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 31:

  $\begin{array}{cc}\text{Unit of output}& \text{Table cost}\\ 1& 20\\ 2& 32\\ 3& 42\\ 4& 48\\ 5& 50\end{array}$

  Inthe above table, the marginal cost of the 3rd unit of output is

  Options:
  A) 12
  B) 6
  C) 10
  D) 2
  E) 9
  Show Answer
  The correct answer is C .
• Question 32:

  The demand for a good is price inelastic if

  Options:
  A) The price elasticity is less than one
  B) The price elasticity is one
  C) The price elasticity is negative
  D) The price elasticity is greater than one
  Show Answer
  The correct answer is A .
• Question 33: The world market for crude oil refers to the Options:
  A) total supply by OPEC members
  B) total demand for and supply of crude oil
  C) excess crude oil produced in the world
  D) difference between the supply of and demand for oil
  Show Answer
  The correct answer is B .
• Question 34: When demand is elastic, it means that consumers Options:
  A) react more proportionately to price change
  B) are not sensitive to price changed
  C) will stop buying when price increases
  D) react less proportionately to price change
  E) react equally to price change
  Show Answer
  The correct answer is A .
• Question 35: The purchasing power of the naira will fall when? Options:
  A) the naira is devalued
  B) government cuts all salaries and wages
  C) there is inflation
  D) the colour of the naira is changed
  E) workers are retrenched
  Show Answer
  The correct answer is C .
• Question 36: International trade arise because? Options:
  A) one country has more abundant resource
  B) one country has the technology to produce the commodity whilst the other has not
  C) one country has the maximum comparative advantage or minimum comparative disadvantage in the production
  D) one country has manpower to produce the commodity than the country
  E) All of the above
  Show Answer
  The correct answer is E .
• Question 37: When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he Options:
  A) stops consuming more of the commodity
  B) reduces the quantity consumed
  C) increases the quantity consumed
  D) consumes more of another commodity
  Show Answer
  The correct answer is C .
• Question 38: A country would develop its agricultural sector first so as to Options:
  A) stabilize the prices of agricultural products
  B) stabilize the prices of industrial products
  C) create a market for the agricultural sector
  D) create a market for the industrial sector
  Show Answer
  The correct answer is D .
• Question 39: Deflation is a persistent fall in the general price level and is usually caused by? Options:
  A) a reduction in total demand
  B) an increase in government spending
  C) an increase in the money supply
  D) an increase in aggregate demand
  Show Answer
  The correct answer is A .
• Question 40: By subsistence production we mean? Options:
  A) goods and services are produced for consumption only
  B) goods and services are sold to others
  C) raw materials are produced in the country
  D) goods and services are produced for the market
  E) none of these
  Show Answer
  The correct answer is A .