All 40 questions from the Joint Admissions and Matriculation Board (JAMB) Economics 2022 Objective paper, with the correct answer and a full explanation for each. Free, no signup needed.
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1. Palm oil industry is best located where
Palm oil firms are best located close to the source of raw material; since palm tree is the major input for palm oil, the industry should be sited where it grows abundantly.
2. Wage crisis will most likely lead to
Wages are part of the cost of production, so a rise in wages (from a wage crisis) increases production costs and pushes prices up — cost-push inflation.
3. Public expenditure can expand the economy if it is
If government wants to expand the economy, it spends more than it receives (deficit spending), injecting more money into the economy.
4. Which of the following policies has more impact in regulating the economy?
A more coordinated fiscal policy among the federal, state and local governments will have more impact on the economy than when a single tier of government acts alone.
5. Creation of loans is significantly influenced by
Commercial banks, through their deposit and lending activities, are the institutions most significantly involved in credit/loan creation.
6. Identify direct taxes from the following
A direct tax is a tax on the person or entity that pays it directly, such as income tax and company tax; sales taxes, excise duties and tariffs are indirect taxes.
7. Division of labour can lead to
Division of labour means specialization, so a worker performs the same task every day, which will definitely lead to fatigue and boredom.
8. 'Dumping' in economic term means; selling goods in a foreign market
Dumping is the act of selling a good at a cheaper price abroad than at home; such goods are usually of a lower standard.
9. Disequilibrium in the balance of payments means
Disequilibrium in the balance of payments simply means an overall excess or shortfall (surplus or deficit) between a country's total receipts and payments.
10. Petroleum 'glut' in international trade means
A 'glut' refers to an excess supply of a commodity relative to demand — in this case, excess supply of petroleum.
11. International trade is necessary because
The principle of comparative cost advantage — that countries are relatively more efficient at producing certain goods — necessitates the need for international trade.
12. Mono-product economies are those that
An economy is described as a mono-product (mono-economy) when it produces mainly one product.
13. Which of the following is an economic union?
The UN and AU are political unions while WHO is an agent of the UN. The African Development Bank (AfDB) is an economic union/institution.
14. If an economy is growing at an annual rate of 10% and 6% of it is known to be due to improvements in labour and capital combined, the balance of 4% is usually due to
GDP growth is usually caused by a combination of factors such as investment, technical know-how and resource expansion. Once labour and capital have been accounted for, the remaining growth is most likely a result of the level of human capital (skills, education, technology).
15. The major role of a middleman is
Through its warehousing function, a middleman ensures that goods are distributed to all sections of the economy/all consumers, regardless of their income level.
16. One of the major advantages of government owned enterprise is
Government owned enterprises assist in redistributing income more evenly, since income (in the form of taxes and revenue) is used to serve the general public.
17. Which of the following is not an advantage of localization of industries?
As a matter of fact, growth of industries/combustion of large quantities is a disadvantage of industrial localization because the environment will be affected by air pollution.
18. Which of the following monetary systems requires double coincidence of wants?
The barter system requires that two persons must each want what the other has to offer (double coincidence of wants) before an exchange can occur.
19. The effect of emigration on a country's population, ceteris paribus, is to
Wait — emigration is the act of leaving a country; thus, all else equal, it will reduce the population of that country.
20. Saving for old age makes money to be regarded as a
The function of money that ensures it is useful in the future is the store of value function.
21. The major role of agriculture in West Africa economies is
Agriculture is the largest employer of labour in Africa; thus, this is the major role it plays for West African economies.
22. Who among the following defines Economics most comprehensively?
Professor Lionel Robbins (Robinson) gives the most comprehensive definition of economics found in most economics textbooks (the study of scarcity and choice).
23. The working age group in Nigeria falls in the age bracket
The working age bracket is age 15 to 65 in Nigeria.
24. NEPA has de-morphosised into ____ enterprises
The defunct NEPA is now three separate entities: the generation companies (GENCOs), the transmission company, and the distribution companies (DISCOs).
25. Full employment is a situation in which
Full employment is said to be attained when all available resources, including everybody willing and able to work, have been fully utilized — i.e. can find meaningful employment.
26. When demand is elastic, consumers
Price elasticity of demand is the degree of responsiveness of consumers to changes in price. If demand is elastic, consumers respond in a higher proportion than the change in percentage price.
27. Demand for a factor of production is
The demand for a factor of production is derived demand, because it is demanded not for itself but because of the demand for the other goods it helps produce.
28. Differentiating product is the characteristic feature of
Monopolistic competition is the market that uses branding/packaging to differentiate its products from others.
29. Which of the following policy empowerment was not introduced by the current administration?
SURE-P (Subsidy Reinvestment and Empowerment Programme) was introduced by the Jonathan administration, not the current one.
30. Given that Qd=50−(1/5)P and Qs=5+1.4P, the equilibrium price is
At equilibrium, Qd=Qs: 50−P/5 = 5+1.4P. Solving: 1.4P + P/5 = 45, giving (8/5)P = 45, so P = 45×5/8 = 28⅛.
31. Scale of preference simply means
A scale of preference is a list of goods and services which an individual intends to purchase, arranged in order of priority/preference.
32. Optimum population is desirable because it enables an economy to attain maximum
With optimum population, the economy will be able to attain full employment of all its resources.
33. At every point on an indifference curve, the
An indifference curve shows combinations of two goods that give the consumer the same level of total utility (satisfaction) at every point along it.
34. The intersection of the budget line and the indifference curve shows
The point where the budget line intersects (is tangent to) the indifference curve of the same consumer is the equilibrium of the consumer.
35. Under perfect competition, the long-run equilibrium requires
In the long run, a perfectly competitive market will be in equilibrium where MR=MC=AR=AC (marginal revenue = marginal cost = average revenue = average cost).
36. Limited liability means
Limited liability means the liability of the owners is limited to the amount they contributed to the business. When the company winds up, debts are settled only from the assets of the company.
37. The purchasing power of the Naira in relation to other currencies will fall when
If the Naira is devalued, the purchasing power of the Naira in the international market will fall.
38. When a business has unlimited liability,
If a business has unlimited liability, its debts will be payable with both its own assets and the assets of the owner when it winds up.
39. Which of the following is responsible for migration of population around the oil fields in Eastern Nigeria?
When oil was discovered in the Eastern part of Nigeria, more industries such as petro-chemical firms were established there, causing migration of people to that part of the country in search of greener pastures.
40. During inflation, ____ gains and ____ losses
During the period of inflation, debtors gain because they pay a lesser real value to the creditor, while creditors lose because they receive a lesser real value for their money.
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