10 questions from the JAMB 2011 Economics paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2011Question 1 · Agriculture, Industry, and Petroleum Economics
The import-substitution strategy of industrialization is to encourage
A.domestic production
B.large-scale production
C.importation
D.exportation
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Answer: A. domestic production
Import-substitution industrialization aims to encourage domestic production of goods previously imported.
JAMB 2011Question 2 · Agriculture, Industry, and Petroleum Economics
Investing heavily in the agricultural sector will lead to
A.sufficient food production
B.a vibrant commodity market
C.capital inflow
D.stable export prices
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Answer: A. sufficient food production
Heavy investment in agriculture leads to sufficient (self-sufficient) food production.
JAMB 2011Question 3 · Demand, Supply, and Market Structures
Demand patterns are determined by the market on the basis of
A.scale of preference
B.consumer sovereignty
C.cosumer rationality
D.price of the commodity
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Answer: B. consumer sovereignty
Consumer sovereignty means consumers' choices ultimately determine what is produced, shaping market demand patterns.
JAMB 2011Question 4 · Demand, Supply, and Market Structures
If a firm is faced with an elastic supply curve, its revenue will
A.be supplied at a higher price
B.double at a higher price
C.increase by more than the percentage increase in price
D.equal percentage change in price
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Answer: C. increase by more than the percentage increase in price
With an elastic supply curve, quantity supplied changes more than proportionally to price, so revenue increases by more than the percentage price increase.
JAMB 2011Question 5 · International Trade
The record of a country's transactions in international trade is her
A.capital account
B.balance of payments
C.current account
D.balance of trade
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Answer: B. balance of payments
The balance of payments is the record of a country's transactions with the rest of the world.
JAMB 2011Question 6 · Money, Banking, and Public Finance
An increase in the circulation of money without a corresponding increase in output will lead to
A.a rise in income levels
B.stagflation
C.inflation
D.deflation
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Answer: C. inflation
An increase in money circulation without a matching rise in output causes prices to rise generally, i.e. inflation.
JAMB 2011Question 7 · Money, Banking, and Public Finance
A condition in which official and autonomous exchange rate coexist is
A.dual exchange rate system
B.managed floating rate system
C.market determined exchange rate system
D.multiple exchange rate system
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Answer: A. dual exchange rate system
A dual exchange rate system exists when official and autonomous (market) exchange rates operate side by side.
JAMB 2011Question 8 · National Income and Economic Planning
An indicator of growth in an economy over a period of time is the
A.GDP gap
B.GDP at factor cost
C.GDP at market price
D.GDP deflator
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Answer: C. GDP at market price
GDP at market price (including indirect taxes) is commonly used as an indicator of an economy's growth over time.
JAMB 2011Question 9 · Population and Statistics
The median of an odd-numbered set of scores is the
A.Middle value in the set
B.Highest value in the set
C.Arithmetic means of the set
D.Most frequent occuring score
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Answer: A. Middle value in the set
For an odd-numbered set of scores, the median is the middle value when arranged in order.
JAMB 2011Question 10 · Theory of Production and Distribution
In the process of production, total output is at maximum when
A.MP=0
B.MP > 0
C.AP = 0
D.AP > 0
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Answer: A. MP=0
Total output is at its maximum at the point where marginal product equals zero.
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