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 1:

  If the price of commodity X rises and consumers shift to commodity Y, then commodities X and Y are

  Options:
  A) substitutes
  B) complements
  C) inferior goods
  D) bought together
  Show Answer
  The correct answer is A .
• Question 2:

  If government in a fiscal year has its revenue receipts less than the expenditure, such country is having

  Options:
  A) balanced budget
  B) deficit budget
  C) favorable budget
  D) surplus budget
  E) unfavorable budget
  Show Answer
  The correct answer is B .
• Question 3: In economic analysis, a statement is said to be normative if it? Options:
  A) relates to value judgement
  B) is incorrect
  C) can be tested scientifically
  D) is contradictory
  Show Answer
  The correct answer is A .
• Question 4:

  The type of business finances that entitles the holder to a fixed rate of dividend is?

  Options:
  A) preference stock
  B) common stock
  C) debentures
  D) bank loan
  Show Answer
  The correct answer is C .
• Question 5: The following are bye-products of crude oil EXCEPT Options:
  A) bitumen
  B) kerosene
  C) paraffin wax
  D) perfume
  E) petrol
  Show Answer
  The correct answer is D .
• Question 6: Opportunity cost is a term which describe Options:
  A) The initial cost of setting up a business venture
  B) Cost of one product in terms of foregone production of others
  C) The monetary equivalent of the utility of commodity
  D) Cost related to an optimum level of production
  E) Implicit cost
  Show Answer
  The correct answer is B .
• Question 7: Government participation in the oil industry was necessitated by the Options:
  A) annual increase in production
  B) formation of OPEC
  C) high demand for crude oil
  D) huge investment outlay
  Show Answer
  The correct answer is B .
• Question 8: The shape of a production possibility frontier is determined by the? Options:
  A) increasing relative costs
  B) returns to scale
  C) diminishing returns to a fixed factor
  D) increasing returns to a variable factor
  Show Answer
  The correct answer is A .
• Question 9: The primary motive for an individual engaging in production is to Options:
  A) make profit
  B) satisfy basic human wants
  C) redistribute wealth
  D) put inputs into use
  Show Answer
  The correct answer is B .
• Question 10: The final stage in the production process of any commodity involves its movement from the Options:
  A) retailer to the wholesaler
  B) producer to the wholesaler
  C) retailer to the consumer
  D) wholesaler to the retailer
  Show Answer
  The correct answer is C .