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JAMB UTME Economics 2007 past questions and answers

This 2007 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 2007 set with instant marking.

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Sample JAMB UTME Economics 2007 questions

1. A factory assigns each worker one specialised task in making furniture. What is the most direct likely benefit of this arrangement?
  1. A reduction in the need for tools
  2. An increase in workers' skill and output per hour
  3. The elimination of all production costs
  4. A guarantee that every worker earns the same wage

Answer: B. An increase in workers' skill and output per hour

Repeated performance of a specialised task can improve workers' skill and raise productivity.

2. A farmer keeps the size of a plot of land fixed but adds more workers to it. After some point, each additional worker adds less to total output than the previous worker. This illustrates
  1. increasing returns to scale
  2. economies of scale
  3. the law of diminishing returns
  4. the law of supply

Answer: C. the law of diminishing returns

With one factor fixed, marginal output of the variable factor eventually declines as more of it is added.

3. A student can use an afternoon either to earn N4,000 at work or to attend a free economics seminar. If the student attends the seminar, the opportunity cost is
  1. the seminar's admission price
  2. the student's transport fare only
  3. the total value of both activities
  4. the N4,000 income forgone

Answer: D. the N4,000 income forgone

Opportunity cost is the value of the best alternative forgone, which is the work income.

4. A firm's total costs are N80,000 when output is zero, N110,000 when it produces one unit, and N130,000 when it produces two units. What is its total fixed cost?
  1. N80,000
  2. N30,000
  3. N50,000
  4. N130,000

Answer: A. N80,000

At zero output, variable cost is zero, so the N80,000 total cost is fixed cost.

5. Which feature is characteristic of a perfectly competitive market?
  1. One seller controls the entire market
  2. Many buyers and sellers trade a homogeneous product
  3. Each seller faces no rival firms
  4. Firms always sell differentiated products

Answer: B. Many buyers and sellers trade a homogeneous product

Perfect competition is characterised by numerous buyers and sellers and a homogeneous product.

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