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JAMB UTME Economics 2006 past questions and answers

This 2006 JAMB UTME Economics set has 40 practice questions. Try these 5 free sample questions, tap a question to reveal the answer and explanation. Then practise the whole 2006 set with instant marking.

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Sample JAMB UTME Economics 2006 questions

1. A major advantage of division of labour in a factory is that it
  1. eliminates the need for machinery
  2. makes every worker responsible for the whole product
  3. allows workers to specialize and increase output per worker
  4. guarantees equal wages for all workers

Answer: C. allows workers to specialize and increase output per worker

Specialization enables workers to become more proficient and productive at particular tasks.

2. In the short run, diminishing marginal returns to labour begin when adding more workers to fixed land and machinery causes
  1. marginal output to fall
  2. total output to become zero
  3. average output to rise without limit
  4. fixed costs to disappear

Answer: A. marginal output to fall

Diminishing marginal returns occur when each additional worker adds less output than the previous worker.

3. A firm produces 40 units with total fixed cost of N200 and total variable cost of N600; what is its average total cost per unit?
  1. N15
  2. N18
  3. N19
  4. N20

Answer: D. N20

Total cost is N200 + N600 = N800, and N800 divided by 40 units is N20 per unit.

4. In the long run, a firm in a perfectly competitive industry tends to earn
  1. a permanent abnormal profit
  2. normal profit
  3. a guaranteed monopoly profit
  4. zero revenue

Answer: B. normal profit

Entry and exit of firms tend to eliminate abnormal profit, leaving firms with normal profit in long-run equilibrium.

5. For a monopolist to practise price discrimination effectively, it must be able to
  1. sell only one quantity to every buyer
  2. prevent consumers from knowing the product price
  3. operate in a perfectly competitive market
  4. separate markets and limit resale between them

Answer: D. separate markets and limit resale between them

Separate markets and restricted resale allow a monopolist to charge different prices to different groups.

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