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 771: If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million, the equilibrium level of income will change by Options:
  A) N4.0 milion
  B) N25. 0 milion
  C) N2.5 milion
  D) N15.0 milion
  Show Answer
  The correct answer is B .
• Question 772: A partnership sourcing for funds to expand its business would approach _______ Options:
  A) a central bank
  B) a money market
  C) an insurance
  D) a stock exchange
  Show Answer
  The correct answer is B .
• Question 773: The amount of labour hired depends on the Options:
  A) number of skilled labour available
  B) skill of labour
  C) marginal productivity of labour
  D) price of the inputs
  Show Answer
  The correct answer is C .
• Question 774: Which would you NOT consider an advantage of one-man business? Options:
  A) freedom of action
  B) limited liabiities
  C) Quick decision-making
  D) Personal contact with customers
  E) none o the albove
  Show Answer
  The correct answer is B .
• Question 775: When a firm's average revenue curve is downward-slopping , it's price elasticity of demand will be Options:
  A) Zero
  B) Greater than one
  C) One
  D) Between zero and infinity
  Show Answer
  The correct answer is C .
• Question 776:

  Number of workers	Total Products
  1	10
  2	28
  3	48
  4	72
  5	80

  Study the table above: What is the marginal product of the second worker?

  Options:
  A) 10
  B) 20
  C) 15
  D) 18
  E) 43
  Show Answer
  The correct answer is D .
• Question 777: The infant industry argument for protection in developing countries recognizes the needs to employ tariffs to protect Options:
  A) Industries producing baby food and clothing
  B) Industries owned by infants
  C) Newly set-up industries
  D) Industries in which infants will be taken care of
  E) Industries that behave like infants
  Show Answer
  The correct answer is C .
• Question 778: Which of the following is used for measuring national income? Options:
  A) Output, income and wages
  B) Import, expenditure and output
  C) Income, output and expenditure
  D) Export, Import and output
  Show Answer
  The correct answer is C .
• Question 779: Given perfect competition in the capital market, the opportunity cost of capital is adequately reflected by the? Options:
  A) interest rate
  B) returns on capital
  C) alternative capital foregone
  D) shadow price of foreign exchange
  Show Answer
  The correct answer is B .
• Question 780: Gresham's law in Economics shows that? Options:
  A) good drives out bad money
  B) bad money drives out good money
  C) the value of money varies inversely with the price level
  D) gold must be available to maintain the price of paper money
  Show Answer
  The correct answer is B .