JAMB Economics 2019 past questions
Ten questions from the 2019 JAMB Economics paper, with answers and explanations. We hold 80 questions from this paper, and the Skolra app has all of them.
JAMB Economics 2019 questions and answers
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1.An example of a market which approaches fairly near to perfection is____________
- Athe stock exchangeCorrect
- Bthe market for second-hand motor vehicles
- Cthe market for residential housing
- Dthe retail market for foodstuffs
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Answer: A
A perfect (or near-perfect) market requires homogeneous products, many buyers and sellers, free entry and exit, and perfect information. The stock exchange comes closest to this ideal because shares of the same company are identical, prices are publicly known in real time, and transactions occur among very large numbers of participants.
- A
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2.The oil boom between 1970 - 1980 caused the oil sector to become____________
- AThe dominant, mono-cultural sector of the economyCorrect
- BA minor sector easily replaced by agriculture
- CA balanced contributor alongside manufacturing
- DA sector managed entirely by foreign companies
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Answer: A
The oil boom of the 1970s transformed Nigeria's economy into a mono-cultural one, with petroleum dominating export earnings and government revenue. Agriculture, which had been the economic backbone, was neglected, leading to over-dependence on a single commodity.
- A
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3.Adam Smith's Theory of value stated that the value of a commodity depended on________
- Athe scarcity of the commodity in the market
- Bthe amount of labour used to produce itCorrect
- Cthe utility the commodity provides to consumers
- Dthe forces of market demand and supply
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Answer: B
Adam Smith's labour theory of value held that the value (exchange value) of a commodity is determined by the quantity of labour embodied in its production. He argued that labour is the real measure of the exchangeable value of all commodities.
- A
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4.An economic condition in which much reduced economic activity co-exists with inflation is referred to as__________
- AStagflationCorrect
- BDeflation
- CRecession
- DDepression
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Answer: A
Stagflation describes a situation in which stagnant (much reduced) economic activity — high unemployment and slow growth — coexists simultaneously with rising inflation, a combination that conventional macroeconomic policy finds difficult to address.
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5.The money market equilibrium is defined as_________
- AMoney demand equals savings
- BMoney supply equals investment
- CInterest rate equals the inflation rate
- DMoney supply equals money demandCorrect
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Answer: D
The money market reaches equilibrium when the quantity of money supplied (MS) equals the quantity of money demanded (MD). At this point the equilibrium interest rate is established and there is no pressure for the rate to change.
- A
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6.The purchasing power of money depends upon the__________
- AQuantity of goods available in the market
- BLevel of national income
- CRate of interest on savings
- DPrice level in the economyCorrect
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Answer: D
The purchasing power of money is inversely related to the general price level. When prices rise (inflation), each unit of money buys fewer goods and services, so its purchasing power falls. Conversely, when prices fall, purchasing power rises.
- A
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7.The demand curve facing the monopolist in the foreign market is__________
- AMore elastic than in the domestic marketCorrect
- BIdentical to the domestic demand curve
- CLess elastic than in the domestic market
- DPerfectly inelastic
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Answer: A
When a monopolist price-discriminates by selling in a foreign market (dumping), the foreign demand curve is more elastic (flatter) than the domestic one because foreign buyers have more alternative suppliers. The monopolist therefore charges a lower price abroad and a higher price at home.
- A
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8.One of these is not a problem of agriculture___________
- APoor rural road and transportation network
- BFragmented land tenure system
- CInadequate capital and credit facilities
- DHigh agricultural productivityCorrect
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Answer: D
High agricultural productivity is a desired goal and outcome of a successful farming sector, not a problem. The real problems of agriculture include inadequate capital, poor rural infrastructure, the land tenure system that hinders large-scale farming, and lack of modern inputs.
- A
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9.A rise in the supply of a commodity causes__________
- AA rise in price and a contraction in quantity demanded
- BA fall in price and a contraction in quantity demanded
- CA fall in price and an expansion in quantity demandedCorrect
- DA rise in price and an expansion in quantity demanded
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Answer: C
When supply increases, the supply curve shifts to the right. At the original price there is a surplus, so price falls until equilibrium is restored. The lower price causes an expansion (movement along the demand curve) in quantity demanded.
- A
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10.Industrialization is the process of___________
- Aexploiting natural resources for export
- Bexpanding trade relations with foreign countries
- Cdeveloping the manufacturing sector of the economyCorrect
- Dimproving primary agricultural production
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Answer: C
Industrialization is the process by which an economy transforms itself from primarily agrarian or raw-material-based into one dominated by the manufacturing sector. It involves establishing factories, processing raw materials into finished goods, and expanding industrial output.
- A
The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check
Spotted a wrong answer? Tell us from the app or on the contact page and we check it.
Practise all 80 questions we hold from the 2019 paper, on a timed CBT screen
Every question has the answer and an explanation, in the Skolra app.