Economics past questions: JAMB UTME 2023

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

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

1.
------------- is NOT the cause of balance of payments (BOP) deficits in Nigeria
1. A.Poor performance of non-oil sector
2. B.Export promotion
3. C.No import substitution strategies
4. D.High servicing of debt
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Answer: A Poor performance of non-oil sector
2.
..................... is the highest body in ECOWAS organogram
1. A.Authority of Head of State and Government
2. B.The Executive Secretariat
3. C.The Defense Council
4. D.Council of Ministers
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Answer: A Authority of Head of State and Government
3.
.............is presently used in Nigeria to measure inflation
1. A.GNP implicit price deflator
2. B.Consumer price index
3. C.Wholesale price index
4. D.Real Gross Domestic Product
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Answer: B Consumer price index
4.
40 men were employed in a farm, and they produced an average of 30 tonnes of cassava per person. Calculate the total product.
1. A.1,300 tonnes
2. B.1,100 tonnes
3. C.1,200 tonnes
4. D.1,400 tonnes
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Answer: C 1,200 tonnes
5.
A ............ in the price of the domestic currency in terms of a foreign currency is referred to as .............
1. A.Decrease, appreciation
2. B.Increase, de-appreciation
3. C.Decrease, depreciation
4. D.Increase, consolidation
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Answer: C Decrease, depreciation
6.
A major factor contributing to productivity is
1. A.Immigration of young workers
2. B.The labour force
3. C.The baby boom of generation
4. D.The rate of GDP per year
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Answer: B The labour force
7.
A persistence rise in the prices of inputs will lead to
1. A.cost push inflation
2. B.demand pull inflation
3. C.hyperinflation
4. D.stagflation
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Answer: A cost push inflation
8.
A tariff is a tax imposed on
1. A.Consumer goods
2. B.Domestic goods
3. C.Imported goods
4. D.Exported goods
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Answer: C Imported goods
9.
Agriculture accounts for about 60% of the
1. A.commodity market in West Africa
2. B.arable land in West Africa
3. C.active labour force in West Africa
4. D.service sector activities in West Africa
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Answer: C active labour force in West Africa
10.
All of the following describes conditions necessary for existence of a perfect market EXCEPT
1. A.lack of homogeneity of goods
2. B.perfect knowledge
3. C.large buyers and sellers
4. D.portability of goods
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Answer: A lack of homogeneity of goods
11.
Among all the determinants of economic growth, the most important one is
1. A.Human capital
2. B.Increased GDP
3. C.Land and Natural resources
4. D.Technologies
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Answer: B Increased GDP
12.
An increase in money income with constant price results in
1. A.Outward shift in the budget line
2. B.Inward parallel shift in the budget line
3. C.Options A and C
4. D.Budget line remain constant
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Answer: A Outward shift in the budget line
13.
An increase in nominal income without increase in price will result to
1. A.increased real income
2. B.increased GDP
3. C.decreased real income
4. D.decreased GNP
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Answer: A increased real income
14.
An increase in total production (real GDP) causes the demand for money to ______and the interest rate to _________
1. A.Increase; decrease
2. B.Decrease; decrease
3. C.Increase; increase
4. D.Decrease; increase
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Answer: C Increase; increase
15.
An industry is
1. A.A group of firms producing differentiated products
2. B.A group of firms producing distinct commodities
3. C.A group of firms producing related goods
4. D.A group of firms producing unrelated goods
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Answer: C A group of firms producing related goods
16.
Business cycle is associated with
1. A.Recession
2. B.Unemployment
3. C.Seasonal variation
4. D.Inflation
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Answer: A Recession
17.
Calculate the equilibrium level of national income (Y) where Y = C + I + G; C = 100 + 0.75Y; I = 50; G = 200
1. A.2000
2. B.100
3. C.1500
4. D.1400
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Answer: D 1400
18.
Economic problem occurs when
1. A.There is scarcity relative to demand
2. B.All raw materials are imported
3. C.Many people are out of work
4. D.There are no buyers for our goods
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Answer: A There is scarcity relative to demand
19.
Economics is often described as a science because it
1. A.employs the use of laboratory experiments
2. B.use scientific methods to explain observed phenomena
3. C.make use of controlled experiments
4. D.engages accurate predication of human beings
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Answer: B use scientific methods to explain observed phenomena
20.
Economists refer to private goods as
1. A.rivalrous and non-excludable
2. B.rivalrous and excludable
3. C.non rival and non- excludable
4. D.non rival and excludable
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Answer: B rivalrous and excludable
21.
From the graph above, the consumer is at equilibrium at point
1. A.k
2. B.l
3. C.m
4. D.j
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Answer: A k
22.
From the graph below, Point "E" shows--------------
1. A.product inefficiency
2. B.product efficiency
3. C.productive efficiency
4. D.allocative efficiency
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Answer: A product inefficiency
23.
Given the table demonstrating the law of diminishing marginal utility below, what is the value of X?
No. of oranges Consumed Total Utility Average Utility Marginal Utility
1 9 9 -
2 16 8 x
3 24 8 6
4 30 7.5 4
5 34 6.8 y
6 36 6 2
7 36 5.1 0
1. A.0.5
2. B.7
3. C.0
4. D.8
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Answer: B 7
24.
Government uses all of the following ways to redistribute income, except
1. A.Market intervention
2. B.Transfer earnings
3. C.Limited liability
4. D.Taxation
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Answer: C Limited liability
25.
Identify one of the following which can NOT be used to close deflationary gap
1. A.Increased interest rate
2. B.Increased money supply
3. C.Increase government expenditure
4. D.Reduction in taxes
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Answer: A Increased interest rate
26.
If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn
1. A.A normal profit of N750,000
2. B.An economic profit of N750,000
3. C.A normal profit o N1,750,000
4. D.An economic profit of N250,000
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Answer: B An economic profit of N750,000
27.
If commodities X and Y are substitute, their cross elasticity of demand will be
1. A.One
2. B.positive
3. C.negative
4. D.zero
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Answer: B positive
28.
If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
1. A.1.14
2. B.7.1
3. C.14.1
4. D.1.7
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Answer: A 1.14
29.
If the supply curve of labour market is given as S = 4L + 8. What is L when s = 20?
1. A.2
2. B.4
3. C.5
4. D.3
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Answer: D 3
30.
In a two by two model of international trade, it is assumed that
1. A.both countries could gain from trade at the same time, but term of trade is inconsequential for the distribution of the gains
2. B.both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade
3. C.neither country could ever gain from trade since term of trade is depends on the distribution of the gains from trade
4. D.both countries could gain from trade at the same time, and the volume of the gains does not depend on terms of trade
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Answer: B both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade
31.
Indicator of underdevelopment is
1. A.high life expectancy
2. B.low birth rate
3. C.low population growth rate
4. D.low per capita income
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Answer: D low per capita income
32.
Institutions serving as links between surplus and deficit units can be identified as
1. A.tax officers
2. B.pension offices
3. C.financial intermediates
4. D.acceptance houses
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Answer: B pension offices
33.
Macroeconomics focuses on the following units in an aggregative manner
1. A.household, firms, government, corporate sector and external sector
2. B.individual consumers, individual firms, government and external sector
3. C.government, household firms, individual consumers and external sector
4. D.individual consumers, household firms and manufacturing sector
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Answer: C government, household firms, individual consumers and external sector
34.
Money could be defined as
1. A.Options A, B and C
2. B.Medium of exchange
3. C.Settlement of debt
4. D.Medium of payment
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Answer: A Options A, B and C
35.
Multiplier can be described as
1. A.the ratio of change in an endogenous variable to the change spending
2. B.the ratio of variables that multiplies autonomous spending plus tax
3. C.the ratio of change in output to a change in autonomous spending
4. D.the ratio of variables that multiplies autonomous spending
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Answer: A the ratio of change in an endogenous variable to the change spending
36.
One major criticism of foreign aid to developing countries is that it
1. A.Gives too much power and control to world bank
2. B.Encourages growth in government bureaucracy
3. C.Is capital using rather than capital saving
4. D.Provides incentives for capital flight
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Answer: C Is capital using rather than capital saving
37.
One major problem facing West African countries is
1. A.Relations with Colonial Masters
2. B.Joint Military operations in Member States
3. C.Political integration
4. D.Financial crunch of Member States
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Answer: A Relations with Colonial Masters
38.
Overpopulation is caused by
1. A.emigration
2. B.disease
3. C.low Literacy rates
4. D.war and conflicts
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Answer: C low Literacy rates
39.
Part-time workers who desire full-time employment are:
1. A.Underemployed and contribute to the unemployment statistic
2. B.Underemployed but do not contribute to the unemployment statistic
3. C.Not part of the labour force and do not contribute to the unemployment statistic
4. D.Cyclical unemployment
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Answer: B Underemployed but do not contribute to the unemployment statistic
40.
Public corporation is financed with
1. A.Capital raised from shareholders
2. B.Tax payer's money
3. C.Capital raised from stock exchange
4. D.Capital contributed by owners
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Answer: B Tax payer's money
41.
Real cost is
1. A.Alternative commodities forgone
2. B.Amount of money spent on goods and services
3. C.Cost of goods and services
4. D.True cost
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Answer: A Alternative commodities forgone
42.
Suppose the public expenditure as a percentage of GDP of four countries is shown in the table below
A 40%
B 50%
C 33%
D 36%
Which type of economy exists in these countries?
1. A.Traditional
2. B.Planned
3. C.Pure market
4. D.Mixed
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Answer: D Mixed
43.
The "velocity" of money is
1. A.The real money supply divided by the real GDP
2. B.The money supply multiplied by the price level
3. C.The money supply divided by the price level
4. D.The ratio of real GDP to the real money supply
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Answer: D The ratio of real GDP to the real money supply
44.
The decision to consume more of one product under normal circumstances will apply
1. A.less of another product will be consumed
2. B.more of another product will be consumed
3. C.less of the product will be consumed
4. D.no other products will be consumed
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Answer: A less of another product will be consumed
45.
The demand for a good is price inelastic if
1. A.The price elasticity is less than one
2. B.The price elasticity is one
3. C.The price elasticity is negative
4. D.The price elasticity is greater than one
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Answer: A The price elasticity is less than one
46.
The demand for money will fall if
1. A.People expect deflation soon
2. B.Real GDP rises
3. C.Real interest rates rise
4. D.The GDP deflator rises
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Answer: C Real interest rates rise
47.
The development of an economic hypothesis through intuition, insight, or logic is associated with
1. A.Deduction
2. B.Policy economics
3. C.Normative economics
4. D.Induction
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Answer: C Normative economics
48.
The diagram above represent
1. A.perfect competition
2. B.mononpoly
3. C.demand curve
4. D.competitive market
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Answer: B mononpoly
49.
The economies of West African Countries depend majorly on
1. A.primary product
2. B.secondary product
3. C.tertiary product
4. D.manufacturing product
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Answer: A primary product
50.
The following are economic agents in any economy EXCEPT
1. A.Central Bank
2. B.House hold
3. C.Firm
4. D.Government
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Answer: A Central Bank
51.
The fundamental problem of economics is
1. A.Finding striking determinants between the forces of supply and demand
2. B.The scarcity of productive resources relative to society's unlimited wants
3. C.The establishment of a political framework to determine the what, how and for whom of production
4. D.To establish an equitable distribution of income
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Answer: B The scarcity of productive resources relative to society's unlimited wants
52.
The law of supply states that, other things being constant, as price increases
1. A.Supply increases
2. B.Supply decreases
3. C.Quantity supplied increases
4. D.Quantity supplied decreases
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Answer: C Quantity supplied increases
53.
The marginal propensity to consume is
1. A.Options A, B and C
2. B.ΔC/ΔY
3. C.The slope of the consumption function
4. D.Coefficient c in the equation C = C + cYd
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Answer: A Options A, B and C
54.
The maximum price is
1. A.P1
2. B.P2
3. C.P3
4. D.P4
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Answer: D P4
55.
The number of people who are qualified to work and who offered themselves for employment are called
1. A.mobility of labour
2. B.working population
3. C.migrant labour
4. D.labour turnover
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Answer: B working population
56.
The part of income after tax that is not consumed is defined as
1. A.Wages and salaries
2. B.Saving
3. C.Capital investment
4. D.Nondurable goods expenditure
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Answer: B Saving
57.
The principle that specified that the amount, when and how to pay tax should be made known to tax payer is known as
1. A.Principle of economy
2. B.Principle of convenience
3. C.Principle of simplicity
4. D.Principle of certainty
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Answer: A Principle of economy
58.
The quantity of commodity a consumer is willing and able to buy at a particular time is called
1. A.supply
2. B.wish
3. C.demand
4. D.desire
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Answer: C demand
59.
The rate of output per worker (or group of workers) per unit time is called
1. A.labour productivity
2. B.total output
3. C.individual output
4. D.workdone
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Answer: C individual output
60.
The short run can be defined as the period of time during which
1. A.All inputs are fixed
2. B.At least one of the firm's input is fixed
3. C.At least two inputs are fixed
4. D.All inputs are variable
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Answer: B At least one of the firm's input is fixed
61.
The term 'investment' in macroeconomics means
1. A.Profit
2. B.Total amount of money invested in bonds and stocks
3. C.The total amount of capital goods in the country
4. D.The production of goods for immediate consumption
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Answer: D The production of goods for immediate consumption
62.
The theory of ............... was propounded by ..................
1. A.Comparative advantage; Mercantilists
2. B.Absolute advantage; Adam Smith
3. C.Comparative advantage; Adam Smith
4. D.Absolute advantage; David Ricardo
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Answer: B Absolute advantage; Adam Smith
63.
The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is
1. A.Perfectly elastic
2. B.Infinitely elastic
3. C.Inelastic
4. D.Perfectly inelastic
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Answer: D Perfectly inelastic
64.
The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is
1. A.Structural unemployment
2. B.Cyclical unemployment
3. C.Seasonal unemployment
4. D.Frictional unemployment
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Answer: A Structural unemployment
65.
What is the lowest price the monopolist can charge
1. A.P2
2. B.P1
3. C.P3
4. D.P4
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Answer: A P2
66.
When a generalization is made based on observed facts, it is
1. A.inductive reasoning
2. B.normative reasoning
3. C.theoretical reasoning
4. D.deductive reasoning
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Answer: A inductive reasoning
67.
When a kilogram of carrot is #8.00, 20 kilograms are demanded and when the price decreased to #6.000 per kilogram, 30 kilograms are demanded. The elasticity of demand equals to
1. A.11
2. B.12
3. C.\(\frac{1}{2}\)
4. D.2
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Answer: B 12
68.
Which of the following Age group belongs to active Labour force?
1. A.15 - 25yrs
2. B.0 - 17yrs
3. C.65yrs and above
4. D.18 - 64yrs
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Answer: D 18 - 64yrs
69.
Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?
1. A.Lowering income taxes
2. B.Increasing the discount rate
3. C.Increasing the reserve ratio
4. D.Buying Treasury securities from commercial banks
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Answer: D Buying Treasury securities from commercial banks
70.
Which of the following is an example of free good?
1. A.Free education
2. B.Water in the ocean
3. C.Dinner you did not pay for
4. D.Your rented apartment
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Answer: B Water in the ocean
71.
Which of the following is NOT one of the characteristics of developing countries?
1. A.High unemployment
2. B.Mono- product economy
3. C.High capital formation
4. D.Low saving
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Answer: B Mono- product economy
72.
Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
1. A.Unemployment will fall
2. B.Unemployment will remain constant
3. C.Unemployment will increase
4. D.Unemployment will fluctuate
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Answer: C Unemployment will increase
73.
Which of the following must be true to have a closed economy with no government, and yet the value of the investmet multiplier still increase?
1. A.Marginal propensity to save has fallen
2. B.Actual investment had fallen
3. C.Average propensity to invest has fallen
4. D.Actual saving has fallen
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Answer: B Actual investment had fallen
74.
Which of the following shows why individual demand curve for a good usually slopes downward from left to right?
1. A.More of commodities are offered for sale at a lower than higher prices
2. B.Marginal utility falls as consumption increases
3. C.The higher the price, the higher the quantity offered for sale
4. D.Prices are usually falling when demand is low
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Answer: A More of commodities are offered for sale at a lower than higher prices
75.
Which of the following will cause an increase in cost of production?
1. A.Hyper-inflation
2. B.Cost push inflation
3. C.Structural inflation
4. D.Demand pull inflation
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Answer: B Cost push inflation
76.
Which of the following would not be a reason for a government to impose a quota on imports?
1. A.To support strategic industry
2. B.To prevent dumping
3. C.To decrease tax revenue
4. D.Employment oppourtunity
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Answer: C To decrease tax revenue
77.
Which one of the following measures the natural growth rate of population?
1. A.Natural increase - Birth rate + Net migration
2. B.Birth rate - Death rate
3. C.Birth rate/Death rate
4. D.Birth + Net migration = Death
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Answer: B Birth rate - Death rate

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No. of oranges Consumed	Total Utility	Average Utility	Marginal Utility
1	9	9	-
2	16	8	x
3	24	8	6
4	30	7.5	4
5	34	6.8	y
6	36	6	2
7	36	5.1	0

A	40%
B	50%
C	33%
D	36%