A production possibility curve shifts outward when

resources or technology improve

The main function of a central bank is to

regulate the money supply and supervise banks

accept deposits from the public

Gross Domestic Product measures

the total value of goods and services produced within a country in a year

The theory of comparative advantage states that a country should specialise in producing goods

it can produce at a lower opportunity cost than others

it can produce in the largest quantity

The law of diminishing returns operates in the

short run, when at least one factor is fixed

long run, when all factors vary

Joint Admissions and Matriculation Board

JAMB UTME · Economics

40 exam-style questions, written to the Joint Admissions and Matriculation Board format and free to read. The answers are here too — what they do not tell you is how many you would get right with a clock running.

Sit this paper timed All JAMB UTME papers

1. The law of demand states that, other things being equal, as price rises

1. The law of demand states that, other things being equal, as price rises

2. The factor of production that receives interest as its reward is

3. The fundamental economic problem facing every society is

4. If a 10% fall in price causes a 30% rise in quantity demanded, demand is

5. A production possibility curve shifts outward when

6. An industry dominated by a few large firms whose decisions affect one another is

7. The record of a country's transactions with the rest of the world over a period is the

8. The main function of a central bank is to

9. Which of the following is a fixed cost for a bakery?

10. Gross Domestic Product measures

11. The theory of comparative advantage states that a country should specialise in producing goods

12. A firm's total cost is ₦48 000 when it produces 400 units. Its average cost is

13. Value Added Tax is an example of

14. The law of diminishing returns operates in the

15. If the cash reserve ratio is 20%, the credit multiplier is

16. Average cost is obtained by dividing total cost by

17. Inflation caused by a persistent rise in the cost of raw materials is called

18. The demand for a good with no close substitutes is likely to be

19. Which of the following is excluded when calculating national income to avoid double counting?

20. A trader raises the price of a good and finds that total revenue falls. Demand for the good is

21. The most important function of money is that it serves as

22. A distinguishing feature of a monopoly is

23. A tax that takes a higher percentage of income as income rises is

24. The law of diminishing marginal utility states that as more units of a good are consumed

25. A budget deficit occurs when

26. Opportunity cost is best defined as

27. Nigeria's heavy dependence on crude oil exports makes its economy vulnerable mainly to

28. The census figure that shows the number of people per square kilometre is the

29. Market equilibrium occurs where

30. A tariff is best described as

31. A rise in the price of rice, a substitute for garri, will cause the demand for garri to

32. Which group benefits most during a period of rapid inflation?

33. A country is said to be over-populated when its population is

34. A market with many sellers of identical products and free entry is

35. A major problem facing agriculture in Nigeria is

36. Localisation of an industry near its raw material source is most likely when the raw material is

37. A government price ceiling set below the equilibrium price will result in

38. Economic growth differs from economic development in that growth refers to

39. Which of the following causes a movement along a demand curve rather than a shift of it?

40. Import substitution industrialisation aims to

Reading these is not the same as sitting them.