JAMB Economics Past Questions — 2010
JAMB Economics Past Questions — 2010
Real questions from the 2010 UTME Economics paper, with answers.
Question 1
Economics is the study of human behaviour as it relates to the:
- A. efficient allocation of resources
- B. production of goods
- C. operation of companies
- D. generation of income
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Answer: AQuestion 2
The downturn in the prices of shares on stock markets is a highlight of:
- A. efficient allocation of resources
- B. the invisible hand
- C. the regulatory nature of the market
- D. consumer rationality
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Answer: BQuestion 3
The standard deviation of a set of data is:
- A. always measured from the mode
- B. the most representative of averages
- C. always measured from the median
- D. a measure of dispersion
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Answer: DQuestion 4
The mean is the best measure of central tendency because it:
- A. is not affected by extreme values in a data
- B. is a midpoint value in an array of data
- C. is a balancing point in an observation
- D. can be calculated from incomplete data
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Answer: BQuestion 5
The most popular sizes of dresses and shoes are determined by the:
- A. range
- B. mean
- C. mode
- D. median
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Answer: CQuestion 6
If the demand for a good is more elastic than its supply, the tax burden is borne:
- A. equally by consumers and producers
- B. more by producers
- C. more by consumers
- D. more by retailers and producers
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Answer: CQuestion 7
If the price of a commodity with elastic demand increases, the revenue accruing to the producer will:
- A. double
- B. increase
- C. be constant
- D. decrease
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Answer: DQuestion 8
An excess demand for beans will result from:
- A. an increase in the price of beans
- B. a decrease in the price of beans
- C. an increase in the supply of beans
- D. a decrease in the supply of beans
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Answer: AQuestion 9
Consumer surplus tends to be higher when demand is:
- A. inelastic
- B. perfectly elastic
- C. elastic
- D. unitarily elastic
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Answer: CQuestion 10
One of the assumptions of ordinal utility theory is that:
- A. choice is not consistent
- B. utility can be ranked
- C. total utility is a function of price
- D. satisfaction is measurable
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Answer: DQuestion 11
The law of diminishing marginal utility explains why:
- A. the slope of a normal demand curve is negative
- B. an abnormal demand curve slopes upwards
- C. the slope of a normal demand curve is positive
- D. the consumption of inferior goods increases with income
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Answer: BQuestion 12
If a consumer plans to spend 120k on four oranges but spent 80k, his consumer surplus is:
- A. ₦1.50
- B. ₦0.40
- C. ₦1.00
- D. ₦2.00
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Answer: CQuestion 13
A set of factors that can shift the supply curve are changes in:
- A. weather, price and technology
- B. technology, weather and population
- C. technology, price and taste
- D. population, price and taste
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Answer: AQuestion 14
If the coefficient of price elasticity of supply is greater than one, the supply is said to be:
- A. perfectly elastic
- B. fairly inelastic
- C. infinitely inelastic
- D. fairly elastic
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Answer: DQuestion 15
If commodity X is a by-product of commodity Y, this implies that both commodities are:
- A. in competitive supply
- B. in composite supply
- C. jointly supplied
- D. in excess supply
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Answer: CQuestion 16
In perfect competition, price is determined by the:
- A. government
- B. sellers
- C. buyers
- D. market
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Answer: DQuestion 17
In order to reduce hardship faced by consumers due to high prices, government can introduce:
- A. maximum prices
- B. commodity boards
- C. minimum prices
- D. price control boards
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Answer: AQuestion 18
Average product is less than marginal product when:
- A. there is constant returns to scale
- B. there is increasing returns to scale
- C. there is decreasing returns to scale
- D. diminishing returns set in
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Answer: DQuestion 19
A firm enjoying economies of scale is said to be:
- A. reducing average cost as production increases
- B. benefiting from the activities of other firms
- C. maximizing profits as production increases
- D. having an upward-sloping average cost curve
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Answer: AQuestion 20
The rising portion of the long-run average cost curve of a firm is an indication that it is experiencing:
- A. increasing efficiency
- B. economies of scale
- C. diseconomies of scale
- D. increasing marginal returns
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Answer: CQuestion 21
An industry's supply curve is more likely to be elastic when firms are:
- A. enjoying free entry and exit
- B. operating at full capacity
- C. operating below capacity
- D. maximizing profits
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Answer: CQuestion 22
One of the characteristics of monopolistic competition is that:
- A. there is mobility of factors of production
- B. no single seller dominates the market
- C. the firms are price-takers
- D. consumers have perfect knowledge of price
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Answer: BQuestion 23
The demand curve for factors of production:
- A. is perfectly elastic
- B. slopes upwards
- C. slopes downwards
- D. is perfectly inelastic
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Answer: DQuestion 24
An agreement among firms on price and segmentation is termed:
- A. cartel
- B. collusion
- C. haggling
- D. specialization
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Answer: AQuestion 25
In national income accounting, tax is determined by the:
- A. level of income
- B. level of consumption
- C. level of investment
- D. rate of savings
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Answer: AQuestion 26
A decrease in aggregate spending in an economy will ultimately lead to:
- A. boom
- B. inflation
- C. deflation
- D. recession
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Answer: BQuestion 27
If MPC is 0.7 while government expenditure increased by ₦150m, the equilibrium national income is:
- A. ₦214 million
- B. ₦45 million
- C. ₦105 million
- D. ₦500 million
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Answer: DQuestion 28
The function of money which makes division of labour possible is its:
- A. unit of account
- B. store of value
- C. medium of exchange
- D. standard of deferred payment
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Answer: BQuestion 29
By buying treasury bills, the Central Bank of Nigeria intends to:
- A. increase money supply in the economy
- B. reduce the cash reserve ratio for banks
- C. reduce money supply in the economy
- D. increase the capital base of commercial banks
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Answer: BQuestion 30
One of the functions of commercial banks is:
- A. maintaining stable price in the economy
- B. regulating monetary policies
- C. granting loans to customers
- D. issuing bank notes and coins
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Answer: BQuestion 31
A strategy for curbing unemployment is to:
- A. implement government stabilization policy
- B. increase taxes and decrease government expenditure
- C. increase government expenditure and decrease taxes
- D. ensure even distribution of job opportunities
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Answer: DQuestion 32
National development plans in Nigeria fail mainly because of:
- A. overdependence on foreign aids
- B. inadequate funding of projects
- C. poor implementation strategies
- D. shortage of skilled manpower
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Answer: BQuestion 33
The ultimate aim of agricultural policies in Nigeria is to achieve:
- A. food sufficiency
- B. industrialization
- C. full employment
- D. industrial capacity utilization
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Answer: AQuestion 34
Government can boost agricultural output in Nigeria primarily by:
- A. embarking on buffer stock programmes
- B. placing embargo on food importation
- C. granting subsidies on farm inputs
- D. placing farmers on monthly income
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Answer: CQuestion 35
Localization of industries refers to the:
- A. spread of firms producing different products
- B. siting of industries near the market
- C. concentration of firms of an industry
- D. siting of firms producing different products
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Answer: DQuestion 36
In developing countries, governments influence the location of industries in order to:
- A. spread development
- B. redistribute wealth
- C. encourage entrepreneurs
- D. encourage industries to earn high profits
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Answer: AQuestion 37
A disadvantage of Nigeria's dependence on imported petroleum products is the:
- A. instability in the demand for the products
- B. dominance of multinational firms
- C. instability in the supply of the product
- D. poor maintenance of the refineries
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Answer: CQuestion 38
The maximum number of shareholders for a limited liability company is:
- A. twenty
- B. five
- C. seven
- D. infinite
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Answer: DQuestion 39
The primary motive for an individual engaging in production is to:
- A. make profit
- B. satisfy basic human wants
- C. redistribute wealth
- D. put inputs into use
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Answer: CQuestion 40
One of the characteristics of free trade zone is:
- A. common tariff against non-member countries
- B. different trade policies of non-member countries
- C. free factor mobility within the zone
- D. harmonized trade among member countries
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Answer: CQuestion 41
If Nigeria imports vehicles from Japan, the transaction will appear as a:
- A. debit on Japan's balance of payments
- B. credit on Japan's balance of payments
- C. credit on Nigeria's balance of trade
- D. credit on Nigeria's balance of payment
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Answer: CQuestion 42
One of the objectives of ADB (African Development Bank) is to:
- A. provide subsidies on imported goods to member countries
- B. mobilize short-term loans for member countries
- C. promote economic and social development of member countries
- D. provide technical assistance to only poor member countries
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Answer: CQuestion 43
The choice of the method of production in an economy is determined by the:
- A. level of technical know-how
- B. rate of population growth
- C. availability of natural resources
- D. level of income
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Answer: AQuestion 44
The amount of labour hired depends on the:
- A. number of skilled labour available
- B. skill of labour
- C. marginal productivity of labour
- D. price of the inputs
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Answer: CThis is a verified set of 44 questions from the original 50-question 2010 paper. A small number of questions relying on a data table or figure that didn't extract cleanly were left out rather than guessed at.