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 1541:

  

  Consider the following diagram where XYZ represents the average curve of a firm. XY shows that as out put increases the average declines. However, this decline cannot continue indefinitely because

  Options:
  A) managerial economies
  B) indivisibilities
  C) the extent of the market
  D) the pooling of dissimilar risks
  Show Answer
  The correct answer is B .
• Question 1542:

  The basic principle underlying location of industry is the tendency for production of a commodity to be located on the basis of______

  Options:
  A) division of labour
  B) employment trends
  C) relative costs and benefits
  D) immobility of skilled labour
  Show Answer
  The correct answer is C .
• Question 1543: The 'terms of trade' means Options:
  A) the trade agreement between two countries
  B) the difference in the volumes of exports of two countries
  C) the value of a unit of export in relation to the value of a unit of import
  D) the production of total value of exports to the value of total trade
  E) None of the above
  Show Answer
  The correct answer is C .
• Question 1544:

  

  What type of price elasticity of demand is the diagram above representing?

  Options:
  A) perfectly inelastic demand
  B) perfectly elastic demand
  C) fairly elastic demand
  D) composite demand
  Show Answer
  The correct answer is A .
• Question 1545: The economic policy of deregulation is aimed at encouraging? Options:
  A) a monopolistic market structure
  B) a duopolistic market structure
  C) a competitive market structure
  D) an oligopolistic market structure
  Show Answer
  The correct answer is C .
• Question 1546: In the short run, the monopolistic competitors? Options:
  A) always makes profit
  B) always incurs a loss
  C) always breaks -even
  D) may close down
  Show Answer
  The correct answer is A .
• Question 1547:

  Surplus in balance of payments leads to ________

  Options:
  A) Government budget surplus
  B) Increase in foreign reserves
  C) Decrease in foreign reserves
  D) None of the above
  Show Answer
  The correct answer is B .
• Question 1548: Resources are efficiently allocated when production takes place at that output where price equals? Options:
  A) marginal revenue
  B) average variable cost
  C) marginal cost
  D) toal cost
  Show Answer
  The correct answer is A .
• Question 1549: When price is set below equilibrium, this will lead to Options:
  A) an increase in the quantity supplied
  B) a new equilibrium
  C) a decrease in the quantity supplied
  D) a fall in price
  Show Answer
  The correct answer is D .
• Question 1550: The reform in the banking sector in Nigeria is principally motivated by the need to Options:
  A) increase the capital base of banks
  B) provide more money to run the economy
  C) minimize the rate of bank failures
  D) enhance efficiency in bank operations
  Show Answer
  The correct answer is C .