JAMB and WAEC Economics questions

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

1. Question 621· Theory of demand· JAMB

   Ostentatious goods bought to show off wealth are called

   • AVeblen goods
   • BGiffen goods
   • Cinferior goods
   • Dfree goods

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   Answer: A. Veblen goods

   Explanation and discussion

2. Question 622· Theory of demand· WAEC

   A change in demand caused by a rise in income shifts the demand curve

   • Aalong itself
   • Bto the left
   • Cto the right
   • Dto the origin

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   Answer: C. to the right

   Explanation and discussion

3. Question 623· Theory of demand· JAMB

   The price of a good rises from ₦10 to ₦12 and quantity demanded falls from 100 to 80 units. The price elasticity of demand is

   • A1 (unitary)
   • B0.5
   • C2
   • D0

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   Answer: A. 1 (unitary)

   Explanation and discussion

4. Question 624· Theory of demand· WAEC

   Effective demand is the desire for a commodity backed by

   • Aadvertisement
   • Bthe ability and willingness to pay
   • Cgovernment approval
   • Dproduction

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   Answer: B. the ability and willingness to pay

   Explanation and discussion

5. Question 625· Theory of demand· JAMB

   Cars and petrol are an example of goods in

   • Acompetitive demand
   • Bjoint (complementary) demand
   • Cderived demand
   • Dcomposite demand

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   Answer: B. joint (complementary) demand

   Explanation and discussion

6. Question 626· Theory of demand· WAEC

   A rise in the price of tea leads to a rise in the demand for coffee. Tea and coffee are

   • AGiffen goods
   • Bcomplements
   • Cinferior goods
   • Dsubstitutes

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   Answer: D. substitutes

   Explanation and discussion

7. Question 627· Theory of demand· JAMB

   The law of demand states that, other things being equal,

   • Ademand does not change with price
   • Bthe higher the price, the higher the quantity demanded
   • Cthe higher the price, the lower the quantity demanded
   • Dsupply creates its own demand

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   Answer: C. the higher the price, the lower the quantity demanded

   Explanation and discussion

8. Question 628· Theory of demand· WAEC

   A rise in the price of tea is likely to increase the demand for coffee because the two goods are

   • Asubstitutes
   • Bcomplements
   • Cinferior goods
   • Dgiffen goods

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   Answer: A. substitutes

   Explanation and discussion

9. Question 629· Theory of demand· WAEC

   An increase in the price of tea will increase the demand for

   • Atea
   • Bsugar
   • Ccups
   • Dcoffee

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   Answer: D. coffee

   Explanation and discussion

10. Question 630· Theory of demand· JAMB

    Price falls from ₦50 to ₦40 and total revenue rises. Demand is

    • Aunitary
    • Binelastic
    • Celastic
    • Dperfectly inelastic

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    Answer: C. elastic

    Explanation and discussion

11. Question 631· Theory of demand· JAMB

    Demand is unitary elastic when

    • Aelasticity is zero
    • Bquantity does not change
    • Cprice does not change
    • Dthe percentage change in quantity equals the percentage change in price

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    Answer: D. the percentage change in quantity equals the percentage change in price

    Explanation and discussion

12. Question 632· Theory of demand· WAEC

    As Musa's income rises, he buys less garri and more rice. For Musa, garri is

    • Aa luxury good
    • Ba normal good
    • Can inferior good
    • Da complementary good

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    Answer: C. an inferior good

    Explanation and discussion

13. Question 633· Theory of demand· WAEC

    A demand curve normally slopes downwards from left to right because

    • Acosts rise with output
    • Bsellers supply more at higher prices
    • Cincomes fall as prices rise
    • Dmore is bought at lower prices

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    Answer: D. more is bought at lower prices

    Explanation and discussion

14. Question 634· Theory of demand· JAMB

    Demand for a good is price elastic when

    • Aa small price change causes a large change in quantity demanded
    • Bquantity does not respond to price
    • Cprice and quantity change equally
    • Dthe good is a necessity

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    Answer: A. a small price change causes a large change in quantity demanded

    Explanation and discussion

15. Question 635· Theory of demand· WAEC

    The price elasticity of demand for a product is 0.4. A 10% rise in its price will reduce the quantity demanded by

    • A40%
    • B0.4%
    • C25%
    • D4%

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    Answer: D. 4%

    Explanation and discussion

16. Question 636· Theory of demand· JAMB

    When demand is price inelastic, a rise in price will

    • Amake demand perfectly elastic
    • Breduce total revenue
    • Cleave total revenue unchanged
    • Dincrease total revenue

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    Answer: D. increase total revenue

    Explanation and discussion

17. Question 637· Theory of demand· JAMB

    A good with a negative income elasticity of demand is

    • Aan inferior good
    • Ba normal good
    • Ca luxury good
    • Da Giffen good only

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    Answer: A. an inferior good

    Explanation and discussion

18. Question 638· Theory of demand· JAMB

    Cars and petrol are

    • Acomplementary goods
    • Bsubstitutes
    • Cinferior goods
    • DGiffen goods

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    Answer: A. complementary goods

    Explanation and discussion

19. Question 639· Theory of demand· WAEC

    The price of a good rises from ₦100 to ₦120 and quantity demanded falls from 50 to 45 units. The price elasticity of demand is

    • A0.5
    • B2
    • C1
    • D0.25

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    Answer: A. 0.5

    Explanation and discussion

20. Question 640· Theory of demand· WAEC

    Demand for salt is price-inelastic because

    • Ait has many substitutes
    • Bit is a luxury
    • Cit takes a small part of income and has few substitutes
    • Dit is durable

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    Answer: C. it takes a small part of income and has few substitutes

    Explanation and discussion