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jamb2025economics
Q1. A deficit balance of payments is measured by subtracting the debits from the credits in the
Acurrent account
Bcurrent and capital accounts
Ccurrent and escrow accounts
Dcapital and escrow accounts
Correct Answer: B
A deficit in the balance of payments is calculated by considering both the current account (trade in goods/services) and the capital account (capital transfers and assets).
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jamb2025economics
Q2. An important contribution of small-scale industries to the Nigerian economy is in the area of
Atechnological development
Bforeign exchange earnings
Craw materials processing
Dlabour employment
Correct Answer: D
Small-scale industries create numerous job opportunities, significantly contributing to employment in Nigeria.
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jamb2025economics
Q3. A change in the pump price of petrol in Nigeria has a direct effect on the
Aprices of consumer goods
Bprices of essential goods
Ccost of raw materials
Dcost of transportation
Correct Answer: D
Petrol price changes directly impact transportation costs, which affect the cost of goods and services.
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jamb2025economics
Q4. One of the functions of ECOWAS is to
Aprovide funds for infrastructural development
Bredistribute income among citizens
Cprovide employment for citizens
Dpromote economic integration
Correct Answer: D
ECOWAS promotes economic integration through policies like free trade and movement among member states.
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jamb2025economics
Q5. The reward on machinery and equipment in the process of production is known as
Aprofit
Binterest
Crent
Dwage
Correct Answer: C
Rent is the payment for using capital assets like machinery and equipment in production.
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jamb2025economics
Q6. A minimum wage set above the equilibrium wage rate will likely result in
Aincreased employment
Bunemployment
Chigher productivity
Dlower labor supply
Correct Answer: B
A minimum wage above equilibrium creates a labor surplus, leading to unemployment as employers hire fewer workers.
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jamb2025economics
Q7. The main objective of the World Bank is to
Astabilize exchange rates
Bprovide loans for development projects
Ccontrol global trade
Dregulate monetary policies
Correct Answer: B
The World Bank focuses on providing financial and technical assistance for development projects in developing countries.
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jamb2025economics
Q8. Devaluation of a currency is likely to
Aincrease imports
Breduce exports
Cmake exports cheaper
Dstabilize domestic prices
Correct Answer: C
Devaluation lowers the currency’s value, making exports cheaper and more competitive internationally.
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jamb2025economics
Q9. The term 'opportunity cost' refers to the
Amonetary cost of a good
Bvalue of the next best alternative forgone
Ctotal cost of production
Dfixed cost of a firm
Correct Answer: B
Opportunity cost represents the value of the next best alternative sacrificed when a decision is made.
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jamb2025economics
Q10. A progressive tax system is one where
Atax rates decrease as income increases
Btax rates increase as income increases
Call taxpayers pay the same amount
Dtax rates are fixed regardless of income
Correct Answer: B
In a progressive tax system, higher income earners pay a higher percentage of their income in taxes.
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jamb2025economics
Q11. The main objective of economic planning in Nigeria is to
Aincrease government revenue
Bachieve balanced economic growth
Cstabilize foreign exchange rates
Dreduce agricultural output
Correct Answer: B
Economic planning in Nigeria aims to promote balanced growth across sectors to reduce disparities and foster development.
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jamb2025economics
Q12. A regressive tax system is characterized by
Ahigher tax rates for higher incomes
Blower tax rates for higher incomes
Cequal tax rates for all incomes
Dno tax on low incomes
Correct Answer: B
A regressive tax system places a heavier burden on lower-income earners relative to their income.
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jamb2025economics
Q13. The term 'terms of trade' refers to
Athe volume of international trade
Bthe ratio of export prices to import prices
Cthe balance of payments deficit
Dthe exchange rate policy
Correct Answer: B
Terms of trade measure the relative price of a country’s exports compared to its imports.
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jamb2025economics
Q14. The central bank controls inflation primarily through
Afiscal policy
Bopen market operations
Cdirect taxation
Dimport restrictions
Correct Answer: B
Open market operations, such as selling securities, reduce the money supply to curb inflation.
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jamb2025economics
Q15. A public corporation is financed mainly by
Aprivate investments
Bgovernment grants and loans
Cforeign aid
Dcommercial bank loans
Correct Answer: B
Public corporations are primarily funded by government grants, loans, and budgetary allocations.
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jamb2025economics
Q16. The concept of economies of scale is most relevant in
Ashort-run production
Blong-run production
Cfixed-cost production
Dvariable-cost production
Correct Answer: B
Economies of scale occur in the long run when all inputs are variable, reducing average costs as production scales.
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jamb2025economics
Q17. A trade union's primary objective is to
Aincrease productivity
Bprotect workers' interests
Cmanage company profits
Dregulate prices
Correct Answer: B
Trade unions advocate for workers’ rights, including better wages and working conditions.
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jamb2025economics
Q18. The balance of trade is the difference between
Avisible exports and invisible imports
Bvisible exports and visible imports
Ctotal exports and total imports
Dinvisible exports and invisible imports
Correct Answer: B
The balance of trade measures the difference between tangible (visible) exports and imports.
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jamb2025economics
Q19. A major advantage of a mixed economy is
Acomplete government control
Belimination of private enterprises
Cflexibility in resource allocation
Dabsence of market failures
Correct Answer: C
A mixed economy balances public and private sectors, enabling flexible resource allocation.
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jamb2025economics
Q20. The law of diminishing marginal returns applies when
Aall inputs are variable
Bat least one input is fixed
Call inputs are fixed
Doutput is constant
Correct Answer: B
Diminishing marginal returns occur when additional units of a variable input yield less output with a fixed input.
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jamb2025economics
Q21. A tariff is a tax imposed on
Adomestic goods
Bexported goods
Cimported goods
Dall goods
Correct Answer: C
Tariffs are taxes on imported goods to protect domestic industries or generate revenue.
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jamb2025economics
Q22. The primary purpose of the African Development Bank is to
Astabilize global currencies
Bfinance development projects in Africa
Cregulate international trade
Dcontrol inflation in Africa
Correct Answer: B
The African Development Bank funds projects to promote economic and social development in African countries.
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jamb2025economics
Q23. A firm's shut-down point occurs when its revenue cannot cover
Afixed costs
Bvariable costs
Ctotal costs
Dmarginal costs
Correct Answer: B
A firm shuts down when revenue falls below variable costs, as it cannot cover ongoing production expenses.
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jamb2025economics
Q24. The main source of government revenue in Nigeria is
Aagricultural exports
Boil revenue
Ccustom duties
Dincome taxes
Correct Answer: B
Oil exports dominate Nigeria’s government revenue due to its significant petroleum production.
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jamb2025economics
Q25. A subsidy on a commodity is likely to
Aincrease its price
Breduce its supply
Clower its price
Ddecrease demand
Correct Answer: C
Subsidies lower production costs, reducing the market price of the subsidized commodity.
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jamb2025economics
Q26. The concept of 'marginal cost' refers to
Athe total cost of production
Bthe cost of producing one additional unit
Cthe average cost of production
Dthe fixed cost per unit
Correct Answer: B
Marginal cost is the additional cost of producing one more unit of output.
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jamb2025economics
Q27. A major function of commercial banks is to
Aprint money
Baccept deposits and provide loans
Ccontrol money supply
Dset interest rates
Correct Answer: B
Commercial banks primarily manage deposits and provide loans to customers.
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jamb2025economics
Q28. The incidence of a tax refers to
Athe rate of taxation
Bwho ultimately bears the tax burden
Cthe method of tax collection
Dthe type of tax imposed
Correct Answer: B
Tax incidence identifies whether the producer or consumer ultimately pays the tax burden.
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jamb2025economics
Q29. A country with a high dependency ratio is likely to face
Alow unemployment
Bhigh economic growth
Cpressure on social services
Dincreased exports
Correct Answer: C
A high dependency ratio strains social services, as fewer workers support more dependents.
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jamb2025economics
Q30. The concept of 'economic rent' is associated with
Aland as a factor of production
Bcapital investments
Clabor wages
Dentrepreneurial profits
Correct Answer: A
Economic rent is the surplus income earned by land due to its fixed supply.
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jamb2025economics
Q31. A floating exchange rate is determined by
Agovernment policy
Bcentral bank interventions
Cmarket forces of supply and demand
Dinternational agreements
Correct Answer: C
A floating exchange rate is set by the supply and demand for a currency in the forex market.
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jamb2025economics
Q32. The main goal of diversification in Nigeria's economy is to
Aincrease oil production
Breduce reliance on oil
Climit agricultural exports
Dcentralize economic planning
Correct Answer: B
Diversification aims to develop non-oil sectors to reduce Nigeria’s dependence on oil revenue.
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jamb2025economics
Q33. A perfectly competitive market is characterized by
Afew sellers
Bprice control by firms
Cmany buyers and sellers
Dproduct differentiation
Correct Answer: C
Perfect competition features many buyers and sellers with identical products and no price control by firms.
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jamb2025economics
Q34. The GDP deflator is used to
Ameasure economic growth
Badjust nominal GDP for inflation
Ccalculate per capita income
Ddetermine export volumes
Correct Answer: B
The GDP deflator adjusts nominal GDP to real GDP by accounting for inflation.
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jamb2025economics
Q35. A major challenge of industrialization in Nigeria is
Aexcess labor supply
Binadequate infrastructure
Chigh export demand
Dlow population growth
Correct Answer: B
Inadequate infrastructure, such as unreliable power and transport, hinders Nigeria’s industrial growth.
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jamb2025economics
Q36. The concept of 'derived demand' is most applicable to
Aconsumer goods
Bfactors of production
Cluxury goods
Dpublic goods
Correct Answer: B
Derived demand refers to the demand for inputs (e.g., labor) driven by the demand for the final product.
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jamb2025economics
Q37. A budget deficit occurs when
Agovernment revenue exceeds expenditure
Bgovernment expenditure exceeds revenue
Cexports exceed imports
Dimports exceed exports
Correct Answer: B
A budget deficit occurs when government spending exceeds its revenue.
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jamb2025economics
Q38. The infant industry argument supports
Afree trade policies
Bprotectionist policies
Cforeign direct investment
Dcurrency devaluation
Correct Answer: B
The infant industry argument supports protecting new industries from foreign competition until they are competitive.
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jamb2025economics
Q39. The velocity of money refers to
Athe speed of money printing
Bthe rate at which money changes hands
Cthe growth of money supply
Dthe depreciation of currency
Correct Answer: B
Velocity of money measures how often a unit of currency is used in transactions over time.
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jamb2025economics
Q40. A major function of OPEC is to
Aregulate global trade
Bstabilize oil prices
Cpromote renewable energy
Dcontrol inflation
Correct Answer: B
OPEC coordinates oil production among member countries to stabilize global oil prices.