The JAMB UTME Economics exam tests candidates on fundamental economic principles, market systems, and national income. Below are 10 carefully solved JAMB Economics questions with explanations to guide your 2026 preparation.

Question 1: Definition of Economics

Q1. Economics is the study of human behavior as it relates to:
A) Efficient allocation of resources
B) Production of goods
C) Operation of companies
D) Generation of income

Solution:
Although all options are elements of economics, the most accurate definition is the efficient allocation of scarce resources to satisfy human wants.
Correct Answer: A.

Question 2: Free Market Efficiency

Q2. Producers operating in a free market economy are more efficient as a result of:
A) Existence of competition
B) Very few number of participants
C) Commitment of the shareholders
D) Government regulation of activities

Solution:
In a free market, competition forces firms to improve efficiency, cut costs, and innovate.
Correct Answer: A.

Question 3: Scarcity

Q3. The central economic problem of every society is:
A) Inflation
B) Scarcity
C) Unemployment
D) Production

Solution:
Scarcity of resources is the universal problem, making choices and allocation necessary.
Correct Answer: B (Scarcity).

Question 4: Demand Curve

Q4. A demand curve usually slopes:
A) Downward from left to right
B) Upward from left to right
C) Horizontally
D) Vertically

Solution:
The law of demand states that as price falls, quantity demanded increases, creating a downward slope.
Correct Answer: A.

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Question 5: Opportunity Cost

Q5. Opportunity cost can be defined as:
A) The next best alternative forgone
B) The actual money spent on goods
C) The resources wasted in production
D) The maximum satisfaction derived

Solution:
Whenever choices are made, the forgone alternative is the opportunity cost.
Correct Answer: A.

Question 6: National Income

Q6. Which of the following is NOT a method of measuring national income?
A) Income method
B) Output method
C) Expenditure method
D) Employment method

Solution:
The recognized methods are income, output, and expenditure. Employment method is not.
Correct Answer: D.

Question 7: Money

Q7. The most essential function of money is:
A) Store of value
B) Unit of account
C) Medium of exchange
D) Standard for deferred payment

Solution:
Money performs all functions, but its primary one is acting as a medium of exchange.
Correct Answer: C.

Question 8: Inflation

Q8. Inflation refers to:
A) Persistent fall in prices
B) Persistent rise in general price levels
C) Increase in wages
D) Decrease in money supply

Solution:
Inflation is a sustained increase in the general price level over time.
Correct Answer: B.

Question 9: Division of Labour

Q9. Division of labour leads to:
A) Decreased specialization
B) Increase in output
C) Reduced efficiency
D) Wastage of resources

Solution:
Division of labour improves specialization and productivity, increasing total output.
Correct Answer: B.

Question 10: Balance of Payments

Q10. Balance of payments is:
A) The difference between exports and imports of goods only
B) The record of all transactions between a country and the rest of the world
C) The government’s annual budget
D) The difference between government income and expenditure

Solution:
Balance of payments records all economic transactions (goods, services, capital) between a country and other nations.
Correct Answer: B.

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Conclusion

These 10 solved JAMB Economics questions cover scarcity, demand and supply, free markets, national income, inflation, and money. Practicing them will help you master core concepts for the 2026 JAMB UTME Economics exam.

Keywords

• JAMB Economics 2026 questions
• solved JAMB Economics past questions
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• allocation of resources JAMB Economics
• free market competition JAMB

Credit: Allschool, Allcbt

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