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 2131: One of the functions of the price system is that it Options:
  A) encourages high volume of production
  B) dictates what the citizens will consume
  C) discourages the consumption of harmful goods
  D) regulates production and consumption
  Show Answer
  The correct answer is D .
• Question 2132: When demand is elastic, it means that consumers Options:
  A) react more proportionately to price change
  B) are not sensitive to price changed
  C) will stop buying when price increases
  D) react less proportionately to price change
  E) react equally to price change
  Show Answer
  The correct answer is A .
• Question 2133: Capital consumption allowance refers to? Options:
  A) personal consumption expenditure
  B) indirect business taxes
  C) depreciation of capital equipment
  D) expenditure on capital equipment
  Show Answer
  The correct answer is C .
• Question 2134:

  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 2135: Which of the business organization listed below is characterized by limited authority and liability of the individual owners? Options:
  A) Sole properitorship
  B) Partnership
  C) Joint stock company
  D) Co-operative society
  Show Answer
  The correct answer is C .
• Question 2136:

  

  What type of unemployment is revealed by the dotted lines on the graph?

  Options:
  A) frictional unemployment
  B) Cyclical unemployment
  C) Circular unemployment
  D) Underemployment
  Show Answer
  The correct answer is B .
• Question 2137:

  If aggregate income is N500.00 and aggregate consumption is N400.00, this means that the average propensity to consume is?

  Options:
  A) 0.20
  B) 0.80
  C) 1.25
  D) 2.00
  Show Answer
  The correct answer is B .
• Question 2138: In a perfect competition, every firm is a price? Options:
  A) maker
  B) taker
  C) giver
  D) bidder
  Show Answer
  The correct answer is B .
• Question 2139: If the price of a bicycle changes from N120 to N80 and quantity bought changes from 300 to 500 units, the elasticity of demand for bicycle is Options:
  A) 66.7
  B) 0.5
  C) 1.5
  D) 2.0
  Show Answer
  The correct answer is D .
• Question 2140: Money may not be accepted as a store of value if? Options:
  A) its value is unstable
  B) it is easily transferable
  C) its value is stable
  D) it is easily divisible
  Show Answer
  The correct answer is A .