JAMB Economics 2019 Objective Past Questions

All 40 questions from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.

Economics 2019 Objective — Question 1

If the standard deviation of a given data is 8.2, find its variance

• A. 4.1
• B. 67.2Correct
• C. 82.0
• D. 91.8

Explanation

Variance is the square of the standard deviation: (8.2)² = 67.24 ≈ 67.2.

Economics 2019 Objective — Question 2

Use the data below to answer this question: 54, 36, 62, 79, 83, 36, 62, 42, 62, and 42. Calculate the mean.

• A. 45.5
• B. 55.6
• C. 55.8Correct
• D. 65.8

Explanation

Mean = sum of values ÷ number of values = (54+36+62+79+83+36+62+42+62+42)/10 = 558/10 = 55.8.

Economics 2019 Objective — Question 3

Use the data below to answer this question: 54, 36, 62, 79, 83, 36, 62, 42, 62, and 42. What is the modal score?

• A. 36
• B. 42
• C. 54
• D. 62Correct

Explanation

The mode is the value that occurs most frequently. 62 appears three times, more than any other value, so the mode is 62.

Economics 2019 Objective — Question 4

A major determinant of the demand for a luxury good is

• A. the price of the good
• B. the price of other goods
• C. the income of consumersCorrect
• D. tastes and fashion

Explanation

Luxury goods are superior goods that are increasingly demanded at higher income levels; the poor cannot afford them, while the rich, having satisfied basic needs, can choose to buy luxuries. Income of consumers is thus a major determinant.

Economics 2019 Objective — Question 5

If 100 units and 120 units of commodity X are supplied at ₦80 at different times, it means that there is

• A. a change in supply
• B. a change in the quantity supplied
• C. an increase in the quantity suppliedCorrect
• D. a decrease in the quantity supplied

Explanation

A change in supply refers to a bodily shift of the supply curve, while a change in the quantity supplied refers to a movement along the same supply curve. Since price stayed the same (₦80) while quantity supplied rose from 100 to 120, this is an increase in the quantity supplied.

Economics 2019 Objective — Question 6

If income rises from ₦2,000 to ₦4,000 and quantity demanded increases from 80 units to 120 units, find the income elasticity of demand

• A. 0.5Correct
• B. 1.2
• C. 2.5
• D. 4.0

Explanation

% change in quantity demanded = (120−80)/80×100 = 50%. % change in income = (4000−2000)/2000×100 = 100%. Income elasticity of demand = 50/100 = 0.5.

Economics 2019 Objective — Question 7

If the demand elasticity coefficient of cars is 0.5, it implies that the demand for petrol is

• A. elastic
• B. perfectly inelastic
• C. inelasticCorrect
• D. perfectly elastic

Explanation

Cars and petrol are jointly demanded, so they tend to share the same demand elasticity coefficient. A coefficient of 0.5 (less than 1) implies that the demand for petrol is inelastic.

Economics 2019 Objective — Question 8

If a country's GNP in the current year is ₦65 billion and the GNP in the base year is ₦50 billion, the GNP deflator is

• A. 130.0Correct
• B. 30.0
• C. 15.0
• D. 13.0

Explanation

GNP Deflator = (Nominal GNP/Real GNP) × 100 = (₦65bn/₦50bn) × 100 = 130. It measures the percentage change in prices by comparing the current GNP to a base period.

Economics 2019 Objective — Question 9

In a closed economy, if the marginal propensity to consume is 0.6, the value of the multiplier is

• A. 2.5Correct
• B. 5.8
• C. 27.24
• D. 7.24

Explanation

Multiplier (k) = 1/(1−MPC) = 1/(1−0.6) = 1/0.4 = 2.5.

Economics 2019 Objective — Question 10

Insurance companies invest mainly in instruments traded on the

• A. capital market, such as sharesCorrect
• B. money market
• C. commodity market
• D. open market

Explanation

Insurance companies invest mainly in instruments traded on the capital market, such as shares.

Economics 2019 Objective — Question 11

Liquidity preference refers to the

• A. need to borrow money for short periods to meet a temporary crisis
• B. capital market
• C. commodity market
• D. demand for holding assets in the form of moneyCorrect

Explanation

Liquidity preference refers to the demand for holding assets in the form of money (rather than less liquid forms).

Economics 2019 Objective — Question 12

Creeping inflation is defined as the circumstance where the general price level of a nation increases

• A. gradually, but continually over timeCorrect
• B. rapidly and unpredictably
• C. only in the short run
• D. not at all

Explanation

Creeping inflation is defined as a situation where the general price level of a nation increases gradually, but continually, over time.

Economics 2019 Objective — Question 13

Which of the following best describes a perfectly competitive market?

• A. There is only one seller who sets the price
• B. There are many buyers and sellers, none of whom can influence price; every firm is a price takerCorrect
• C. The government fixes all prices
• D. Products are highly differentiated

Explanation

Under perfect competition, there are many buyers and sellers, none of whom can influence the price of goods and services — every firm is a price taker.

Economics 2019 Objective — Question 14

Which of the following is true of an imperfect market?

• A. Products are homogenous
• B. There is only one buyer
• C. Government sets all prices
• D. Goods and services are heterogeneous (differentiated)Correct

Explanation

In an imperfect market, goods and services are heterogeneous — they can be differentiated — unlike in a perfectly competitive market, where products are homogeneous (similar).

Economics 2019 Objective — Question 15

A major problem facing cooperative societies in Nigeria is

• A. excessive government funding
• B. poor management, due to the structure of their operationCorrect
• C. too much competition
• D. lack of members

Explanation

A good number of cooperative societies in Nigeria are faced with the problem of poor management, due to the structure of their operation.

Economics 2019 Objective — Question 16

One of the major obstacles to rapid agricultural development in Nigeria is

• A. abundant fertile land
• B. farmers' inability to adopt modern technologyCorrect
• C. strong government support
• D. favourable weather

Explanation

The inability of farmers to adopt modern technology limits their productive capacity and obstructs rapid agricultural development; most farmers in Nigeria have not embraced machinery and advanced technology for farming.

Economics 2019 Objective — Question 17

The land tenure system refers to

• A. the system of crop rotation
• B. government ownership of all land
• C. the system of land holding, or the right to hold land, in a given societyCorrect
• D. irrigation methods used in farming

Explanation

The land tenure system is the system of land holding (or the right to hold land) in any given society. It often limits opportunities for mass production of agricultural goods by denying farmers access to large acres of land.

Economics 2019 Objective — Question 18

External economies refer to

• A. the benefit firms enjoy when industries concentrate in one placeCorrect
• B. internal cost savings from expanding a single firm
• C. government subsidies to industries
• D. reduced competition among firms

Explanation

External economies refer to the benefit that firms enjoy as a result of industries concentrating in one location (e.g. shared infrastructure, skilled labour pool).

Economics 2019 Objective — Question 19

Production is said to be complete when

• A. raw materials are extracted
• B. goods are manufactured
• C. goods and services reach the final consumersCorrect
• D. goods are transported to a warehouse

Explanation

Production refers to the transformation of raw materials into finished products for consumption; it is not complete until goods and services reach the final consumers.

Economics 2019 Objective — Question 20

Debentures refer to

• A. ordinary shares
• B. preference shares
• C. fixed-income loans to a company, entitling holders to a fixed interestCorrect
• D. government treasury bills

Explanation

Debentures refer to fixed-income loans to firms; holders of debenture stock are entitled to receive a fixed interest on the sums invested.

Economics 2019 Objective — Question 21

A public limited company is one

• A. owned by the government
• B. with unlimited shareholder liability
• C. that cannot sell its shares to the public
• D. owned by shareholders, whose liability is limited to the value of their shares, and whose shares may be bought/sold on the stock exchangeCorrect

Explanation

A public limited company is owned by its shareholders, whose liability is limited to the value of their shares; shares may be bought and sold publicly on the stock exchange.

Economics 2019 Objective — Question 22

Ordinary shareholders are entitled to receive dividends

• A. before preference shareholders
• B. only after dividends on preferred shares have been paid, if funds are availableCorrect
• C. only if the company is state-owned
• D. in fixed amounts regardless of profit

Explanation

Ordinary shareholders are entitled to receive dividends if any funds are available after dividends on preferred shares have been paid.

Economics 2019 Objective — Question 23

Which of the following crops grows best in a temperate region?

• A. Cocoa
• B. WheatCorrect
• C. Cassava
• D. Yam

Explanation

Wheat grows best in a temperate region/climate. (Source note: this question's exact original wording was partly illegible in the scan; reconstructed from the answer key.)

Economics 2019 Objective — Question 24

Which sector employs a large portion of the population in West Africa?

• A. Industrial sector
• B. Agricultural sectorCorrect
• C. Service sector
• D. Mining sector

Explanation

The agricultural sector employs a large portion of the population in West Africa.

Economics 2019 Objective — Question 25

For all the major forms of market, the equilibrium output is the output at which

• A. total cost equals total revenue
• B. average cost is at its minimum
• C. price equals average cost
• D. marginal cost equals marginal revenueCorrect

Explanation

For all the major market structures, the equilibrium output is the output at which marginal cost equals marginal revenue.

Economics 2019 Objective — Question 26

An important function of the retailer is to

• A. grant credit to wholesalers only
• B. break bulk and sell products in small units to consumersCorrect
• C. fix wholesale prices
• D. manufacture consumer goods

Explanation

The retailers are the middlemen between the wholesalers and the consumers. They help break bulk and sell products in small units to consumers.

Economics 2019 Objective — Question 27

One of the major problems facing sole proprietorship businesses in raising finance is that they

• A. cannot own property
• B. have unlimited product ranges
• C. must pay corporate tax
• D. are limited in the amount of capital they can raise, and find it difficult to meet bank loan requirementsCorrect

Explanation

Sole proprietors, in most cases, are limited in the amount they can raise as capital, and find it difficult to borrow due to the basic requirements for obtaining a bank loan.

Economics 2019 Objective — Question 28

Which type of business organization is mostly used for providing public goods such as electricity and roads?

• A. Sole proprietorship
• B. Partnership
• C. Limited liability companies
• D. Public/statutory corporationsCorrect

Explanation

Public corporations (statutory corporations) provide public goods such as electricity, roads, etc.

Economics 2019 Objective — Question 29

The main reason for the current programme of privatization and commercialization of public enterprises in Nigeria is to

• A. reduce public expenditure
• B. encourage efficiency in the performance of such enterprisesCorrect
• C. reduce the total number of public enterprises
• D. raise the prices of goods and services they produce

Explanation

Most government-owned enterprises are known for inefficiency due to lack of proper monitoring and control. Privatization (transfer of ownership and control to the private sector) and commercialization (turning a government establishment into a profit-making enterprise) are expected to encourage efficiency.

Economics 2019 Objective — Question 30

The type of business finance that entitles the holder to a class of ownership with a higher claim on assets and earnings than common stock is

• A. ordinary stock
• B. preferred stockCorrect
• C. debenture stock
• D. common stock

Explanation

A preferred stock is a class of ownership in a corporation with a higher claim on its assets and earnings than common stock. It combines features of debt (fixed dividends) and equity (potential to appreciate in price).

Economics 2019 Objective — Question 31

Farmers' income from cash crop exports may fall if they increase the volume of exports because

• A. foreign (importing countries') demand for the cash crop is inelasticCorrect
• B. the price of domestic goods will rise
• C. export duties are reduced
• D. local demand for cash crops increases

Explanation

An increase in the exports of cash crops may lead to a surplus, which results in a fall in price and farmer income, because the demand for their exports is inelastic.

Economics 2019 Objective — Question 32

One of the major problems of conducting a population census is

• A. high birth rate
• B. poor town planning in urban areasCorrect
• C. excessive government funding
• D. low population density

Explanation

Poor town planning in urban areas is a problem that characterizes the conducting of a census.

Economics 2019 Objective — Question 33

An ageing population is a population

• A. with a high proportion of young people
• B. with a high dependency ratio only
• C. in which the number of old persons (usually aged 65 and above) is increasingCorrect
• D. with a high birth rate

Explanation

An ageing population is a population in which the number of old persons is increasing; these old persons are usually aged 65 and above.

Economics 2019 Objective — Question 34

The population of Ohaha Local Government Area was 480,000 in December 1980, of which 60% were female. If the population fell by 9,600 by December 1981, what was the total population in December 1981?

• A. 288,000
• B. 470,400Correct
• C. 192,000
• D. 480,000

Explanation

Females in Dec. 1980 = 480,000×60/100 = 288,000; Males = 480,000−288,000 = 192,000. Population of December 1981 = 480,000−9,600 = 470,400. (Note: exact original wording of this question was partly illegible in the scan; reconstructed to match the answer key's working.)

Economics 2019 Objective — Question 35

Labour supply refers to

• A. the number of people who are unemployed
• B. the total workforce of a country
• C. the retirement age of workers
• D. the number of hours people are willing and able to supply (work) at a given wage rateCorrect

Explanation

The labour supply is the number of hours people are willing and able to supply at a given wage rate.

Economics 2019 Objective — Question 36

Internal economies of scale are the advantages which

• A. firms obtain directly from expanding their own operations, partly derived from managerial efficiencyCorrect
• B. firms obtain from clustering together in one location
• C. arise from government subsidies
• D. arise from reduced competition

Explanation

Internal economies of scale are the advantages which firms obtain directly from expanding their own operations; they are also derived from managerial efficiency.

Economics 2019 Objective — Question 37

Which of the following is a function of the Central Bank, but not of Commercial Banks?

• A. Granting loans to customers
• B. Maintaining stable prices in the economy, regulating marketing policies, and issuing bank notes and coinsCorrect
• C. Accepting customer deposits
• D. Issuing cheque books

Explanation

Maintaining stable prices in the economy, regulating marketing policies, and issuing bank notes and coins are functions of the central bank, while commercial banks grant loans to customers.

Economics 2019 Objective — Question 38

In order to curb unemployment, government often introduces

• A. a contractionary fiscal policy
• B. an expansionary fiscal policy (increasing expenditure, decreasing taxes)Correct
• C. a tight monetary policy
• D. import restrictions

Explanation

To curb unemployment, government often introduces an expansionary fiscal policy. Increased government expenditure and decreased taxes boost the economy, encouraging aggregate demand so that factories employ more workers.

Economics 2019 Objective — Question 39

Deficit budgeting refers to a fiscal situation in which

• A. planned expenditure equals expected revenue
• B. planned expenditure is less than expected revenue
• C. planned expenditure is more than expected revenue from taxCorrect
• D. there is no government borrowing

Explanation

Deficit budgeting refers to a fiscal situation in which planned expenditure is more than expected revenue from tax; government then has to finance the budget through borrowing, which can result in huge public debt.

Economics 2019 Objective — Question 40

The success of the National Development Plans in Nigeria has often faced the problem of

• A. excess funding
• B. poor implementation strategiesCorrect
• C. too many private investors
• D. lack of natural resources

Explanation

The success of the National Development Plans in Nigeria faces the problem of poor implementation strategies; most of the plans lack practicable strategies for carrying them out.