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JAMB Economics Past Questions 2014

10 questions from the JAMB 2014 Economics paper, with answers and explanations. Tap "Show answer" under each one when you are ready.

JAMB 2014Question 1 · Agriculture, Industry, and Petroleum Economics
An important role of agriculture in Nigeria's economic development is the
  1. A.processing of raw materials for industries
  2. B.regulation of price system
  3. C.provision of infrastructure
  4. D.provision of employment
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Answer: D. provision of employment

Agriculture plays an important role in Nigeria's development by providing employment for a large share of the population.

JAMB 2014Question 2 · Agriculture, Industry, and Petroleum Economics
The major contribution of OPEC to the Nigerian economy is the
  1. A.provision of social infrastructures
  2. B.granting of subsidies on petroleum products
  3. C.stabilization of oil prices
  4. D.building of refineries
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Answer: C. stabilization of oil prices

OPEC's major contribution to Nigeria's economy has been helping stabilize oil prices through coordinated production policy.

JAMB 2014Question 3 · Basic Economic Concepts and Systems
Price mechanism determines the prices of commodities through
  1. A.auctioning
  2. B.market forces
  3. C.the sales of treasury bills
  4. D.government legislation
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Answer: B. market forces

The price mechanism determines commodity prices through the interaction of market forces (demand and supply).

JAMB 2014Question 4 · Demand, Supply, and Market Structures
If a 10% rise in price causes a 5% decrease in the quantity demanded of a commodity, the elasticity of demand is
  1. A.unitary elastic
  2. B.zero elastic
  3. C.elastic
  4. D.inelastic
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Answer: D. inelastic

A 10% price rise causing only a 5% fall in quantity demanded (elasticity = 0.5) means demand is inelastic.

JAMB 2014Question 5 · Demand, Supply, and Market Structures
Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price.
  1. A.34
  2. B.32
  3. C.36
  4. D.16
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Answer: C. 36

Setting Qd = Qs: 40-2P = 6P+24 => 16 = 8P => P = 2, giving equilibrium quantity = 6(2)+24 = 36, matching option C.

JAMB 2014Question 6 · Money, Banking, and Public Finance
An inflation that co-exists with high rate of unemployment is
  1. A.hyperinflation
  2. B.stagflation
  3. C.demand-pull inflation
  4. D.cost-push inflation
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Answer: B. stagflation

Inflation existing alongside high unemployment is known as stagflation.

JAMB 2014Question 7 · Money, Banking, and Public Finance
A major determinant of floating exchange rate is
  1. A.the highest denomination of the currency
  2. B.an Act of the parliament
  3. C.the system of government
  4. D.the forest of demand and supply
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Answer: D. the forest of demand and supply

A floating exchange rate is mainly determined by the forces of demand and supply for the currency.

JAMB 2014Question 8 · National Income and Economic Planning
The major determinant of the total volume of output in an economy is the
  1. A.level of total expenditure
  2. B.composition of consumer spending
  3. C.number of farmers
  4. D.size of the labour force
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Answer: A. level of total expenditure

The level of total (aggregate) expenditure is the major determinant of total output in an economy.

JAMB 2014Question 9 · Population and Statistics
An accurate population census is important in other to
  1. A.produce more food for the growing population
  2. B.provide employment opportunities for the people
  3. C.estimate a country's per capita income
  4. D.fast track industrial development
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Answer: C. estimate a country's per capita income

An accurate population census is needed to correctly estimate a country's per capita income.

JAMB 2014Question 10 · Theory of Production and Distribution
Given that FC = N500, VC = N1,500, and Q = 50 units. Find the average cost of the product.
  1. A.N30
  2. B.N40
  3. C.N10
  4. D.N20
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Answer: B. N40

Average cost = (FC+VC)/Q = (500+1500)/50 = N40.

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