JAMB Economics questions

378 questions with answers and explanations. Tap an option to check yourself.

1. Question 81· Factors of production· JAMB

   The reward for entrepreneurship is

   • Arent
   • Bprofit
   • Cinterest
   • Dwages

   Show answer

   Explanation and discussion

2. Question 82· Factors of production· JAMB

   The efficiency of labour depends greatly on

   • Athe size of the country
   • Beducation and training
   • Cthe price of land
   • Dthe exchange rate

   Show answer

   Explanation and discussion

3. Question 83· Factors of production· JAMB

   The geographical mobility of labour is often reduced by

   • Afamily and social ties
   • Btraining
   • Chigh wages elsewhere
   • Dgood transport

   Show answer

   Explanation and discussion

4. Question 84· Factors of production· JAMB

   The entrepreneur's main role is to

   • Aprovide land
   • Borganise the other factors and bear the risk of the business
   • Csupply labour only
   • Dlend money to the bank

   Show answer

   Explanation and discussion

5. Question 85· Factors of production· JAMB

   Capital as a factor of production refers to

   • Aman-made goods used to produce other goods
   • Bmoney kept in a bank
   • Cnatural resources
   • Dhuman effort

   Show answer

   Explanation and discussion

6. Question 86· Factors of production· JAMB

   Occupational mobility of labour refers to the ease with which workers

   • Achange employers in the same job
   • Bmove from one place to another
   • Ctravel abroad
   • Dmove from one job to another

   Show answer

   Explanation and discussion

7. Question 87· Factors of production· JAMB

   Entrepreneurship involves

   • Aonly supplying labour
   • Bonly providing land
   • Conly lending money
   • Dorganising other factors and bearing risk

   Show answer

   Explanation and discussion

8. Question 88· Factors of production· JAMB

   The supply of labour in a country depends on

   • Athe size and age structure of the population
   • Bthe price of land
   • Cthe rate of interest
   • Dthe exchange rate

   Show answer

   Explanation and discussion

9. Question 89· Financial institutions· JAMB

   When the Central Bank raises the monetary policy rate, it usually

   • Aincreases money supply
   • Bmakes borrowing cheaper
   • Cmakes borrowing dearer and reduces money supply
   • Dhas no effect on banks

   Show answer

   Explanation and discussion

10. Question 90· Financial institutions· JAMB

    The capital market differs from the money market because the capital market deals in

    • Acoins and notes
    • Bshort-term funds only
    • Cforeign currency only
    • Dlong-term funds

    Show answer

    Explanation and discussion

11. Question 91· Financial institutions· JAMB

    A main function of commercial banks is to

    • Aaccept deposits and grant loans
    • Bissue currency
    • Cfix exchange rates
    • Dcollect taxes

    Show answer

    Explanation and discussion

12. Question 92· Financial institutions· JAMB

    Mortgage institutions provide loans mainly for

    • Abuying shares
    • Bimporting goods
    • Cpaying salaries
    • Dbuying or building houses

    Show answer

    Explanation and discussion

13. Question 93· Financial institutions· JAMB

    The money market deals in

    • Aforeign land
    • Blong-term shares only
    • Cshort-term funds
    • Dgoods

    Show answer

    Explanation and discussion

14. Question 94· Financial institutions· JAMB

    To reduce the money supply, the Central Bank may

    • Aprint more money
    • Blower the monetary policy rate
    • Creduce the cash reserve ratio
    • Dsell government securities in the open market

    Show answer

    Explanation and discussion

15. Question 95· Financial institutions· JAMB

    Insurance companies are part of the financial system because they

    • Amobilise savings through premiums and invest them
    • Bprint money
    • Cfix exchange rates
    • Dcollect taxes

    Show answer

    Explanation and discussion

16. Question 96· Financial institutions· JAMB

    The capital market deals in

    • Aconsumer goods
    • Bshort-term loans only
    • Cforeign exchange only
    • Dlong-term funds

    Show answer

    Explanation and discussion

17. Question 97· Financial institutions· JAMB

    If the cash reserve ratio is 20%, a new deposit of ₦10,000 can create total deposits of up to

    • A₦12,000
    • B₦8,000
    • C₦50,000
    • D₦200,000

    Show answer

    Explanation and discussion

18. Question 98· Financial institutions· JAMB

    A commercial bank receives a deposit of ₦10,000 and the cash reserve ratio is 10%. The maximum total deposits that can be created in the banking system is

    • A₦1,000
    • B₦90,000
    • C₦10,000
    • D₦100,000

    Show answer

    Explanation and discussion

19. Question 99· Financial institutions· JAMB

    The Nigeria Deposit Insurance Corporation (NDIC) protects

    • Abank depositors
    • Bshareholders
    • Cborrowers
    • Dimporters

    Show answer

    Explanation and discussion

20. Question 100· Financial institutions· JAMB

    Development banks provide mainly

    • Along-term loans for agriculture and industry
    • Boverdrafts to individuals
    • Cforeign exchange
    • Dinsurance

    Show answer

    Explanation and discussion