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<h2 class="wp-block-heading" id="h-introduction"><strong>Introduction</strong></h2>
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<p>Economics is one of the core subjects in JAMB for students in the arts, social sciences, and management sciences. Unfortunately, many candidates lose marks because they don’t practice enough with past and likely questions.</p>
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<p>In this guide, we present <strong>likely JAMB Economics questions</strong> with detailed explanations. By working through them, you’ll understand key concepts like <strong>marginal cost, supply, demand, and production economics</strong>.</p>
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<h2 class="wp-block-heading"><strong>Practice Questions</strong></h2>
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<h3 class="wp-block-heading"><strong>Question 1 – Marginal Cost</strong></h3>
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<p>What is <strong>marginal cost</strong>?</p>
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<p>A. Total cost ÷ Total product<br>B. Total cost – Fixed cost<br>C. Average variable cost – Fixed cost<br>D. The addition to total cost resulting from production of one extra unit</p>
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<p> <strong>Answer:</strong> D. The addition to total cost resulting from production of one extra unit<br>Marginal means <em>extra</em>. It is the additional cost of producing one more unit of output.</p>
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<h3 class="wp-block-heading"><strong>Question 2 – Supply Curve</strong></h3>
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<p>The supply curve of a locally produced good may shift to the right if:</p>
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<p>A. The price of the commodity rises<br>B. Cost of production falls<br>C. Government bans importation<br>D. There is inflation</p>
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<p><strong>Answer:</strong> B. Cost of production falls<br> Lower production costs encourage producers to supply more at all price levels, shifting the supply curve rightward.</p>
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<h3 class="wp-block-heading"><strong>Question 3 – Law of Demand</strong></h3>
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<p>The law of demand states that:</p>
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<p>A. As income rises, demand rises<br>B. As price rises, demand falls<br>C. As supply increases, demand decreases<br>D. As demand falls, price rises</p>
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<p> <strong>Answer:</strong> B. As price rises, demand falls<br> There is an inverse relationship between price and quantity demanded, all things being equal.</p>
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<h3 class="wp-block-heading"><strong>Question 4 – Opportunity Cost</strong></h3>
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<p>Opportunity cost is:</p>
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<p>A. The cost of goods purchased with money<br>B. The alternative forgone when a choice is made<br>C. The sum of fixed and variable costs<br>D. The extra cost of production</p>
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<p><strong>Answer:</strong> B. The alternative forgone when a choice is made<br> It is the value of the next best alternative sacrificed.</p>
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<h3 class="wp-block-heading"><strong>Question 5 – Inflation</strong></h3>
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<p>Inflation is best described as:</p>
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<p>A. A persistent rise in the general price level<br>B. A sudden fall in the general price level<br>C. An increase in wages and salaries<br>D. A rise in demand and supply together</p>
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<p><strong>Answer:</strong> A. A persistent rise in the general price level<br> Inflation reduces purchasing power as goods and services become more expensive.</p>
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<h3 class="wp-block-heading"><strong>Question 6 – Public Finance</strong></h3>
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<p>Which of the following is a source of government revenue?</p>
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<p>A. Taxation<br>B. Inflation<br>C. Subsidies<br>D. Imports</p>
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<p> <strong>Answer:</strong> A. Taxation<br> Taxes are the main source of revenue used to finance government projects.</p>
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<h3 class="wp-block-heading"><strong>Question 7 – Elasticity of Demand</strong></h3>
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<p>When the percentage change in demand is greater than the percentage change in price, demand is said to be:</p>
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<p>A. Perfectly inelastic<br>B. Elastic<br>C. Unitary elastic<br>D. Inelastic</p>
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<p> <strong>Answer:</strong> B. Elastic<br> Elastic demand means consumers respond strongly to price changes.</p>
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<h3 class="wp-block-heading"><strong>Question 8 – Factors of Production</strong></h3>
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<p>Which of the following is <strong>not</strong> a factor of production?</p>
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<p>A. Land<br>B. Labour<br>C. Capital<br>D. Inflation</p>
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<p><strong>Answer:</strong> D. Inflation<br>The basic factors of production are land, labour, capital, and entrepreneurship. Inflation is not one.</p>
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<h3 class="wp-block-heading"><strong>Question 9 – Balance of Payment</strong></h3>
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<p>A surplus in the balance of payment occurs when:</p>
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<p>A. Imports exceed exports<br>B. Exports exceed imports<br>C. Government borrows externally<br>D. A country devalues its currency</p>
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<p><strong>Answer:</strong> B. Exports exceed imports<br>A surplus shows the country is selling more goods abroad than it is buying.</p>
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<h3 class="wp-block-heading"><strong>Question 10 – Money</strong></h3>
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<p>Which of the following is <strong>not</strong> a function of money?</p>
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<p>A. Medium of exchange<br>B. Store of value<br>C. Unit of account<br>D. Means of production</p>
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<p> <strong>Answer:</strong> D. Means of production<br>Money facilitates exchange, measures value, and stores value, but it is not itself a means of production.</p>
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<p>Watch the full tutorial here:<strong><a href="https://youtu.be/WWeahbCwwpY?si=iUU8DzM2z1Uau8zh"> <mark style="background-color:rgba(0, 0, 0, 0);color:#e71313" class="has-inline-color">FU</mark><mark style="background-color:rgba(0, 0, 0, 0);color:#ff4747" class="has-inline-color">L</mark></a><a href="https://youtu.be/iKxjRYT_5e0?si=1pgcIDZqZ7MBqtji"><mark style="background-color:rgba(0, 0, 0, 0);color:#ff4747" class="has-inline-color">L TUTORIAL</mark></a></strong></p>
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<h2 class="wp-block-heading"><strong>Conclusion</strong></h2>
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<p>JAMB Economics questions test your ability to apply core principles like <strong>demand, supply, cost concepts, and money</strong>. However, with regular practice, you will recognize patterns and answer confidently.</p>
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<p>In summary, focus on solving as many <strong>past and likely questions</strong> as possible, revise key definitions, and test yourself under exam conditions. This will give you the edge to score high in JAMB Economics.</p>
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<h2 class="wp-block-heading" id="h-keywords"><strong>Keywords</strong></h2>
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<ul class="wp-block-list"><!-- wp:list-item -->
<li>JAMB Economics likely questions and answers</li>
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<li>Economics past questions for JAMB 2025</li>
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<li>Law of demand and supply JAMB questions</li>
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<li>Inflation and public finance JAMB practice</li>
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<li>Opportunity cost explained with examples</li>
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