JAMB Economics 2020 past questions

Checked by the Skolra question team · Last updated 15 October 2026

Ten questions from the 2020 JAMB Economics paper, with answers and explanations. We hold 39 questions from this paper, and the Skolra app has all of them.

JAMB Economics 2020 questions and answers

1. 1.The most important goal of OPEC is to?
   1. A
      minimize government revenues from oil
   2. B
      eliminate petroleum from global markets
   3. C
      coordinate petroleum production and stabilize oil prices
      Correct
   4. D
      reduce petroleum consumption worldwide
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   Answer: C

   The Organization of Petroleum Exporting Countries (OPEC) was established with the primary goal of coordinating petroleum policies among member nations and stabilizing oil prices to protect member interests.

2. 2.The type of business finances that entitles the holder to a fixed rate of dividend is?
   1. A
      debentures with floating rate returns
   2. B
      bonds that provide interest income
   3. C
      preference shares with fixed dividend rate
      Correct
   4. D
      ordinary shares with variable dividend returns
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   Answer: C

   Preference shares are a type of business financing that entitles the holder to a fixed rate of dividend, paid preferentially before ordinary shareholders receive dividends.

3. 3.

   A budget with a projected revenue in excess of its expenditure is said to be?

   1. A
      balanced, with equal revenue and expenditure
   2. B
      in surplus, with revenue exceeding expenditure
      Correct
   3. C
      neutral, with no fiscal impact
   4. D
      in deficit, with expenditure exceeding revenue
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   Answer: B

   A budget with projected revenue in excess of expenditure is said to be in surplus. A budget surplus occurs when government income exceeds government spending.

4. 4.

   Economics is often described as a social science because?

   1. A
      it is completely unrelated to human society
   2. B
      it uses exclusively physical and scientific methods
   3. C
      it studies human behavior, choices, and social issues
      Correct
   4. D
      it studies only mathematical and technical problems
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   Answer: C

   Economics is classified as a social science because it studies human behavior, choices, social interactions, and how societies organize economic activities. It applies scientific methods to understand these social phenomena.

5. 5.

   Efficiency in production means?

   1. A
      eliminating all production costs
   2. B
      maximizing output from given input resources
      Correct
   3. C
      producing any good without considering inputs
   4. D
      using the fewest inputs regardless of output
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   Answer: B

   Production efficiency means obtaining the maximum possible output from a given set of inputs. It occurs when an economy produces on its production possibilities frontier, with no waste of resources.

6. 6.The most important attribute of money is?
   1. A
      its universal acceptability in exchange
      Correct
   2. B
      its portability and ease of transport
   3. C
      its divisibility into smaller units
   4. D
      its durability and long physical life
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   Answer: A

   The most important attribute of money is universal acceptability—people must be willing to accept it in exchange for goods and services. Without this, money cannot function effectively as a medium of exchange.

7. 7.When a country's population is experiencing increasing returns, that country is said to be?
   1. A
      experiencing underdevelopment
   2. B
      facing diminishing returns
   3. C
      in a stage of economic growth and development
      Correct
   4. D
      stagnating economically
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   Answer: C

   When population and productive factors are experiencing increasing returns—where additional inputs yield proportionally greater output—a country is undergoing economic growth and development. This is a positive economic stage.

8. 8.

   Collectivism refers to the management of state enterprises in a?

   1. A
      mixed economy with limited government
   2. B
      socialist or centrally planned economic system
      Correct
   3. C
      capitalist system with private ownership
   4. D
      free market with no government involvement
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   Answer: B

   Collectivism refers to the management of state enterprises in a socialist or centrally planned economic system where the state controls production and resources are allocated collectively.

9. 9.

   Which of the following rewards is associated with entrepreneurship

   1. A
      wages from employment
   2. B
      profit from business enterprise
      Correct
   3. C
      rent from property ownership
   4. D
      interest on capital investments
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   Answer: B

   Profit is the reward associated with entrepreneurship. It represents the return entrepreneurs receive for taking risks, organizing resources, and starting business ventures.

10. 10.In recent times, agriculture in Nigeria tends to lose its vital labour force as a result of?
    1. A
       rural-urban migration seeking better opportunities
       Correct
    2. B
       climate change making all agriculture impossible
    3. C
       government subsidies making farming unproductive
    4. D
       higher wages offered in the agricultural sector
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    Answer: A

    Agriculture in Nigeria loses vital labor force primarily due to rural-urban migration as people move to cities seeking better employment opportunities, education, and improved living standards.

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 39 questions we hold from the 2020 paper, on a timed CBT screen

Every question has the answer and an explanation, in the Skolra app.

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