Economics Jamb Questions

1. Suppose that the equilibrium price of an article is N5.00 but the government fixes the price by law at N4.00, the supply will be

• A. The same as equilibrium supply
• B. Greater than equilibrium supply
• C. Less than the equilibrium supply
• D. Determined later by government
• E. None of these

Correct Answer: Option C

2.  A budget deficit means

• A. That a country is buying more than is selling
• B. That a country is selling more than is buying
• C. That a government is spending more than in takes in taxation
• D. That a government is spending less than it takes in taxation
• E. That a government is spending as much as it takes in taxation

Correct Answer: Option C 

3.  When elasticity is zero, the demand curve is

• A. Perfectly elastic
• B. Perfectly inelastic
• C. Concave
• D. Downward slopping
• E. Circular

Correct Answer: Option D

Explanation

If the price elasticity of demand is zero, it means that the demand is totally independent of the price. No matter how the price varies, people buy the same quantity of the product. The demand price curve of essential quantities like medicines has a slope which approaches zero. The demand curve will be downward slopping. Like 0 Dislike 0

4. Inferior goods are referred to in Economics as goods

• A. Whose quality is low
• B. Consumed by very poor people
• C. Whose consumption falls when cunsumers' income rises
• D. Which satisfy only the basic needs
• E. None of the above

Correct Answer: Option C 

5. The following is NOT a reason for the existence of small firms

• A. Scale of production is limited by size of the market
• B. Expansion brings diminishing returns
• C. Large firms can carter for wide markets
• D. Small firms can provide personal services
• E. All of the above

Correct Answer: Option B

6. Malthus became famous through his theory which may be stated simply

• A. the death rate may become so high that people may not be able to produce
• B. population may outgrow the means of subsistence
• C. people will eventually decide not to have children
• D. migration of people from one place to another may leave some parts of the world barren
• E. all of the above

Correct Answer: Option B

 

7.  A commercial bank is unique in that it is only the institution that

• A. makes loans to private people and businessmen
• B. accept deposits
• C. can store peoples' valuables
• D. can transfer money from one place to another for its customers
• E. saves money through the granting of credits

Correct Answer: Option C

 

8.  Which is an example of an invisible item in the trade Account of Ghana?

• A. Export of Cocoa from Ghana
• B. Import of oil from Nigeria
• C. A gift of a Peugout 504 by a firm in Nigeria to a firm in Ghana
• D. Payment for shipping and insurance by a Ghanaian company to companies outside Ghana
• E. None of the above

Correct Answer: Option D

 

9.  A Tax which takes a higher percentage from higher incomes is called?

• A. a regressive tax
• B. a progressive tax
• C. a proportional tax
• D. an indirect tax
• E. a direct tax

Correct Answer: Option B

 

10.  The largest liability appearing in the book of a commercial bank is

• A. cash
• B. deposits
• C. loans and advances
• D. capital and reserves
• E. treasury bills

Correct Answer: Option B