JAMB Economics questions: Economic systems

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

1. Question 1· Economic systems· JAMB

   A traditional economy relies mainly on

   • Acentral planning
   • Bcustom and tradition
   • Cstock markets
   • Dcomputers

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2. Question 2· Economic systems· JAMB

   In a capitalist economy, resources are allocated mainly through

   • Areligious leaders
   • Bgovernment directives
   • Ctradition
   • Dthe price mechanism

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3. Question 3· Economic systems· JAMB

   Commercialisation of public enterprises means they

   • Aare sold to private owners
   • Bare run on business lines to cover costs
   • Care closed
   • Dare made free

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4. Question 4· Economic systems· JAMB

   Privatisation means

   • Anationalising private firms
   • Btransferring ownership of public enterprises to private investors
   • Cfixing prices of goods
   • Dbanning foreign firms

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5. Question 5· Economic systems· JAMB

   A feature of a capitalist economy is

   • Acentral planning of all output
   • Bthe profit motive and private enterprise
   • Cstate ownership of all land
   • Dabsence of competition

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6. Question 6· Economic systems· JAMB

   Under socialism, the major means of production are owned by

   • Aforeign companies
   • Bprivate individuals
   • Cthe state
   • Dtraditional rulers

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7. Question 7· Economic systems· JAMB

   The questions 'what to produce, how to produce and for whom to produce' are

   • Aquestions about foreign trade only
   • Bproblems found only in socialist economies
   • Cquestions answered only by the central bank
   • Dthe basic questions every economy must answer

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8. Question 8· Economic systems· JAMB

   A production possibility curve that shifts outwards shows

   • Aunemployment
   • Beconomic growth
   • Cinflation
   • Da fall in resources

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9. Question 9· Economic systems· JAMB

   A mixed economy is one in which

   • Aonly the government owns resources
   • Bboth the private sector and the government own and control resources
   • Conly individuals own resources
   • Dthere is no money

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10. Question 10· Economic systems· JAMB

    Consumer sovereignty is a feature of

    • Aa command economy
    • Ba market economy
    • Ca traditional economy only
    • Dfeudalism

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11. Question 11· Economic systems· JAMB

    In a traditional economy, what to produce is decided mainly by

    • Acentral planners
    • Bthe price mechanism
    • Ccustom and tradition
    • Dforeign investors

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12. Question 12· Economic systems· JAMB

    Consumer sovereignty in a free market economy means that

    • Aprices are fixed by law
    • Bthe government decides what consumers buy
    • Cconsumers own all factories
    • Dconsumers decide what is produced through their spending

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13. Question 13· Economic systems· JAMB

    In a command economy, prices are set mainly by

    • Athe government
    • Bmarket forces
    • Cconsumers' votes
    • Dtrade unions

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14. Question 14· Economic systems· JAMB

    A major disadvantage of a command (planned) economy is

    • Atoo much competition
    • Blimited consumer choice
    • Cexcessive advertising
    • Dhigh profits for individuals

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15. Question 15· Economic systems· JAMB

    In a command economy, resources are allocated mainly by

    • Agovernment planning
    • Bconsumer demand
    • Cprices
    • Dtradition

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    Explanation and discussion