JAMB Economics Past Questions 2020
10 questions from the JAMB 2020 Economics paper, with answers and explanations. Tap "Show answer" under each one when you are ready.
JAMB 2020Question 1 · Agriculture, Industry, and Petroleum Economics
In recent times, agriculture in Nigeria tends to lose its vital labour force as a result of?
- A.lack of an effective agricultural policy
- B.employment opportunities in the agricultural sector
- C.rural-urban drift
- D.low prices of agricultural products
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Answer: C. rural-urban drift
Nigerian agriculture is losing its labour force mainly due to rural-urban drift (migration to cities).
JAMB 2020Question 2 · Agriculture, Industry, and Petroleum Economics
Crude petroleum is a good example of a
- A.lasting asset
- B.wasting asset
- C.synthetic product
- D.costless resources
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Answer: B. wasting asset
Crude petroleum is a wasting (non-renewable) asset, depleting as it is extracted.
JAMB 2020Question 3 · Basic Economic Concepts and Systems
In economic life, the choice among alternatives depends on the?
- A.income of the decision maker
- B.scarcity of resources
- C.the scale of preference of the decision-maker
- D.status of the decison maker
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Answer: C. the scale of preference of the decision-maker
Choice among alternatives depends on the decision-maker's scale of preference.
JAMB 2020Question 4 · International Trade
A situation in which a commodity is sold abroad below its cost of production in the home country is known as?
- A.dumping
- B.counter trade
- C.bilateral trade
- D.trade liberalization
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Answer: A. dumping
Selling a commodity abroad below its home cost of production is known as dumping.
JAMB 2020Question 5 · Money, Banking, and Public Finance
To control inflation, the monetary authorities of a country can
- A.reduce taxes
- B.advise the government to increase its expenditure
- C.engage in expansive monetary policies
- D.engage in restrictive monetary policies
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Answer: D. engage in restrictive monetary policies
To control inflation, monetary authorities use restrictive (contractionary) monetary policies.
JAMB 2020Question 6 · Money, Banking, and Public Finance
Which of the following is likely to be inflationary
- A.taxes increase
- B.increase in unemployment
- C.budget surplus
- D.wages increase
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Answer: D. wages increase
A general increase in wages can be inflationary by raising both production costs and consumer purchasing power.
JAMB 2020Question 7 · Money, Banking, and Public Finance
The most important attribute of money is?
- A.homogeneity
- B.relative scarcity
- C.divisibility
- D.general acceptance
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Answer: D. general acceptance
General acceptance is the most important attribute that makes something function as money.
JAMB 2020Question 8 · National Income and Economic Planning
One of the major criticism of the 1962 -1968 National Development Plan was that?
- A.it failed to incorporate lessons gained from earlier plans to enhance its efficiency
- B.it came too quickly after the country's independence
- C.planned expenditure was based too heavily on expected earnings from crude oil
- D.its execution was based largely on foregn-sourced financial resources
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Answer: D. its execution was based largely on foregn-sourced financial resources
A major criticism of the 1962-1968 National Development Plan was its heavy reliance on foreign-sourced financial resources.
JAMB 2020Question 9 · Population and Statistics
When a country's population is experiencing increasing returns, that country is said to be?
- A.overpopulated
- B.economically poor
- C.over-producing goods and services
- D.under-populated
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Answer: D. under-populated
A country still experiencing increasing returns as population grows is considered under-populated, with room for further growth.
JAMB 2020Question 10 · Theory of Production and Distribution
Which of the following rewards is associated with entrepreneurship
- A.salaries
- B.profits
- C.interest
- D.rent
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Answer: B. profits
Profit is the reward associated with entrepreneurship.
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