Key Points In Economics For JAMB 2024/2025

Key Points In Economics For JAMB 2024/2025

Key Points In Economics For JAMB 2024/2025

Below are the main key points in economics for JAMB 2024/2025 examination;

  1. Economics as a Science
  2. Economic Systems
  3. Methods of Economic Analysis
  4. The Theory of Demand
  5. The Theory of Consumer Behaviour
  6. The Theory of Supply
  7. The Theory of Price Determination
  8. The Theory of Production
  9. Theory of Costs
  10. Market Structure
  11. National Income
  12. Money and Inflation
  13. Banking
  14. Public Finance
  15. Economic Growth and Development
  16. Agriculture in Nigeria
  17. Industry and Industrialization
  18. Petroleum and the Nigerian Economy
  19. Business Organizations
  20. Population
  21. International Trade
  22. International Economic Organizations
  23. Factors of Production and Their Theories

Mostly Repeated JAMB Economics Questions From Previous JAMB Exams

Here are questions that usually come out in JAMB Economics for you to also digest;

Most Repeated JAMB Economics Questions (1 – 10)

  1. Developments outside a given firm which reduce the firm’s costs are called
    A. internal economies              B. external economies
    C. external diseconomies         D. optimum effects 
  2. If X represents the factors of production and Y represents the price factor, which of the following sets of association is correct?
    A. (land, rent), (capital, wage), (labour, profit)
    B. (land, interest), (capital, profit), (labour, wage)
    C. (land, wage), (capital, interest), (labour, rent)
    D. (land, rent), (capital, interest), (labour, wage)
  3. If at 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1500kg were purchased, the resultant point elasticity of demand is
    A. 0.33                B. 0.0001
    C. 1                     D. 10,000
  4. A situation in which all inputs are doubled and output also doubles is known as
    A. constant proportions
    B. constant returns
    C. increasing returns to scale
    D. constant returns to scale
  5. Economic goods are termed scarce goods when they are
    A. not available in sufficient quantities to satisfy all wants for them
    B. not produced in sufficient quantities to satisfy the effective demand for them
    C. of high quality
    D. of primary importance in satisfying the needs of society
  6. Which of the following situations will give rise to economic problems?
    A. unlimited human wants
    B. wants of varying importance
    C. limited means for satisfying wants
    D. means used in different ways
  7. An accurate census is important to a country because it helps
    A. in solving unemployment problem
    B. to ensure equitable population distribution relative to natural resources
    C. in deciding on creation of more local government
    D. in providing sound basis for formulating development policy
  8. Circular flow of income defines the
    A. relationship between end and means in the economic system
    B. allocation of income to various members of the household
    C. flow of goods, services and money amongst the various macro-section of the economy
    D. microeconomic relationships in economic analysis
  9. In the long run, all production factors are
    A. fixed                       B. semi-fixed
    C. variable                  D. Semi-variable
  10. The advantages which firms obtain directly from expanding their operations are referred to as
    A. internal economies of scale
    B. external economies of scale
    C. economies of localization
    D. economies of resource allocation

Answers to JAMB Most Repeated Questions in Economics (1 – 10)

1.B          2.D        3.C       4.D        5.A
6.C          7.D        8.C       9.C       10.A

Most Repeated JAMB Economics Questions (11 – 20)

  1. The effect of changes in the condition of demand on a demand schedule with the price constant is a
    A. movement along the demand curve
    B. deflation of the demand curve
    C. hyperbola formation by the demand curve
    D. shift of the demand curve 
  2. If a demand curve that intersects a price inelastic supply curve shifts rightward,
    A. the equilibrium price and quantity increase
    B. only the price will increase
    C. only the quantity will increase
    D. the price will remain constant
  3. The average product of labour in a given period is obtained by dividing the
    A. number of workers by the total product
    B. total product by the number of hours actually worked
    C. change in total product by change in the total number of workers
    D. total product by the number of workers
  4. If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing
    A. large scale production
    B. profit maximization
    C. economies of scale
    D. diseconomies of scale
  5. The production possibility curve can be used to explain the underlying concepts of
    A. scale of preference and choice
    B. opportunity cost and choice
    C. wants and means
    D. opportunity cost and scale of preference.
  1. If the increase in the price of yams is used to estimate the inflation rate, this is an example of
    A. deductive reasoning
    B. inductive reasoning
    C. normative reasoning
    D. positive reasoning

Use the data below to answer questions 17 and 18

54, 35, 62, 79, 83, 36, 62, 42, 62, 42.

  1. Calculate the mean
    A. 45.5               B. 55.7
    C. 55.8               D. 65.8 
  2. What is the modal score?
    A. 36                 B. 42
    C. 54                 D. 62
  3. A major determinant of demand for a luxury good is
    A. the price of the good
    B. price of other goods
    C. the income of consumers
    D. taste and fashion
  4. As long as marginal utility is positive, total utility must be
    A. negative           B. increasing
    C. zero                  D. decreasing

Answers to JAMB Most Repeated Questions in Economics (11 – 20)

11.D        12.B         13.D        14.D        15.B
16.B         17.C        18.D         19.C        20.B

Most Repeated JAMB Economics Questions (21 – 30)

  1. One of the factors affecting the supply of manufactured good is
    A. weather
    B. technology
    C. consumer tastes
    D. availability of inputs
  2. An upward movement along the same supply curve results in
    A. an increase in supply
    B. a decrease in price
    C. a decrease in quantity supplied
    D. an increase in quantity supplied
  3. An example of an indirect tax is
    A. profit tax                 B. sales tax
    C. capital gain tax       D. poll tax
  4. A major consideration in locating a cement factory is the availability of
    A. skilled labour
    B. power
    C. infrastructural facilities
    D. limestone
  5. The activities of the oil and gas industries are classified into
    A. exploration and transportation
    B. upstream and downstream
    C. discovery and extraction
    D. onshore and offshore
  6. Joint-stock companies can raise funds from
    A. the money market
    B. the capital market
    C. various sources
    D. government
  7. To protect farmers during a bumper harvest, the government usually
    A. sets a maximum price
    B. releases products from the buffer stock
    C. sells the excess to consumers
    D. sets a minimum price
  8. Contractionary monetary policy is used to
    A. control inflation
    B. bridge the deflationary gap
    C. expand the output level
    D. deregulate the economy
  9. The output approach to measuring national income is based on the computation of
    A. final output              B. factor cost
    C. value added             D. profits earned
  10. The need to construct a scale of preference is necessitated by
    A. the need to satisfy wants
    B. scarcity and the need for choice
    C. scarcity of resources
    D. non-availability of factors of production

Answers to JAMB Most Repeated Questions in Economics (21 – 30)

21.B        22.D         23.B        24.D       25.B
26.B        27.D         28.A        29.A       30.B

Most Repeated JAMB Economics Questions (31 – 40)

  1. Economic goods are termed scarce goods when
    A. not available in sufficient quantities to satisfy all wants for them
    B. not produced in sufficient quantities to satisfy the effective demand for them
    C. of high quality
    D. of primary importance in satisfying needs of a society
  2. The demand of a commodity is affected by
    A. the consumer of the commodity
    B. the price of the commodity alone
    C. the price of the commodity, income of the consumer, prices of other commodities and preferences of the consumer
    D. government policy
  3. The demand curve can be derived from
    A. the total utility curve
    B. the cardinal utility theory
    C. the marginal utility curve
    D. all of the above
  4. Which of the following statements is true of the effect of changes in demand and supply on price?
    A. A decrease in supply will lead to the fall in price and a fall in the quantity bought and sold.
    B. An increase in demand will lead to a fall in price and in the quantity bought and sold.
    C. A decrease in demand will lead to a rise in price and in the quantity bought and sold.
    D. An in increase in supply will lead to a fall in price and a rise in the quantity bought and sold.
  5. The basic idea behind the brand differentiation under an imperfect market arrangement is to
    A. stimulate demand for rival product
    B. create demand for the particular product
    C. enable the product to penetrate the market
    D. enable the product to compete with other products
  6. It is important to measure the national income of a country because
    A. it is a major determinant of the standard of living
    B. it reveals hazards of development like pollution and congestion
    C. it reveals the distribution of the citizens’ saving in foreign bank
    D. its size determines the extent of political stability
  7. Adding government and foreign sector to the circular flow of income and product
    A. does not disturb the basic qualities of the circular flow
    B. does alter the basic qualities of the circular flow
    C. is the basis for understanding the circular flow
    D. disturbs the understanding of the circular flow
  8. Consumption plus investment plus government purchases plus net exports make up
    A. national income
    B. net national income
    C. net national product
    D. national product
  9. The role of the Central Bank in the economic development of Nigeria is to
    A. use cheques and bank drafts to facilitate business transactions
    B. maintain a stable price system
    C. give short- and medium-term loans to the public
    D. give financial and technical advice to customers
  10. The average tax rate is defined as
    A. total tax rate less the marginal tax rate
    B. the tax rate which applies to additional value of income
    C. the ratio of the total taxes paid to total income
    D. marginal tax rate for being progressive

Answers to JAMB Most Repeated Questions in Economics (31 – 40)

31.A        32.C       33.C        34.D        35.B
36.A        37.D       38.A        39.B        40.C

Most Repeated JAMB Economics Questions (41 – 50)

  1. Suppose that the equilibrium price of an article is #500 but the government fixes the price by law at #400, the supply will be
    A. the same as the equilibrium supply
    B. greater than the equilibrium supply
    C. less than the equilibrium supply
    D. determined later by the government
    E. none of the above
  2. Which of the following is not a direct tax?
    A. Company Income Tax
    B. Capital Tax
    C. Purchase Tax
    D. Personal Income Tax
    E. Capital Gains Tax
  3. The process by which West African countries attempt to reduce the import of manufactured goods by encouraging firms to produce these at home is known as
    A. Industrialization
    B. Export promotion
    C. Import substitution
    D. Export substitution
    E. Import expansion
  4. The basic principles of co-operative societies are those of
    A. active participation of capitalists in the affairs of co-operative societies
    B. worker ownership and owner control
    C. sole proprietorship
    D. partnership
    E. denying of credit facilities to members
  5. Foreign exchange control in Nigeria is administered by the
    A. United Bank for Africa
    B. Union Bank of Nigeria
    C. First Bank of Nigeria
    D. Central Bank of Nigeria
    E. National Bank of Nigeria.
  6. The rate of exchange between a domestic and a foreign currency is defined as
    A. Terms of trade
    B. Domestic currency price of a unit of the foreign currency
    C. Foreign currency price of gold
    D. Domestic currency price of gold
    E. None of the above
  7. A perfect example of a public good is
    A. Air
    B. Education
    C. Defense
    D. Transport
    E. All the above
  8. A school girl who needs a book and a mirror, each costing five Naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book.
    A. The five Naira she spent on the book
    B. Five Naira real cash value
    C. The mirror
    D. The book
    E. None of the above
  9. A system in which the means of production is held in trust for the people by government is known as a
    A. social economy
    B. capitalist economy
    C. subsistence economy
    D. mixed economy
    E. open economy
  10. A firm determines its profits when it studies its
    A. marginal cost
    B. average cost
    C. total cost
    D. average cost relative to price in the market
    E. average variable cost

Answers to JAMB Most Repeated Questions in Economics (41 – 50)

41.C       42.C       43.C        44.D         45.D
46.B       47.C       48.C        49.A         50.D

FAQs;

What Are the Main Topics for Economics in JAMB?

  1. Economics as a Science
  2. Economic Systems
  3. Theory of Demand, Consumer Behaviour, Supply, Price Determination, Production, Costs
  4. Market Structure
  5. National Income
  6. Money and Inflation
  7. Banking
  8. Public Finance
  9. Economic Growth and Development
  10. Agriculture in Nigeria
  11. Industry and Industrialization
  12. Petroleum and the Nigerian Economy
  13. Business Organizations
  14. Population
  15. International Trade
  16. International Economic Organizations
  17. Factors of Production and Their Theories

How Many questions are in JAMB Economics?

The JAMB Economics usually consists of 40 questions and are all objectives

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