This is for UTME Candidates looking for JAMB Economics Questions and Answers 2026. 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 2026. 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 YouTube. (Subscribe to the Channel)
Table of Contents
JAMB Economics Questions and Answers 2026
The following JAMB Economics Questions and Answers 2026 are the questions you should expect in your Economics paper in 2026 UTME, together with their answers. You can click on the answer keys to get explanations.
UTME Economics 2026
Choose the correct option. Tap the blue button for answer & explanation.
1. The fundamental problem of economics is
Explanation: Scarcity forces choice – the foundation of all economic problems.
2. A movement along a demand curve is caused by
Explanation: Only price change causes movement (extension/contraction). Others shift the curve.
3. Demand for money is an example of
Explanation: Money is demanded to buy goods and services – hence derived.
4. When marginal product is negative, total product is
Explanation: Stage III of production: adding more variable factor reduces total output.
5. Fixed cost is incurred even when a firm
Explanation: Rent, insurance, salaries – paid whether production occurs or not.
6. A perfectly competitive firm maximizes profit where
Explanation: Profit-maximizing rule for all firms: produce where Marginal Cost = Marginal Revenue.
7. The main objective of OPEC is to
Explanation: OPEC coordinates policies to ensure stable prices for producers and consumers.
8. Inflation caused by excess demand is
Explanation: Too much money chasing too few goods.
9. The Central Bank controls money supply through all EXCEPT
Explanation: Fiscal policy is government’s tool (taxes & spending), not CBN.
10. A country has comparative advantage when it produces at
Explanation: David Ricardo’s theory – trade based on lower opportunity cost.
11. Progressive tax takes a higher percentage from
Explanation: Example: PAYE in Nigeria – higher earners pay higher rates.
12. Malthusian theory states that population grows
Explanation: Thomas Malthus (1798) – population outstrips food supply.
13. Currency loses value in foreign exchange market is called
Explanation: Floating rate: Naira depreciates when demand falls.
14. Balance of payments deficit can be corrected by
Explanation: All improve current account balance.
15. GDP at factor cost = GDP at market price minus
Explanation: Factor cost removes market distortions (taxes) and adds subsidies.
16. A major demerit of specialization is
Explanation: Workers get bored doing the same task repeatedly.
17. Demand for labour is
Explanation: Labour is needed to produce goods/services.
18. Net exports =
Explanation: Exports minus Imports.
19. Nigeria’s major source of revenue is
Explanation: Over 70% from oil (NNPC remittances).
20. Nigeria’s exchange rate system since 2016 is
Explanation: CBN intervenes → managed float.
21. The price mechanism allocates resources through
Explanation: Invisible hand in market economy.
22. Cross elasticity of demand measures responsiveness to
Explanation: Used to classify substitutes/complements.
23. A monopoly enjoys
Explanation: Due to barriers to entry and price-making power.
24. The law of diminishing returns applies when
Explanation: Short-run production (e.g., fixed land, variable labour).
25. The main function of NNPC is
Explanation: Full value chain in oil sector.
26. External economies of scale are enjoyed when
Explanation: Benefits from industry growth (e.g., skilled labour pool).
27. The largest component of Nigeria’s GDP is
Explanation: Over 50% – trade, telecom, finance, etc.
28. Structural unemployment occurs due to
Explanation: Skills mismatch (e.g., blacksmiths in modern era).
29. The IMF provides loans for
Explanation: Multiple facilities (SBA, PRGT, etc.).
30. A regressive tax takes a higher proportion from
Explanation: Example: VAT – same rate, but bigger burden on poor.
31. The primary sector includes
Explanation: Extraction of raw materials (agriculture, mining).
32. The liquidity ratio is fixed by
Explanation: CBN sets minimum cash reserve and liquidity ratios.
33. A debenture is a
Explanation: Long-term loan to company with fixed interest.
34. The term of trade is
Explanation: Measures export earning power per unit of imports.
35. Capital formation increases when
Explanation: Savings provide funds for investment.
36. The World Bank is located in
Explanation: Headquarters in Washington D.C., USA.
37. A budget deficit is financed by
Explanation: Domestic (bonds) or external borrowing.
38. The minimum wage is fixed by
Explanation: Through National Salaries, Incomes and Wages Commission.
39. Localization of industries occurs when firms
Explanation: Due to external economies (e.g., Kano groundnut factories).
40. The economic system where means of production are privately owned is
Explanation: Private ownership, profit motive, market forces.
Read Also: 20 Most Repeated Topics in JAMB Economics Exams 2026
Conclusion
So here you have the 40 Economics Questions you can expect to see in your 2026 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. JAMB is a very serious examination and a lot depend on it. You will answer 40 questions in JAMB Economics 2026 within 26 minutes. So it’s important that you pay attention to the information revealed on this page.
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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