goods and
services X 2 3 4 5
D. need to satisfy every desire of F 2 5 2 1
man.
22. From the table, the mean of
20. The type of demand that the distribution is
exists between torchlight and
battery is A. 2.2
B. 2.5
A. competitive demand C. 3.2
B. complementary demand D. 4.5
C. composite demand
D. independent demand. 23. What is the median of the
distribution?
21. The population density of a
town made up of 50 square A. 5
kilometre land area and 100 B. 4
million people is C. 3

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D. 2 25. If the budget of the country
was $7,200.00, how much is
24. Human wants are insatiable allocated to education
because wants are
A. $2,400.00
A. limited while means are scarce B. $2,000.00
B. unlimited and means are also C. $ 200.00
unlimited D. $ 1,000.00
C. limited and means are also
limited 26. What is the ratio of
D. unlimited while means are expenditure on health to
scarce. Agriculture?

A country's budget allocation A. 2:3

to various sectors of the B. 3:4
economy is shown in the pie C. 4:3
chart below. Use it to answer D. 5:4
question 25 and 26
27. Which of the following items is
not an example of circulating
capital?

A. Raw material
B. Money
C. Fuel
D. Machinery

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28. The principle of comparative the points does diminishing
cost advantage was propounded returns set in?
by

A. David Ricardo
B. Alfred Marshal
C. J.S. Mill
D. Adam Smith

29. The rate at which a country's A. R

exports is exchanged for her B. S
imports is C. T
D. V
A. trade balance
B. balance of payments 32. Taxes and government
C. terms of trade expenditures are instruments of
D. balance of currency account.

A. monetary policy
30. Efficiency of labour in a B. tax policy
country is determined by the C. economic policy
following except the D. fiscal policy.

A. social attitude to work 33. A situation in which a

B. education and training commodity is sold abroad below
C. total population its cost of production in the home
D. working conditions of workers. country is known as

31. The diagram below represents A. dumping

a production function. At which of B. counter trade

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C. bilateral trade
D. trade liberalisation

34. The Family Support

Programme in Nigeria essentially
focuses on

A. the generation of employment 36. If the pass mark was 40, how

B. the alleviation of poverty many students passed the

C. agricultural and industrial examination?

development
D. economic emancipation of A. 100

women. B. 120
C. 160

35. The Economic Commission for D. 200

Africa was set up by the

37. How many students took the

A. UNO examination?

B. ECOWAS
C. OAU A. 280

D. IMF B. 240
C. 200

Use the histogram below to D. 80

answer question 36 and 37.

38. Utility is the satisfaction
derived from

A. production
B. distribution

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C. consumption 14. D 15. D 16. D 17. D 18. B
D. demand. 19. B 20. B

39. When a union is composed of 21. D 22. B 23. B 24. D 25. A

workers with the same skill it is 26. B 27. D 28. A 29. D 30. C
called 31. C 32. B 33. A 34. D 35. A
36. A 37. A 38. C 39. A 40. C
A. an industrial union
B. a workers' union
C. a craft union
D. a technical union.
40. The major objective, of a
revenue allocation formula in a
country is to

A. share revenue between the

public and private sectors
B. ensure the financial viability of
the country
C. share revenue between the
different tiers of government
D. divert revenue from areas of
surplus to areas of needs.

ANSWER KEYS:

1. A 2. A 3. C 4. D 5. B 6. B 7. D
8. B 9. A 10. C 11. C 12. A 13. C

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 2019 JAMB ECONOMICS QUESTIONS

1. A major assumption in a 3. The Nigerian Bank for

perfectly competitive market is Commerce and Industry is ____
that ____
A. a commercial bank
A. the number of buyers and B. a development bank
sellers is small C. an industrial bank
B. individuals cannot influence D. a merchant bank
prices
C. the quality of products remain 4. In a public company, shares
the same are ____
D. prices will always remain
constant A. sold to one person only
B. distributed freely
2. The price index computed C. advertised to members of the
between two term periods is public for subscription
given as 128%. This implies that D. disposed of by the Chief
the ____ Executive

A. disposable incomes have 5. Which of the following is used

increased by 28% by the Central Bank to control the
B. living standards have fallen by rate of interest?
128%
C. living standards have risen by A. Bill of Exchange
128%. B. Banker's order
D. living standards have risen by C. Fixed deposit account
28%. D. Open market operation

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6. Given that the cash reserve C. total tax and interest payments
ratio is 10 percent, what is the D. net income from abroad
maximum amount of money that
the banking system can create 9. A nation's distribution of
from an initial cash deposit of income shows ______
N100.00?
A. the value of all goods produced
A. N100.00 in the economy
B. N1000.00 B. how income is divided among
C. N9000.00 different groups
D. N10,000.00 C. where the economy system is
on its production possibility curve
7. Which of the following D. the consumption behaviour of
strategies will provide more the people
employment opportunities for
Nigerians? 10. The study of the economic
behaviour of individual decision-
A. Investment in social services making units (consumers,
B. Industrialisation resources owners and business
C. Economic planning firms) in a free-enterprises
D. Eradication of poverty economy is known as ____

8. The difference between the A. micro economic

Gross Domestic Product and the B. macro economics
Gross National Product is the C. production
____ D. indifference curve

A. Allowance for total depreciation 11. Market is defined as _____

B. total interest payments

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A. one geographical location
where people meet to buy and A. 10.20
sell B. 3.57
B. the demand and supply of C. 1.25
goods and services D. 0.80
C. a group of people whose sole
interest is to make profit 14. What form of market is found
D. any organisational framework in an imperfect competition where
which links the buyers and sellers there are few buyers and many
of a good or service sellers?

12. A shift in the demand curve A. Oligopoly

for a commodity when the supply B. Monopoly
curve is vertical will lead to a C. Duopoly
change in the ____ D. Oligopsony

A. price only 15. The main reason for charging

B. quantity only interest is to ____
C. quality only
D. price and quantity A. reward entrepreneurial effort
B. redistribute profits
13. Given an original price of C. reward investors for present
N3.50 per kilogram of rice and a use of capital
change in price of N1.40, and D. mobilise more funds for
given the quantity purchased at development
the old price as 10kg and a
change in supply as 5kg after the 16. In the Keynesian model, ____
price change, the elasticity is
____

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A. the demand for money is C. deficit
inversely related to the rate of D. inflationary
interest
B. investment is directly related 19. Ad valorem tax means ____
to the rate of interest
C. investment is not related to the A. a certain percentage tax based
rate of interest on the value of the commodity
D. the demand for money is B. a certain percentage tax based
directly related to the rate of on the volume of the commodity
interest C. a tax on the income of the
consumer
17. If inflation is anticipated to D. payment of a tax on the profits
continue, _____ made

A. people will lose confidence in 20. Which of the following applies

goods to a commodity sold abroad at a
B. Lenders will demand higher price lower than that in the
interest rates producing country?
C. the growth of full employment
output will be accelerated A. Dumping
D. people will want to hold more B. Countertrade
money C. Bilateral trade
D. Trade liberalisation
18. A budget with a projected
revenue in excess of its 21. Economic development is
expenditure is said to be ____ defined as ____

A. balance A. positive change plus growth

B. surplus

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B. availability of more goods and B. increase its liabilities to
services foreigners
C. outward shift of the production C. reduce its foreign exchange
possibility curve reserves
D. growth in the national income D. devalue its national currency.

22. Price leadership is ____ 25.

Price of X
A. a form of tacit collusion
B. used to explain price rigidity
C. illegal in Nigeria
D. a form of overt collusion

O
23. Restriction on credit creation Quantity demanded of Y

by commercial banks can be If the curve above shows the

effective through ____ relationship between the price of
commodity X and the quantity
A. an overdraft demanded of commodity Y, then
B. loans and advances X and Y are ____
C. demand deposits
D. liquidity ratio A. complementary goods
B. subtitutes
24. When a nation is experiencing C. inferior goods
a balance of payment surplus, it is D. luxury goods
in a better position to ____
26. A perfect example of a public
A. increase its foreign exchange good is ____
reserves
A. air

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B. education A. limiting her imports to its
C. defence currency value of exports.
D. transport B. reducing the nation's domestic
price level
27. C. limiting her exports to its
currency value of imports.
ITEM AMOUNT
D. overvaluing the country's
(Million naira)
currency.
Visible exports 55.54
Visible imports 53.32 29. A sustained increase in the
Invisible exports 30.56 per capita income of a country
Invisible imports 28.70 over a period of time is called
____
BALANCE 4.08
A. economic growth

The amount, N4.08 million, shown B. economic development

as balance in the table represents C. structural change

____ D. stagflation

A. terms of payments 30. Economies of scale operate

B. balance on current accounts only when ____

C. balance of trade
D. terms of trade. A. marginal cost is falling with
input

28. By using exchange controls, a B. average cost is falling with

country tries to eliminate a output

balance of payments deficit by C. fixed cost is variable

____ D. variable cost is less than fixed

cost

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31. If the same same basket of to a progressive tax is shown by
goods which cost N12.00 in 1985 ____
cost N15.00 in 1987, the price
index for 1987 is ____ A. curve X
B. curve Y
A. 25 C. curve Z
B. 80 D. curves X and Z
C. 10
D. 125 34. The relationship between tax
rate and income which is relevant
32. Which of the following is likely to a proportional tax is depicted
to be inflationary? BY ____

A. Tax increase A. curves Z and Y

B. Increase in unemployment B. curve X
C. Budget surplus C. curve Z
D. Wages increase D. curve Y

Use the figure below to 35. Firms are often set up close to
answer questions 33 and 34. each other in order to take
advantage of ____

Y
Z
A. supply of skilled labour
Tax rate

B. agglomeration economies
C. internal economies of scale
X D. external economies of scale
Income

33. The relationship between tax 36. The necessity of choice is due
rate and income which is relevant to the fact that _____

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A. human wants are insatiable B. guaranteed money
B. consumers like to maximise C. seigniorage
satisfaction D. legal tender
C. resources are abundant
D. consumers are selective 40. The Economic Commision for
Africa was set up by the ____
37. A company's expenditure on
raw materials is regarded as A. UNO
_____ B. ECOWAS
C. OAU
A. explicit cost D. IMF
B. implicit cost
C. prime cost ANSWERS TO 2019
D. average cost STRUCTURED JAMB
ECONOMICS QUESTIONS
38. Labour productivity is the
ratio of ____ 1. B 2. D 3. B 4. C 5. B 6. A 7. B
8. D 9. B 10. A 11. D 12. A 13.
A. labour output D 14. D 15. B 16. D 17. B 18. B
B. man-hours to output 19. A 20. A
C. output to man-hours
D. average product to man-hours 21. D 22. A 23. D 24. A 25. B
26. C 27. B 28. A 29. A 30. B
39. An issue of bank-notes not 31. D 32. D 33. B 34. C 35. D
backed by gold but by 36. A 37. A 38. C 39. A 40. A
government securities is known
as ____

A. fiduciary issue

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 2020 JAMB ECONOMICS QUESTIONS

1. Scarcity in Economics means B. Export and imports.

that ____ C. Merchandise.
D. Bullion.
A. human wants are limitless.
B. the economy has very few 4. A major factor affecting the
resources. value of money is the _____
C. the economy can scarcely
produce anything. A. price level.
D. resources are limited in B. banking habits.
relation to wants. C. transaction motive.
D. divisible nature of money.
2. Economics is often described as
a science because ____ 5. The Nigerian Bank for
Commerce and Industry is _____
A. laboratory experiments are
performed. A. a commercial bank.
B. it makes use of controlled B. a development bank.
experiments. C. an industrial bank.
C. it uses scientific methods to D. a merchant bank.
explain observed phenomena and
predict future events. 6 To control inflation, the
D. it makes use of field work. monetary authorities of a country
can _____
3. Which of the following is a
good example of invisible item on A. reduce taxes.
balance of payments account? B. advise government to in crease
its expenditure.
A. Shipping and aviation.

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C. engage in expansive monetary B. surplus.
policy. C. deficit.
D. engage in restrictive monetary D. inflationary.
policy.
10. In order to raise more
7. Which of the following is used revenue for a certain period,
by the Central Bank to control the government should impose higher
rate of interest? taxes on goods whose demand is
_____
A. Bill of exchange.
B Banker's order. A. elastic.
C. Fixed deposit account. B. inelastic.
D. Open market operation. C. perfectly elastic.
D. unitary elastic
8. What form of market is found
in an imperfect competition where 11. If aggregate income is
there are few buyers and many N500.00 and aggregate
sellers? consumption is N400.00, this
means that the average
A. Oligopoly propensity to consume is ____
B. Monopoly.
C. Duopoly. A. 0.20
D. Oligopoly. B. 0.80
C. 1.25
9. A budget with a projected D. 2.00
revenue in excess of its
expenditure is said to be 12. The group of unemployed
members of a community, who
A. balanced. are physically handicapped or

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disabled, is generally classified 15. In economic life, choice
under unemployment as _____ among alternatives depends on
the _____
A. frictional.
B. cyclical. A income of the decision maker.
B. residual. B. scarcity of resources.
D. hidden. C. scale of preference of the
decision maker.
13. Collectivism refers to the D. status of the decision maker.
system of management of state
enterprises in a _____ 16. The law of diminishing
marginal utility indicates that if a
A. mixed economy. consumer increases his
B. co-operative organisation. consumption of a commodity
C. capitalist economic system. continuously, his ____
D. socialist economy.
A. total utility must fall.
14. Efficiency in production B. marginal utility must fall.
involves _____ C. marginal utility may rise even
though his total utility is falling.
A. reducing the size of the work D. marginal utility may fall even
force though his total utility may be
B. producing a given output with rising.
the lowest cost combination of
factors of production. 17. Which of the following
C. adoption of capital intensive rewards is associated with
technology. entrepreneurship as a factor of
D. increasing the quantity of the production?
fixed factors of production.

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A. Salaries C. curve Z.
B. Profits D. curves X and Z.
C. Interests
D. Rent 20. The relationship between tax
rate and income which is relevant
18. Which of the following is likely to a proportional tax is depicted
to be inflationary? by ____

A. Tax increase A. curves Z and Y.

B. Increase in unemployment B. curve X.
C. Budget surplus C. curve Z.
D. Wages increase D. curve Y.

Use the diagram below to 21. Fiduciary issue is that part of

answer questions 19 and 20. ____

Y A. the issue of notes backed

Z
entirely by gold.
Tax rate

B. a country's currency which is

not negotiable.
X C. the issue of notes not backed
Income
by gold.
19. The relationship between tax D. a country's currency officially
rate and income which is relevant issued.
to a progressive tax is shown by
____ 22. The type of business finance
that entitles the holder to a fixed
A. curve X. rate of dividend is _____
B. curve Y.

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A. preference stock. C. bilateral trade.
B. common stock. D. trade liberalisation.
C. debenture.
D. bank loan. 26. The problems of conducting
census indude ______
23. Firms are often set up close to
each other in order to take A. high rate of rural-urban
advantage of ____ mmigration.
B. poor geographical distribution
A. supply of skilled labour. of C. high birth rate in the
B. agglomeration economies. country.
C. internal economies of scale. D. poor town planning in urban
D. external economis of scale. areas.

24. A company's expenditure on 27. The factor of production that

raw materials is regarded as ____ has the highest degree of mobility
is ____
A. explicit cost.
B. implicit cost A. land.
C. prime cost. B. labour.
D. average cost. C. capital.
D. entrepreneurship.
25. A situation in which a
commodity is sold abroad below 28. In recent times, agriculture in
its cost of production in the home Nigeria tends to lose its vital
country is known as _____ labour force as a result of ____

A. dumping. A, lack of an effective agricultural

B. counter trade. policy.

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B. employment opportunities in 31. Plywood industries are often
the oil sector. located near the source of ____
C. rural-urban drift.
D. low prices of agricul tural A finance.
products. B. labour.
C. power supply.
29. The most important goal of D. raw material.
OPEC is to _____
32. The most important attribute
A. present a united front for the of money is ____
purpose of raising prices of crude
oil. A. homogeneity.
B. bring unity among the B. relative scarcity.
petroleum exporting countries. C. divisibility.
C. ensure politicals stability D. general acceptability.
among member states.
D. ensure that rules on quota 33. The use of legally permissible
production are strictly followed. means to reduce tax liabilities is
known as tax _____
30. When a country's population
is experiencing increas ing A. evasion.
returns, that country is said to be B. avoidance.
_____ C. relief.
D. exemption.
A. overpopulated.
B. economically poor. 34. The Economic Commission for
C. over-producing goods and Africa was set up by the ____
services.
D. under-populated. A. UNO.

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B. ECOWAS. 38. One of the major criticisms of
C. OAU. the 1962-1968 National
D. IMF. Development Plan was that ____

35. One of the techniques of A. it failed to incorporate lessons

monetary control used by the gained from earlier plans to
Central Bank of Nigeria is ____ enhance its efficiency.
B. it came too quick after the
A. selective credit control. country's independence.
B. budget deficit. C. planned expenditure was based
C. foreign exchange control. too heavily on expected earnings
D. monitoring the general price from crude oil.
level. D. its execution was based largely
on foreign-sourced financial
36. Crude petroleum is a good resources.
example of a _____
39. Utility is the satisfaction
A. lasting asset. derived from ____
B. wasting asset.
C. synthetic product. A. production.
D. costless resource. B. distribution.
C. consumption.
37. A major effect of a long D. demand.
distribution chain is ____
40. Economic growth is different
A. scarcity of commodities. from economic development
B. high retail prices. because economic growth _____
C. low retail prices.
D. low producer earnings.

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A. describes expansion and
change.
B. is measurable but not
objective.
C. describes expansion and not
change.
D. is not measurable objective.

ANSWERS TO 2020
STRUCTURED JAMB
ECONOMICS QUESTIONS

1. D 2. C 3. A 4. A 5. B 6. D 7. B
8. D 9. B 10. B 11. B 12. C 13.
D 14. B 15. C 16. B 17. B 18. D
19. B 20. C

21. D 22. C 23. D 24. A 25. A

26. D 27. B 28. C 29. D 30. D
31. D 32. D 33. C 34. A 35. C
36. B 37. A 38. A 39. C 40. C

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 DISCLAIMER

These are not JAMB expo questions for this year

but past questions of previous years.

You are advised to study these past questions

and know how each correct answer was gotten

to be well-prepared for your JAMB exam.

Speaking of which,

Would you like to download this JAMB Economics

past questions and answers with step-by-step

explanation for each correct answer?

Click on the link below...

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