Economics past questions: JAMB UTME 2025

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

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

1.
A budget is balanced when expected total revenue is
1. A.less than total expenditure
2. B.greater than total expenditure
3. C.greater than expected expenditure
4. D.equal to expected expenditure
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Answer: D equal to expected expenditure
2.
A country is described as developing if
1. A.there is low labour supply
2. B.the population is decreasing
3. C.the income per head is low
4. D.the contribution of tertiary sector to national income is high
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Answer: C the income per head is low
3.
A country's balance of payments is in deficit when
1. A.a country's payments for imports of invisible goods are greater than her receipts from exports of invisible goods
2. B.the total receipts from her export of visible and invisible goods are greater than her payments for visible and invisible imports
3. C.the total payments for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods
4. D.It can record a surplus on current account of her balance of payments accounts
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Answer: C the total payments for visible and invisible imports are greater than the total receipts from her exports of visible and invisible goods
4.
A firm will shut down in the long run if its earning is
1. A.equal to super normal profit
2. B.less than normal profit
3. C.less than super normal profit
4. D.greater than normal profit
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Answer: B less than normal profit
5.
A firm's average cost decreases in the long-run because of
1. A.decreasing marginal returns
2. B.diminishing average returns
3. C.increasing returns to scale
4. D.decreasing average fixed cost
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Answer: C increasing returns to scale
6.
A rise in government expenditure can lead to
1. A.higher unemployment
2. B.higher inflation
3. C.lower profits for industries
4. D.lower importation of raw materials by industries
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Answer: B higher inflation
7.
A stock exchange is a market that
1. A.deals with the exchange of commodities
2. B.deals with purchase and sales of securities
3. C.exchanges stockfish for lady fish
4. D.exchanges treasury bills for bills of exchange
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Answer: B deals with purchase and sales of securities
8.
Acceptability , durability, homogeneity , and portability are all attributes of good
1. A.money
2. B.markets
3. C.government
4. D.BANK
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Answer: A money
9.
An agricultural production process which uses more machinery relative to labour is referred to as
1. A.land intensive farming
2. B.large scale farming
3. C.capital intensive farming
4. D.commercial farming
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Answer: C capital intensive farming
10.
An argument for the use of commercial policy rest on the need to
1. A.make imported goods affordable
2. B.encourage the importation of non-essential goods
3. C.make a country enjoy absolute advantage in production of all goods
4. D.reduce domestic unemployment
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Answer: D reduce domestic unemployment
11.
An entrepreneur is encouraged to adopt division of labour in production because it
1. A.leads to increased cost of production and lower output
2. B.provides more employment opportunities
3. C.brings about equal cost and employment opportunities
4. D.leads to increased output and lower cost of production
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Answer: D leads to increased output and lower cost of production
12.
An indication that there is inflation in a country is that
1. A.there is a decrease in the demand for goods and services
2. B.people prefer to lend than to borrow
3. C.the same amount of money buys lower quantity of goods
4. D.there are too many goods in circulation
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Answer: C the same amount of money buys lower quantity of goods
13.
Another term for equilibrium price is
1. A.demand price
2. B.satisfactory price
3. C.market clearing price
4. D.price floor
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Answer: C market clearing price
14.
Cheques are not money because?
1. A.Their use is confined to business hours
2. B.They are not generally acceptable as a medium of exchange
3. C.There are few banks in the rural areas
4. D.They are not issued by the government
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Answer: B They are not generally acceptable as a medium of exchange
15.
Cost push inflation is caused by a
1. A.decrease in the cost of production
2. B.rise in demand for goods
3. C.decrease in the transportation cost
4. D.rise in the cost of production
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Answer: D rise in the cost of production
16.
Development plans in West Africa tend to deviate from their targets mainly due to
1. A.low level of education
2. B.high population growth rate
3. C.lack of manpower
4. D.political instability
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Answer: D political instability
17.
Economic problems arise mainly as a result of?
1. A.Lack of foresight on the part of resource users
2. B.Inaccurate statistical data in West Africa
3. C.Excessive wastage of available resources
4. D.Limitations in availability of resources
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Answer: D Limitations in availability of resources
18.
Harmonised monetary and fiscal policies is a feature of
1. A.an economic union
2. B.a customs union
3. C.a common market
4. D.a free trade area
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Answer: A an economic union
19.
If 20% rise in the price of Whisky leads to a 30% increase in quantity demanded of Schnapps, the cross elasticity of demand is
1. A.3.0
2. B.1.5
3. C.2.3
4. D.2.5
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Answer: B 1.5
20.
If an increase in the price of crude oil led to an increase in the prices of kerosene and grease,then kerosene and grease are in
1. A.joint supply.
2. B.competitive supply.
3. C.composite supply.
4. D.market supply.
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Answer: A joint supply.
21.
If in the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?
1. A.An increase in demand for Y will raise the price of X
2. B.An increase in demand for X will cause less of Y to be produced
3. C.an increase in demand for X will increase supply of Y
4. D.An increase in demand of X will leave the supply of Y unchanged
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Answer: C an increase in demand for X will increase supply of Y
22.
If the last Naira spent on each commodity by a consumer gave him equal satisfaction, it means the consumer has been able to
1. A.maximize costs
2. B.maximize utility
3. C.increase profits
4. D.cut costs
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Answer: B maximize utility
23.
In a free market economy, resources are allocated through the
1. A.state planning committee
2. B.government department
3. C.price mechanism
4. D.trade union
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Answer: D trade union
24.
In calculating the Gross National Product (GNP) by the income approach, all the following are included except
1. A.direct taxes paid by persons and companies
2. B.wages and salaries
3. C.rents on houses
4. D.retirement benefits
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Answer: A direct taxes paid by persons and companies
25.
In determining the growth of a country's population, infant mortality is a component of
1. A.net migration
2. B.death rate
3. C.fertility rate
4. D.immigration rate
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Answer: B death rate
26.
In the event of bankruptcy, owners of joint-stock companies lose
1. A.their private properties
2. B.only the capital invested
3. C.only their dividends
4. D.both company and private assets
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Answer: B only the capital invested
27.
Land as a factor of production is made useful through the
1. A.application of human effort
2. B.application of fertilizer
3. C.use of machines
4. D.acts of nature
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Answer: A application of human effort
28.
Malthus' contention is that
1. A.population and food growth rate will, in future, be at par
2. B.population increased in geometric progression while food production increased in arithmetic progression
3. C.nations have to get enough manpower to cultivate available land for food
4. D.population increase in arithmetic progression while food production increased in geometric progression
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Answer: B population increased in geometric progression while food production increased in arithmetic progression
29.
Monopoly can best be described as a market in which
1. A.A single seller sells a product which has no close substitute
2. B.The entry of other firms is restricted by the few firms in the market
3. C.Two or more sellers sell a product which is differentiated
4. D.Few sellers sell a product s at different prices
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Answer: A A single seller sells a product which has no close substitute
30.
Net migration is the difference between
1. A.Per capita income and population
2. B.Internal and external migration
3. C.Population and census
4. D.Immigrants and Emigrants
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Answer: D Immigrants and Emigrants
31.
One advantage of a sole proprietorship is that
1. A.it makes an increase in the volume of business possible
2. B.it can be managed without conflicts
3. C.the sole proprietor raises money from the public
4. D.there is no limit to the number of people who may bring in capital
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Answer: B it can be managed without conflicts
32.
One disadvantage of direct taxes is that they
1. A.can be evaded
2. B.are not rigid
3. C.can be progressive
4. D.allocate scarce resources
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Answer: A can be evaded
33.
One disadvantage of inflation is that?
1. A.Standard of living rises
2. B.Fixed income earners lose
3. C.Fixed income earners gain
4. D.Businessmen lose
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Answer: B Fixed income earners lose
34.
One of the advantages of capitalism is that
1. A.efficient allocation of resources is assured
2. B.private initiative is discouraged
3. C.job security is assured
4. D.consumers are exploited
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Answer: A efficient allocation of resources is assured
35.
One of the factors affecting geographical distribution of population is
1. A.encouragement of early marriages in rural areas
2. B.climatic conditions of the different part of the country
3. C.high birth rate
4. D.high death rate
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Answer: B climatic conditions of the different part of the country
36.
One relationship between marginal utility and total utility is that when total utility is
1. A.falling, marginal utility is negative
2. B.maximum, marginal utility is maximum
3. C.rising, marginal utility is rising
4. D.falling, marginal utility is rising
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Answer: A falling, marginal utility is negative
37.
Population growth rate can be calculated as
1. A.birth rate- death rate + immigrants - emigrants
2. B.birth rate-death rate+migration rate-immigration rate
3. C.birth rate- death rate
4. D.birth rate- death rate-emigrants-immigrants
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Answer: A birth rate- death rate + immigrants - emigrants
38.
Positive check as envisaged by Thomas Malthus can be prevented if
1. A.moral restraint is adopted
2. B.marriage is abolished
3. C.death rate is reduced
4. D.more hospitals are built
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Answer: A moral restraint is adopted
39.
Small firms are important for the development of a country because
1. A.they render personalized services to the consumers
2. B.they usually produce goods for the elite
3. C.they do not normally provide after sales services
4. D.the prices of their products are usually high
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Answer: C they do not normally provide after sales services
40.
Table I above illustrates the law of
1. A.diminishing returns.
2. B.diminishing marginal productivity.
3. C.diminishing marginal utility.
4. D.variable proportion.
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Answer: C diminishing marginal utility.
41.
The balance of trade is
1. A.an annual statement showing transaction within a country
2. B.the relationship between a country's receipt from visible and invisible trade
3. C.an account that shows a country's payment to other countries
4. D.the relationship between a country's visible exports and imports
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Answer: D the relationship between a country's visible exports and imports
42.
The charging of different prices to different groups of buyers for the same goods or services is called?
1. A.Monopolistic competition
2. B.Monopoly
3. C.Price discrimination
4. D.Price determination
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Answer: C Price discrimination
43.
The Consumers Co-operative society is owned by?
1. A.Members of the society
2. B.Debenture holders
3. C.A management committee
4. D.The government
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Answer: A Members of the society
44.
The exploitation of mineral resources constitutes which form of production?
1. A.services production
2. B.secondary production
3. C.primary production
4. D.tertiary production
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Answer: C primary production
45.
The following are advantages of large scale agriculture except
1. A.use of simple implements
2. B.use of sophisticated implements
3. C.integration of crop and animal farming?
4. D.increase in employment
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Answer: A use of simple implements
46.
The following are all factors determining the location of industry except
1. A.availability of labour
2. B.proximity to market
3. C.nearness to raw materials
4. D.minimum wages rate
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Answer: D minimum wages rate
47.
The following are reasons for the failure of agricultural policies in West Africa except
1. A.vague policy statements
2. B.negation of policies
3. C.creation of agro-service stations
4. D.provision of obsolete implements
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Answer: C creation of agro-service stations
48.
The full meaning of OPEC is
1. A.Organization of Petrol Exporting Countries
2. B.Organization of Petroleum Exporting Countries
3. C.Oil and Petroleum Exporting Countries
4. D.Organic petroleum Exporting Countries
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Answer: B Organization of Petroleum Exporting Countries
49.
The function that distinguishes commercial banks from the central bank is that the former
1. A.accepts deposits from the public
2. B.services the public debt
3. C.regulates foreign exchange
4. D.is a leader of last resort
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Answer: A accepts deposits from the public
50.
The graph of the function X = a + bY is
1. A.linear
2. B.quadratic
3. C.exponential
4. D.cubical
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Answer: A linear
51.
The greatest foreign exchange earner for Nigeria before the advent of petroleum was
1. A.handicraft
2. B.agriculture
3. C.mining
4. D.manufacturing
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Answer: B agriculture
52.
The lender of last resort in the banking system is he
1. A.commercial bank
2. B.industrial bank
3. C.central bank
4. D.mortgage bank
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Answer: C central bank
53.
The major achievement of the Economic Community of West African States (ECOWAS) is that it has
1. A.made possible the use of common currency.
2. B.increased members allegiance to former colonial masters.
3. C.widened the market for goods produced.
4. D.made capital more mobile.
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Answer: C widened the market for goods produced.
54.
The market supply curve slopes upwards from left to right indicating that
1. A.two commodities can be supplied at the same time
2. B.producers pay high taxes
3. C.at a lower price, more is supplied
4. D.at a lower price, less is supplied
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Answer: D at a lower price, less is supplied
55.
The poorer the country, the larger the percentage of labour force engaged in
1. A.manufacturing
2. B.trading
3. C.agriculture
4. D.mining
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Answer: C agriculture
56.
The primary objective of the Nigerian Industrial Development Bank (NIDB) is the provision of provision of loans to?
1. A.Estate agents
2. B.Transporters
3. C.Farmers
4. D.Manufacturers
Show answerHide answer
Answer: D Manufacturers
57.
The reward to land as a factor of production is
1. A.Interest
2. B.wage
3. C.rent
4. D.profit
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Answer: C rent
58.
The satisfaction derived from the use of a commodity is its
1. A.elasticity
2. B.wealth
3. C.demand
4. D.utility
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Answer: D utility
59.
The specialisation of labour enhances production because people
1. A.become experts in all areas of production
2. B.can efficiently produce their own needs
3. C.can save time and produce more
4. D.can concentrate on all goods they can produce better
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Answer: C can save time and produce more
60.
The transfer of ownership of a public enterprise to individual and firms is called
1. A.restructuring
2. B.Commercialization
3. C.nationalization
4. D.privatization
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Answer: D privatization
61.
The United Nation Conference on Trade and Development (UNCTAD) is a forum designed specifically for discussing the
1. A.religious affairs in the Southern Africa
2. B.educational needs of the developed countries
3. C.better terms of trade in the world
4. D.political conflicts in the United Nation Security Council
Show answerHide answer
Answer: C better terms of trade in the world
62.
What is the mean wage?
1. A.$36
2. B.$35
3. C.$37
4. D.$38
Show answerHide answer
Answer: A $36
63.
When more of tax on a product is borne by the buyer than the seller, the commodity involved has
1. A.elastic demand
2. B.perfectly elastic demand
3. C.fairly inelastic demand
4. D.perfectly inelastic demand
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Answer: C fairly inelastic demand
64.
When the death rate for old people and the infant mortality rate are high, with no migration, there will be in the population a higher number of
1. A.children in the population
2. B.women in the population
3. C.younger people in the population
4. D.old people in the population
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Answer: C younger people in the population
65.
Which functions of the wholesaler enables him to stabilize prices?
1. A.granting credit to retailers
2. B.advertising the goods
3. C.transporting goods
4. D.warehousing goods
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Answer: D warehousing goods
66.
Which of the following best describe token money?
1. A.Currency and coins in circulation
2. B.Coins and notes made of poor quality materials
3. C.Money in the vault of commercial banks
4. D.Money with face value higher than its material content
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Answer: D Money with face value higher than its material content
67.
Which of the following equation is appropriate for determining the Net Domestic Product (NDP)
1. A.NDP = GNP - depreciation
2. B.NDP = GDP - depreciation
3. C.NDP = GDP x Net Income from abroad
4. D.NDP - GDP + Net Income from abroad
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Answer: B NDP = GDP - depreciation
68.
Which of the following factors does not encourage the location of industries?
1. A.Nearness to the market
2. B.Government influence in sitting industries
3. C.Availability of infrastructural facilities
4. D.political instability
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Answer: D political instability
69.
Which of the following forms of economic integration is a member nation free to impose duty against non-members
1. A.Customs union
2. B.Common market
3. C.Economic community
4. D.Free trade area
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Answer: D Free trade area
70.
Which of the following institutions is concerned with expanding developing countries' commodity trade?
1. A.World Trade Organization (WTO)
2. B.Economic Commission for Africa (ECA)
3. C.African Development Bank (AfDB)
4. D.United Nations Conference on Trade and Development (UNCTAD)
Show answerHide answer
Answer: D United Nations Conference on Trade and Development (UNCTAD)
71.
Which of the following is necessary for the survival of small firms in West Africa?
1. A.High transportation costs
2. B.Inadequate collaterals for bank loans
3. C.Government assistance in the form of loans and tax holidays
4. D.Access to land for development
Show answerHide answer
Answer: C Government assistance in the form of loans and tax holidays
72.
Which of the following is not a feature of economic under development?
1. A.Monocultural economy
2. B.Low life expectancy
3. C.Income inequality
4. D.High productivity
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Answer: D High productivity
73.
Which of the following is not a function of an insurance company?
1. A.Collection of deposits from the public for investment
2. B.Encouragement of savings habits through life assurances
3. C.Mobilization of funds through premiums collected
4. D.Granting of loans on long-term basis for investment
Show answerHide answer
Answer: A Collection of deposits from the public for investment
74.
Which of the following is not an argument for the policy of privatization in West Africa?
1. A.To make businesses more profitable
2. B.Government is able to participate and control the operation of the privatized businesses
3. C.It encourages the inflow of capital and expertise from local and foreign sources
4. D.Members of the public are able to acquire shares
Show answerHide answer
Answer: B Government is able to participate and control the operation of the privatized businesses
75.
Which of the following is true about the supply of land? It
1. A.varies with time
2. B.is higher in urban than rural areas
3. C.rises with demand
4. D.is fixed
Show answerHide answer
Answer: D is fixed
76.
Which of the following over estimate the value of national income?
1. A.Wrong timing of computation
2. B.Changes of prices of goods within the year
3. C.Double counting
4. D.Incomplete statistical data
Show answerHide answer
Answer: C Double counting
77.
Which of the following serves as a banker's bank?
1. A.Commercial Bank
2. B.The Central Bank
3. C.Development Bank
4. D.The Mortgage Bank
Show answerHide answer
Answer: B The Central Bank
78.
Which of the following statements is not a feature of a monopoly?
1. A.New entrances are restricted
2. B.Buyers and seller are price takers
3. C.There is only one seller of the commodity
4. D.Seller is allowed to fix his own price
Show answerHide answer
Answer: B Buyers and seller are price takers
79.
Which of the following will be an effect of inflation?
1. A.Money lenders will gain
2. B.Wage earners will gain
3. C.Borrowers of money will gain
4. D.Borrowing of money will be restricted
Show answerHide answer
Answer: C Borrowers of money will gain
80.
Which of the following will shift the demand curve for cocoa to the right?
1. A.An increase in consumers' income
2. B.A rise in the price of cocoa
3. C.A fall in the quantity demanded of cocoa
4. D.A tax on cocoa producers
Show answerHide answer
Answer: A An increase in consumers' income

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