Economics Exam Past Questions and Answers | JAMB, WAEC and NECO

Economics is the study of how societies allocate limited resources to meet the unlimited needs and wants of individuals. It focuses on the production of goods and services, economic growth, and various complex issues that are important to society.

• Question 1: From an economic point of view, an activity does not have a cost when Options:
  A) someone else pays for it
  B) the returns are greater than the cost
  C) the choice involves giving up nothing
  D) the government pays for it
  E) it is paid for from a gift
  Show Answer
  The correct answer is C .
• Question 2: The effect of an increase in demand for a commodity accompanied by a decrease in supply will be to? Options:
  A) raise the price of the commodity and affect the quantity in an indeterminate way
  B) decrease the equilibrium quantity and affect the price in an intermediate way
  C) raise its price as well as the equilibrium quantity
  D) lower it price while affecting the equilibrium quantity in an interminate way
  Show Answer
  The correct answer is C .
• Question 3: A firm enjoying economies of scale is said to be Options:
  A) reducing average cost as production increases
  B) benefiting from the activties of other firms
  C) maximizing profits as production increases
  D) having an upward-sloping average cost curve
  Show Answer
  The correct answer is A .
• Question 4: All the following are the canons of taxation given by Adam Smith except Options:
  A) objective
  B) economy
  C) convenience
  D) certainty
  Show Answer
  The correct answer is A .
• Question 5:

  Supply is________

  Options:
  A) A stock
  B) A Flow
  C) Constant
  D) A table
  Show Answer
  The correct answer is B .
• Question 6: If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then? Options:
  A) the equilibrium price and quantity will increase
  B) only the price will increase
  C) only the quantity will increase
  D) the price will remain constant
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  The correct answer is B .
• Question 7: As a country gets more developed, the percentage of labour engaged in agriculture tends to? Options:
  A) remain constant
  B) decrease steadily
  C) switch over to trading
  D) increase steadily
  Show Answer
  The correct answer is B .
• Question 8: Industries that can be randomly located are characterized by? Options:
  A) relatively low transport cost for both raw materials and output and factor mobility
  B) relatively heavy transport cost for raw material or output
  C) constant returns to scale
  D) signficant economy of scale
  Show Answer
  The correct answer is A .
• Question 9: The demand for a product is said to be price inelastic if? Options:
  A) the price elasticity of demand is less than one
  B) the price elasticity of demand is greater than one
  C) a reduction in price results in increase in the quantity demanded
  D) an increase in price results in a decrease in the quantity demanded
  Show Answer
  The correct answer is A .
• Question 10: The purpose of conducting a census is to enable a country to Options:
  A) plan her capital inflow and outflow
  B) determine the optimum level of population
  C) determine the growth rate of population
  D) plan her growth and development
  Show Answer
  The correct answer is D .