Practicing these JAMB Economics CBT questions will help students:
JAMB often repeats concepts, formats, and question styles. Practicing helps students become familiar with how questions are structured.
The CBT environment requires fast thinking. Regular practice trains students to answer questions quickly within the exam time.
Practicing exposes students to essential topics such as demand, supply, national income, money, banking, government budgeting, market structures, inflation, unemployment, and more.
When students consistently practice, they reduce fear, anxiety, and uncertainty on exam day.
Students can discover topics they struggle with and revise them before the exam.
Economics questions often require interpretation, reasoning, and analytical skills.
All questions follow JAMB format and difficulty level.
1. Economics is best defined as the study of how
A. government distributes resources
B. individuals and societies allocate scarce resources
C. money is created and destroyed
D. firms maximize revenue
Answer: B
2. The basic economic problem is
A. choice
B. population
C. inflation
D. unemployment
Answer: A
3. Human wants are described as insatiable because
A. resources are limited
B. wants keep changing
C. wants are few
D. wants are constant
Answer: B
4. Which of the following is NOT a factor of production?
A. Land
B. Labour
C. Capital
D. Money
Answer: D
5. Opportunity cost means
A. cost of the next best alternative forgone
B. money cost of production
C. cost of labour
D. cost of buying an item
Answer: A
6. The reward for capital is
A. rent
B. wages
C. interest
D. profit
Answer: C
7. Production is complete only when goods
A. are manufactured
B. reach the final consumer
C. are transported
D. are advertised
Answer: B
8. A want satisfied today but needed again in the future is a
A. recurring want
B. competitive want
C. complementary want
D. economic want
Answer: A
9. Goods used in producing other goods are called
A. consumer goods
B. capital goods
C. durable goods
D. perishable goods
Answer: B
10. The central focus of Economics is
A. wealth creation
B. distribution of income
C. allocation of scarce resources
D. price determination
Answer: C
11. Land as a factor of production is described as
A. man-made
B. fixed in supply
C. unlimited
D. depreciable
Answer: B
12. All of the following are characteristics of money except
A. portability
B. divisibility
C. perishability
D. durability
Answer: C
13. Collective wants refer to
A. needs of an individual
B. wants satisfied by government
C. wants supplied by firms
D. wants of foreigners
Answer: B
14. Economics is considered a social science because it
A. studies human behaviour
B. uses chemical analysis
C. studies only money
D. is based on laboratory findings
Answer: A
15. A rational consumer is one who
A. buys the cheapest goods
B. maximizes satisfaction
C. buys in bulk
D. saves money
Answer: B
16. The term “market” in Economics refers to
A. a physical place
B. a website for selling goods
C. contact between buyers and sellers
D. a shopping mall
Answer: C
17. The reward for entrepreneurship is
A. rent
B. profit
C. wages
D. interest
Answer: B
18. Production that provides intangible services is called
A. primary
B. secondary
C. tertiary
D. industrial
Answer: C
19. A country is said to have absolute advantage when it
A. produces more efficiently than others
B. imports more than others
C. exports everything
D. has fewer resources
Answer: A
20. Wants that go together are called
A. joint wants
B. recurring wants
C. competitive wants
D. composite wants
Answer: A
21. The law of demand states that, other things being equal, the higher the price
A. the higher the demand
B. the lower the quantity demanded
C. the greater the supply
D. the greater the income
Answer: B
22. A demand schedule shows the relationship between
A. price and income
B. supply and cost
C. price and quantity demanded
D. quantity supplied and technology
Answer: C
23. A normal good is one for which demand
A. increases when income increases
B. falls when price falls
C. increases when price falls
D. decreases when income increases
Answer: A
24. A Giffen good is a good whose demand
A. falls as income rises
B. rises as price rises
C. falls as price rises
D. has no relation with price
Answer: B
25. Complementary goods are goods that
A. compete for demand
B. are produced together
C. are used together
D. are harmful
Answer: C
26. The law of supply states that the higher the price
A. the lower the supply
B. the greater the quantity supplied
C. the more demand increases
D. the lower the cost
Answer: B
27. The point where demand equals supply is known as
A. equilibrium
B. surplus
C. shortage
D. maximum price
Answer: A
28. A rise in supply causes equilibrium price to
A. fall
B. rise
C. remain constant
D. fluctuate
Answer: A
29. A shortage in the market occurs when
A. demand > supply
B. supply = demand
C. supply > demand
D. price = zero
Answer: A
30. When supply is perfectly inelastic, the supply curve is
A. vertical
B. horizontal
C. upward sloping
D. downward sloping
Answer: A
31. An inferior good is one whose demand
A. increases as price increases
B. falls as income rises
C. rises as income rises
D. is constant
Answer: B
32. Elasticity of demand measures
A. responsiveness of price to cost
B. responsiveness of demand to price change
C. how producers respond to tax
D. government expenditure
Answer: B
33. If the elasticity of demand is greater than 1, demand is
A. inelastic
B. unitary
C. elastic
D. perfect
Answer: C
34. A shift in demand curve to the right indicates
A. decrease in demand
B. increase in demand
C. fall in supply
D. fall in price
Answer: B
35. The measure of responsiveness of supply to price is
A. income elasticity
B. cross elasticity
C. price elasticity of supply
D. marginal elasticity
Answer: C
36. Which of the following causes a movement along the supply curve?
A. Technology
B. Number of producers
C. Price of the commodity
D. Government policy
Answer: C
37. Veblen goods are demanded because of
A. scarcity
B. prestige
C. cheapness
D. utility
Answer: B
38. A decrease in price causes quantity demanded to
A. increase
B. decrease
C. remain same
D. disappear
Answer: A
39. All of the following can shift supply except
A. technology
B. cost of production
C. price of the good
D. taxation
Answer: C
40. A subsidy granted to producers will likely
A. increase cost of production
B. reduce supply
C. increase supply
D. reduce income
Answer: C
41. Money removes the problem of
A. inflation
B. double coincidence of wants
C. scarcity
D. taxation
Answer: B
42. Legal tender refers to money that
A. is made of gold
B. must be accepted for payment
C. is used for foreign trade
D. has no value
Answer: B
43. Commercial banks create money by
A. accepting deposits
B. printing currency
C. granting loans
D. issuing shares
Answer: C
44. The central bank acts as banker to
A. firms
B. individuals
C. government
D. foreigners
Answer: C
45. Open market operations involve
A. buying and selling securities
B. printing money
C. collecting taxes
D. producing coins
Answer: A
46. A budget deficit occurs when
A. revenue > expenditure
B. expenditure > revenue
C. revenue = expenditure
D. government borrows
Answer: B
47. Taxation is a major source of
A. foreign exchange
B. government revenue
C. bank loans
D. investment
Answer: B
48. The main objective of fiscal policy is to
A. stabilize the economy
B. print more money
C. increase inflation
D. reduce exports
Answer: A
49. Inflation is defined as a persistent rise in
A. interest rates
B. general price level
C. wages
D. national output
Answer: B
50. Hyperinflation refers to
A. slow increase in prices
B. stable prices
C. extremely rapid increase in price
D. decrease in price
Answer: C
51. Public debt is also known as
A. money supply
B. national debt
C. inflation tax
D. external reserves
Answer: B
52. A regressive tax takes a higher percentage from
A. rich people
B. poor people
C. foreigners
D. firms
Answer: B
53. Monetary policy refers to
A. government spending and taxation
B. control of money supply
C. foreign trade
D. price stability
Answer: B
54. A central bank controls commercial banks through
A. discount rate
B. bargaining
C. subsidies
D. taxation
Answer: A
55. The part of income not spent on consumption is
A. tax
B. saving
C. wage
D. rent
Answer: B
56. A country's balance of payments records
A. government revenue
B. all economic transactions with other countries
C. national output
D. domestic production
Answer: B
57. Devaluation refers to
A. increase in value of currency
B. decrease in value of currency
C. printing more money
D. reducing imports
Answer: B
58. Customs duties are taxes imposed on
A. income
B. profits
C. imported goods
D. land
Answer: C
59. A good tax system must be
A. complex
B. discriminatory
C. equitable
D. burdensome
Answer: C
60. The primary objective of a commercial bank is
A. profit making
B. charity
C. printing money
D. lending to government only
Answer: A
61. National income measures
A. money spent by government
B. total income earned by citizens
C. total foreign exchange
D. amount saved by firms
Answer: B
62. GDP means
A. Gross Domestic Product
B. General Development Plan
C. Government Domestic Payment
D. Gross Debt Payment
Answer: A
63. Per capita income is calculated by dividing national income by
A. government expenditure
B. capital stock
C. population
D. imports
Answer: C
64. A monopoly is a market where
A. many sellers exist
B. one seller dominates
C. prices are fixed by government
D. no competition exists
Answer: B
65. Perfect competition is characterized by
A. one buyer
B. many sellers
C. fixed prices
D. differentiated products
Answer: B
66. The structure where a few firms dominate is
A. duopoly
B. monopoly
C. oligopoly
D. perfect market
Answer: C
67. Economic growth refers to increase in
A. money supply
B. national output
C. government workers
D. foreign exchange
Answer: B
68. The Human Development Index measures
A. only income
B. life expectancy, education, income
C. inflation rate
D. unemployment
Answer: B
69. Underemployment occurs when workers
A. are paid for not working
B. work below capacity
C. work too much
D. are fully engaged
Answer: B
70. A major cause of unemployment in developing countries is
A. rapid population growth
B. small labour force
C. shortage of land
D. too many industries
Answer: A
71. Disposable income is
A. income before tax
B. income after tax
C. money borrowed
D. money invested
Answer: B
72. In the circular flow of income, households supply
A. goods
B. services
C. factors of production
D. taxes
Answer: C
73. Dumping in international trade means
A. exporting at high price
B. exporting at very low price
C. stopping export
D. imposing tariffs
Answer: B
74. The most competitive market structure is
A. oligopoly
B. perfect competition
C. monopoly
D. monopoly competition
Answer: B
75. A major advantage of division of labour is
A. increased monotony
B. increased efficiency
C. reduced output
D. reduced skills
Answer: B
76. Economic development includes
A. only growth
B. growth plus improvement in welfare
C. only welfare
D. only industrialization
Answer: B
77. When firms join together to reduce competition, it is called a
A. merger
B. cartel
C. monopoly
D. partnership
Answer: B
78. The national income concept that includes depreciation is
A. NNP
B. NDP
C. GDP
D. GNP
Answer: A
79. Price discrimination is easiest under
A. monopoly
B. perfect competition
C. oligopoly
D. free market
Answer: A
80. The term "laissez-faire" means
A. free entry
B. free trade
C. leave things to market forces
D. manage the economy
Answer: C
81. A major problem of agriculture in developing countries is
A. high technology
B. poor storage facilities
C. too many tractors
D. excess capital
Answer: B
82. Shifting cultivation involves
A. rotating crops
B. moving farms from place to place
C. irrigation farming
D. large-scale production
Answer: B
83. A densely populated area is likely to have
A. low labour supply
B. high unemployment
C. low birth rate
D. high death rate
Answer: B
84. A census is a process of collecting
A. labour data
B. population data
C. agricultural data
D. export data
Answer: B
85. Migration refers to movement of people
A. within a family
B. from one place to another
C. between schools
D. within agriculture
Answer: B
86. Life expectancy refers to
A. number of years expected to live
B. years spent in school
C. years on pension
D. length of employment
Answer: A
87. A good transport system encourages
A. inflation
B. smuggling
C. specialization
D. subsistence farming
Answer: C
88. Tariffs are used mainly to
A. encourage imports
B. restrict imports
C. reduce revenue
D. increase dumping
Answer: B
89. A cooperative society is formed mainly to
A. exploit members
B. promote members’ welfare
C. increase price
D. reduce welfare
Answer: B
90. The main function of wholesalers is to
A. buy from retailers
B. link producers and retailers
C. set consumer prices
D. transport goods only
Answer: B
91. Retailers sell goods
A. only to producers
B. directly to consumers
C. to wholesalers
D. to government
Answer: B
92. Population density is
A. population × land area
B. land area ÷ population
C. population ÷ land area
D. imports ÷ exports
Answer: C
93. Man-made resources used for production are called
A. natural resources
B. capital
C. labour
D. land
Answer: B
94. When demand exceeds supply, price tends to
A. rise
B. fall
C. remain constant
D. decline sharply
Answer: A
95. A high dependency ratio means
A. many working people
B. few dependents
C. many dependents
D. low population
Answer: C
96. The process of raising funds through the sale of shares is
A. borrowing
B. taxation
C. equity financing
D. saving
Answer: C
97. An import quota is a restriction on
A. number of goods exported
B. number of goods imported
C. number of workers
D. money supply
Answer: B
98. A consumer's equilibrium is reached when
A. MU = 0
B. price = 0
C. MU = price
D. MU falls
Answer: C
99. The principle of diminishing returns operates in the
A. long run
B. short run
C. very long run
D. imaginary period
Answer: B
100. A rational producer aims at
A. minimizing profit
B. maximizing cost
C. maximizing profit
D. minimizing output
Answer: C
1. Scarcity in Economics means that
A. resources are limited
B. wants are limited
C. resources are unlimited
D. money is scarce
Answer: A
2. Scale of preference is a list of wants arranged in order of
A. price
B. importance
C. quantity
D. availability
Answer: B
3. Goods that satisfy human wants directly are
A. intermediate goods
B. consumer goods
C. capital goods
D. free goods
Answer: B
4. Which of these is NOT an economic activity?
A. Teaching
B. Farming
C. Sleeping
D. Trading
Answer: C
5. Utility means
A. cost of goods
B. usefulness of goods
C. scarcity of goods
D. durability of goods
Answer: B
6. A person who takes risk in production is called
A. labourer
B. entrepreneur
C. capitalist
D. manager
Answer: B
7. Marginal utility is the
A. total satisfaction from goods
B. loss from consuming goods
C. extra satisfaction from one more unit
D. cost of goods
Answer: C
8. An economic system answers the basic problems of
A. what, how, for whom
B. when, where, how
C. production, selling, buying
D. distribution, marketing, profit
Answer: A
9. A mixed economy combines
A. tradition and subsistence
B. government and individual decisions
C. democracy and communism
D. monopoly and perfect market
Answer: B
10. A positive statement in Economics is
A. value judgment
B. factual and testable
C. based on opinion
D. political
Answer: B
11. A free good is one that is
A. scarce
B. unlimited
C. expensive
D. government-owned
Answer: B
12. The factor of production that bears risk is
A. labour
B. capital
C. entrepreneurship
D. land
Answer: C
13. The study of individual economic units is known as
A. macroeconomics
B. microeconomics
C. sociology
D. econometrics
Answer: B
14. A production possibility curve (PPC) shows
A. money and investment
B. output combinations
C. only consumption goods
D. imports and exports
Answer: B
15. Capital accumulation means
A. increase in taxes
B. increase in savings and investment
C. decrease in production
D. increase in consumption
Answer: B
16. Labour productivity increases when
A. wages fall
B. tools improve
C. workers rest
D. prices rise
Answer: B
17. A centrally planned economy is run by
A. market forces
B. government decisions
C. multinational firms
D. consumers
Answer: B
18. A normative statement expresses
A. facts
B. value judgement
C. scientific truth
D. data
Answer: B
19. Economic rent is reward for
A. labour
B. land
C. capital
D. enterprise
Answer: B
20. Production involves
A. creating utilities
B. destroying utilities
C. transferring goods only
D. importing goods
Answer: A
21. A fall in the price of a substitute causes the demand for a commodity to
A. rise
B. fall
C. remain constant
D. shift left
Answer: B
22. Cross elasticity of demand measures the response of
A. supply to price
B. demand to price of another good
C. income to consumption
D. consumers to taxes
Answer: B
23. When price rises and total revenue also rises, demand is
A. perfectly inelastic
B. elastic
C. unitary
D. decreasing
Answer: A
24. A supply schedule is a table showing
A. income and output
B. price and quantity supplied
C. cost and profit
D. demand and supply
Answer: B
25. If elasticity of supply = 0, supply is
A. perfectly inelastic
B. perfectly elastic
C. unitary elastic
D. highly elastic
Answer: A
26. A shift in the supply curve occurs when
A. price changes
B. cost of production changes
C. demand changes
D. profit rises
Answer: B
27. Inferior goods have a/an
A. positive income elasticity
B. negative income elasticity
C. zero elasticity
D. infinite elasticity
Answer: B
28. A movement along the demand curve is caused by
A. change in price
B. change in taste
C. change in income
D. change in weather
Answer: A
29. A ceiling price leads to
A. surplus
B. shortage
C. equilibrium
D. inflation
Answer: B
30. Price mechanism works best in
A. socialist economy
B. mixed economy
C. free market economy
D. traditional economy
Answer: C
31. Complementary goods have
A. positive cross elasticity
B. negative cross elasticity
C. zero cross elasticity
D. infinite elasticity
Answer: B
32. When demand is perfectly elastic, the curve is
A. vertical
B. horizontal
C. upward sloping
D. curved
Answer: B
33. Joint supply occurs when
A. two goods compete
B. two goods are used together
C. two goods are produced together
D. goods are imported
Answer: C
34. A subsidy to producers shifts supply
A. left
B. right
C. upward
D. downward
Answer: B
35. A Giffen good is usually a
A. luxury
B. inferior good
C. normal good
D. public good
Answer: B
36. Price elasticity of supply depends on
A. weather
B. time period
C. customers
D. taste
Answer: B
37. When price falls and supply falls, supply is
A. decreasing
B. elastic
C. inelastic
D. stable
Answer: A
38. The point of equilibrium is where
A. supply exceeds demand
B. demand exceeds supply
C. demand equals supply
D. price is fixed
Answer: C
39. A shift in demand curve is caused by
A. price change
B. taste change
C. change in quantity
D. technology
Answer: B
40. If a price floor is set above equilibrium, there will be
A. shortage
B. surplus
C. equilibrium
D. low production
Answer: B
41. Money serves all functions below except
A. medium of exchange
B. measure of value
C. store of value
D. means of production
Answer: D
42. M2 includes
A. only coins
B. cash + demand deposits + savings
C. central bank reserves only
D. treasury bills only
Answer: B
43. The bank that controls and supervises other banks is
A. commercial bank
B. development bank
C. mortgage bank
D. central bank
Answer: D
44. A cheque is an order by the drawer to
A. pay himself
B. pay the bank
C. pay a third party
D. withdraw shares
Answer: C
45. Liquidity means
A. ability to store goods
B. ability to convert assets to cash
C. ability to borrow money
D. ability to repay debt
Answer: B
46. Treasury bills are **
A. long-term securities
B. short-term securities
C. corporate bonds
D. company shares
Answer: B
47. Monetary policy controls
A. government spending
B. money supply and interest rates
C. national income
D. trade unions
Answer: B
48. Fiscal policy involves
A. loans and grants
B. taxes and government spending
C. printing money
D. foreign exchange
Answer: B
49. A taxation system where the rich pay more proportionately is
A. regressive
B. proportional
C. progressive
D. neutral
Answer: C
50. An example of direct tax is
A. excise duty
B. income tax
C. VAT
D. import duty
Answer: B
51. Inflation reduces
A. debts
B. money value
C. prices
D. wages automatically
Answer: B
52. Cost-push inflation is caused by a rise in
A. money supply
B. production cost
C. wages only
D. import goods
Answer: B
53. One major reason governments borrow is to
A. increase population
B. finance deficits
C. reduce taxes
D. abolish banks
Answer: B
54. A budget surplus occurs when
A. expenditure > revenue
B. revenue > expenditure
C. revenue = imports
D. tax = savings
Answer: B
55. Central banks fight inflation mainly by
A. reducing interest rate
B. restricting money supply
C. printing more money
D. increasing wages
Answer: B
56. Public debt is classified into
A. profit and loss
B. internal and external
C. capital and revenue
D. fixed and variable
Answer: B
57. The legal power to print money belongs to
A. commercial banks
B. money lenders
C. central bank
D. stock exchange
Answer: C
58. VAT is a tax on
A. income
B. profit
C. consumption
D. savings
Answer: C
59. Money is most liquid because
A. it is beautiful
B. everyone accepts it
C. it is printed
D. banks hold it
Answer: B
60. Deflation means
A. fall in general price level
B. rise in general price level
C. fall in money value
D. fall in exports
Answer: A
61. Market structure refers to
A. physical market buildings
B. organization of firms in a market
C. price control alone
D. government ownership
Answer: B
62. A monopolistic competitor sells
A. identical goods
B. differentiated goods
C. unique goods only
D. government goods
Answer: B
63. Oligopoly is characterized by
A. many small firms
B. a few large firms
C. only one firm
D. infinite firms
Answer: B
64. Perfect competition assumes
A. differentiated products
B. free entry and exit
C. strong government control
D. single seller
Answer: B
65. A monopolist is a
A. price taker
B. price maker
C. wage taker
D. tax payer
Answer: B
66. National income includes GDP and
A. taxes
B. depreciation
C. net factor income from abroad
D. bank interest
Answer: C
67. The income method of measuring national income sums
A. profit only
B. all incomes received
C. output only
D. expenditure only
Answer: B
68. GNP = GDP +
A. imports
B. depreciation
C. net foreign income
D. reserve
Answer: C
69. Economic growth is measured by
A. increase in GDP
B. increase in prices
C. increase in wages
D. increase in imports
Answer: A
70. Human capital refers to
A. machines
B. education and skills
C. currency
D. land
Answer: B
71. A recession is a period of
A. high inflation
B. low economic activity
C. high economic growth
D. unemployment falling
Answer: B
72. A rise in national income leads to
A. low savings
B. higher standard of living
C. high death rate
D. low production
Answer: B
73. A cartel is a group of firms that
A. compete fairly
B. collude to control market
C. reduce production
D. advertise jointly
Answer: B
74. Dumping harms the importing country by
A. reducing competition
B. increasing prices
C. destroying local industries
D. reducing welfare
Answer: C
75. The difference between GNP and NNP is
A. depreciation
B. tax
C. investment
D. expenditure
Answer: A
76. Price discrimination occurs mostly in
A. monopoly
B. oligopoly
C. perfect competition
D. free market
Answer: A
77. A backward-bending supply curve of labour shows the relationship between wage and
A. cost
B. leisure
C. productivity
D. labour supply
Answer: D
78. An increase in productivity leads to
A. higher cost
B. lower output
C. higher output
D. lower profit
Answer: C
79. Depreciation is the loss of value due to
A. importation
B. wear and tear
C. high demand
D. low supply
Answer: B
80. Per capita income increases when
A. GDP falls
B. population grows faster
C. GDP grows faster than population
D. inflation rises
Answer: C
81. A major characteristic of subsistence farming is
A. export of produce
B. small output
C. mechanization
D. specialization
Answer: B
82. Cash crops are mainly produced for
A. home use
B. export and sale
C. storing
D. government consumption
Answer: B
83. Population growth is measured by
A. death rate
B. fertility rate
C. net population change
D. migration
Answer: C
84. A youthful population has a high number of
A. old people
B. young people
C. adults only
D. disabled people
Answer: B
85. Mortality rate refers to
A. death per 1,000 people
B. birth per 1,000 people
C. migration rate
D. labour force participation
Answer: A
86. The dependency ratio increases when
A. working population increases
B. dependents increase
C. government spends more
D. taxes rise
Answer: B
87. The most accurate method of population data collection is
A. projections
B. sample survey
C. census
D. registration
Answer: C
88. Balance of trade refers to
A. exports − imports
B. exports + imports
C. imports only
D. exports only
Answer: A
89. Invisible trade refers to trade in
A. goods
B. services
C. agriculture
D. machinery
Answer: B
90. Terms of trade measure
A. import prices only
B. export prices only
C. ratio of export to import prices
D. government revenue
Answer: C
91. A protective tariff is used to
A. protect consumers
B. protect local industries
C. protect exports
D. reduce government revenue
Answer: B
92. The main aim of ECOWAS is to promote
A. war
B. free trade
C. education
D. inflation
Answer: B
93. Road transport is best for
A. bulky goods
B. long-distance passengers
C. short-distance movement
D. perishable goods only
Answer: C
94. Water transport is
A. expensive
B. slow but cheap
C. fast but costly
D. used for air cargo
Answer: B
95. Development planning aims to
A. increase debt
B. guide economic progress
C. reduce employment
D. punish defaulters
Answer: B
96. Human development focuses on
A. income only
B. health, education and income
C. inflation
D. consumption only
Answer: B
97. Rural-urban migration leads to
A. rural development
B. urban congestion
C. more industries
D. more exports
Answer: B
98. Terms of trade improve when
A. export prices rise faster than import prices
B. import prices rise faster
C. exports fall
D. inflation rises
Answer: A
99. A country has comparative advantage when it
A. produces at lower opportunity cost
B. has more money
C. has many workers
D. imports more
Answer: A
100. Economic development is broader than economic growth because it includes
A. output only
B. welfare improvements
C. imports
D. exports
Answer: B
