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JAMB Economics 2024 past questions and answers

3 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 9

Theory of Demand

The sloping downward of the demand curve implies that

  1. A.an increase in price leads to an increase in quantity demanded
  2. B.an increase in price leaves the quantity demanded unchanged
  3. C.a decrease in price leads to a decrease in quantity demanded
  4. D.a decrease in price leads to an increase in quantity demanded
Show the answer and explanation

Answer: D (a decrease in price leads to an increase in quantity demanded)

Explanation

A downward-sloping demand curve shows the inverse relationship between price and quantity demanded: when price falls, people buy more.

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Question 16

Theory of Costs and Revenue

From the graph above, R represents

Diagram for this question
  1. A.marginal cost
  2. B.total cost
  3. C.variable cost
  4. D.fixed cost
Show the answer and explanation

Answer: B (total cost)

Explanation

T is the horizontal fixed-cost line and M starts from zero, so M is variable cost. R starts at the fixed-cost level and runs parallel above M, so R is total cost (fixed cost + variable cost).

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Question 28

International Trade

Comparative cost doctrine of international trade means specialization in production

  1. A.according to absolute cost advantage
  2. B.according to absolute cost disadvantage
  3. C.according to comparative cost disadvantage
  4. D.according to comparative cost advantage
Show the answer and explanation

Answer: D (according to comparative cost advantage)

Explanation

The comparative cost theory says each country should specialise in the goods it produces at the lowest opportunity cost, i.e. where it has a comparative cost advantage.

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