Free JAMB UTME Economics Exam Questions and Answers

The law of variable proportions is also known as

• AA. law of demand
• BB. law of diminishing returns
• CC. law of diminishing marginal utility
• DD. law of returns to scale

All the following are problems identified with agriculture in West Africa except

• AA. land tenure system
• BB. ignorance of the farmers
• CC. use of crude implement
• DD. provision of food for the teeming population

Revenue can be expressed as

• AA. total Profit made after sales
• BB. amount of goods produced
• CC. total money realized from sales
• DD. amount spent on purchases

All the following are factors that would bring about a change in supply except

• AA. level of technology
• BB. government policy
• CC. Entry of new firms
• DD. Price of the commodity

The combination of two commodities each yielding the same level of satisfaction to the consumer is

• AA. consumer surplus
• BB. indifference curve
• CC. budget constant
• DD. goods of necessity

In which situation is it likely that the demand for labour would be inelastic?

• AA. Labour and capital are close substitutes
• BB. Labour costs are only a small proportion of total costs
• CC. Demand for the final product that the labour produces is elastic
• DD. A large quantity of unemployed labour is available in the economy

The headquarter of the Organization Of Petroleum Exporting Countries (OPEC) is in

• AA. Paris, France
• BB. Geneva, Switzerland
• CC. Lagos, Nigeria
• DD. Vienna, Austria

What will increase the likelihood that the firms in an industry will conclude to maximize their joint profit?

• AA. The industry has many differentiated products
• BB. The industry is characterized by rapid technological change
• CC. The industry consist of large number of producers
• DD. There are significant barriers to prevent firms entering the market

A commercial bank can create money by

• AA. issuing currency
• BB. increasing cash ratio
• CC. issuing cheque
• DD. lending to borrowers

The source of all economic problems arises from

• AA. wants
• BB. Scarcity
• CC. Opportunity Cost
• DD. Scale of Preference