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 121: The law of comparative advantage states that a country should specialize in the production of a commodity Options:
  A) for which local demand is greatest
  B) in which its oportunity cost is lower than that of the trade partner
  C) for which foreign demand is greatest
  D) for which there is abundant supply of raw materials
  Show Answer
  The correct answer is B .
• Question 122: Which of the following is likely to reduce a surplus in the balance of payments of a country? Options:
  A) Devaluation
  B) Increased tariff on imports
  C) Export promotion
  D) Currency appreciation
  Show Answer
  The correct answer is D .
• Question 123: The value of money depends primarily on? Options:
  A) the gold backing of the currency
  B) the gold backing of both currency and deposit
  C) the general price level
  D) government decree that it is legal tender
  E) none of the above
  Show Answer
  The correct answer is C .
• Question 124: The production within the domestic territory of a country is called the Options:
  A) net national product
  B) gross domestic product
  C) net income
  D) disposable income
  E) gross national product
  Show Answer
  The correct answer is B .
• Question 125: In any economy, what is used as money is determined by? Options:
  A) government acceptance commodity standard
  B) government acceptance of an inconvertible paper standard
  C) laws and customs
  D) its use as a store of value
  Show Answer
  The correct answer is A .
• Question 126:

  The business risks of a public corporation are borne ultimately________

  Options:
  A) by the government
  B) by the treasury
  C) by the rate payers
  D) by the tax payers
  Show Answer
  The correct answer is D .
• Question 127:

  Collectivism refers to the management of state enterprises in a?

  Options:
  A) mixed economy
  B) co-operative organizations
  C) capitalist economic system
  D) socialist economy
  Show Answer
  The correct answer is D .
• Question 128: A society which forgoes present consumption Options:
  A) is forced to do so because of excessive consumption within the country in the past
  B) is devoting new resources to new capital formation
  C) is merely devoting resources to the replacement of capital
  D) expects to consume only that amount tomorow which was forgone today
  Show Answer
  The correct answer is B .
• Question 129:

  As indifference curve shows equal level of satisfaction at all points, An isoquant shows equal level of_________

  Options:
  A) Input
  B) Commodities
  C) Output
  D) Factors
  Show Answer
  The correct answer is C .
• Question 130: All the following are types of specialization except Options:
  A) Manager Specialization
  B) Product specialization
  C) Specialization by sex
  D) Geographical specialization
  Show Answer
  The correct answer is A .