Economics jamb past questions and answers

Economics jamb past questions and answers

Question: What is the purpose of the Consumer Price Index (CPI) in economics?

a) To measure the total production in an economy

b) To track changes in the cost of living over time

c) To assess the level of income inequality

d) To determine the government's fiscal policy

Answer: b) To track changes in the cost of living over time

Question: In the context of international finance, what is the role of exchange rates?

a) Regulating inflation rates

b) Determining the value of a country's currency in relation to others

c) Controlling interest rates

d) Managing government spending

Answer: b) Determining the value of a country's currency in relation to others

Question: What is the term for a market structure with a small number of large firms that dominate the industry?

a) Monopoly

b) Oligopoly

c) Monopolistic competition

d) Perfect competition

Answer: b) Oligopoly

Question: What is the concept of the "multiplier effect" in economics?

a) The impact of an initial change in spending that ripples through the economy

b) The effect of inflation on the purchasing power of money

c) The influence of interest rates on investment

d) The tendency of prices to decrease over time

Answer: a) The impact of an initial change in spending that ripples through the economy

Question: Which type of unemployment results from changes in the structure of the economy, such as technological advancements?

a) Frictional unemployment

b) Cyclical unemployment

c) Structural unemployment

d) Seasonal unemployment

Answer: c) Structural unemployment

Question: What does the term "marginal cost" refer to in economics?

a) The total cost of producing one additional unit of a good

b) The cost of the last unit produced in a production process

c) The fixed costs associated with production

d) The average cost of production

Answer: a) The total cost of producing one additional unit of a good

Question: What is the concept of a "public good" in economics?

a) A good that is freely available to everyone

b) A good that is provided by the government but must be purchased by consumers

c) A good that is excludable and rival in consumption

d) A good that is non-excludable and non-rival in consumption

Answer: d) A good that is non-excludable and non-rival in consumption

Question: How does the law of diminishing returns apply to the production process?

a) The more units produced, the higher the average cost

b) As more units of a variable input are added, each additional input contributes less to total output

c) Increasing production always leads to higher profits

d) Fixed costs decrease as production increases

Answer: b) As more units of a variable input are added, each additional input contributes less to total output

Question: What is the term for a situation where a single buyer has significant control over a market?

a) Oligopsony

b) Monopsony

c) Monopoly

d) Duopoly

Answer: b) Monopsony

Question: In economic terms, what is the role of a "labor union"?

a) To regulate international trade

b) To represent the interests of employers in negotiations

c) To promote competition in the labor market

d) To negotiate on behalf of workers for better wages and working conditions

Answer: d) To negotiate on behalf of workers for better wages and working conditions

Question: What is the term for the total value of a country's exports minus the total value of its imports, adjusted for price changes?

a) Balance of payments

b) Trade surplus

c) Trade deficit

d) Terms of trade

Answer: d) Terms of trade

Question: What is the concept of "perfect competition" in economics?

a) A market structure with many buyers and one seller

b) A market structure with a single seller and many buyers

c) A market structure with few sellers and differentiated products

d) A market structure with many buyers and sellers with identical products

Answer: d) A market structure with many buyers and sellers with identical products

Question: How does the "liquidity trap" concept relate to monetary policy?

a) It describes a situation where interest rates are high, limiting borrowing

b) It occurs when interest rates are so low that people prefer to hold onto cash rather than invest

c) It refers to a situation where inflation rates are uncontrollably high

d) It signifies a lack of government intervention in financial markets

Answer: b) It occurs when interest rates are so low that people prefer to hold onto cash rather than invest

Question: What is the concept of "price elasticity of demand"?

a) The responsiveness of quantity supplied to changes in price

b) The responsiveness of quantity demanded to changes in price

c) The relationship between supply and demand

d) The impact of taxes on consumer behavior

Answer: b) The responsiveness of quantity demanded to changes in price

Question: What is the term for a tax that takes a higher percentage of income as income rises?

a) Progressive tax

b) Regressive tax

c) Proportional tax

d) Excise tax

Answer: a) Progressive tax

Question: How does the concept of "moral hazard" apply to economics?

a) It refers to the risk that individuals or institutions may take greater risks when they are protected from the consequences

b) It describes the impact of inflation on purchasing power

c) It signifies the effect of changes in interest rates on investment

d) It represents the total value of a country's imports and exports

Answer: a) It refers to the risk that individuals or institutions may take greater risks when they are protected from the consequences

Question: What is the term for a situation where one firm produces the entire output of a particular good, while other firms produce different goods?

a) Oligopoly

b) Monopoly

c) Monopolistic competition

d) Perfect competition

Answer: b) Monopoly

Question: How does the concept of "deadweight loss" apply to taxation?

a) It represents the total tax revenue collected by the government

b) It refers to the loss of consumer surplus and producer surplus due to taxes

c) It signifies the efficiency of a tax system

d) It describes the impact of tax cuts on economic growth

Answer: b) It refers to the loss of consumer surplus and producer surplus due to taxes