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
- A.processing of raw materials for industries
- B.regulation of price system
- C.provision of infrastructure
- 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
- A.provision of social infrastructures
- B.granting of subsidies on petroleum products
- C.stabilization of oil prices
- 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
- A.auctioning
- B.market forces
- C.the sales of treasury bills
- 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
- A.unitary elastic
- B.zero elastic
- C.elastic
- 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.
- A.34
- B.32
- C.36
- 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
- A.hyperinflation
- B.stagflation
- C.demand-pull inflation
- 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
- A.the highest denomination of the currency
- B.an Act of the parliament
- C.the system of government
- 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
- A.level of total expenditure
- B.composition of consumer spending
- C.number of farmers
- 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
- A.produce more food for the growing population
- B.provide employment opportunities for the people
- C.estimate a country's per capita income
- 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.
- A.N30
- B.N40
- C.N10
- D.N20
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Answer: B. N40
Average cost = (FC+VC)/Q = (500+1500)/50 = N40.
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