JAMB Economics questions

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

1. Question 141· International trade· JAMB

   A tariff is

   • Aa loan from abroad
   • Ba subsidy on exports
   • Ca ban on all trade
   • Da tax on imported goods

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2. Question 142· International trade· JAMB

   A country devalues its currency mainly to

   • Amake its exports cheaper and its imports dearer
   • Bmake imports cheaper
   • Cincrease inflation deliberately
   • Dreduce exports

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3. Question 143· International trade· JAMB

   The balance of payments current account includes

   • Aonly loans
   • Btrade in goods and services and income transfers
   • Conly investment
   • Donly gold

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4. Question 144· International trade· JAMB

   The balance of trade is the difference between a country's

   • Atotal income and expenditure
   • Bvisible exports and visible imports
   • Ccapital inflows and outflows
   • Dinvisible exports and imports

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5. Question 145· International trade· JAMB

   The theory of comparative advantage is associated with

   • AThomas Malthus
   • BAdam Smith
   • CDavid Ricardo
   • DJ. M. Keynes

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6. Question 146· International trade· JAMB

   The current account of the balance of payments includes

   • Aforeign direct investment only
   • Bloans from abroad only
   • Cvisible and invisible trade
   • Dchanges in reserves only

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7. Question 147· International trade· JAMB

   The African Continental Free Trade Area (AfCFTA) aims to

   • Aadopt one currency at once
   • Bban trade outside Africa
   • Ccreate a single market for goods and services across Africa
   • Dfix oil prices

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8. Question 148· International trade· JAMB

   A country's index of export prices is 120 and its index of import prices is 100. Its terms of trade are

   • A120 (favourable)
   • B83 (unfavourable)
   • C100 (neutral)
   • D20

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9. Question 149· Market structures· JAMB

   A cartel is

   • Aa single firm
   • Ba group of firms that agree to fix prices or output
   • Ca government agency
   • Da trade union

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10. Question 150· Market structures· JAMB

    A market with a single seller of a product that has no close substitutes is

    • Amonopolistic competition
    • Bperfect competition
    • Can oligopoly
    • Da monopoly

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11. Question 151· Market structures· JAMB

    In oligopoly, a kinked demand curve helps to explain

    • Aperfect competition
    • Bprice rigidity
    • Cfree entry
    • Dzero profits

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12. Question 152· Market structures· JAMB

    Barriers to entry that protect a monopoly include

    • Aidentical products
    • Bmany small firms
    • Cfree information
    • Dpatents and control of raw materials

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13. Question 153· Market structures· JAMB

    A firm in perfect competition is a price taker because

    • Athe government fixes the price
    • Bthere are many firms selling identical products
    • Cit is the only seller
    • Dit advertises heavily

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14. Question 154· Market structures· JAMB

    In perfect competition, the demand curve facing a single firm is

    • Avertical
    • Bdownward sloping
    • Cperfectly elastic (horizontal)
    • Dupward sloping

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15. Question 155· Market structures· JAMB

    In the long run, firms in perfect competition earn

    • Amonopoly profit
    • Bsupernormal profit
    • Closses
    • Donly normal profit

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16. Question 156· Market structures· JAMB

    A monopolist's demand curve is

    • Ahorizontal
    • Bperfectly elastic
    • Cvertical
    • Dthe market demand curve, downward sloping

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17. Question 157· Market structures· JAMB

    Monopsony is a market with

    • Aone buyer
    • Bone seller
    • Ctwo sellers
    • Dmany buyers

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18. Question 158· Market structures· JAMB

    Which of the following is a barrier to entry into an industry?

    • Afree information
    • Bmany small firms
    • Cpatents and licences
    • Dlow start-up costs

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19. Question 159· Market structures· JAMB

    Monopolistic competition is a market with

    • Aone seller
    • Bmany firms selling differentiated products
    • Ca few sellers of identical products
    • Done buyer

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20. Question 160· Market structures· JAMB

    A market dominated by a few large sellers, such as the mobile phone network market in Nigeria, is

    • Aperfect competition
    • Ba monopoly
    • Can oligopoly
    • Da monopsony

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