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 21: The short-run period in production is defined as a period when? Options:
  A) there is at least one fixed factor
  B) all costs of production must be covered
  C) the output cannot be varied
  D) current output is not profitable
  Show Answer
  The correct answer is A .
• Question 22: A major objective of the Federal Government's initiative on cassava production in Nigeria is to Options:
  A) diversify the export base of the economy
  B) ensure the availability of cassava
  C) make cassava a staple food in the country
  D) provide raw materials for industries
  Show Answer
  The correct answer is A .
• Question 23: By definition, variable cost (VC) is related to total costs (TC) and fixed costs (FC) by the equation? Options:
  A) VC =TC + FC
  B) VC = TC - FC
  C) VC = TC/FC
  D) VC = (TC)(FC)
  Show Answer
  The correct answer is B .
• Question 24: In order to increase revenue, the seller of a commodity whose demand is fairly elastic is advised to Options:
  A) increase price
  B) reduce output
  C) reduce price
  D) retain price
  Show Answer
  The correct answer is C .
• Question 25: Musa has a choice of buying a shirt, a book and a bag. What is the opportunity cost of buying a book? Options:
  A) A bag only
  B) A book and a bag
  C) A shirit and a bag
  D) A shirit only
  Show Answer
  The correct answer is C .
• Question 26:

  Quantity	Fixed cost (₦)	Variable cost (₦)	Total cost (₦)	Marginal cost (₦)	Average cost (₦)
  1	750	200	950	-	950
  2	750	560	1310	360	655
  3	750	900	1650	?	550

  The table above shows the short-run costs of a firm. What is the firm's marginal cost for the third item produced?

  Options:
  A) ₦350.00
  B) ₦340.00
  C) ₦360.00
  D) ₦370.00
  E) ₦55.00
  Show Answer
  The correct answer is B .
• Question 27: In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the? Options:
  A) substitution effect of a price change
  B) income effect of a price change
  C) opportunity cost of a price change
  D) inflation effect of a price change
  Show Answer
  The correct answer is D .
• Question 28: Which of the following is NOT a feature of economic underdevelopment of a country? Options:
  A) A large number of High income earners relative to the population
  B) High annual income for the few
  C) High incidence of poverty
  D) Low daily calorie intake per person
  E) High infant mortality rate
  Show Answer
  The correct answer is A .
• Question 29: Idle cash balances are held for Options:
  A) planned purchases
  B) the purchase of bonds
  C) the purchase of shares
  D) unplanned purchases
  Show Answer
  The correct answer is D .
• Question 30: An advantage of the sole proprietorship over the partnership from of business organisation is that Options:
  A) its existence is limited by an individual's life span
  B) it relies on the decision of friends to succeed
  C) the possibility of conflict in management is virtually non-existent
  D) it enjoys limited liability for debt in the event of failure
  Show Answer
  The correct answer is C .