Economics 2015 JAMB Past Questions
Economics 2015 JAMB Past Questions
1. The law of variable proportions is also known as- A. law of demand
- B. law of diminishing returns
- C. law of diminishing marginal utility
- D. law of returns to scale
Correct Answer: Option B
2. All the following are problems identified with agriculture in West Africa except
- A. land tenure system
- B. ignorance of the farmers
- C. use of crude implement
- D. provision of food for the teeming population
Correct Answer: Option D
3. Revenue can be expressed as
- A. total Profit made after sales
- B. amount of goods produced
- C. total money realized from sales
- D. amount spent on purchases
Correct Answer: Option C
Explanation
Revenue can be defined as the income generated by a firm from the sales of its goods and services.
4. All the following are factors that would bring about a change in supply except
- A. level of technology
- B. government policy
- C. Entry of new firms
- D. Price of the commodity
Correct Answer: Option D
5. The combination of two commodities each yielding the same level of satisfaction to the consumer is
- A. consumer surplus
- B. indifference curve
- C. budget constant
- D. goods of necessity
Correct Answer: Option B
6. In which situation is it likely that the demand for labour would be inelastic?
- A. Labour and capital are close substitutes
- B. Labour costs are only a small proportion of total costs
- C. Demand for the final product that the labour produces is elastic
- D. A large quantity of unemployed labour is available in the economy
Correct Answer: Option B
7. The headquarter of the Organization Of Petroleum Exporting Countries (OPEC) is in
- A. Paris, France
- B. Geneva, Switzerland
- C. Lagos, Nigeria
- D. Vienna, Austria
Correct Answer: Option D
8. What will increase the likelihood that the firms in an industry will conclude to maximize their joint profit?
- A. The industry has many differentiated products
- B. The industry is characterized by rapid technological change
- C. The industry consist of large number of producers
- D. There are significant barriers to prevent firms entering the market
Correct Answer: Option D
9. A commercial bank can create money by
- A. issuing currency
- B. increasing cash ratio
- C. issuing cheque
- D. lending to borrowers
Correct Answer: Option D
Explanation
lending to borrowers in form of loan with an interest rate makes the commercial bank to create more money.
10. The source of all economic problems arises from
- A. wants
- B. Scarcity
- C. Opportunity Cost
- D. Scale of Preference
Correct Answer: Option B
Explanation
Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible
11. The quantity theory of money states that a reduction in the quantity of money in circulation would bring about
- A. A constant change in price
- B. A rise in prices
- C. An unequal fall in prices
- D. A proportionate fall in price
Correct Answer: Option A
12. The tax levied on locally produced goods is
- A. import duty
- B. excise duty
- C. company tax
- D. value added tax
Correct Answer: Option B
13
From the above table, calculate the Gross National Product.
- A. N70,000
- B. N75,000
- C. N50,000
- D. N60,000
Correct Answer: Option B
14. Petroleum has the following positive contributions to the Nigerian economy except
- A. Generate employment
- B. Source of government revenue
- C. development of mono economy
- D. Infrastructure development
Correct Answer: Option C
15. The market in which the operators are many and none of them can influence the price is
- A. stock exchange market
- B. imperfect market
- C. perfect foreign market
- D. exchange market
Correct Answer: Option C
Explanation
Perfect foreign market is a market where buyers and sellers cannot influence the price because they are large in number.
16. The concentration of industries in a particular geographical area is
- A. localization of industries
- B. roles of industrialization
- C. location of industry
- D. strategies of industrialization
Correct Answer: Option A
17
The table illustrate the law of
- A. admonishing returns
- B. increasing returns
- C. diminishing marginal utility
- D. increasing marginal utility
Correct Answer: Option C
Explanation
It shows that when total utility is at the maximum, marginal utility equals zero.
18. All the following are the canons of taxation given by Adam Smith except
- A. objective
- B. economy
- C. convenience
- D. certainty
Correct Answer: Option A
Explanation
There are four principles given by Adam Smith which include equality/ability to pay, economy, convenience and certainty. Objective is not a canon of taxation
19.Census can be classified as
- A. defacto and dejure
- B. increasing and decreasing
- C. over and under
- D. optimum
Correct Answer: Option A
Explanation
Defacto is that type of census where only those who physically present would be counted. Dejure is that type of census where an individual must be a permanent resident of an area. It is counting by proxy.
20. A firm that charges the maximum price without attracting competition from new entrants is
- A. Oil firms
- B. Monopolistic competitive firm
- C. Monopolistic firm
- D. Perfectly competitive firm
Correct Answer: Option C
21. A monopolist has the power to influence the prices of goods and services. Therefore, he is a
- A. price maker
- B. price taker
- C. price system
- D. price competition
Correct Answer: Option A
Explanation
Monopoly is a situation where there is a single producer and seller of a commodity for which there is no close substitute. This gives a monopolist the power to make/decide the price for a particular commodity.
22. Which of the following business units can issue shares?
- A. Partnership
- B. Public limited liability company
- C. Sole proprietorship
- D. Central bank
Correct Answer: Option B
23. Which of the following are examples of transfer payment
- A. gift and donations
- B. rents and rates
- C. profit and dividends
- D. internal and external debts
Correct Answer: Option A
24.The technical relationship between the physical inputs and the physical outputs of a firm is
- A. Utility
- B. Cost
- C. Demand
- D. Production function
Correct Answer: Option D
Explanation
production function shows the technical information about the combination of inputs necessary for the production of outputs. In equation we write the production function as q = f (L, K) where L and K represents the inputs of labour and capital respectively.
25. The income elasticity of demand of normal goods is
- A. negative
- B. positive
- C. zero
- D. fixed
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