Instruction
JAMB Economics 2012
JAMB (UTME)
Economics
2012
Q5451.
The primary reason for desiring economic growth is to
A
control inflation
B
reduce poverty
C
redistribute income
D
raise standard of living
Correct Answer: D
Economic growth is desired primarily to raise the standard of living of the population.
JAMB (UTME)
Economics
2012
Q5452.
An emerging agricultural export crop in Nigeria is
A
cassava
B
cotton
C
cocoa
D
soya beans
Correct Answer: D
Soya beans is an emerging agricultural export crop in Nigeria.
JAMB (UTME)
Economics
2012
Q5453.
A strategy for improving agriculture in Nigeria will involve
A
controlling the prices of agricultural products
B
ensuring self-sufficiency in food production
C
providing extension services to farmers
D
establishing more commodity boards
Correct Answer: C
Providing extension services to farmers helps improve agricultural practices and productivity.
JAMB (UTME)
Economics
2012
Q5454.
A sugar industry is best located near the source of
A
labour
B
raw materials
C
power
D
capital
Correct Answer: B
Sugar industry is raw-material oriented and is best located near the source of raw materials (sugarcane).
JAMB (UTME)
Economics
2012
Q5455.
An important contribution of small-scale industries to the Nigerian economy is in the area of
A
technological development
B
foreign exchange earnings
C
raw materials processing
D
labour employment
Correct Answer: D
Small-scale industries are major employers of labour in Nigeria.
JAMB (UTME)
Economics
2012
Q5456.
A change in the pump price of petrol in Nigeria has a direct effect on the
A
prices of consumer goods
B
prices of essential goods
C
cost of raw materials
D
cost of transportation
Correct Answer: D
An increase in petrol price directly increases transportation costs.
JAMB (UTME)
Economics
2012
Q5457.
Long-term funds for investment projects are sourced from the
A
money market
B
commodity market
C
foreign exchange market
D
capital market
Correct Answer: D
The capital market provides long-term funds for investment projects.
JAMB (UTME)
Economics
2012
Q5458.
A policy aimed at enhancing globalization of the Nigerian economy is
A
indigenization
B
deregulation
C
commercialization
D
privatization
Correct Answer: B
Deregulation removes government controls and enhances globalization.
JAMB (UTME)
Economics
2012
Q5459.
The Malthusian theory was concerned about the relationship between
A
population growth rates of the rich and the poor nations
B
population density and national income
C
population growth rate and natural resources
D
age distribution of population
Correct Answer: C
Malthus was concerned about population growth outpacing food supply (natural resources).
JAMB (UTME)
Economics
2012
Q5460.
In a village of 50 persons, 10 immigrated, 25 died and 5 emigrated in year. Determine the total population
Correct Answer: C
Population change = Births - Deaths + Immigrants - Emigrants = 0 - 25 + 10 - 5 = -20. New population = 50 - 20 = 30.
JAMB (UTME)
Economics
2012
Q5461.
A deficit balance of payments is measured by subtracting the debits from the credits in the
A
current account
B
current and capital accounts
C
current and escrow accounts
D
capital and escrow accounts
Correct Answer: B
The balance of payments is measured by the sum of the current and capital accounts.
JAMB (UTME)
Economics
2012
Q5462.
One of the functions of ECOWAS is to
A
provide funds for infrastructural development
B
determine prices of exports
C
redistribute income among citizens
D
provide employment for citizens of member nations
Correct Answer: A
ECOWAS provides funds for infrastructural development in member states.
JAMB (UTME)
Economics
2012
Q5463.
The reward on machinery and equipment in the process of production is known as
A
profit
B
interest
C
rent
D
wages
Correct Answer: B
The reward for capital (machinery and equipment) is interest.
JAMB (UTME)
Economics
2012
Q5464.
From this diagram, the minimum wage Ow will lead to
A
full employment of resources
B
unemployment
C
inflation
D
full employment of factors of production
Correct Answer: B
A minimum wage set above equilibrium leads to excess supply of labour (unemployment).
Instruction
JAMB Economics 2013
JAMB (UTME)
Economics
2013
Q5465.
Which question paper type of Economics is given to you?
A
Type B
B
Type I
C
Type B
D
Type U
Correct Answer: D
The question paper type is indicated on the top of your question paper.
JAMB (UTME)
Economics
2013
Q5466.
An economy in which both the public and private sectors contribute to economic growth is as
A
feudal economy
B
capitalist economy
C
socialist economy
D
mixed economy
Correct Answer: D
A mixed economy combines elements of both public (government) and private sector participation.
JAMB (UTME)
Economics
2013
Q5467.
If the standard deviation of a given data is 53, what is the variance?
A
2,082
B
2,809
C
2,808
D
2,209
Correct Answer: B
Variance = (Standard Deviation)² = 53² = 2809.
JAMB (UTME)
Economics
2013
Q5468.
Which of the following set of statistical tools is used for further economic analysis?
A
the median and standard deviation
B
the mean and mode
C
the mean and standard deviation
D
the mode and median
Correct Answer: C
The mean and standard deviation are the most useful statistical tools for further economic analysis.
JAMB (UTME)
Economics
2013
Q5469.
An advantage of the range as a measure of dispersion is that it
A
can be used to calculate open-ended distribution
B
make use of all values of observations in a distribution
C
takes all values into consideration
D
is useful for further statistical calculation
Correct Answer: A
The range can be used even for open-ended distributions since it only uses the highest and lowest values.
JAMB (UTME)
Economics
2013
Q5470.
Find the median of the following set of data 35, 10, 14, 38, 15, 18, 22, 30 and 28
Correct Answer: D
Sorted: 10, 14, 15, 18, 22, 28, 30, 35, 38. The median is the middle value = 22.
JAMB (UTME)
Economics
2013
Q5471.
An increase in demand without a corresponding change in supply will lead to
A
a decrease in equilibrium price and increase in equilibrium quantity
B
an increase in equilibrium price and quantity
C
a decrease in equilibrium price and quantity
D
an increase in equilibrium price and a decrease in equilibrium quantity
Correct Answer: B
An increase in demand with constant supply leads to higher equilibrium price and quantity.
JAMB (UTME)
Economics
2013
Q5472.
An increase in the price of a commodity will result in
A
a decrease in the quantity demanded
B
an increase in demand
C
an increase in quantity demanded
D
a decrease in demand
Correct Answer: A
An increase in price causes a decrease in quantity demanded (movement along the demand curve).
JAMB (UTME)
Economics
2013
Q5473.
If the price of a bicycle changes from N120 to N80 and quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is
Correct Answer: D
PED = $\frac{\% \Delta Q}{\% \Delta P} = \frac{(500-300)/300}{(80-120)/120} = \frac{0.667}{-0.333} = -2.0$. Absolute value = 2.0.
JAMB (UTME)
Economics
2013
Q5474.
From the graph above, the price elasticity of demand is
A
unitarily elastic
B
perfectly elastic
C
perfectly inelastic
D
fairly inelastic
Correct Answer: C
The demand curve is vertical, meaning quantity demanded does not change with price. This is perfectly inelastic demand.
JAMB (UTME)
Economics
2013
Q5475.
One of the assumptions of the cardinalist approach is
A
utility is measurable
B
utility cannot be measured
C
utility is ranked
D
utility is subjective
Correct Answer: A
The cardinalist approach assumes utility can be measured in absolute units (utils).
JAMB (UTME)
Economics
2013
Q5476.
Utility is the satisfaction derived from the
A
distribution of goods and services
B
use of goods and services
C
demand of goods and services
D
production of goods and services
Correct Answer: B
Utility is the satisfaction derived from consuming (using) goods and services.
JAMB (UTME)
Economics
2013
Q5477.
From the indifference curve, consumer will prefer combination
Correct Answer: B
Point S lies on the highest indifference curve (I3), giving the highest level of satisfaction.
JAMB (UTME)
Economics
2013
Q5478.
One of the major factors that brings about changes in supply is
A
market discrimination
B
availability of storage facilities
C
the cost of storage
D
incentives granted to workers
Correct Answer: C
The cost of storage affects the cost of production, which shifts the supply curve.
JAMB (UTME)
Economics
2013
Q5479.
If P = 1/4 (Qs + 10). What is the quantity supplied at N14?
Correct Answer: C
$14 = \frac{1}{4}(Qs + 10) \Rightarrow 56 = Qs + 10 \Rightarrow Qs = 46$.
JAMB (UTME)
Economics
2013
Q5480.
If the supply of a product is elastic, a small reduction in price will
A
reduce the cost of production
B
increase the quantity supplied
C
decrease the quantity supplied
D
increase the profit of the producer
Correct Answer: C
With elastic supply, a small reduction in price leads to a proportionately larger decrease in quantity supplied.
JAMB (UTME)
Economics
2013
Q5481.
The supply of beverages by firms in a monopolistic market is an example of
A
derived demand
B
competitive supply
C
composite supply
D
joint demand
Correct Answer: B
Competitive supply occurs when firms can produce alternative products using the same resources.
JAMB (UTME)
Economics
2013
Q5482.
If the price of a commodity is fixed below equilibrium, this will lead to
A
excess demand
B
a decrease in price
C
an increase in price
D
excess supply
Correct Answer: A
A price set below equilibrium causes quantity demanded to exceed quantity supplied, creating excess demand.
JAMB (UTME)
Economics
2013
Q5483.
One of the criticisms of the price mechanism is that
A
producers are sovereign
B
it provides low degree of freedom
C
it widens the inequitable gap
D
consumers are sovereign
Correct Answer: C
The price mechanism can widen income inequality because only those with purchasing power can access goods and services.
JAMB (UTME)
Economics
2013
Q5484.
In Nigeria, government can reduce the cost of accommodation by fixing rent
A
at the prevailing rate
B
at the equilibrium price
C
above the equilibrium price
D
below the equilibrium price
Correct Answer: D
Fixing rent below equilibrium (rent control) makes accommodation more affordable.
JAMB (UTME)
Economics
2013
Q5485.
If a refinery achieves a reduction in cost by purchasing and transporting crude oil in large quantities, it enjoys
A
economies of scale
B
specialization
C
division of labour
D
diseconomies of scale
Correct Answer: A
Bulk purchasing and transportation reduce average costs, which is an example of economies of scale.
JAMB (UTME)
Economics
2013
Q5486.
An isoquant lying above to the right of another represents
A
a higher output level
B
constant returns to scale
C
over-capacity utilization
D
a lower output level
Correct Answer: A
Isoquants further from the origin represent higher levels of output.
JAMB (UTME)
Economics
2013
Q5487.
From the graph above, R represents
A
marginal cost
B
total cost
C
variable cost
D
fixed cost
Correct Answer: A
The curve R is rising steeply, which is characteristic of marginal cost.
JAMB (UTME)
Economics
2013
Q5488.
The optimum level of output of the firm is
Correct Answer: B
The optimum output is at OB, where MC = MR.
JAMB (UTME)
Economics
2013
Q5489.
The total revenue of the firm is represented by
A
GHEF
B
GHJC
C
EFJC
D
GHOB
Correct Answer: D
Total revenue = Price × Quantity = GH × OB = area GHOB.
JAMB (UTME)
Economics
2013
Q5490.
A measure of national income used as comparison of standard of living among nations is
A
net national product
B
gross domestic product
C
gross national product
D
per capita income
Correct Answer: D
Per capita income (income per head) is the best measure for comparing standards of living among nations.
JAMB (UTME)
Economics
2013
Q5491.
The speculative demand for money is inversely related to the
A
interest rate
B
level of income
C
exchange rate
D
inflation rate
Correct Answer: A
When interest rates are high, people prefer to hold less money for speculative purposes.
JAMB (UTME)
Economics
2013
Q5492.
If Mr. K obtains a N50,000 loan from a bank for the purpose of providing household needs, the demand for money is said to be
A
transactionary
B
speculative
C
precautionary and speculative
D
transactional and speculative
Correct Answer: A
Money demanded for daily transactions (household needs) is transactionary demand.
JAMB (UTME)
Economics
2013
Q5493.
Which of the following is used by the Central Bank of Nigeria to control inflation?
A
Tariff on imports
B
Tax rate
C
Exchange rate
D
Discount rate
Correct Answer: D
The discount rate is a monetary policy tool used by the Central Bank to control inflation.
JAMB (UTME)
Economics
2013
Q5494.
If CBN reduces money supply, the interest rate will
A
fluctuate
B
rise
C
fall
D
remain unchanged
Correct Answer: B
Reducing money supply leads to an increase in interest rates (scarcity of money).
JAMB (UTME)
Economics
2013
Q5495.
An example of an expansionary fiscal policy action is
A
decrease in the corporate profit tax rates
B
decrease in welfare payments
C
purchase of government securities
D
decrease in the bank rate
Correct Answer: A
Decreasing corporate profit tax rates is an expansionary fiscal policy that stimulates investment.
JAMB (UTME)
Economics
2013
Q5496.
A tax on land will ultimately fall
A
partly on agents and users
B
entirely on users
C
entirely on owners
D
partly on users and owners
Correct Answer: C
A tax on land falls entirely on the owner because the supply of land is perfectly inelastic.
JAMB (UTME)
Economics
2013
Q5497.
One of the goals of development plans in Nigeria is to
A
increase the profitability of multinational businesses
B
improve the country's GDP
C
achieve higher standard of living for the citizens
D
deregulate the economy
Correct Answer: C
The ultimate goal of development plans is to achieve a higher standard of living for citizens.
JAMB (UTME)
Economics
2013
Q5498.
Life insurance companies contribute to economic development by holding a part of their assets in
A
long-term financial instruments
B
money market instruments
C
cash and near money
D
short-term financial instruments
Correct Answer: A
Life insurance companies invest in long-term financial instruments like bonds and mortgages.
JAMB (UTME)
Economics
2013
Q5499.
In order to add value to Nigeria agricultural produce, there is need to
A
cultivate high breed crops
B
process them into finished goods
C
adopt modern storage methods
D
advertise them in European markets
Correct Answer: B
Processing agricultural produce into finished goods adds value and increases income.
JAMB (UTME)
Economics
2013
Q5500.
The main reason for low agricultural produce in west Africa is need to
A
the presence of large-scale agro-allied industries
B
high dependency ratio
C
over dependence on agriculture for subsistence
D
the use of crude implements in farming process
Correct Answer: D
The use of crude implements (hoes, cutlasses) limits agricultural productivity in West Africa.