10 questions from the JAMB 2015 Economics paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2015Question 1 · Agriculture, Industry, and Petroleum Economics
All the following are problems identified with agriculture in West Africa except
A.land tenure system
B.ignorance of the farmers
C.use of crude implement
D.provision of food for the teeming population
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Answer: D. provision of food for the teeming population
Providing food for the growing population is the challenge agriculture must meet, not a listed structural problem like land tenure, ignorance, or crude implements.
JAMB 2015Question 2 · Basic Economic Concepts and Systems
The relationship between the cost of living and standard of living is
A.A rise in cost of living gives a corresponding rise in standard of living
B.A lower cost of living give a higher standard of living
C.A lower cost of living give a lower standard of living
D.None of the above
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Answer: B. A lower cost of living give a higher standard of living
A lower cost of living, all else equal, means the same income buys more, giving a higher standard of living.
JAMB 2015Question 3 · Demand, Supply, and Market Structures
All the following are factors that would bring about a change in supply except
A.level of technology
B.government policy
C.Entry of new firms
D.Price of the commodity
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Answer: D. Price of the commodity
A change in the commodity's own price causes a movement along the supply curve (change in quantity supplied), not a shift in supply.
JAMB 2015Question 4 · Demand, Supply, and Market Structures
A market will be at equilibrium when
A.demand and supply are equal
B.demand is greater than supply
C.price is higher
D.supply is greater than demand
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Answer: A. demand and supply are equal
A market is at equilibrium when quantity demanded equals quantity supplied.
JAMB 2015Question 5 · Demand, Supply, and Market Structures
Given that the prices and quantities supplied in litres of petrol is expressed as Qs = 25 + 0.25P. Qs is the quantity supplied and P is the price. Determine the quantity supplied when the price per liter is N30
A.50litres
B.32.5litres
C.30litres
D.35litres
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Answer: B. 32.5litres
Qs = 25 + 0.25(30) = 25 + 7.5 = 32.5 litres.
JAMB 2015Question 6 · Money, Banking, and Public Finance
A commercial bank can create money by
A.issuing currency
B.increasing cash ratio
C.issuing cheque
D.lending to borrowers
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Answer: D. lending to borrowers
Commercial banks create money mainly through lending to borrowers (credit creation).
JAMB 2015Question 7 · Money, Banking, and Public Finance
The financial institution known as a building society is
A.commercial bank
B.central bank
C.mortgage bank
D.development bank
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Answer: C. mortgage bank
A building society is a mortgage bank, specializing in financing property/housing loans.
JAMB 2015Question 8 · National Income and Economic Planning
Disposable income is total income
A.less tax
B.divided by tax
C.plus tax
D.multiplied by tax
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Answer: A. less tax
Disposable income is total (personal) income less tax.
JAMB 2015Question 9 · Theory of Consumer Behaviour
The combination of two commodities each yielding the same level of satisfaction to the consumer is
A.consumer surplus
B.indifference curve
C.budget constant
D.goods of necessity
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Answer: B. indifference curve
An indifference curve shows combinations of two goods yielding the same level of satisfaction to a consumer.
JAMB 2015Question 10 · Theory of Production and Distribution
In which situation is it likely that the demand for labour would be inelastic?
A.Labour and capital are close substitutes
B.Labour costs are only a small proportion of total costs
C.Demand for the final product that the labour produces is elastic
D.A large quantity of unemployed labour is available in the economy
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Answer: B. Labour costs are only a small proportion of total costs
Demand for labour is inelastic when labour cost is only a small share of total production cost, so wage changes barely affect hiring decisions.
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