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Likely JAMB Economics Questions and Answers

Published on Sep 11, 2025 • Education

Introduction

Economics is one of the core subjects in JAMB for students in the arts, social sciences, and management sciences. Unfortunately, many candidates lose marks because they don’t practice enough with past and likely questions.

In this guide, we present likely JAMB Economics questions with detailed explanations. By working through them, you’ll understand key concepts like marginal cost, supply, demand, and production economics.

Practice Questions

Question 1 – Marginal Cost

What is marginal cost?

A. Total cost ÷ Total product
B. Total cost – Fixed cost
C. Average variable cost – Fixed cost
D. The addition to total cost resulting from production of one extra unit

Answer: D. The addition to total cost resulting from production of one extra unit
Marginal means extra. It is the additional cost of producing one more unit of output.

Question 2 – Supply Curve

The supply curve of a locally produced good may shift to the right if:

A. The price of the commodity rises
B. Cost of production falls
C. Government bans importation
D. There is inflation

Answer: B. Cost of production falls
Lower production costs encourage producers to supply more at all price levels, shifting the supply curve rightward.

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Question 3 – Law of Demand

The law of demand states that:

A. As income rises, demand rises
B. As price rises, demand falls
C. As supply increases, demand decreases
D. As demand falls, price rises

Answer: B. As price rises, demand falls
There is an inverse relationship between price and quantity demanded, all things being equal.

Question 4 – Opportunity Cost

Opportunity cost is:

A. The cost of goods purchased with money
B. The alternative forgone when a choice is made
C. The sum of fixed and variable costs
D. The extra cost of production

Answer: B. The alternative forgone when a choice is made
It is the value of the next best alternative sacrificed.

Question 5 – Inflation

Inflation is best described as:

A. A persistent rise in the general price level
B. A sudden fall in the general price level
C. An increase in wages and salaries
D. A rise in demand and supply together

Answer: A. A persistent rise in the general price level
Inflation reduces purchasing power as goods and services become more expensive.

Question 6 – Public Finance

Which of the following is a source of government revenue?

A. Taxation
B. Inflation
C. Subsidies
D. Imports

Answer: A. Taxation
Taxes are the main source of revenue used to finance government projects.

Question 7 – Elasticity of Demand

When the percentage change in demand is greater than the percentage change in price, demand is said to be:

A. Perfectly inelastic
B. Elastic
C. Unitary elastic
D. Inelastic

Answer: B. Elastic
Elastic demand means consumers respond strongly to price changes.

Question 8 – Factors of Production

Which of the following is not a factor of production?

A. Land
B. Labour
C. Capital
D. Inflation

Answer: D. Inflation
The basic factors of production are land, labour, capital, and entrepreneurship. Inflation is not one.

Question 9 – Balance of Payment

A surplus in the balance of payment occurs when:

A. Imports exceed exports
B. Exports exceed imports
C. Government borrows externally
D. A country devalues its currency

Answer: B. Exports exceed imports
A surplus shows the country is selling more goods abroad than it is buying.

Question 10 – Money

Which of the following is not a function of money?

A. Medium of exchange
B. Store of value
C. Unit of account
D. Means of production

Answer: D. Means of production
Money facilitates exchange, measures value, and stores value, but it is not itself a means of production.

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Conclusion

JAMB Economics questions test your ability to apply core principles like demand, supply, cost concepts, and money. However, with regular practice, you will recognize patterns and answer confidently.

In summary, focus on solving as many past and likely questions as possible, revise key definitions, and test yourself under exam conditions. This will give you the edge to score high in JAMB Economics.

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Keywords

• JAMB Economics likely questions and answers
• Economics past questions for JAMB 2025
• Law of demand and supply JAMB questions
• Inflation and public finance JAMB practice
• Opportunity cost explained with examples