JAMB Economics Past Questions 2010
10 questions from the JAMB 2010 Economics paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2010Question 1 · Agriculture, Industry, and Petroleum Economics
The ultimate aim of agricultural policies in Nigeria is to achieve?
- A.food sufficiency
- B.industrialization
- C.full employment
- D.industrial capacity utilization
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Answer: A. food sufficiency
The ultimate aim of Nigeria's agricultural policies is to achieve food sufficiency (self-sufficiency).
JAMB 2010Question 2 · Agriculture, Industry, and Petroleum Economics
In developing countries, governments influence the location of industries in order to
- A.spread development
- B.redistribute wealth
- C.encourage enterpreneurs
- D.encourage industries to earn high profits
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Answer: A. spread development
Governments influence industry location in developing countries mainly to spread development across regions.
JAMB 2010Question 3 · Business Organisation and Government
In order to reduce hardship faced by consumers due to high prices government can introduce
- A.maximum prices
- B.commodity boards
- C.minimum prices
- D.price control boards
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Answer: A. maximum prices
A maximum price (price ceiling) set below equilibrium reduces the price consumers pay, easing hardship.
JAMB 2010Question 4 · Demand, Supply, and Market Structures
If a consumer plans to spend 120k on four oranges but spent 80k, his consumer surplus is
- A.N1.50
- B.N0.40
- C.N1.00
- D.N2.00
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Answer: B. N0.40
Consumer surplus is the difference between what a consumer is willing to pay and what is actually paid: 1.20 - 0.80 = N0.40.
JAMB 2010Question 5 · Demand, Supply, and Market Structures
In perfect competition,price is determined by the
- A.government
- B.sellers
- C.buyers
- D.market
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Answer: D. market
In perfect competition, no single buyer or seller can influence price; price is determined by overall market forces of demand and supply.
JAMB 2010Question 6 · International Trade
One of the objectives of ADB is to
- A.provide subsidies on imported goods to member countries
- B.mobilize short-term loans for member countries
- C.promote economic and social development of member countries
- D.provide technical assistance to only poor member countries
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Answer: C. promote economic and social development of member countries
The African Development Bank's objective is to promote the economic and social development of its member countries.
JAMB 2010Question 7 · Money, Banking, and Public Finance
A strategy for curbing unemployment is to
- A.implement government stabilization policy
- B.increase taxes and decrease government expenditure
- C.increase government expenditure and decrease taxes
- D.ensure even distribution of job opportunities
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Answer: C. increase government expenditure and decrease taxes
Increasing government expenditure and decreasing taxes (expansionary fiscal policy) stimulates demand and reduces unemployment.
JAMB 2010Question 8 · National Income and Economic Planning
If MPC is 0.7 while government expenditure increased by N 150m, the equilibrium national income is
- A.N 214 million
- B.N 45 million
- C.N 105 million
- D.N 500 million
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Answer: D. N 500 million
Multiplier k = 1/(1-MPC) = 1/(1-0.7) = 3.33; change in income = 3.33 x N150m = N500 million.
JAMB 2010Question 9 · Population and Statistics
if xˉ = 6 and N = 6, determine the value of ∑fx
- A.36
- B.12
- C.1
- D.72
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Answer: A. 36
Sigma fx = mean x N = 6 x 6 = 36.
JAMB 2010Question 10 · Theory of Production and Distribution
The rising portion of the long-run average cost curve of a firm is an indication that it is experiencing
- A.increasing efficiency
- B.economies of scale
- C.diseconomies of scale
- D.increasing marginal returns
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Answer: C. diseconomies of scale
A rising long-run average cost curve indicates the firm is experiencing diseconomies of scale.
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