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 421: When the total product starts falling, then the marginal product is Options:
  A) constant
  B) increasing
  C) maximum
  D) negative
  E) zero
  Show Answer
  The correct answer is D .
• Question 422: The major reason why countries strive to achieve optimum growth is to Options:
  A) be self-sufficient
  B) raise general living standards
  C) raise the level of production
  D) reduce aggregate expenditure
  Show Answer
  The correct answer is A .
• Question 423: Average cost is Options:
  A) the total cost of production
  B) the extra cost of producing one additional unit of output
  C) cost of producing a unit of output
  D) variable cost
  E) overhead cost
  Show Answer
  The correct answer is C .
• Question 424: What do we call a market where there is large number of buyers and sellers, such that no one has an appreciable influence over prices? Options:
  A) Free market
  B) Perfectly competitive market
  C) Controllled market
  D) Stock exchange market
  E) Open market
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  The correct answer is B .
• Question 425: In the normal channels of distribution the breaking of bulk is performed by the Options:
  A) producer
  B) wholesaler
  C) retailer
  D) consumer
  Show Answer
  The correct answer is B .
• Question 426:

  In income determination theory, acceleration principles shows that

  Options:
  A) income is the cause, while investment is the effect investment
  B) income and investment are both causes
  C) income and investment are both effects
  D) incomes is of on effect on investment
  E) investment is the causes, while income is the effects
  Show Answer
  The correct answer is A .
• Question 427: The law of Diminishing Returns begins to operate when? Options:
  A) total product begins to rise
  B) total product begins to fall
  C) marginal product begins to fall
  D) marginal product begins to rise
  Show Answer
  The correct answer is C .
• Question 428: An nation's distribution of income shows? Options:
  A) the value of all goods produce inthe economy
  B) how income is divided among different groups
  C) where the economy system is on its production possibility curve
  D) the consumption behaviour of the people
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  The correct answer is B .
• Question 429:

  In a free market economy, the rationing of scarce goods is done principallyby?

  Options:
  A) the government
  B) business organizations
  C) the price mechanism
  D) consumers
  Show Answer
  The correct answer is C .
• Question 430: A change in demand for a normal good means Options:
  A) a shift in the demand curve
  B) a change in the price changes
  C) a movement along a given demand curve
  D) a change in the price elasticity
  Show Answer
  The correct answer is A .