2024 JAMB ECONOMICS
Question 1
If the elasticity of demand for commodities X and Y is perfectly elastic, an increase in price of Y, a competitive good will lead to
A. Increase in quantity of X demanded
B. Decrease in quantity of X demanded
C. Increase in quantity of Y demanded
D. None of the above
Answer: A. Increase in quantity of X demanded
Explanation: X and Y are substitute goods. Other things equal, a rise in Y’s price leads buyers towards X and raises demand for X, demonstrating positive cross-price elasticity.
Question 2
Which of the following sectors is the largest employer of labour in Nigeria?
A. Information technology
B. Agricultural
C. Education
D. Sport
Answer: B. Agricultural
Explanation: Agriculture creates jobs in crop production, livestock, fishing and related work. It has the largest employment share among the sectors listed in this Nigerian examination context.
Question 3
When the value of Naira increases against the Dollar, then we have
A. Inflation
B. Depreciation of Naira
C. Depreciation of Dollar
D. None of the above
Answer: C. Depreciation of Dollar
Explanation: If the Naira gains value against the Dollar, the Naira appreciates while the Dollar depreciates.
Question 4
The effectiveness of depreciation of currency as a means to protect local industry depends on
A. Government policies
B. The degree of depreciation
C. The period of depreciation
D. The elasticity of demand for imported product
Answer: D. The elasticity of demand for imported product
Explanation: How effective depreciation is depends mainly on the demand elasticity of imported products.
Question 5
Which of the following theories on international trade?
A. Adam Smith
B. J.M Keynes
C. Davidson
D. D. Ricardo
Answer: D. D. Ricardo
Explanation: David Ricardo developed the theory of comparative advantage in international trade.
Question 6
One of the following is detrimental to production of food
A. Rural migration
B. Development of agro-processing company
C. Social infrastructure in rural areas
D. Subsiding farmer
Answer: A. Rural migration
Explanation: Migration from rural to urban areas reduces rural populations and the number of farmers, affecting farming and food production.
Question 7
Dumping occurs when the local price is ____ than the foreign price
A. Lower
B. Higher
C. Equal
D. None of the above
Answer: B. Higher
Explanation: Dumping occurs when a commodity is sold at a higher price in its home market than abroad.
Question 8
Which of the following is odd?
A. Preference share
B. Debentures
C. Bank loan
D. Ordinary shares
Answer: D. Ordinary shares
Explanation: Ordinary-share dividends generally vary with profits and company decisions. Preference shares usually specify a dividend rate, while debentures and loans pay interest under contractual terms.
Question 9
Deficit financing is
A. Deflationary
B. Inflationary
C. De-inflationary
D. Neutral
Answer: B. Inflationary
Explanation: Deficit financing increases the money pursuing a limited supply of goods, creating inflation.
Question 10
The graph that shows two combinations of commodities that leave the consumer with the same level of satisfaction is
A. Isoquant
B. Demand curve
C. Indifference
D. PPF
Answer: C. Indifference
Explanation: An indifference curve plots combinations of two goods that leave a consumer equally satisfied.
Question 11
Which curve shows combinations of inputs that give the same level of output?
A. PPF
B. Isoquant curve
C. Indifference curve
D. MP curve
Answer: B. Isoquant curve
Explanation: An isoquant displays different input combinations that produce the same output level.
Question 12
When the total product is at maximum, marginal product (MP) is
A. Falling
B. Rising
C. Constant
D. Zero
Answer: D. Zero
Explanation: Total product reaches its maximum when marginal product is zero.
Question 13
A short-run is a period of
A. 5 years
B. Time
C. Time where fixed and variable inputs are combined
D. Time when all of us are alive
Answer: C. Time where fixed and variable inputs are combined
Explanation: In the short run, a firm uses a combination of fixed and variable production inputs.
Question 14
The most important feature of money is
A. Durability
B. Recognisability
C. Acceptability
D. All of the above
Answer: C. Acceptability
Explanation: General acceptance is essential for money because people must be willing to receive it as payment. Durability and recognisability help its use but cannot substitute for acceptance.
Question 15
Use the following graph to answer Questions 15–18.
The graph above represents
A. A monopolistic market
B. An oligopolistic market
C. A perfect competitive market
D. A duopolistic market
Answer: C. A perfect competitive market
Explanation: The graph illustrates equilibrium in a perfectly competitive market.
Question 16
Use the graph for Questions 15–18. The shaded position is?
A. Loss
B. Profit
C. Marginal cost
D. Total cost
Answer: D. Total cost
Explanation: Multiplying average cost by output gives total cost. At e, average cost meets the price line, so the shaded rectangle represents both total cost and total revenue. This equilibrium therefore yields zero economic profit.
Question 17
Use the graph for Questions 15–18. X represents?
A. Marginal cost
B. Marginal revenue
C. Average revenue
D. All of the above
Answer: D. All of the above
Explanation: Curve X is represented by MC = MR = AR = P.
Question 18
Use the graph for Questions 15–18. Y represents?
A. Marginal cost
B. Marginal cost
C. Price
D. All of the above
Answer: B. Marginal cost
Explanation: Y represents the upward-sloping marginal cost curve. Its intersection with the horizontal marginal revenue line at e determines equilibrium output.
Question 19
Demand schedule is
A. Quantity demanded at various time
B. Quantity demanded at various levels
C. Quantity demanded at various price
D. All of the above
Answer: C. Quantity demanded at various price
Explanation: A demand schedule tabulates the quantities of a product demanded at different prices.
Question 20
The supply schedule shows a relationship between price and quantity supplied that is
A. Positive
B. Negative
C. Indirect
D. Neutral
Answer: A. Positive
Explanation: Price and quantity supplied move in the same direction: a higher price brings a larger quantity supplied.
Question 21
Unpaid services will ____ the national income
A. Inflate
B. Overestimate
C. Under-estimate
D. Neutralize
Answer: C. Under-estimate
Explanation: Excluding unpaid services understates national income.
Question 22
Use the following data to answer Questions 22–25:
0, 1, 1, 2, 1, 0, 3, 5, 2, 1, 1, 3, 0 and 1
What is the mode of the data?
A. 0
B. 3
C. 2
D. 1
Answer: D. 1
Explanation: The most frequent observation is the mode. Here, 1 occurs six times, more often than any other value.
Question 23
Use the following data to answer Questions 22–25:
0, 1, 1, 2, 1, 0, 3, 5, 2, 1, 1, 3, 0 and 1
What is the mean?
A. 1
B. 2
C. 1.53
D. 5
Answer: C. 1.53
Explanation: Calculate the mean using:
Mean = Σx/n
= 23/15
= 1.53
Question 24
Use the following data to answer Questions 22–25:
0, 1, 1, 2, 1, 0, 3, 5, 2, 1, 1, 3, 0 and 1
What is the median of the distribution?
A. 0
B. 1
C. 2
D. 3
Answer: B. 1
Explanation: Arranging the values gives:
0, 0, 0, 1, 1, 1, 1, 1, 1, 2, 2, 3, 3, 5.
With 14 observations, average the seventh and eighth values:
(1 + 1) ÷ 2 = 1
Question 25
Use the following data to answer Questions 22–25:
0, 1, 1, 2, 1, 0, 3, 5, 2, 1, 1, 3, 0 and 1
What is the range of the observation?
A. 5
B. 4
C. 3
D. 2
Answer: A. 5
Explanation: Subtract the lowest observation from the highest:
5 − 0 = 5
Question 26
The population census is usually conducted every ____ years
A. 5
B. 10
C. 15
D. 20
Answer: B. 10
Explanation: A country is normally expected to carry out a population census every ten years.
Question 27
Who among the following is odd?
A. Luca Paciolo
B. J.S Mill
C. J.M Keynes
D. D. Richard
Answer: A. Luca Paciolo
Explanation: Luca Paciolo is associated with double-entry accounting, whereas the other people listed are economists.
Question 28
Which of the following is not a regional organization?
A. AU
B. EU
C. ECOWAS
D. UN
Answer: D. UN
Explanation: The United Nations operates worldwide. The African Union covers Africa, the European Union covers Europe, and ECOWAS covers West Africa.
Question 29
Which of the following is the most effective fiscal tool?
A. Budget
B. Taxes
C. Interest rate
D. Money supply
Answer: B. Taxes
Explanation: Taxes are regarded as the most effective fiscal instrument because their effects are immediate.
Question 30
Which of the following banks creates money?
A. Central banks
B. Commercial banks
C. Mortgage banks
D. Banks of industry
Answer: B. Commercial banks
Explanation: Banks create money by accepting public deposits and providing credit or loans. Commercial banks perform these functions.
Question 31
Maximum price legislation is usually set
A. Above the equilibrium
B. Below the equilibrium
C. Equal to the equilibrium
D. None of the above
Answer: B. Below the equilibrium
Explanation: A binding maximum price, also called a price ceiling, lies below equilibrium. Charging above it is unlawful, and quantity demanded at that price generally exceeds quantity supplied.
Question 32
The current governor of the Central Bank of Nigeria is
A. Bola Ahmed Tinubu
B. Wale Edun
C. John Eole
D. Yemi Cardoso
Answer: D. Yemi Cardoso
Explanation: The current governor of the Central Bank of Nigeria is identified as Yemi Cardoso.
Question 33
The headquarters of Bank of Industry is located at
A. Abuja
B. Lagos
C. Ogun
D. Kano
Answer: B. Lagos
Explanation: The Bank of Industry’s headquarters is located in Lagos.
Question 34
Use the following graph to answer Questions 34–36.
Which of the following relationships is wrong?
A. A > D
B. A = B
C. A > C
D. C < D
Answer: A. A > D
Explanation: D represents output that is unattainable because available inputs are exhausted. On the PPF illustration, D > A, or A < D.
Question 35
Use the graph for Questions 34–36. The country is at optimum at
A. A
B. B
C. A and B
D. D
Answer: C. A and B
Explanation: Both A and B represent optimal points for the country.
Question 36
Use the graph for Questions 34–36. What can shift the curve to D?
A. Reducing production
B. Increasing saving
C. Technological advancement
D. More farming
Answer: C. Technological advancement
Explanation: Advances in technology can shift the PPF to reach D.
Question 37
A government has the option of subsidising fuel or constructing a road; if it subsidizes fuel, then the opportunity cost of fuel subsidy is
A. Amount paid on subsidy
B. Road left to decay
C. Amount to be paid on road
D. None of the above
Answer: B. Road left to decay
Explanation: Governments face alternative uses of resources just as individuals do. Funding fuel subsidies instead of roads leaves roads to deteriorate, making the forgone road improvement the opportunity cost.
Question 38
Use the following information to answer Questions 38–40:
Given Qd = 20 − ¼P and Qs = 5 + ½P
What is the equilibrium price?
A. ₦10
B. ₦15
C. ₦18
D. ₦20
Answer: D. ₦20
Explanation: Equate demand and supply:
20 − ¼P = 5 + ½P
15 = ¾P
Therefore:
P = ₦20
Question 39
Use the following information to answer Questions 38–40:
Given Qd = 20 − ¼P and Qs = 5 + ½P
What is the equilibrium quantity?
A. 10
B. 15
C. 18
D. 20
Answer: B. 15
Explanation: Substitute the equilibrium price, P = ₦20, into either function:
Qd = 20 − ¼(20)
= 20 − 5
= 15 units
Also:
Qs = 5 + ½(20)
= 5 + 10
= 15 units
Therefore, the equilibrium quantity is 15 units.
Question 40
Use the following information to answer Questions 38–40:
Given Qd = 20 − ¼P and Qs = 5 + ½P
Given P = ₦4 when Qd = 19 units, what is the price elasticity of demand?
A. ¼
B. ½
C. ¹⁄₁₉
D. 20
Answer: C. ¹⁄₁₉
Explanation: Calculate price elasticity of demand:
Eₚ = |(ΔQd/ΔP) × (P/Q)|
From the demand function:
ΔQd/ΔP = −¼
Therefore:
Eₚ = |−¼ × ⁴⁄₁₉|
= |−¹⁄₁₉|
= ¹⁄₁₉ ≈ 0.053
The negative sign is disregarded when expressing the magnitude of price elasticity of demand.