Jamb Economics Past Questions and Answers

Jamb Economics Past Questions and Answers

Here are 20 questions:

What is the primary function of an economic system?

A) Allocation of resources

B) Maximizing profits

C) Promoting social equality

D) Ensuring government stability

Answer: A

Which of the following is not a factor of production?

A) Labor

B) Land

C) Capital

D) Money

Answer: D

In economics, "demand" refers to:

A) The desire for a product

B) The quantity of a product people are willing to buy at a given price

C) The amount of a product available for sale

D) The price of a product

Answer: B

What is the formula for calculating Gross Domestic Product (GDP)?

A) Consumption + Investment + Government Spending

B) Consumption - Investment - Exports

C) Exports - Imports

D) Savings - Taxes

Answer: A

Which market structure has many sellers and identical products?

A) Monopoly

B) Oligopoly

C) Perfect competition

D) Monopolistic competition

Answer: C

Inflation is best described as:

A) A decrease in the general price level

B) A rise in the value of a currency

C) An increase in the overall price level

D) A decrease in the money supply

Answer: C

What does the Laffer curve illustrate in economics?

A) The relationship between supply and demand

B) The impact of taxes on government revenue

C) The effect of interest rates on investment

D) The cost of living in different countries

Answer: B

When the government decreases taxes to stimulate economic activity, it is an example of:

A) Fiscal policy

B) Monetary policy

C) Trade policy

D) Industrial policy

Answer: A

What is the name for a situation where the quantity of a good demanded exceeds the quantity supplied at the current price?

A) Surplus

B) Shortage

C) Equilibrium

D) Monopoly

Answer: B

Which of the following is a regressive tax?

A) Income tax

B) Sales tax

C) Property tax

D) Corporate tax

Answer: B

What is the term for the total value of a country's exports minus the total value of its imports?

A) Balance of trade

B) Balance of payments

C) Trade surplus

D) Trade deficit

Answer: A

When a firm has the power to set the price of its product because it is the only seller in the market, it is called a:

A) Oligopoly

B) Monopolistic competition

C) Monopoly

D) Perfect competition

Answer: C

What is the main function of the Central Bank in a country's economy?

A) Regulating commercial banks

B) Managing government spending

C) Controlling inflation

D) Collecting taxes

Answer: A

The concept of "comparative advantage" is most closely associated with which theory in economics?

A) Mercantilism

B) Keynesian economics

C) Classical economics

D) International trade theory

Answer: D

What is the term for a tax that takes a higher percentage of income from high-income earners than from low-income earners?

A) Progressive tax

B) Proportional tax

C) Regressive tax

D) Sales tax

Answer: A

Which of the following is a measure of a country's economic development that includes factors such as income, education, and life expectancy?

A) GDP per capita

B) Gini coefficient

C) Human Development Index (HDI)

D) Consumer Price Index (CPI)

Answer: C

When the demand for a good is highly sensitive to changes in price, it is said to be:

A) Inelastic

B) Elastic

C) Normal

D) Inferior

Answer: B

What is the term for the additional cost of producing one more unit of a good or service?

A) Fixed cost

B) Variable cost

C) Marginal cost

D) Total cost

Answer: C

Which economic theory advocates for minimal government intervention in the economy and relies on the "invisible hand" to guide markets?

A) Keynesian economics

B) Mercantilism

C) Classical economics

D) Behavioral economics

Answer: C

Which of the following is a goal of macroeconomic policy?

A) Maximizing individual utility

B) Promoting economic growth and stability

C) Minimizing production costs

D) Encouraging international trade

Answer: B.