If you are preparing for JAMB Economics, practicing real exam-style questions is one of the best ways to build confidence. The questions below are drawn from the lesson in your subtitles and turned into neat multiple-choice items. Use them to revise key topics such as firm types, factors of production, budget types, PPC, GDP, free goods, unemployment, and economic agents.
Question 1
The firm owned and managed by a family is an example of a:
A. Joint stock company
B. Cooperative society
C. Sole proprietorship ✔️
D. Partnership
CORRECT ANSWER:C. Sole proprietorship
Explanation: A sole proprietorship is a one-man business. When ownership and management are shared by family members (e.g. “Sunday & Sons Nigeria Ltd”).
Question 2
Which factor of production is inelastic in the short run?
A. Wages
B. Labour
C. Capital
D. Land ✔️
CORRECT ANSWER: D. Land
Explanation: Wages are a reward for labour, not a factor. Among the factors (land, labour, capital, entrepreneur), land is fixed in supply in the short run and is therefore inelastic.
Question 3
Which of the following types of budget will increase government expenditure?
A. Zero-based budget
B. Surplus budget
C. Deficit budget ✔️
D. Balanced budget
CORRECT ANSWER: C. Deficit budget
Explanation: In a deficit budget, government spending is greater than its revenue. That situation means more expenditure than receipts, so it increases government spending.
Question 4
In an economy, the fundamental questions of “what to produce, how to produce and for whom to produce” are determined by the:
A. Government
B. Labour unions
C. Private and public enterprises
D. System of economic practice ✔️
CORRECT ANSWER: D. System of economic practice
Explanation: Whether a country is capitalist, socialist or mixed, the economic system in operation decides who answers the basic economic questions.
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Question 5
The bow shape of the Production Possibility Curve (PPC) illustrates:
A. Inefficient production
B. Demand is relatively inelastic
C. Production is unattainable
D. The law of increasing marginal cost ✔️
CORRECT ANSWER: D. The law of increasing marginal cost
Explanation: The PPC bows outward because, as you produce more of one good and less of another, opportunity cost rises, reflecting the law of increasing marginal cost.
Question 6
Which of the following is an indicator of economic growth?
A. High tax rates
B. Technological development
C. High Gross Domestic Product (GDP) ✔️
D. Industrial disputes
CORRECT ANSWER: C. High Gross Domestic Product (GDP)
Explanation: Economic growth is measured by an increase in the real GDP of a country over time. Technological development is more directly linked to economic development, not just growth.
Question 7
If two commodities are unrelated, a change in the price of one will:
A. Increase the quantity demanded of the other
B. Decrease the quantity demanded of the other
C. Cause unstable demand for the other
D. Have no effect on the quantity demanded of the other ✔️
CORRECT ANSWER: D. Have no effect on the quantity demanded of the other
Explanation: For unrelated goods (e.g. rice and cement), a change in the price of one does not affect demand for the other, so there is no effect on quantity demanded.
Question 8
Which of the following is NOT a cause of unemployment?
A. Poor education
B. Lack of skills
C. Good government planning ✔️
D. Corruption
CORRECT ANSWER: C. Good government planning
Explanation: Poor education, lack of skills and corruption can all create unemployment. However, good government planning should reduce unemployment, so it is not a cause.
Question 9
Which of the following is an example of a free good?
A. Free education
B. Dinner you did not pay for
C. House rent
D. Water in the ocean ✔️
CORRECT ANSWER: D. Water in the ocean
Explanation: Even if something is “free” to you (like free education or free dinner), someone else pays for it. A free good is not scarce and has no opportunity cost, such as water in the ocean, which is a free gift of nature.
Question 10
The following are economic agents in any economy except:
A. Central bank ✔️
B. Household
C. Firm
D. Government
CORRECT ANSWER: A. Central bank
Explanation: The main economic agents are households, firms and government. The central bank is an agent of the government, not a separate primary economic agent.
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Conclusion
These 10 questions reflect real JAMB Economics patterns from your lesson: firm types, factors of production, budgets, PPC, GDP, unemployment, free goods and economic agents. Go over the explanations, then try to answer them again without looking at the answers. That is how you convert practice into higher scores.
Keywords
JAMB Economics likely questions
JAMB Economics objective questions
JAMB Economics past questions and answers
Economics exam questions for JAMB
Types of budget in Economics
Credit: Allschool, Allcbt
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