2015 JAMB ECONOMICS PAST QUESTIONS AND ANSWERS Leave a Comment / Jamb Economics / By Jamb Tutor Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 0% 0 votes, 0 avg Created by Jamb TutorJamb Economics 2015 JAMB ECONOMICS PAST QUESTIONS AND ANSWERS 1 / 49 Category: Jamb Economics 2015 1. The major implication of high dependency ratio on an economy is a) High capital formation b) Vicious cycle of poverty c) Low cost of living d) High standard of living A high dependency ratio indicates a large proportion of the population is not working (e.g., children, elderly), leading to a vicious cycle of poverty as economic resources are strained to support dependents. High capital formation and low cost of living are not direct outcomes of high dependency ratios. 2 / 49 Category: Jamb Economics 2015 2. One of the major problems of agricultural sector in Nigeria is a) Low literacy level of farmers b) Small size of farms c) Pest attack on crops d) Inadequate modern farm implements Nigeria’s agricultural sector faces the challenge of inadequate modern farm implements, which hampers productivity. While small farm sizes, pest attacks, and low literacy are issues, modern implements are crucial for improving efficiency and output. 3 / 49 Category: Jamb Economics 2015 3. Cooperative societies are characterized with a) Divergent interest of members b) Limited liability c) Free entry and exit d) Unlimited size of membership Cooperative societies allow free entry and exit, promoting inclusivity and ease of membership. They may have limited liability, but the unlimited size of membership and diverse interests are not defining features. 4 / 49 Category: Jamb Economics 2015 4. The marginal propensity to save measures the a) Ratio of change in saving b) Change in supply as a result of a change in consumption c) Ratio of change in consumption to a change in the level of income d) Average propensity to consume Marginal propensity to save (MPS) is the ratio of change in saving to change in income, showing how much of each additional unit of income is saved rather than spent. Average propensity to consume and supply changes relate to different concepts. 5 / 49 Category: Jamb Economics 2015 5. Structural unemployment is mainly caused by a) A change in the consumption pattern b) A change in the business cycle c) Decrease in the output level d) Seasonal variation Structural unemployment results from changes in industry or technology that make certain skills obsolete. Seasonal variations and business cycles affect cyclical unemployment, not structural. 6 / 49 Category: Jamb Economics 2015 6. One of the major problems of census in Nigeria is a) Inadequate skilled personnel b) High dependency ratio c) Distortion of census figures d) High cost of conducting census Distortion of census figures is common in Nigeria due to political, ethnic, and resource allocation influences. High costs and lack of skilled personnel are issues but not as critical as figure distortion. 7 / 49 Category: Jamb Economics 2015 7. A decrease in government expenditure in an economy will cause general price level to a) Remain constant b) Fluctuate c) Fall d) Rise Reduced government spending leads to a decrease in aggregate demand, causing the general price level to fall. Rising prices would be contrary to this action, and fluctuation is less likely without external shocks. 8 / 49 Category: Jamb Economics 2015 8. From the table above, find the values of K and F respectively a) 13 and 27 b) 27 and 13 c) 10 and 27 d) 27 and 10 Here, K and F would logically be 27 and 13 based on typical AP and MP values in production data, though without more specifics this is estimated from similar examples. 9 / 49 Category: Jamb Economics 2015 9. In the theory of consumer behaviour, the sum of all marginal utilities is a) Average marginal utility b) The initial marginal utility c) Total utility d) Diminishing marginal utility The total utility is the cumulative satisfaction gained from consuming goods, summing all marginal utilities. Average marginal utility or diminishing marginal utility describes different aspects of utility. 10 / 49 Category: Jamb Economics 2015 10. In a pure capitalist economy, the means and forces of production are owned and controlled by the a) Public and private sectors b) Feudal lords c) Public sector d) Private sector In capitalism, the private sector owns and controls production, unlike mixed economies where public sectors also participate. Feudal lords, public-private sectors, or public sectors alone do not dominate capitalist ownership. 11 / 49 Category: Jamb Economics 2015 11. A factor earning which is paid out as unemployment benefit is referred to as a) Interest rate b) Direct rate c) Economic rent d) Transfer payment Unemployment benefits, often termed transfer payments, are government funds given to unemployed individuals to support them financially without requiring a service in return. 12 / 49 Category: Jamb Economics 2015 12. From the graph above, FG indicates a) Equilibrium quantity demanded b) Excess supply c) Equilibrium quantity supplied d) Excess demand Excess supply on a supply-demand graph is shown when quantity supplied surpasses quantity demanded, creating surplus. Equilibrium points align both demand and supply, while excess demand is the opposite condition. 13 / 49 Category: Jamb Economics 2015 13. The demand for money is referred to as the a) Amount of money in fixed deposit b) Desire to hold money in tangible assets c) Need for money to invest d) Desire to hold money in liquid form rather than investing The desire to hold money in liquid form for transactions rather than investments defines the demand for money, highlighting the trade-off between liquidity and potential investments. Intangible assets or fixed deposits do not describe liquid forms in this context. 14 / 49 Category: Jamb Economics 2015 14. In the theory of production, a producer is at equilibrium at a point where a) Isocost is above the isoquant curve b) Isoquant is below the isocost curve c) Isocost is tangent to the marginal revenue d) Isoquant is tangent to the isocost curve Production equilibrium occurs when the isoquant is tangent to the isocost curve, meaning the cost-efficient combination of inputs for maximum output. Other positions are either inefficient or non-equilibrium. 15 / 49 Category: Jamb Economics 2015 15. Balance of trade shows the relationship between the a) Internal and external trade b) Total value of visible import and export c) Deficit and surplus balance of payments d) Total value of invisible import and export Balance of trade reflects the total value of visible imports and exports, indicating a country’s trade surplus or deficit. Internal and external trade, balance of payments, and invisible imports/exports are distinct economic measures. 16 / 49 Category: Jamb Economics 2015 16. If the cash reserve ratio is 30%, a new deposit of ₦20 million will increase supply by a) ₦57.8m b) ₦47.9m c) ₦69.78m d) ₦66.7m With a 30% reserve ratio, the money multiplier is 1 / 0.3 = 3.33. So, ₦20 million × 3.33 = ₦66.7 million as the increased money supply. 17 / 49 Category: Jamb Economics 2015 17. A fall in the price of ostentatious goods will a) Increase the quantity demanded b) Decrease the quantity demanded c) Decrease demand d) Increase demand For ostentatious (luxury) goods, a price drop may actually decrease quantity demanded because these goods’ value often comes from their high price and exclusivity. 18 / 49 Category: Jamb Economics 2015 18. Payment of interests on loans and the repayment of capital sum at a future date is a) Balance debt b) Debt servicing c) Debt relief d) Debt retaking Debt servicing is the ongoing payment of interest and periodic repayment of the principal on a loan, ensuring the debt remains current. Debt relief and retaking are not accurate terms for this concept. 19 / 49 Category: Jamb Economics 2015 19. The most difficult measure of central tendency to determine in a grouped data is a) Range b) Variance c) Mean d) Mode Mode is challenging in grouped data as it requires identifying the class interval with the highest frequency. Mean and variance calculations are straightforward with grouped data. 20 / 49 Category: Jamb Economics 2015 20. Localization of industry is mainly determined by a) Diseconomies of scale b) Population growth c) Division of labor d) Access to raw materials Access to raw materials is a primary factor, as industries often locate close to essential resources to reduce transportation costs and increase efficiency. Population growth and division of labor are less relevant to industrial localization. 21 / 49 Category: Jamb Economics 2015 21. Geographical distribution of a population is affected by a) Low birth rate b) The availability of skilled manpower c) The availability of agricultural land d) High birth rate The availability of agricultural land influences population distribution, as people tend to settle in fertile areas for food production. Birth rates and skilled manpower have indirect effects. 22 / 49 Category: Jamb Economics 2015 22. A tax burden on a commodity will be shared equally if the demand is a) Fairly elastic b) Perfectly inelastic c) Fairly inelastic d) Unitary elastic If demand is unitary elastic, the tax burden splits evenly between consumers and producers because the percentage change in demand equals the price change due to the tax. Other elasticity levels shift the burden more to one side. 23 / 49 Category: Jamb Economics 2015 23. Higher income taxes can be used to control a) Demand-pull inflation b) High interest rates c) Cost-push inflation d) Hyperinflation Demand-pull inflation can be controlled by raising income taxes, which reduces disposable income and demand, easing inflationary pressure. High interest rates and cost-push inflation require different interventions. 24 / 49 Category: Jamb Economics 2015 24. From the graph above, a shift of the supply curve from S0S0 to S1S1 will lead to a) A decrease in price and quantity b) No change in price and quantity c) An increase in price and quantity d) A decrease in price and an increase in quantity A rightward shift in supply, as depicted, causes decreased prices and increased quantities, as more goods are supplied at each price level. 25 / 49 Category: Jamb Economics 2015 25. An indifference map is made up of a set of a) Consumers' total utility b) Consumer surplus c) Budget lines d) Indifference curves Indifference curves represent combinations of goods that give the consumer equal satisfaction, forming an indifference map that helps analyze preferences without budget constraints. 26 / 49 Category: Jamb Economics 2015 26. Recapitalization policy will enable commercial banks to a) Employ more qualified workers b) Open more branches c) Reduce interest rate d) Have a very strong capital base Recapitalization provides banks with a stronger capital base, allowing them to absorb risks, offer loans, and handle larger financial responsibilities. Employing workers or opening branches are benefits, but capital base is the core purpose. 27 / 49 Category: Jamb Economics 2015 27. The number of persons required to form a private company ranges from a) Ten to twenty b) Two to fifty c) Two to seven d) Seven to ten A private company requires two to fifty members, allowing for small ownership without public stock issuance. Public companies, in contrast, have more expansive ownership. 28 / 49 Category: Jamb Economics 2015 28. The major function of international monetary funds is the a) Provision of short-run loans to medium-scale industries b) Provision of long-term loans for infrastructure c) Development of agriculture in member countries d) Maintenance of stable exchange rates The International Monetary Fund (IMF) aims to maintain stable exchange rates and support global economic stability by providing short-term loans to manage economic crises. It does not focus on agriculture or long-term infrastructure loans. 29 / 49 Category: Jamb Economics 2015 29. One of the major activities in the upstream sector of the Nigerian petroleum industry includes a) Transportation of finished products b) Refining of crude oil c) Marketing of refined petrol d) Exploration of crude oil Exploration of crude oil is a primary activity in the upstream sector, focusing on discovering and extracting oil. Downstream activities include refining and marketing. 30 / 49 Category: Jamb Economics 2015 30. The law of supply states that the a) Lower the price, the higher the quantity supplied b) Higher the price, the lower the quantity supplied c) Higher the price, the higher the quantity supplied d) Quantity supplied is always equal to the quantity demanded According to the law of supply, higher prices incentivize producers to supply more, resulting in a positive relationship between price and quantity supplied. Lower prices reduce supply. 31 / 49 Category: Jamb Economics 2015 31. One of the features of a perfect competitive firm is a) Restrictions to entry and exit b) Price discrimination c) Absence of transportation cost d) Product differentiation Absence of transportation cost is assumed in perfect competition, alongside many sellers and identical products. Price discrimination and product differentiation are absent. 32 / 49 Category: Jamb Economics 2015 32. The basis for international trade is the a) Differences in natural resources endowment b) Differences in the population size c) Prevailing interest rate on multilateral loans d) Economic system in practice Differences in natural resource endowments among countries create opportunities for trade, as nations export goods they produce efficiently. Population and interest rates affect trade but are not the basis. 33 / 49 Category: Jamb Economics 2015 33. Training farmers on improved farming techniques is the major activity of a) Intermediate workers b) Middlemen c) Extension workers d) Creditors Extension workers provide training and support to farmers, enhancing productivity and knowledge of modern techniques. Middlemen and creditors are not primarily responsible for training. 34 / 49 Category: Jamb Economics 2015 34. In a free market economy, prices are determined by a) Consumers b) Producers c) The central government d) The forces of demand and supply In a free market, demand and supply forces set prices, without direct government intervention. Producers and consumers influence, but do not fully control, pricing. 35 / 49 Category: Jamb Economics 2015 35. The basic economic problem of what to produce in an economy is determined by a) The availability of labor b) The means of distribution c) The availability of resources d) Technological know-how The availability of resources guides production choices in an economy, balancing needs with limited resources. Labor and technology impact how, not what, to produce. 36 / 49 Category: Jamb Economics 2015 36. In Nigeria, a fall in the supply of petrol would generally affect the a) Import of goods and services b) Export of goods and services c) General price level in the country d) Exchange rate of the Naira Reduced petrol supply raises the general price level as production and transportation costs increase, impacting various goods and services. Import-export levels and exchange rates are indirectly affected. 37 / 49 Category: Jamb Economics 2015 37. The short-run equilibrium point of a perfectly competitive firm is attained at a point where a) Is equal to total cost b) The demand curve is tangential to the marginal cost c) The marginal cost curve is equal to the marginal revenue curve d) The marginal cost is equal to the price of the firm Equilibrium in perfect competition occurs where the marginal cost (MC) equals marginal revenue (MR), ensuring profit maximization. Demand curves are tangential in monopoly, not perfect competition. 38 / 49 Category: Jamb Economics 2015 38. Government can protect consumers from exploitative prices by introducing a) Minimum price b) Price differentiation c) Price floor d) Maximum price A maximum price (price ceiling) caps prices to prevent exploitation, especially for essentials. Minimum prices support producers rather than consumers. 39 / 49 Category: Jamb Economics 2015 39. If a fall in the price of commodity K brought about an increase in the demand for commodity Y, the two commodities are a) Composites b) Derived in nature c) Substitutes d) Complements Substitutes see an inverse price-demand relationship, as consumers switch to cheaper options. Complements would see joint demand changes. 40 / 49 Category: Jamb Economics 2015 40. In the theory of production, the price of a factor input is determined by a) The prevailing exchange rates b) Its elasticity of demand c) The existence of a large market d) The prevailing interest rates The elasticity of demand for an input affects its pricing, reflecting its importance in production. Large markets and exchange rates impact demand but are not direct determinants. 41 / 49 Category: Jamb Economics 2015 41. From the graph above, find the modal score a) 40 b) 20 c) 100 d) 60 The modal score is the most frequently occurring score, commonly represented by the highest bar on a histogram. 42 / 49 Category: Jamb Economics 2015 42. When the selling price of a monopolist is below his short-run marginal cost, he is said to be making a) An economic profit b) Losses c) Profit d) Supernormal profit Pricing below marginal cost indicates losses, as the cost to produce exceeds the revenue generated per unit. 43 / 49 Category: Jamb Economics 2015 43. The overall economic performance of a country can be assessed through a) Overlooking of its agricultural sector b) Employment estimates c) National income estimates d) Balance of payment National income estimates capture an economy’s total output, consumption, and production levels, providing a reliable performance indicator. Employment and balance of payments are specific but not comprehensive measures. 44 / 49 Category: Jamb Economics 2015 44. The supply of agricultural products is mainly determined by a) Consumers' taste b) Consumers' income c) Technology d) Consumers Technology drives agricultural productivity, enabling higher yields and efficient resource use. Consumers’ preferences are influenced but do not dictate supply. 45 / 49 Category: Jamb Economics 2015 45. Determine the median of 6, 10, 5, 12, 20, 18, 20, and 4 a) 11 b) 9.67 c) 12.56 d) 12 Arranged data: 4, 5, 6, 10, 12, 18, 20, 20. With eight numbers, median is the average of the 4th and 5th: (10 + 12) / 2 = 11. 46 / 49 Category: Jamb Economics 2015 46. From the table above, find the range of the distribution a) 50 b) 11 c) 70 d) 59 Range = Highest value – Lowest value: 70 – 10 = 60. 47 / 49 Category: Jamb Economics 2015 47. The failure of the Nigeria industrial sector is mainly associated with a) Lack of raw materials b) Inadequate market for industrial goods c) Underdeveloped infrastructural facilities d) Inadequate capital Underdeveloped infrastructural facilities hinder efficient production, distribution, and communication, crucial for industrialization. Raw materials and capital issues also affect development but are not the main problem. 48 / 49 Category: Jamb Economics 2015 48. If Qd = 40 – 4P and P = ₦4, what is the quantity demanded? a) 30 b) 32 c) 24 d) 26 Substitute P in Qd = 40 – 4P: Qd = 40 – 4(4) = 24 units. 49 / 49 Category: Jamb Economics 2015 49. The long-run total cost curve shows the cost of a) All fixed factors of production b) The average fixed cost c) All factor inputs that are employed d) Variable factors of production All factor inputs reflect total costs, covering both variable and fixed expenses over time. Fixed factors alone would refer to only fixed costs. 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