Economics past questions: JAMB UTME 2021

35 objective questions, with answers. Free to read and practise.

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35 questions, one at a time, marked as you go or at the end. No account needed.

1.
[see linked page: question refers to shared diagram/text above]
1. A.Sellers are few
2. B.Scarcity and choices are involved
3. C.Buyers are many
4. D.Money is in short supply
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Answer: B Scarcity and choices are involved
2.
Units of Quality Consumes Total Utility Marginal Utility
0 1 2 3 4 5 - 10 15 17 18 18 - 10 5 2 1 0
This table illustrates the law of _________
1. A.Increasing returns
2. B.Diminishing returns
3. C.Diminishing marginal utility
4. D.Increasing total utility
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Answer: C Diminishing marginal utility
3.
A firm is at its optimum size when ___________
1. A.It has a motive to increase output
2. B.It produces the greatest output at a minimum cost
3. C.Marginal cost equals marginal revenue
4. D.Marginal cost is less than marginal revenue
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Answer: B It produces the greatest output at a minimum cost
4.
A good measure of the standard of living usually used for international comparison is_______
1. A.Per capita income (PCI)
2. B.Gross national product (GND)
3. C.Net national income (NNI)
4. D.Gross domestic product (GDP)
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Answer: A Per capita income (PCI)
5.
By utility we mean________
1. A.Uselessness
2. B.Power of satisfying a want
3. C.Beneficial
4. D.Consumable
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Answer: B Power of satisfying a want
6.
Division of Labour is limited by the________
1. A.Size of labour firm
2. B.Availability of raw material
3. C.Size of the labour force
4. D.Absolute size of the country's population
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Answer: C Size of the labour force
7.
Economics may be defined as ________
1. A.The study of human behaviour in the allocation of scarce resources
2. B.The study of money and banking
3. C.The study of markets and prices
4. D.The study of production and distribution
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Answer: A The study of human behaviour in the allocation of scarce resources
8.
Full employment is a situation in which _______
1. A.Every adult is employed
2. B.Only the disable are not employed
3. C.All adults who can work are employed
4. D.All those who are able and eligible can find employment
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Answer: D All those who are able and eligible can find employment
9.
If Mr. A earns N2.000 a year while Mr. B earns N8000 but Mr. A pays N200 in tax per annum while Mr. B pays N400, such tax is_______
1. A.Progressive
2. B.Proportional
3. C.Indirect
4. D.Regressive
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Answer: D Regressive
10.
If the price of a commodity falls and the quantity purchased does not rise, the commodity can be described as________
1. A.Scarce
2. B.Normal
3. C.Superior
4. D.Inferior
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Answer: D Inferior
11.
If the quantity demanded of a commodity increases from 20 to 30 when there is an increase in price from N4 to N5, the elasticity of deman is_______
1. A.Zero
2. B.10
3. C.2
4. D.1
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Answer: C 2
12.
In a free market economy. the rationing of scarce goods is done principally by_______
1. A.Consumers
2. B.The government
3. C.The price mechanism
4. D.All of the above
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Answer: A Consumers
13.
In a sole proprietorship, the decisions are made by the ______
1. A.Government
2. B.Management
3. C.Owner
4. D.Board of Directors
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Answer: C Owner
14.
In Nigeria, cheques are not money because________
1. A.Most Nigerians cannot identity them
2. B.They are not legal tender
3. C.There are no banks in rural areas
4. D.They are not generally acceptable as a medium of exchange
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Answer: B They are not legal tender
15.
Inflation is likely to benefit_______
1. A.Debtors
2. B.Persons with back savings
3. C.Creditors
4. D.Persons who lived on fixed pension funds
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Answer: A Debtors
16.
Money becomes a very poor store of value in a period of _______
1. A.Harvest
2. B.Deflation
3. C.Recession
4. D.Inflation
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Answer: D Inflation
17.
Mono production economies are those that____
1. A.Produce one main commodities
2. B.Have a rich cultural heritage
3. C.Specialize in agricultural industries
4. D.Produce only raw materials
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Answer: A Produce one main commodities
18.
Palm oil industry is located in Old Bendel State because the state______
1. A.Land is suitable for oil
2. B.Is a palm tree growing area
3. C.Soil is unsuitable for other crops
4. D.Imports raw materials for palm oil industry
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Answer: B Is a palm tree growing area
19.
Petroleum 'glut' in international trade means______
1. A.Higher prices for the Consumption of petroleum.
2. B.An Oversupply of petroleum.
3. C.A fall in in petroleum production.
4. D.A higher petroleum price offered by the buyer.
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Answer: B An Oversupply of petroleum.
20.
Pricing and Output decisions of sellers are highly inter-dependent in markets known as _________
1. A.Monopoly
2. B.Oligopoly
3. C.Monopolistic competition
4. D.Perfect competition
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Answer: B Oligopoly
21.
Retailers in an economy perform the function of ______
1. A.Distribution
2. B.Exchange
3. C.Investment
4. D.Production
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Answer: A Distribution
22.
Surplus in balance of payments leads to ________
1. A.Government budget surplus
2. B.Increase in foreign reserves
3. C.Decrease in foreign reserves
4. D.None of the above
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Answer: B Increase in foreign reserves
23.
The PAYE ( Pay As You Earn) in Nigeria is an example of ______
1. A.Flat rate Tax
2. B.Community tax
3. C.Regressive tax
4. D.Progressive tax
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Answer: D Progressive tax
24.
The petro-chemical industries are located in Rivers State of Nigeria due to ________
1. A.Coal deposit
2. B.Palm oil products
3. C.Favourable soil
4. D.Oil deposits
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Answer: D Oil deposits
25.
The Power Holding Company of Nigeria (PHCN) is a ________
1. A.Public limited company
2. B.Private authority
3. C.Public Corporation
4. D.Public Liability company
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Answer: C Public Corporation
26.
The value of money depends primarily on _________
1. A.The gold backing of the currency
2. B.The general price level
3. C.Government decree that it is legal tender
4. D.None of the above
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Answer: B The general price level
27.
Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a Visa for a period of ________
1. A.100 days
2. B.30 days
3. C.90 days
4. D.14 days
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Answer: C 90 days
28.
Use the table below to answer the question below; The international production set for Nigeria and Austria is;
Products Nigeria Austria
Cocoa 20 tonnes 12 tonnes
Lace 1o metres 8 metres
From the table, it can be deduced that_______
1. A.Nigeria should produce cocoa and lace
2. B.Nigeria can benefit from producing lace only
3. C.Austria should produce lace and Nigeria should produce cocoa
4. D.Austria should produce cocoa and lace
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Answer: C Austria should produce lace and Nigeria should produce cocoa
29.
Use the table below to answer the question below; The international production set for Nigeria and Austria is;
Products Nigeria Austria
Cocoa 20 tonnes 12 tonnes
Lace 1o metres 8 metres
The Opportunity cost ratio tor cocoa and lace Tor Austria and Nigeria is_______
1. A.1.5:2
2. B.2:2
3. C.2:1.5
4. D.0.5:1.5
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Answer: A 1.5:2
30.
What is the most important factor influencing the location of the iron and steel industry at Ajaokuta?
1. A.Availability of labour in the area
2. B.Availability of power
3. C.Nearness of raw material
4. D.Access to transport facilities
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Answer: C Nearness of raw material
31.
When a nation's exports are greater than its imports,_________
1. A.The net foreign trade is zero
2. B.A favourable balance of trade exists
3. C.A favourable balance of payment exists
4. D.An unfavourable balance of trade exists
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Answer: B A favourable balance of trade exists
32.
Which of the following countries is not a member of the Economic Community of West African States?
1. A.Sudan
2. B.Gambia
3. C.Togo
4. D.Nigeria
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Answer: A Sudan
33.
Which of the following is NOT a character of perfect competition?
1. A.Supply and demand are equal
2. B.Products are identical
3. C.There is perfect knowledge
4. D.There is no advertising
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Answer: A Supply and demand are equal
34.
Which of the following sets fully represents factors of production?
1. A.Sunlight, machinery, man, land
2. B.Land, water, weather
3. C.Money, market, middlemen
4. D.Land, labour, capital, enterprise, technology
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Answer: D Land, labour, capital, enterprise, technology
35.
Which of these is not usually the function of a wholesaler?
1. A.Branding
2. B.Storage
3. C.Transport
4. D.Advertising
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Answer: A Branding

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Units of Quality Consumes	Total Utility	Marginal Utility
0 1 2 3 4 5	- 10 15 17 18 18	- 10 5 2 1 0

Products	Nigeria	Austria
Cocoa	20 tonnes	12 tonnes
Lace	1o metres	8 metres