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: Which of the following is a major determinant of price elasticity of demand? Options:
  A) The price of the commodity
  B) Availability of factors of production
  C) The prices of factors of production
  D) Income of the consumers
  Show Answer
  The correct answer is D .
• Question 2:

  In a perfect competition, the market price is determined by_______

  Options:
  A) the government
  B) the producer
  C) the consumer
  D) the market supply and demand junctions
  Show Answer
  The correct answer is D .
• Question 3:

  

  If in the graph, it is assumed that the price is initially P₁, it can be deduced that price will

  Options:
  A) fall because there is a surplus
  B) remain constant because it is the equilibrium price
  C) rise because there is a shortage
  D) double
  Show Answer
  The correct answer is A .
• Question 4:

  One major criticism of foreign aid to developing countries is that it

  Options:
  A) Gives too much power and control to world bank
  B) Encourages growth in government bureaucracy
  C) Is capital using rather than capital saving
  D) Provides incentives for capital flight
  Show Answer
  The correct answer is C .
• Question 5: One of the characteristics of oligopoly is the availability of Options:
  A) few sellers
  B) few buyers
  C) many sellers
  D) a single seller
  Show Answer
  The correct answer is A .
• Question 6: The record of a country's transactions in international trade is her Options:
  A) capital account
  B) balance of payments
  C) current account
  D) balance of trade
  Show Answer
  The correct answer is B .
• Question 7: If Mr Wale took a loan for the purpose of investment, the demand for money is________________? Options:
  A) Precautionary motive
  B) Transactionary and Precautionary motive
  C) Speculative motive
  D) Speculative and Transactionary motives
  Show Answer
  The correct answer is C .
• Question 8: The population of a country will decrease if Options:
  A) the death rate exceeds the birth rate
  B) immigration is equal to emigration
  C) the birth rate exceeds the death rate
  D) there is rapid economic growth
  Show Answer
  The correct answer is A .
• Question 9: Opportunity cost is an economic concept which describes the? Options:
  A) monetary equivalent of the utility of a commodity
  B) amount of time or money invested on a commodity
  C) sacrifice made for the satisfaction of a want
  D) cost of retaining an optimum level of production of commodities
  Show Answer
  The correct answer is C .
• Question 10: One of the functions of ECOWAS is to Options:
  A) provide funds for infrastructural development
  B) determine prices of exports
  C) redistribute income among citizens
  D) provide employment for citizens of member nations
  Show Answer
  The correct answer is B .