JAMB and WAEC Economics questions: Economic systems

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

1. Question 1· Economic systems· WAEC

   In a planned economy, what to produce is decided by the

   • Aprice mechanism
   • Bconsumers alone
   • Ccentral planning authority
   • Dmiddlemen

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   Explanation and discussion

2. Question 2· Economic systems· JAMB

   A traditional economy relies mainly on

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

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3. Question 3· Economic systems· JAMB

   In a capitalist economy, resources are allocated mainly through

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

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4. Question 4· Economic systems· WAEC

   Resources are allocated mainly by the price mechanism in a

   • Afree-market economy
   • Bcommand economy
   • Ctraditional economy
   • Dbarter economy

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5. Question 5· 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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6. Question 6· 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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7. Question 7· Economic systems· WAEC

   In a capitalist economy, the means of production are owned mainly by

   • Athe state
   • Btrade unions
   • Cforeign governments
   • Dprivate individuals

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8. Question 8· 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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9. Question 9· 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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10. Question 10· 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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11. Question 11· Economic systems· JAMB

    A production possibility curve that shifts outwards shows

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

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12. Question 12· Economic systems· WAEC

    A major disadvantage of a command economy is

    • Atoo much advertising
    • Btoo much competition
    • Clittle consumer choice and weak incentives
    • Dexcessive private profit

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13. Question 13· Economic systems· WAEC

    In a capitalist economy, the main decisions on what to produce are taken through

    • Acentral planning
    • Bthe price mechanism
    • Creligious leaders
    • Dthe military

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14. Question 14· Economic systems· WAEC

    A disadvantage of a planned economy is

    • Aexcessive advertising
    • Btoo much competition
    • Clack of consumer choice and incentives
    • Dno government role

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15. Question 15· 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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16. Question 16· Economic systems· WAEC

    Nigeria is described as a mixed economy because

    • Aboth government and private firms produce goods and services
    • Bonly private firms exist
    • Call firms are owned by the state
    • Dtrade is carried out by barter

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17. Question 17· Economic systems· WAEC

    An economy in which both the government and private individuals take economic decisions is a

    • Acommand economy
    • Bsubsistence economy
    • Cmixed economy
    • Dtraditional economy

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18. Question 18· Economic systems· WAEC

    The price mechanism is the main feature of

    • Aa military economy
    • Ba planned economy
    • Ca traditional economy only
    • Da free market economy

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19. Question 19· Economic systems· JAMB

    Consumer sovereignty is a feature of

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

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20. Question 20· 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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    Explanation and discussion