2023 JAMB ECONOMICS

Question 1

Which of the following areas depicts a change in supply?

A. [Diagram A]
B. [Diagram B]
C. [Diagram C]
D. [Diagram D]

Answer: C. [Diagram C]

Explanation: A change in supply shifts the entire supply curve. Option C illustrates S₁ and S₂, rather than movement along one curve caused by a change in the product’s own price.

Question 2

Which of the following financial institutions creates more money?

A. Central bank
B. Commercial bank
C. Mortgage bank
D. Insurance

Answer: B. Commercial bank

Explanation: Commercial-bank lending creates deposit money. Banks normally credit new loans to customers’ accounts, expanding deposits and the money supply.

Question 3

Which of the following is not a measure of central tendency?

A. Mean
B. Median
C. Range
D. None of the above

Answer: C. Range

Explanation: Range measures dispersion rather than central tendency.

Question 4

Cartel is

A. Oligopolistic
B. Monopolistic
C. Duopolistic
D. None of the above

Answer: A. Oligopolistic

Explanation: A cartel brings together producers of a particular good to regulate output. It therefore has an oligopolistic structure.

Question 5

Deficit budget of the government will lead to

A. Unemployment
B. Inflation
C. Deflation deficit balance of payment
D. None of the options

Answer: B. Inflation

Explanation: A deficit budget involves government spending above revenue. This increases money held by the public and can lead to inflation.

Question 6

Personal income tax is

A. Progressive
B. Repressive
C. Proportional
D. Excessive

Answer: A. Progressive

Explanation: Personal income tax is progressive because higher earnings attract higher tax payments.

Question 7

The graph depicts

A. Perfect competition market
B. Oligopolistic market
C. Imperfect competition market
D. Duopolistic market

Answer: C. Imperfect competition market

Explanation: Perfect competition requires AR = MR. The graph shows a different relationship between AR and MR, indicating an imperfect market.

Question 8

In order to raise more revenue from taxes, government should tax goods that are

A. Plastic
B. Perfectly elastic
C. Perfectly inelastic
D. Unitary elastic

Answer: C. Perfectly inelastic

Explanation: With perfectly inelastic demand, a price increase leaves purchases unchanged. Taxing such goods can therefore raise more government revenue.

Question 9

If the marginal propensity to consume of an economy is 0.85, what is the multiplier?

A. 0.15
B. 1/0.85
C. 0.85/0.15
D. 1/0.15

Answer: D. 1/0.15

Explanation: Calculate the multiplier as follows:

Multiplier = 1/(1 − MPC)

= 1/(1 − 0.85)

= 1/0.15

≈ 6.67

Question 10

An economy in which private investors drive the major parameters can be regarded as

A. Mixed economy
B. Capitalist economy
C. Socialist economy
D. Feudalistic economy

Answer: B. Capitalist economy

Explanation: Private investors direct economic activity in a capitalist economy.

Question 11

Interest is the reward of

A. Capital
B. Entrepreneur
C. Land
D. Card

Answer: A. Capital

Explanation: Capital earns interest as its reward in production.

Question 12

Which of the following countries is not a member of the Lake Chad Basin Commission?

A. Nigeria
B. Algeria
C. Cameroon
D. Chad

Answer: B. Algeria

Explanation: Algeria does not belong to the Lake Chad Basin Commission. The members are Cameroon, Chad, Niger, Nigeria, the Central African Republic and Libya.

Question 13

Which of the following tools can the CBN use to reduce money supply?

A. Selling government securities
B. Buying government securities
C. Reducing reserve rate
D. None of the above

Answer: A. Selling government securities

Explanation: When the CBN sells government securities, it takes cash out of circulation and reduces the money supply.

Question 14

Use the graph for Questions 14–15. The graph represents

A. Equilibrium position of a consumer
B. National income equilibrium
C. Market equilibrium
D. Production possibility curve

Answer: A. Equilibrium position of a consumer

Explanation: The graph combines the budget line with an indifference curve to illustrate consumer equilibrium.

Question 15

Use the graph for Questions 14–15. To move the equilibrium point from e₁ to e₂, then the

A. Producer must produce
B. Consumer must increase his budget for X and Y
C. Consumer and producer must add to their budgets
D. Consumer must increase budget for X

Answer: B. Consumer must increase his budget for X and Y

Explanation: Moving equilibrium from e₁ to e₂ requires the consumer to increase the budget for X and Y.

Question 16

Use the following table to answer Questions 16–18.

The table depicts

A. Consumer’s budget
B. Demand schedule
C. Supply schedule
D. Producer’s budget

Answer: B. Demand schedule

Explanation: The table is a demand schedule because higher prices correspond to lower quantities demanded, consistent with the law of demand.

Question 17

Using the table above, the elasticity of demand is

A. 1
B. 0.1
C. 10
D. 0.5

Answer: D. 0.5

Explanation: Using the first two observations:

Percentage change in quantity demanded = (1,000 − 800)/1,000 × 100 = 20%

Percentage change in price = (70 − 50)/50 × 100 = 40%

Therefore:

Elasticity = 20%/40% = 0.5

Question 18

Using the table above, it can be said that the goods are

A. Perfectly elastic
B. Fairly inelastic
C. Perfectly inelastic
D. Unitary elastic

Answer: B. Fairly inelastic

Explanation: Between the first two demand-schedule rows, quantity decreases by 20% while price increases by 40%. Elasticity is therefore 0.5, below one, indicating fairly inelastic demand.

Question 19

The total monetary value of goods produced by the citizens of an economy is referred to as

A. Gross domestic product
B. Gross national product
C. Net national product
D. Net domestic product

Answer: B. Gross national product

Explanation: GNP measures the total value of goods produced by an economy’s citizens within a specified period.

Question 20

The deliberate act of setting up firms close to each other is referred to as

A. Agglomeration of firms
B. Consolidation of firms
C. Localization of firms
D. Concentration of firms

Answer: C. Localization of firms

Explanation: Industrial localization involves deliberately establishing firms in a particular area.

Question 21

The act of selling a product at a lower price in a foreign country is regarded as

A. Dumping
B. Subsidies
C. Grants
D. Aids

Answer: A. Dumping

Explanation: Dumping occurs when an export is sold below its normal value, usually the comparable domestic price. Inferior quality is not a necessary condition.

Question 22

Population census is carried out every

A. 5 years
B. 2 years
C. Years
D. 10 years

Answer: D. 10 years

Explanation: A population census is normally held once every ten years.

Question 23

An economy is said to be at optimum level when

A. The citizens have the highest capital per head
B. All persons are gainfully employed
C. Prices of goods are lowest
D. Prices of goods are highest

Answer: B. All persons are gainfully employed

Explanation: An economy reaches its optimum when all production factors are productively employed.

Question 24

The major problem of computing the national income using output approach is

A. Incomplete records
B. Overproduction
C. Double counting
D. Unmarketed product

Answer: C. Double counting

Explanation: Double counting is the main difficulty with the output approach to national income. It occurs when both an input and the final product made from it are included.

Question 25

If the government introduced new policies that lead to unemployment, such unemployment is regarded as

A. Seasonal unemployment
B. Structural unemployment
C. Cyclical unemployment
D. Frictional unemployment

Answer: B. Structural unemployment

Explanation: Job losses resulting from changes in government policy are classified as structural unemployment.

Question 26

The most stagnant factor of production is

A. Land
B. Labour
C. Capital
D. Entrepreneur

Answer: A. Land

Explanation: Land is the least movable factor of production.

Question 27

The largest employer of labour in Nigeria is

A. Information Technology
B. Agriculture
C. Banks
D. Government

Answer: B. Agriculture

Explanation: Crop farming, livestock, fishing and related agricultural activities employ many Nigerians. In this examination’s listed choices, agriculture is the largest employing sector.

Question 28

Which of the following cannot be regarded as fiscal policy?

A. Tax
B. Government budget
C. CBN rates
D. Government borrowings

Answer: C. CBN rates

Explanation: Fiscal policy comprises government tools for managing the economy. Since the CBN acts independently, its rate is not classified as a fiscal measure.

Question 29

ECOWAS was formed in

A. 1985
B. 2023
C. 1990
D. 1975

Answer: D. 1975

Explanation: ECOWAS was established in Lagos, Nigeria, on 28 May 1975.

Question 30

The most important attribute of money is

A. Acceptability
B. Scarcity
C. Recognisability
D. Divisibility

Answer: A. Acceptability

Explanation: Money must be widely accepted to pay for goods and services and settle debts. Without this acceptance, it cannot function effectively as a medium of exchange.

Question 31

An illegal way of not paying tax is referred to as tax

A. Caution
B. Avoidance
C. Escape
D. Relief

Answer: A. Caution

Explanation: The unlawful avoidance of tax payment is described in the workbook as tax causation.

Question 32

World Health Organisation (WHO) is an organ of

A. United Nation
B. African Union
C. European Union
D. American Union

Answer: A. United Nation

Explanation: International public health is the responsibility of the World Health Organization, a specialized United Nations agency.

Question 33

The current director of World Trade Organization (WTO) is

A. Okonjo Iweala
B. Mamman Taraba
C. Condoleezza Rice
D. Traore Maca

Answer: A. Okonjo Iweala

Explanation: Nigeria’s Okonjo Iweala is identified in the workbook as the WTO’s current director.

Question 34

For a consumer to reach equilibrium, the price of the last unit consumed must equal its

A. Marginal cost
B. Marginal revenue
C. Marginal utility
D. Marginal prize

Answer: C. Marginal utility

Explanation: A consumer attains equilibrium when the last unit’s price matches its marginal utility, or MU = P.

Question 35

Use the following to answer Questions 35–37.

Qs = 5P − 2 and Qd = 19 − ¼P

The equilibrium price is

A. ₦20
B. ₦22
C. ₦10
D. ₦4

Answer: D. ₦4

Explanation: At equilibrium:

Qs = Qd

5P − 2 = 19 − ¼P

5P + ¼P = 21

21P/4 = 21

Therefore:

P = ₦4

Question 36

Use the following to answer Questions 35–37.

Qs = 5P − 2 and Qd = 19 − ¼P

The equilibrium quantity is

A. 18 Units
B. 20 Units
C. 4 Units
D. 10 Units

Answer: A. 18 Units

Explanation: Substitute P = ₦4 into either equation:

Qs = 5P − 2

= 5(4) − 2

= 20 − 2

= 18 units

Also:

Qd = 19 − ¼(4)

= 19 − 1

= 18 units

Question 37

Use the following to answer Questions 35–37.

Qs = 5P − 2 and Qd = 19 − ¼P

At what value of P will Qs = 23 units?

A. ₦4
B. ₦2
C. ₦6
D. ₦5

Answer: D. ₦5

Explanation: Given:

Qs = 5P − 2

Substitute Qs = 23:

23 = 5P − 2

25 = 5P

Therefore:

P = ₦5

Question 38

An anticipated increase in price will lead to

A. Abnormal demand
B. Normal demand
C. Ostentation demand
D. Carelessness

Answer: A. Abnormal demand

Explanation: Expectations of further price increases can encourage buyers to purchase more immediately despite a higher current price. This speculative reaction is termed abnormal demand here.

Question 39

One of the following is a better indicator of economic development

A. Increased GDP
B. Increased per capita
C. Improved health services
D. Higher growth rate

Answer: C. Improved health services

Explanation: Economic development combines lasting growth with better living conditions. Improvements in health services therefore indicate development.

Question 40

The headquarters of ECOWAS is located in

A. Abuja
B. Lagos
C. Addis Ababa
D. Accra

Answer: A. Abuja

Explanation: ECOWAS has its headquarters in Abuja, Nigeria.