JAMB and WAEC Economics questions

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

1. Question 541· The labour market· WAEC

   Mobility of labour refers to

   • Athe number of workers
   • Bthe ease with which workers change jobs or places
   • Cthe wage rate
   • Dtrade union membership

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   Answer: B. the ease with which workers change jobs or places

   Explanation and discussion

2. Question 542· The labour market· JAMB

   The main aim of trade unions is to

   • Acollect taxes
   • Bfix prices of goods
   • Cmanage companies
   • Dimprove the wages and working conditions of members

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   Answer: D. improve the wages and working conditions of members

   Explanation and discussion

3. Question 543· The labour market· JAMB

   Cyclical unemployment is caused by

   • Atechnological change
   • Ba fall in aggregate demand during recession
   • Cbad weather
   • Dworkers changing jobs

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   Answer: B. a fall in aggregate demand during recession

   Explanation and discussion

4. Question 544· The labour market· JAMB

   In a free labour market, wages are determined by

   • Athe price of land
   • Bthe government alone
   • Cthe trade unions alone
   • Dthe demand for and supply of labour

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   Answer: D. the demand for and supply of labour

   Explanation and discussion

5. Question 545· The labour market· JAMB

   Disguised unemployment, common in traditional agriculture, occurs when

   • Aworkers have the wrong skills
   • Bworkers are between jobs
   • Cmore people work on a task than are needed, so some add nothing to output
   • Dwork is seasonal

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   Answer: C. more people work on a task than are needed, so some add nothing to output

   Explanation and discussion

6. Question 546· The labour market· WAEC

   Trade unions try to raise wages through

   • Acollective bargaining
   • Bprice control
   • Cprinting money
   • Dexporting goods

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   Answer: A. collective bargaining

   Explanation and discussion

7. Question 547· The labour market· WAEC

   Unemployment caused by a fall in demand in the economy as a whole is

   • Africtional unemployment
   • Bvoluntary unemployment
   • Cseasonal unemployment
   • Dcyclical unemployment

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   Answer: D. cyclical unemployment

   Explanation and discussion

8. Question 548· The labour market· JAMB

   Unemployment caused by a general downturn (recession) in the economy is

   • Acyclical unemployment
   • Bfrictional unemployment
   • Cseasonal unemployment
   • Dvoluntary unemployment

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   Answer: A. cyclical unemployment

   Explanation and discussion

9. Question 549· Theory of consumer behaviour· WAEC

   Consumer surplus is the

   • Adifference between what a consumer is willing to pay and what he actually pays
   • Btax paid
   • Cproducer's profit
   • Dtotal expenditure

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   Answer: A. difference between what a consumer is willing to pay and what he actually pays

   Explanation and discussion

10. Question 550· Theory of consumer behaviour· JAMB

    If a consumer's income increases while prices stay the same, the budget line

    • Abecomes steeper only
    • Bshifts inwards
    • Cshifts outwards parallel to the original
    • Ddoes not change

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    Answer: C. shifts outwards parallel to the original

    Explanation and discussion

11. Question 551· Theory of consumer behaviour· WAEC

    MU of the last unit of bread is 20 and its price is ₦10. MU of the last unit of milk is 30 at ₦20. To maximise satisfaction the consumer should buy

    • Aneither good
    • Bmore milk and less bread
    • Cthe same amounts
    • Dmore bread and less milk

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    Answer: D. more bread and less milk

    Explanation and discussion

12. Question 552· Theory of consumer behaviour· WAEC

    Total utility is maximum when marginal utility is

    • Arising
    • Bmaximum
    • Cnegative
    • Dzero

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    Answer: D. zero

    Explanation and discussion

13. Question 553· Theory of consumer behaviour· JAMB

    Consumer surplus is the difference between

    • Awhat a consumer is willing to pay and what he actually pays
    • Btotal and marginal utility
    • Cincome and expenditure
    • Dprice and cost of production

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    Answer: A. what a consumer is willing to pay and what he actually pays

    Explanation and discussion

14. Question 554· Theory of consumer behaviour· WAEC

    A consumer gets more satisfaction per naira from rice than from beans. To maximise satisfaction, she should

    • Abuy more beans and less rice
    • Bbuy more rice and less beans
    • Cstop buying rice
    • Dbuy equal amounts

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    Answer: B. buy more rice and less beans

    Explanation and discussion

15. Question 555· Theory of consumer behaviour· JAMB

    The marginal utilities of the first three oranges eaten are 10, 8 and 6 utils. Find the total utility of the three oranges.

    • A30 utils
    • B6 utils
    • C8 utils
    • D24 utils

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    Answer: D. 24 utils

    Explanation and discussion

16. Question 556· Theory of consumer behaviour· JAMB

    A consumer buying two goods, A and B, is in equilibrium when

    • AMUa/Pa = MUb/Pb
    • BMUa = MUb
    • CPa = Pb
    • Dtotal utility is falling

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    Answer: A. MUa/Pa = MUb/Pb

    Explanation and discussion

17. Question 557· Theory of consumer behaviour· JAMB

    An indifference curve shows

    • Acombinations of two goods that give a consumer equal satisfaction
    • Bthe prices of two goods
    • Cthe consumer's income
    • Dthe cost of production

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    Answer: A. combinations of two goods that give a consumer equal satisfaction

    Explanation and discussion

18. Question 558· Theory of consumer behaviour· WAEC

    Musa enjoys his first bottle of water after a long walk more than his third. This illustrates

    • Aopportunity cost
    • Bconsumer surplus
    • Cthe law of supply
    • Ddiminishing marginal utility

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    Answer: D. diminishing marginal utility

    Explanation and discussion

19. Question 559· Theory of consumer behaviour· JAMB

    The total utility from 3 units of a good is 30 utils and from 4 units is 36 utils. Find the marginal utility of the 4th unit.

    • A66 utils
    • B36 utils
    • C9 utils
    • D6 utils

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    Answer: D. 6 utils

    Explanation and discussion

20. Question 560· Theory of consumer behaviour· JAMB

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

    • Athe consumer's income rises
    • Btotal satisfaction falls immediately
    • Cthe price of the good falls
    • Dthe additional satisfaction from each extra unit falls

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    Answer: D. the additional satisfaction from each extra unit falls

    Explanation and discussion