(Economics 2021) Model past questions and answer
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Its no mistake seeing this post comes up in your search result. Definitely you must have searched
'past questions and answers for Economics UTME'. Do not ignore this post if you chose Economics
among your subject combination for your UTME exams. We understand the pain of most Jambite and
we have empathise with you by helping you compile model past questions and answers for The 2021
UTME exams.
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You can study the 40 (forty) Jamb Economics past questions and answer for 2021 by checking
the content below or using the table of content below to navigate to the number of your choice
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Table of Contents
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Jamb Economics (2021) Questions and Answers 1 - 10
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1. If the demand for one commodity excludes another, it is said to be _____
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(a) Competitive demand
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(b) Composite demand
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(c) Derived demand
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(d) Complementary demand
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The correct answer is: (a) Competitive demand
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2. An effective way of controlling inflation in a mixed economy is to _____
(a) Reduce income tax
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(b) Ration available output
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(c) Increase imports
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(d) Increase productivity
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The correct answer is: (d) Increase productivity
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3. In the process production, total output is at maximum when _____
(a) MP > 0
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(b) AP = 0
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(c) Ap > 0
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(d) MP = 0
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The correct answer is: (d) MP = 0
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4. Demand patterns are determined by the market on the basis of _____
(a) Consumer sovereignty
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(b) Consumer rationality
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(c) Price of the commodity
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(d) Scale of preference
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The correct answer is: (c) Price of the commodity
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5. Ranking is the method used in measuring _____
(a) Ordinal utility
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(b) Cardinal utility
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(c) Total utility
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(d) Marginal utility
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The correct answer is: (a) Ordinal utility
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6. When a consumer is at equilibrium, the MPSxy is equal to the _____
(a) Product of the two prices
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(b) Ratio of the two prices
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(c) Difference of the two prices
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(d) Sum of the two prices
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The correct answer is: (b) Ratio of the two prices
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7. An increase in the circulation of money without a corresponding increase in output will lead to _____
(a) Stagflation
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(b) Deflation
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(c) Inflation
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(d) A rise in income levels
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The correct answer is: (c) Inflation
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8. If real income increases while nominal income remains the same, it can be inferred that _____
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(a) General prices have fallen
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(b) Employment rate has risen
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(c) General prices have risen
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(d) Unemployment rate has decreased
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The correct answer is: (a) General prices have fallen
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9. Upstream oil activities involve the _____
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(a) Marketing of refined product
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(b) Exploration of crude oil
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(c) Refining of crude oil
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(d) Management of pollution
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The correct answer is: (b) Exploration of crude oil
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10. The main function of NNPC is to _____
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(a) Develop the oil producing areas
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(b) Fix the prices of petroleum products
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(c) Ensure regular supply of products
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(d) Oversee the development of the oil sector
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The correct answer is: (c) Ensure regular supply of products
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Jamb Economics (2022) Questions and Answers 11 - 20
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11. Industrial development in Nigeria can be encouraged through _____
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(a) Granting subsidies
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(b) The provision of efficient inrastructure
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(c) Direct government participation
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(d) Signing WTO treaty
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The correct answer is: (b) The provision of efficient inrastructure
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12. A country embarks on deficit financing in order to _____
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(a) Reduce aggregate demand
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(b) Curb inflation
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(c) Stimulate investment
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(d) Increase revenue
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The correct answer is: (c) Stimulate investment
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13. The transfer of public shareholding in corporations to private enterprises is _____
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(a) Incorporation
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(b) Commercialization
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(c) Privatization
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(d) Concession
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The correct answer is: (c) Privatization
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14. A change from one industry to another by a worker is an example of _____
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(a) Horizontal mobility
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(b) Professional advancement
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(c) Vertical mobility
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(d) Geographical mobility
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The correct answer is: (a) Horizontal mobility
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15. A commodity is described as inferior when the _____
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(a) Income effect is negative
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(b) Income effect is positive
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(c) Substitution effect is negative
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(d) Substitution effect is negative
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The correct answer is: (a) Income effect is negative
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16. A tax on a commodity whose supply is perfectly inelastic is _____
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(a) Shifted completely on the consumer
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(b) Completely borne by the supplier
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(c) Divide in the ration 60:40 between the consumer and the supplier
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(d) Divided half and half between the producer and the consumer
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The correct answer is: (a) Shifted completely on the consumer
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17. A country achieves economic development when there is _____
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(a) An increase in capacity utilization
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(b) A sustained increase in per capital income
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(c) An increase in military expenditure
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(d) None of the above
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The correct answer is: (b) A sustained increase in per capital income
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18. The law of variable proportions is applicable only _____
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(a) To large-scale enterprises
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(b) To small-size enterprises
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(c) In the short-run period
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(d) In the long-run period
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The correct answer is: (c) In the short-run period
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19. The medium of an odd-numbered set of scores is the _____
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(a) Highest value in the set
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(b) Arithmetic mean of the set
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(c) Most frequently occuring score
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(d) Middle value in the set
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The correct answer is: (d) Middle value in the set
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20. A consumer surplus measures the _____
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(a) Excess of total expenditure over total utility
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(b) Difference between marginal cost
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(c) Excess of marginal utility over price
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(d) Benefits derived from consuming a cheap commodity
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The correct answer is: (d) Benefits derived from consuming a cheap commodity
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Jamb Economics (2021) Question and Answers 21 - 30
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21. When compared with a labour-intensive industry, a capita intensive industry employs more?
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(a) Workers than capital
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(b) Wokers than machinery
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(c) Raw materials than capital
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(d) Machinery than workers
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The correct answer is: (d) Machinery than workers
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22. When pubic enterprise become commercialized, it means that?
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(a) The product of the enterprises are further subsidized
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(b) They are expected to operate with the primary aim of making profits
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(c) The government has decided to divest itself of such enterprises
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(d) The staff of the enterprises will be laid off
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The correct answer is: (b) They are expected to operate with the primary aim of making profits
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23. Developments outside a given form which reduce the firm costs are called _____
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(a) Internal economies
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(b) External economies
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(c) External diseconomies
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(d) Optimum effects
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The correct answer is: (b) External economies
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24. A situation in which all input are doubled and output also double is known as _____
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(a) Constant proportions
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(b) Increasing returns to scale
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(c) Constant returns
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(d) Constant returns to scale
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The correct answer is: (d) Constant returns to scale
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25. Which of the following situations can give rise to economies problems?
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(a) Unlimited human wants
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(b) Wants of varying importance
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(c) Limited means available for satisfying wants
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(d) Means need in different ways
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The correct answer is: (c) Limited means available for satisfying wants
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26. The advantage which firms obtain directly from expanding their operations are referred to as _____
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(a) Internal economies of scale
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(b) External economies of scale
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(c) Economies of localization
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(d) Economies of resource allocation
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The correct answer is: (a) Internal economies of scale
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27. The effect of changes in the condition of demand on a demand schedule with the prcie constant is a _____
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(a) Movement along the demand curve
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(b) Deflation of the demand curve
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(c) Hyperbola formation by the demand curve
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(d) Shift of th demand curve
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The correct answer is: (a) Internal economies of scale
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28. If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing _____
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(a) A large scale of production
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(b) Profit maximization
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(c) Economies of scale
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(d) Diseconomies of scale
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The correct answer is: (d) Diseconomies of scale
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29. The ordinary partner in a partnership _____
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(a) Takes no active part in the management of the business
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(b) Limited liability in case of business failure
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(c) Has unlimited liability in case of business failure
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(d) Cannot be sued personally on matters relating to the business
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The correct answer is: (c) Has unlimited liability in case of business failure
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30. An effect on inflation is that it _____
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(a) Discourages trade by barter
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(b) Favours debtors at the expense of creditors
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(c) Increase the real income of salary earners
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(d) Increase the value of a country's export
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The correct answer is: (b) Favours debtors at the expense of creditors
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Jamb Economics (2021) Question and Answers 31 - 40
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31. The distinction between capital and recurrent expenditure lies of the revenue generated
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(a) Amount of expenditure involved
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(b) Source of revenue generated
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(c) Nature of the goods and services to be provided
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(d) Time frame of the expenditure
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The correct answer is: (d) Time frame of the expenditure
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32. Privatization and commercialization of public enterprises in Nigeria is necessitated by _____
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(a) The IMF conditions
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(b) The IBRD conditions
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(c) The government's loss of interest in them
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(d) Their operational inefficiency
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The correct answer is: (d) Their operational inefficiency
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33. The theory of comparatives advantage states that a commodity should be produced in that nation where the _____
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(a) Absolute cost is least
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(b) Absolute money cost is least
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(c) Opportunity cost is least
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(d) Production possibiity curve increase
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The correct answer is: (c) Opportunity cost is least
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34. The effect of an increase in the personal income tax is to _____
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(a) Raises the absolute price level
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(b) Distort the economy
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(c) Reduce unemployment
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(d) Reduce the disposable income
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The correct answer is: (d) Reduce the disposable income
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35. The demand for labour is an example of _____
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(a) Competitive demand
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(b) Derived demand
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(c) Composite demand
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(d) Joint demand
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The correct answer is: (b) Derived demand
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36. Fixing the prices of agricultural products can be a problem because of the _____
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(a) Unpredictable output of farmers
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(b) Instability of government policies
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(c) Activities of marketing boards
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(d) Size of agricultural exports
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The correct answer is: (a) Unpredictable output of farmers
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37. The major source of Nigeria's foreign exchange is the export of _____
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(a) Skilled manpower
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(b) Palm kernel and cocoa
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(c) Crude oil
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(d) Groundnuts and cotton
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The correct answer is: (c) Crude oil
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38. Agricultural production in Nigeria is constrained by _____
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(a) Inadequate demand
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(b) Poor implementation of policies
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(c) Balance of payments deficits
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(d) Ineffective use of stabilization measures
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The correct answer is: (b) Poor implementation of policies
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39. Scarcity requires that people must ______
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(a) Trade
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(b) Complete
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(c) Cooperate
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(d) Make choices
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The correct answer is: (d) Make choices
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40. Because we face scarcity, every choice involves _____
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(a) The question 'what'
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(b) Money
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(c) Giving up something for nothing
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(d) An opportunity cost
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The correct answer is: (d) An opportunity cost
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- Jamb past questions and answers for ECONOMICS-2023
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