2020 JAMB Economics Past Questions & Answers Online Practice

2020 JAMB Economics Past Questions & Answers Online Practice

Take this 2020 JAMB Economics Past Questions & Answers Online Practice Quiz and get your score immediately.

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1 Scarcity in economics means?
1. human wants are limitless
2. the economy has very few resources
3. the economy can scarcely produce anything
4. resources are limited in relation to wants
Correct!

Wrong!
2 Economics is often described as a social science because?
1. laboratory experiments are performed
2. It makes use of controlled experiments
3. It uses scientific methods to explain an observed phenomenon and predict future events
4. It makes use of fieldwork
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3 Which of the following is an example of an invisible item on the balance of payments account
1. shipping and aviation
2. exports and imports
3. merchandise
4. Bullion
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4 A major factor affecting the value of money is the?
1. price level
2. banking habits
3. transaction motive
4. divisible nature of money
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5 The Nigerian bank for commerce and industry is?
1. a commercial bank
2. a development bank
3. a merchant bank
4. an industrial bank
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6 To control inflation, the monetary authorities of a country can
1. reduce taxes
2. advise the government to increase its expenditure
3. engage in expansive monetary policies
4. engage in restrictive monetary policies
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7 Which of the following is used by the central bank to control the rate of interest
1. bill of exchange
2. banker's order
3. fixed deposit account
4. open market operation
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8 What form of market is found in an imperfect competition where there are few buyers and many sellers
1. monopoly
2. oligopoly
3. duopoly
4. oligopsony
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9 A budget with a projected revenue in excess of its expenditure is said to be?
1. balanced
2. surplus
3. deficit
4. inflationary
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10 In order to raise more revenue for a certain period, the government should impose higher taxes on goods whose demands are__________
1. elastic
2. inelastic
3. perfectly elastic
4. unitary elastic
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11 If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?
1. 0.20
2. 0.80
3. 1,25
4. 2.00
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12 The group of unemployed members of a community who are physically handicapped or disable, is generally classified under unemployment as?
1. frictional
2. cyclical
3. residual
4. hidden
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13 Collectivism refers to the management of state enterprises in a ______________?
1. mixed economy
2. co-operative organizations
3. capitalist economic system
4. socialist economy
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14 Efficiency in production means?
1. reducing the size of the work force
2. producing a given output with the lowest cost of combination of factors of production
3. adoption of capital intensive technology
4. increasing the quantity of the fixed factors of production
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15 In economic life, the choice among alternatives depends on the?
1. income of the decision maker
2. scarcity of resources
3. the scale of preference of the decision-maker
4. status of the decision maker
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16 The law of diminishing marginal utility indicates that if a consumer increases his consumption of a commodity continously
1. total utility must fall
2. marginal utility must fall
3. marginal utility may rise
4. marginal utility may fall even though his total utility may be rising
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17 Which of the following rewards is associated with entrepreneurship
1. salaries
2. profits
3. interests
4. rents
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18 Which of the following is likely to be inflationary
1. taxes increase
2. increase in unemployment
3. budget surplus
4. wages increase
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19 The relationship between the tax rate and income which is relevant to progressive tax is shown by?
1. Curve X
2. Curve Y
3. Curve Z
4. Curve X and Z
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20 The relationship between tax rate and income which is relevant to a proportional tax is depicted by?
1. curve Z and Y
2. Curve X
3. Curve Z
4. Curve Y
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21 Fiduciary issue is that part of?
1. the issue of notes backed entirely by gold
2. a country's currency that is not negotiable
3. the issue of notes not backed by gold
4. a country's currency officially issued
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22 The type of business finances that entitles the holder to a fixed rate of dividend is?
1. preference stock
2. common stock
3. debentures
4. bank loan
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23 A company's expenditure on raw materials is regarded as?
1. explicit cost
2. implicit cost
3. prime cost
4. average cost
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24 Firms are often set up close to each other in order to take advantage of?
1. supply of skilled labour
2. agglomeration economies
3. internal economies of scale
4. external economies of scale
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25 A situation in which a commodity is sold abroad below its cost of production in the home country is known as?
1. dumping
2. counter trade
3. bilateral trade
4. trade liberalization
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26 The problem of conducting census include
1. high rate of rural-urban migration
2. poor geographical distribution of population
3. high birth rate in the country
4. poor town planning in urban areas
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27 The factor of production that has the highest degree of mobility is?
1. land
2. Labour
3. Capital
4. Entrepreneur
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28 In recent times, agriculture in Nigeria tends to lose its vital labour force as a result of?
1. lack of an effective agricultural policy
2. employment opportunities in the agricultural sector
3. rural-urban drift
4. low prices of agricultural products
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29 The most important goal of OPEC is to?
1. present a united front for the purpose of raise prices of crude oil
2. bring unity among the petroleum exporting countries
3. ensure political stability among member states
4. ensure that rules on quota production are strictly followed
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30 Plywood industries are often located near the source of?
1. finance
2. labour
3. power supply
4. raw materials
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31 When a country's population is experiencing increasing returns, that country is said to be?
1. overpopulated
2. economically poor
3. over-producing goods and services
4. under-populated
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32 The most important attribute of money is?
1. homogeneity
2. relative scarcity
3. divisibility
4. general acceptance
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33 The use of legally permissible means to reduce tax liabilities is known as tax?
1. evasion
2. avoidance
3. relief
4. exemption
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34 The Economic Commission for Africa was set up by the?
1. UNO
2. ECOWAS
3. OAU
4. IMF
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35 One of the techniques of monetary control used by the central bank of Nigeria is
1. selective credit control
2. budget deficit
3. foreign exchange control
4. monitoring the general price level
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36 Crude petroleum is a good example of a
1. lasting asset
2. wasting asset
3. synthetic product
4. costless resources
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37 A major effect of a long distribution chain is
1. scarcity of commodities
2. high retail
3. low retails prices
4. low producer earnings
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38 One of the major criticism of the 1962 -1968 National Development Plan was that?
1. it failed to incorporate lessons gained from earlier plans to enhance its efficiency
2. it came too quickly after the country's independence
3. planned expenditure was based too heavily on expected earnings from crude oil
4. its execution was based largely on foregn-sourced financial resources
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39 Utility is the satisfaction derived from?
1. production
2. distribution
3. consumption
4. demand
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40 Economic growth is different from economic development because economic growth
1. describes expansion and changes
2. is measurable but not objective
3. describes expansion and not change
4. is not measurable but objective
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