JAMB Economics Past Questions and Answers

 

Question: What is the fundamental economic problem addressed by the study of economics?

 

A. Scarcity

B. Inflation

C. Unemployment

D. Globalization

Answer: A. Scarcity

 

Question: In economics, what is the law of demand?

 

A. As prices decrease, quantity demanded decreases

B. As prices increase, quantity demanded increases

C. As prices decrease, quantity demanded increases

D. As prices increase, quantity demanded decreases

Answer: D. As prices increase, quantity demanded decreases

 

Question: What is the term for the total value of all goods and services produced by a country in a specific time period?

 

A. Gross Domestic Product (GDP)

B. Consumer Price Index (CPI)

C. Inflation Rate

D. Budget Deficit

Answer: A. Gross Domestic Product (GDP)

 

Question: In economics, what is the opportunity cost of a decision?

 

A. The monetary cost

B. The next best alternative forgone

C. The total cost of production

D. The fixed cost

Answer: B. The next best alternative forgone

 

Question: What is the term for a market structure where there is only one seller dominating the market?

 

A. Oligopoly

B. Monopoly

C. Perfect Competition

D. Monopolistic Competition

Answer: B. Monopoly

 

Question: In macroeconomics, what does the term “fiscal policy” refer to?

 

A. Government manipulation of interest rates

B. Control of the money supply

C. Government use of taxation and spending to influence the economy

D. Regulation of international trade

Answer: C. Government use of taxation and spending to influence the economy

 

Question: What is the term for the measure of responsiveness of quantity demanded to a change in price?

 

A. Elasticity

B. Marginal Utility

C. Diminishing Returns

D. Equilibrium

Answer: A. Elasticity

 

Question: In economics, what is the function of the Federal Reserve in the United States?

 

A. Fiscal policy implementation

B. Conducting monetary policy and regulating banks

C. Controlling government spending

D. Managing international trade agreements

Answer: B. Conducting monetary policy and regulating banks

 

Question: What is the term for a situation where the quantity supplied exceeds the quantity demanded in a market?

 

A. Surplus

B. Shortage

C. Equilibrium

D. Elasticity

Answer: A. Surplus

 

Question: In microeconomics, what is the law of diminishing marginal returns?

 

A. As production increases, total cost decreases

B. As production increases, total output initially increases but at a decreasing rate

C. As production increases, total output increases at a constant rate

D. As production increases, total cost remains constant

Answer: B. As production increases, total output initially increases but at a decreasing rate

 

Question: What is the term for a tax that takes a higher percentage of income from high-income earners than from low-income earners?

 

A. Progressive tax

B. Regressive tax

C. Proportional tax

D. Excise tax

Answer: A. Progressive tax

 

Question: In economics, what is the term for the study of individual decision-making units, such as households and firms?

 

A. Microeconomics

B. Macroeconomics

C. Fiscal economics

D. International economics

Answer: A. Microeconomics

 

Question: What is the term for the measure of the average price level of goods and services in an economy over a period of time?

 

A. Inflation Rate

B. Consumer Price Index (CPI)

C. Gross Domestic Product (GDP)

D. Deflation

Answer: B. Consumer Price Index (CPI)

 

Question: In international trade, what does the term “trade deficit” mean?

 

A. Exports exceed imports

B. Imports exceed exports

C. Balance of trade is zero

D. Trade restrictions are implemented

Answer: B. Imports exceed exports

 

Question: What is the term for the total value of all final goods and services produced by the factors of production within a country’s borders in a specific time period?

 

A. Gross National Product (GNP)

B. Gross Domestic Product (GDP)

C. Net National Product (NNP)

D. Net Domestic.