¨This is for UTME Candidates looking for JAMB Economics Questions and Answers 2025. Especially for those aspiring for Economics, Bus Admin, and other social sciences and art courses requiring Economics. Here you will get genuine Economics JAMB questions and answers for 2025. Your duty now is to read through them as many times as possible and get ready to smash your Economics paper. Remember to use the comments sections if you have questions, and don’t forget to join our Free Online Tutorial Classes on Facebook.
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What are JAMB Economics Questions and Answers 2025
JAMB Economics Questions and Answers 2025 are the questions you should expect in your Economics paper in 2025 UTME, together with their answers.
It is very important that every candidate preparing to sit for Economics in the forthcoming 2025 JAMB UTME examination should catch a glimpse of these questions.
In so doing, they will know what to expect in the JAMB CBT hall. Knowing exactly what to expect will boost their confidence and guarantee them a very high score.
JAMB Economics Questions and Answers 2025 Revealed!
On this page, we shall reveal JAMB Economics Questions and Answers 2025 for all candidates taking the Economics paper.
How lucky you are to stumble upon this important page!
The questions are genuine and the answers are accurate, and all are a product of our passion to see you excel in your JAMB and gain admission into your dream institution.
In the following sections, you will read the Economics questions you are to expect in your 2025 JAMB exam as well as their answers. You can use the comments section if you still need clarification over some of the questions. We will give you a more detailed explanation.
JAMB is a very serious examination and a lot depend on it. You will answer 40 questions in JAMB Economics 2025 within 26 minutes. So it’s important that you pay attention to the information revealed on this page.
JAMB Economics Questions and Answers 2025 [Numbers 1 – 10]
1. Scarcity in economics means that
A. human wants are limitless
B. the economy has very few resources.
C. the economy can scarcely produce anything.
D. resources are limited
2. Air is essential to life but commands no price! Diamond is not essential to life but commands a high price! This is the paradox of
A. thrift B. abundance
C. value D. scarcity
3. Economies of scale operate only when
A. marginal cost is falling with input
B. average cost is falling with input
C. fixed cost is variable
D. variable cost is less than fixed cost
4. Efficiency in production involves
A. reducing the size of workforce
B. producing a given output with the lowest cost combination of factors of production
C. adoption of capital intensive technology
D. increasing the quantity of the fixed factor of production
5. An effect of inflation is that it………
A. discourages trade by barter
B. favours debtors at the expense of creditors
C. increases the real income of salary earners
D. increases the value of a country’s exports
6. The migration of young people from rural areas in Nigeria should help to raise the
A. standard of living in the urban areas
B. total productivity of labour in the rural areas
C. marginal productivity of labour in the rural areas
D. marginal productivity of labour in the urban areas
7. A modern corporation is owned by
A. debenture holders
B. ordinary shareholders
C. preference shareholders
D. creditors
8. One of the most important factors that should be considered in the location of an industry is
A. nearness to the financial centre
B. assured patronage by government functionaries
C. availability of inputs and market
D. availability of adequate security
9. What is the term used to describe a policy aimed at promoting the local production of goods which are usually imported
A. deregulation
B. import substitution
C. tariff reduction
D. backward integration
10. Progressive tax structure is designed to
A. take more from the income of the poor
B. take more from the income of the rich
C. take equal proportion of income from both the rich and the poor
D. reduce the problems emanating from tax imposition
Answers to Economics Question Number 1 – 10
1.D 2.C 3.B 4.B 5.B 6.D 7.B 8.C 9.B 10.B
JAMB Economics Questions and Answers 2025 [Numbers 11 – 20]
11. The use of legally permissible means to reduce tax liabilities is known as tax
A. evasion B. avoidance
C. relief D. exemption
12. The greatest proportion of government revenue in Nigeria comes from
A. export of raw materials
B. income taxes on individuals and businesses
C. custom duties and excise taxes
D. loans and grants from industrially advanced countries
13. Privatization of government-owned companies means the
A. relinquishing of government’s equity participation to private individuals
B. recapitalization of government-owned companies
C. joint participation of government and private individuals
D. commercialization and deregulation of the economy
14. Gains from trade depend on
A. comparative advantage
B. absolute advantage
C. distributive cost advantage
D. absolute cost advantage
15. A country’s import price index by 1995 was 50 and her index of export price was 70, calculate the terms of trade
A. 20% B. 71%
C. 120% D. 140%
16. Economic goods are termed scarce goods when
A. not available in sufficient quantities to satisfy all wants for them
B. not produced in sufficient quantities to satisfy the effective demand for them
C. of high quality
D. of primary importance in satisfying needs of a society
17. The demand of a commodity is affected by
A. the consumer of the commodity
B. the price of the commodity alone
C. the price of the commodity, income of the consumer, prices of other commodities and preferences of the consumer
D. government policy
18. The demand curve can be derived from
A. the total utility curve
B. the cardinal utility theory
C. the marginal utility curve
D. all of the above
19. Which of the following statements is true of the effect of changes in demand and supply on price?
A. A decrease in supply will lead to the fall in price and a fall in the quantity bought and sold.
B. An increase in demand will lead to a fall in price and in the quantity bought and sold.
C. A decrease in demand will lead to a rise in price and in the quantity bought and sold.
D. An in increase in supply will lead to a fall in price and a rise in the quantity bought and sold.
20. The basic idea behind the brand differentiation under an imperfect market arrangement is to
A. stimulate demand for rival product
B. create demand for the particular product
C. enable the product to penetrate the market
D. enable the product to compete with other products
Answers to Economics Question Number 11 – 20
11.B 12.C 13.A 14.A 15.D 16.A 17.C 18.C 19.D 20.B
JAMB Economics Questions and Answers 2025 [Numbers 21 – 30]
21. It is important to measure the national income of a country because
A. it is a major determinant of the standard of living
B. it reveals hazards of development like pollution and congestion
C. it reveals the distribution of the citizens’ saving in foreign bank
D. its size determines the extent of political stability
22. Adding government and foreign sector to the circular flow of income and product
A. does not disturb the basic qualities of the circular flow
B. does alter the basic qualities of the circular flow
C. is the basis for understanding the circular flow
D. disturbs the understanding of the circular flow
23. Consumption plus investment plus government purchases plus net exports make up
A. national income
B. net national income
C. net national product
D. national product
24. The role of the Central Bank in the economic development of Nigeria is to
A. use cheques and bank drafts to facilitate business transactions
B. maintain a stable price system
C. give short- and medium-term loans to the public
D. give financial and technical advice to customers
25. The average tax rate is defined as
A. total tax rate less the marginal tax rate
B. the tax rate which applies to additional value of income
C. the ratio of the total taxes paid to total income
D. marginal tax rate for being progressive
26. Which of the following is a good example of invisible item, on balance of payments account?
A. Shipping and aviation
B. Exports and imports
C. Merchandise
D. Bullion
27. Economic decisions are taken
A. at the margin
B. at once as consumption goes on
C. at the beginning of events
D. At the level of the household
28. If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of
A. increasing returns to the variable factor
B. fixed cost less its variable cost.
C. constant returns to the variable factor.
D. external economies of scale.
29. Short run period in production is a period too short for a firm to be able to change its
A. scale of operation.
B. total revenue.
C. variable inputs.
D. total outputs.
30. A firm’s shut-down point is reached when the average revenue fails to cover the
A. marginal cost.
B. average fixed cost.
C. average total cost.
D. average variable cost.
Answers to Economics Question Number 21 – 30
21.A 22.D 23.A 24.B 25.C 26.A 27.D 28.A 29.A 30.A
JAMB Economics Questions and Answers 2025 [Numbers 31 – 40]
31. The need to construct a scale of preference is necessitated by
A. the need to satisfy wants
B. scarcity and the need for choice
C. scarcity of resources
D. non-availability of factors of production
32. If at 10k per Kg, 1000 Kg of yam were purchased and at 5k per Kg, 1500 Kg were purchased, the resultant point elasticity of demand is
A. 0.33 B. 0.0001
C. 1.00 D. 10.00
33. If a wage increase is granted to a cement manufacturer’s worker, the supply curve of cement will
A. move to the right
B. move to the left
C. move to the opposite side
D. move to nowhere
34. The elasticity of supply of perishable goods is
A. inelastic B. elastic
C. unitary D. zero
35. The average product of labour in a given period is obtained by dividing the
A. the number of workers by the total product
B. total product by the number of hours actually worked
C. change in total product by the change in the total number of workers
D. total product by the number of workers
36. A possible factor which limits the extent of growth of a firm is the
A. existence of a monopoly
B. bureaucratic delays in decision-making
C. use of by-products
D. unwillingness to share ownership and control
37. A major difference between a state-owned enterprise and a private enterprise is that the former
A. is not expected to cover its cost of production while the latter is
B. is not always expected to maximize profits while the latter is
C. has shareholders while the latter does not
D. has a board of directors while the latter does not
38. The main handicap of sole proprietorship is
A. limited liability
B. lack of technical know-how
C. low profit margin
D. inadequate capital
39. Taxes and government expenditures are instruments of
A. monetary policy
B. tax policy
C. economic policy
D. fiscal policy
40. If C stands for consumption, I for investment, X for exports, and M for imports, then national income is
A. C + I + X + M
B. C + I + X – M
C. Ç + I – X + M
D. C + I + X
Answers to Economics Question Number 31 – 40
31.B 32.C 33.A 34.A 35.D 36.D 37.B 38.D 39.D 40.B
Read Also: 20 Most Repeated Topics in JAMB Economics Exams 2025
Conclusion
So here you have the 40 Economics Questions you can expect to see in your 2025 JAMB examination. Read them again and again. Ensure that you get very familiar with each of them to the extent that you can readily recognize them any time.
Remember that you can ask for more detailed explanation to any of the above questions in case you don’t fully understand it. Don’t be shy, just scroll down and use the comments section. Drop your questions and expect comprehensive answers as soon as possible.
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