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 1261: A typical corporate form of business organization is owned by Options:
  A) President of a country
  B) Shareholders
  C) The general manager and the executives
  D) A local government
  E) Foreigners and citizens of the country
  Show Answer
  The correct answer is B .
• Question 1262: Economic is often described as a science because? Options:
  A) laboratory experiments are performed
  B) it makes use of controlled experiments
  C) it uses scientific methods to explain observed phenomena and predict future events
  D) it makes use of field work
  Show Answer
  The correct answer is C .
• Question 1263: Ike's scale of preference reveals that he prefers bananas to pawpaw, pawpaw to oranges and oranges to bananas. Ike's preferences are therefore? Options:
  A) inconsistent
  B) consistent
  C) transitive
  D) rational
  Show Answer
  The correct answer is A .
• Question 1264: If budget deficits are financed by borrowing the crowing-out effect can be offset by an increase in Options:
  A) government expenditure
  B) savings
  C) interest rates
  D) exchange rates
  Show Answer
  The correct answer is D .
• Question 1265: Which is considered the most effective tool by which the Central Bank of Nigeria can control the activities of commercial banks? Options:
  A) Open market operation
  B) Reserve requirements
  C) Bank rate
  D) Directives
  E) Special deposits
  Show Answer
  The correct answer is B .
• Question 1266: In capitalist economies, questions about what to produce are ultimately answered by Options:
  A) income level of households
  B) available technical skills in the economy
  C) output decisions of firms
  D) holding decision of households
  Show Answer
  The correct answer is C .
• Question 1267: The Industrial strategy of producing locally those goods that could have been imported is known as Options:
  A) balance growth
  B) export promotion
  C) import substitution
  D) Industrialization
  E) urbanization
  Show Answer
  The correct answer is C .
• Question 1268: The capital market provides business firms with the avenue to Options:
  A) lease capital equipment
  B) obtain long-term funds
  C) obtain short-term funds
  D) purchase capital equipment
  Show Answer
  The correct answer is B .
• Question 1269: The purchasing power of the naira will fall when? Options:
  A) the naira is devalued
  B) government cuts all salaries and wages
  C) there is inflation
  D) the colour of the naira is changed
  E) workers are retrenched
  Show Answer
  The correct answer is C .
• Question 1270: An ad valorem tax means Options:
  A) total amount of an income tax
  B) a certain percentage on the value of a commodity
  C) a certain percentage tax on the volume of commodity
  D) a tax on capital gain
  E) a profit tax
  Show Answer
  The correct answer is B .