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2026 JAMB Economics Likely Questions and Answers to Score 90+ with details explanations 2026 JAMB Economics Likely Questions and Answers to Score 90+ Preparing for JAMB can be challenging, especially for candidates aiming for high scores above 90. One of the smartest strategies is studying 2026 JAMB Economics likely questions and answers compiled from past trends, syllabus analysis, and CBT exam patterns. This guide provides updated 2026 JAMB Economics likely questions and answers to help you understand how questions are set and how to answer them correctly in the exam hall. If you are serious about excelling, mastering 2026 JAMB Economics likely questions and answers is a proven path to success. InstructorMA COACH Last updatedtoday Total Viewers 1k+ ExamsJAMB 2026 JAMB Economics Likely Questions and Answers to Score 90+ Join Our Social Media Join Our Social media for latest updates and reading classes WhatsApp Community WhatsApp Channel Telegram Channel TikTok YouTube FaceBook Join Our Social media for latest updates and reading classes WhatsApp Community WhatsApp Channel Telegram Channel TikTok YouTube FaceBook 1. In the circular flow of income model, the outflow variables represent ________Options: (a) injections (b) income (c) leakages (d) expenditureTopic: Circular Flow of IncomeCorrect Option: (c) leakagesExplanation: In the circular flow of income, variables that withdraw money from the circular flow (such as Savings, Taxes, and Imports) are known as withdrawals or leakages. Conversely, variables that add money (Investment, Government Spending, Exports) are called injections.2. A reduction in the bank rate encourages commercial banks to create money by ________Options: (a) raising the interest rate (b) decreasing the interest rate (c) maintaining the interest rate (d) doubling the interest rateTopic: Monetary Policy / BankingCorrect Option: (b) decreasing the interest rateExplanation: The "bank rate" (or discount rate) is the rate at which the Central Bank lends to commercial banks. If this rate is reduced, the cost of borrowing for commercial banks drops. Consequently, they lower their own lending interest rates to customers to encourage borrowing, which increases the money supply (money creation).3. A persistent rise in the prices of inputs will lead to ________Options: (a) hyperinflation (b) stagflation (c) cost-push inflation (d) demand-pull inflationTopic: InflationCorrect Option: (c) cost-push inflationExplanation: Inflation caused by an increase in the cost of production (inputs like raw materials, wages, or energy) is defined as cost-push inflation. Producers pass these higher costs onto consumers in the form of higher prices.4. The production possibility curve can be used to explain the underlying concepts of ________Options: (a) scale of preference and choice (b) opportunity cost and choice (c) wants and means (d) opportunity cost and scale of preferenceTopic: Basic Economic Concepts (PPC)Correct Option: (b) opportunity cost and choiceExplanation: The Production Possibility Curve (PPC) illustrates scarcity (the boundary), choice (points selected on the curve), and opportunity cost (the downward slope, showing that to produce more of one good, you must sacrifice some of the other).5. Given that Qd=20−4PQd = 20 - 4PQd=20−4P and Qs=6P+12Qs = 6P + 12Qs=6P+12. Determine the equilibrium quantity. Options: (a) 14.2 (b) 16.8 (c) 20.8 (d) 30.2Topic: Price Mechanism / EquilibriumCorrect Option: (b) 16.8Explanation:At equilibrium, Qd=QsQd = QsQd=Qs. 20−4P=6P+1220 - 4P = 6P + 1220−4P=6P+12 20−12=6P+4P20 - 12 = 6P + 4P20−12=6P+4P 8=10P⇒P=0.88 = 10P Rightarrow P = 0.88=10P⇒P=0.8 Substitute P=0.8P = 0.8P=0.8 into the demand equation: Qd=20−4(0.8)=20−3.2=16.8Qd = 20 - 4(0.8) = 20 - 3.2 = 16.8Qd=20−4(0.8)=20−3.2=16.8. 6. If the price is increased to #3, how much is the excess supply?Options: (a) 30 (b) 22 (c) 12 (d) 8Topic: Price MechanismCorrect Option: (b) 22Explanation:Substitute P=3P = 3P=3 into both equations. Qd=20−4(3)=20−12=8Qd = 20 - 4(3) = 20 - 12 = 8Qd=20−4(3)=20−12=8 Qs=6(3)+12=18+12=30Qs = 6(3) + 12 = 18 + 12 = 30Qs=6(3)+12=18+12=30 Excess Supply = Qs−Qd=30−8=22Qs - Qd = 30 - 8 = 22Qs−Qd=30−8=22. 7. As long as marginal utility is positive, total utility must be ________Options: (a) negative (b) increasing (c) zero (d) decreasingTopic: Consumer Behaviour (Utility)Correct Option: (b) increasingExplanation: Marginal Utility (MU) is the addition to Total Utility (TU). As long as the addition is positive (>0>0>0), the total amount continues to rise. TU only starts to fall when MU becomes negative. 8. A cumulative frequency graph is ________Options: (a) a histogram (b) an Ogive (c) a bar chart (d) a pie chartTopic: Statistics in EconomicsCorrect Option: (b) an OgiveExplanation: In statistics, a cumulative frequency curve is technically referred to as an Ogive.9. A supply curve is positively slope because ________Options: (a) supply always exceeds demand (b) demand always exceed supply (c) price is an incentive to consumers (d) price is an incentive to producersTopic: Theory of SupplyCorrect Option: (d) price is an incentive to producersExplanation: The law of supply states that as price rises, quantity supplied rises. This is because higher prices equate to higher potential revenue and profit, serving as an incentive for producers to increase output.10. In a regulated market, price is determined by ________Options: (a) consumers (b) producers (c) auction (d) governmentTopic: Economic Systems / Price ControlCorrect Option: (d) governmentExplanation: A "regulated market" implies that market forces (demand and supply) are not allowed to function freely. Prices are typically set or controlled by an external authority, which is the government (e.g., price floors or price ceilings).11. A decrease in supply without a corresponding change in demand will lead to ________Options: (a) [Text Error in image] (b) decrease in equilibrium price... (c) decrease in equilibrium price... (d) an increase in equilibrium price and quantityTopic: Market EquilibriumCorrect Option: (a) (Note: The text in the image for option A contains a typo, but based on economic principle and the provided solution key "A", this is the intended answer).Explanation: A decrease in supply shifts the supply curve to the left. This creates scarcity at the original price, causing the Equilibrium Price to Increase and the Equilibrium Quantity to Decrease.Note on image text: The options in the image are garbled. Option (a) reads "an increase in equilibrium quantity...", which is wrong text, but the Solution section (11. A) shows the correct diagram: Price goes Up, Quantity goes Down.12. In the circular flow of income, an increase in savings causes ________Options: (a) an increase in imports (b) a decrease in the income stream (c) an increase in household consumption (d) a decrease in exportsTopic: Circular Flow of IncomeCorrect Option: (b) a decrease in the income streamExplanation: Savings are a leakage from the circular flow. If money is saved rather than spent, it is withdrawn from the current flow of consumption, leading to a decrease in the income stream (unless offset by investment).13. If MPC is 0.7 while government expenditure increases by #150M, the equilibrium national income is ________Options: (a) #214 million (b) #45 million (c) #105 million (d) #500 millionTopic: National Income (Multiplier)Correct Option: (d) #500 millionExplanation:Multiplier (KKK) = 11−MPC=11−0.7=10.3=3.33frac{1}{1 - MPC} = frac{1}{1 - 0.7} = frac{1}{0.3} = 3.331−MPC1=1−0.71=0.31=3.33 Change in Income (ΔYDelta YΔY) = Multiplier ×times× Change in Expenditure ΔY=3.333...×150=500Delta Y = 3.333... times 150 = 500ΔY=3.333...×150=500. 14. By buying treasury bills, the Central Bank of Nigeria intends to ________Options: (a) increase money supply in the economy (b) reduce money supply in the economy (c) reduce the cash reserve ratio for banks (d) increase the capital base of commercial banksTopic: Monetary Policy (Open Market Operations)Correct Option: (a) increase money supply in the economyExplanation: When the Central Bank buys securities (Treasury Bills) from the public or banks, it pays out cash. This injects money into the system, thereby increasing the money supply.15. If real income increases while nominal income remains the same, it can be inferred that ________Options: (a) unemployment rate has decreased (b) general prices have fallen (c) employment rate has risen (d) general prices have risenTopic: Real vs. Nominal IncomeCorrect Option: (b) general prices have fallenExplanation: Real Income = Nominal IncomePrice Levelfrac{text{Nominal Income}}{text{Price Level}}Price LevelNominal Income. For Real Income to go up while the numerator (Nominal Income) stays the same, the denominator (Price Level) must decrease. 16. In modern economies, the Malthusian theory of population is ineffective because of ________Options: (a) birth control measures (b) technical progress (c) government policies (d) natural disastersTopic: Population TheoriesCorrect Option: (b) technical progressExplanation: Malthus predicted population would outstrip food supply. He failed to foresee technical progress (industrial and agricultural revolutions), which allowed food production to grow exponentially, negating his gloomy prediction.17. The speculative demand for money is inversely related to the ________Options: (a) interest rate (b) inflation rate (c) level of income (d) exchange rateTopic: Demand for Money (Keynesian)Correct Option: (a) interest rateExplanation: According to Keynes, when interest rates are high, bond prices are low, and the opportunity cost of holding idle cash is high, so speculative demand is low. When interest rates are low, people prefer to hold cash. Thus, the relationship is inverse.18. Given the cost function C=160+36QC = 160 + 36QC=160+36Q , what is the average cost at 20 units of output? Options: (a) #44.00 (b) #720.00 (c) #880.00 (d) #216.00Topic: Cost TheoryCorrect Option: (a) #44.00Explanation:Total Cost (TCTCTC) at Q=20Q=20Q=20: 160+36(20)=160+720=880160 + 36(20) = 160 + 720 = 880160+36(20)=160+720=880. Average Cost (ACACAC) = TCQ=88020=44frac{TC}{Q} = frac{880}{20} = 44QTC=20880=44. 19. Economic growth is different from economic development because economic growth ________Options: (a) describes expansion and change (b) describes expansion and not change (c) is not measurable (d) is measurable but not objectiveTopic: Economic Growth and DevelopmentCorrect Option: (b) describes expansion and not changeExplanation: Economic Growth is simply the quantitative increase in output (expansion/GDP). Economic Development implies growth plus structural and qualitative changes (improved health, education, standard of living). Thus, growth describes expansion without necessarily implying structural change.20. Devaluation is effective when ________Options: (a) demand for imports is inelastic (b) demand for exports is price elastic (c) demand for imports is neutral (d) production for exports is lowTopic: International Trade / Exchange RatesCorrect Option: (b) demand for exports is price elasticExplanation: For devaluation to improve the balance of payments (Marshall-Lerner condition), the sum of the price elasticities of demand for exports and imports must be greater than 1 (i.e., they must be elastic). If export demand is elastic, a cheaper currency significantly boosts export volume.21. If national income rises by 6% and population rises by 3%, per capita income will ________Options: (a) fall by 6% (b) fall by 3% (c) rise by 3% (d) rise by 6%Topic: National IncomeCorrect Option: (c) rise by 3%Explanation: Growth in Per Capita Income ≈approx≈ Growth in National Income −-− Growth in Population. 6%−3%=+3%6% - 3% = +3%6%−3%=+3% (Rise). 22. The demand for money which involves making provision for rainy day is known as ________Options: (a) speculative motive (b) precautionary motive (c) investment motive (d) transactions motiveTopic: Demand for MoneyCorrect Option: (b) precautionary motiveExplanation: Holding money for unforeseen contingencies ("rainy days," accidents, sudden illness) is the precautionary motive.23. The function of money which makes it possible for someone to provide for old ages is ________Options: (a) medium of exchange (b) measure of value (c) unit of account (d) store of valueTopic: Functions of MoneyCorrect Option: (d) store of valueExplanation: To provide for the future (old age), one must save wealth. Money serves as a store of value, allowing purchasing power to be transferred from the present to the future.24. Differentiated product is a feature is ________Options: (a) perfect competition (b) pure competition (c) monopolistic competition (d) monopolyTopic: Market StructuresCorrect Option: (c) monopolistic competitionExplanation: Monopolistic competition is characterized by many sellers selling products that are similar but not identical (e.g., different brands of toothpaste). This is called product differentiation.25. The burden of tax on a commodity whose demand is infinitely inelastic ________Options: (a) is zero (b) will be borne by seller alone (c) will be borne by buyer alone (d) will be borne by both seller and buyerTopic: Elasticity and Tax IncidenceCorrect Option: (c) will be borne by buyer aloneExplanation: Infinitely inelastic demand (a vertical demand curve) means consumers will buy the same quantity regardless of price. Therefore, the seller can pass the entire tax burden to the buyer without losing sales.26. Disposable income equals ________Options: (a) personal income less business profits (b) personal income less taxes and subsidies (c) national income less borrowing from abroad (d) personal income less taxes plus subsidiesTopic: National Income AccountingCorrect Option: (d) personal income less taxes plus subsidiesExplanation: Disposable Income is the net income available for spending. It is calculated as Personal Income minus Personal Taxes. If subsidies (transfer payments) are received, they are added. Thus, "Less Taxes, Plus Subsidies" yields the correct net disposable amount.27. Which of the following is NOT a measure for controlling inflation?Options: (a) reduction in money supply (b) wage restraint and wage freeze (c) reduction in taxes and increase in government spending (d) price controlTopic: InflationCorrect Option: (c) reduction in taxes and increase in government spendingExplanation: Reducing taxes and increasing government spending is expansionary fiscal policy. This increases aggregate demand, which would worsen inflation, not control it. Options (a), (b), and (d) are valid contractionary or administrative measures to curb inflation.28. Which of the following is not a direct tax?Options: (a) company income tax (b) capital gain tax (c) purchase tax (d) personal income taxTopic: TaxationCorrect Option: (c) purchase taxExplanation: A direct tax is levied on income or wealth. Options (a), (b), and (d) are taxes on income/gain. Purchase tax is levied on goods/spending, making it an indirect tax.29. The principle of comparative advantage is not based on one of the following assumptions:Options: (a) there are restrictions in trade (b) there are no costs of transportation (c) there are only two countries... (d) there is perfect competitionTopic: International Trade TheoryCorrect Option: (a) there are restrictions in tradeExplanation: Comparative advantage assumes free trade (no tariffs or restrictions). Therefore, the assumption that "there are restrictions" is incorrect (it is NOT based on this).30. Tax which takes a higher percentage from higher incomes is ________Options: (a) a regressive tax (b) a progressive tax (c) a proportional tax (d) an indirect taxTopic: TaxationCorrect Option: (b) a progressive taxExplanation: A progressive tax system is one where the tax rate increases as the taxable amount (income) increases (e.g., PAYE).31. A normal good with close substitutes is likely to have its price elasticity of demand ________Options: (a) between zero and one (b) equal to unity (c) less than unity (d) greater than unityTopic: ElasticityCorrect Option: (d) greater than unityExplanation: If a good has close substitutes, consumers can easily switch if the price rises. This makes the demand elastic (Elasticity > 1, or greater than unity).32. A country's import price index by 1995 was 50 and her index of export price was 70. Calculate the terms of trade.Options: (a) 20% (b) 71% (c) 120% (d) 140%Topic: Terms of TradeCorrect Option: (d) 140%Explanation:Formula: Terms of Trade = Index of Export PricesIndex of Import Prices×100frac{text{Index of Export Prices}}{text{Index of Import Prices}} times 100Index of Import PricesIndex of Export Prices×100 Calculation: 7050×100=1.4×100=140%frac{70}{50} times 100 = 1.4 times 100 = 140%5070×100=1.4×100=140%. 33. Exclusions that make Gross National Product a poor measure of welfare are ________Options: (a) Government purchases (b) Government military outlays (c) wages and salaries (d) housewives' servicesTopic: National Income ProblemsCorrect Option: (d) housewives' servicesExplanation: GNP calculations usually exclude non-monetized transactions, such as the unpaid labor of housewives or volunteer work. Since these contribute to well-being but are not counted, GNP underestimates true welfare.34. An increase in money supply, other things being equal will ________Options: (a) lower interest rates (b) reduce income (c) ensure trade balance (d) increase money demandTopic: Monetary TheoryCorrect Option: (a) lower interest ratesExplanation: An increase in the supply of money (shifting the vertical supply curve to the right) moves the equilibrium point along the liquidity preference (demand) curve, resulting in a lower equilibrium interest rate.35. A persistent rise in the general price level implies ________Options: (a) an increase in some prices (b) a one-time rise in prices (c) a steady fall in the purchasing power of money (d) that the higher the price level, the more the value of moneyTopic: InflationCorrect Option: (c) a steady fall in the purchasing power of moneyExplanation: Inflation (persistent price rise) implies that each unit of currency buys fewer goods than before. This is a fall in the value (purchasing power) of money.36. If the labour force in a given community is 2,000,000, wage employment 200,000 and the unemployed are 80,000, what is the unemployment rate in the community?Options: (a) 0.4% (b) 40.0% (c) 10.0% (d) 4.0%Topic: UnemploymentCorrect Option: (d) 4.0%Explanation:Unemployment Rate = UnemployedTotal Labour Force×100frac{text{Unemployed}}{text{Total Labour Force}} times 100Total Labour ForceUnemployed×100 Calculation: 80,0002,000,000×100=8200×100=4%frac{80,000}{2,000,000} times 100 = frac{8}{200} times 100 = 4%2,000,00080,000×100=2008×100=4%. 37. The technical relationship between input combination and maximum attainable output is called ________Options: (a) a production function (b) an indifference curve (c) an isocost (d) an isoquantTopic: Theory of ProductionCorrect Option: (a) a production functionExplanation: The production function defines the relationship between physical inputs (factors of production) and physical outputs.38. A buyer who haggles in the market is applying the principle of ________Options: (a) choice (b) price mechanism (c) opportunity cost (d) utility mechanismTopic: Basic ConceptsCorrect Option: (c) opportunity costExplanation: By haggling, the buyer is trying to save money. The money saved represents resources that can be used for other wants. The buyer weighs the benefit of the purchase against what must be forgone (the cost).Note: While haggling is part of the price determination process (mechanism), in the context of JAMB "principles," it is often linked to Opportunity Cost (minimizing the cost to maximize alternative uses of limited income).39. A major advantage of industrialization is that is ________Options: (a) leads to self-reliance (b) curbs inflation (c) leads to growth and development (d) improves the terms of tradeTopic: IndustrializationCorrect Option: (c) leads to growth and developmentExplanation: Industrialization transforms an economy from agricultural to manufacturing-based, leading to higher output (Growth) and structural improvements in living standards and technology (Development). This is the most comprehensive advantage.40. Given that Y=C+IY = C + IY=C+I and C=a+bYC = a + bYC=a+bY where b=0.8b = 0.8b=0.8, what is the multiplier? Options: (a) 4 (b) 2 (c) 10 (d) 5Topic: National Income MultiplierCorrect Option: (d) 5Explanation:The term bbb represents the Marginal Propensity to Consume (MPC). Here, MPC=0.8MPC = 0.8MPC=0.8. Multiplier (KKK) = 11−MPCfrac{1}{1 - MPC}1−MPC1 K=11−0.8=10.2=5K = frac{1}{1 - 0.8} = frac{1}{0.2} = 5K=1−0.81=0.21=5. 2026 JAMB Economics, JAMB Economics likely questions, JAMB Economics questions and answers, JAMB Economics CBT practice, JAMB Economics syllabus, JAMB Economics past questions, JAMB 2026 preparation, JAMB Economics PDF download, JAMB Economics exam guide Phone / WhatsApp Number +2349061221656, +2348062853040 Email admin@macoach.com.ng Share to: Trending Updates Latest postHidden FactsJAMB Questions and AnswersJAMB UpdatesJob Exam Past Questions & AnswersLesson NoteNECO GCEWAEC GCEWAEC GCE Questions and AnswersWAEC Questions and Answers BackJAMB Past Questions and Answers2026 JAMB English Language Questions and Answers2026 JAMB Question and Answers BackDownload Nursery 1 Lesson Note For All SubjectsDownload Nursery 2 Lesson Note for All Subjects BackJAMB Syllabus PDF BackNigerian Customs Service ExamsNigeria NavyNigeria Air Force NAFNigerian Security and Civil Defence CorpsNigerian Custom Services Past Questions and Answers PDFNigeria Navy Past Questions and Answers PDFNigeria Air Force past questions and answers PDF BackNigeria Air Force past questions and answers PDF BackNigeria Navy Past Questions and Answers PDF BackNigerian Custom Services Past Questions and Answers PDF BackNursery School Lesson NoteDownload Nursery 1 Lesson Note For All SubjectsDownload Nursery 2 Lesson Note for All Subjects BackWAEC Past Questions and AnswersWAEC Biology Questions and Answers BackWAEC GCE Mathematics Questions and Answers2026 JAMB Economics Likely Questions and Answers to Score 90+2026 JAMB Government Likely Questions and Answers to Score High2026 JAMB English Language Likely Questions and Answers to Score 90+2026 JAMB Biology Likely Questions and Answers to Score 90+2026 JAMB Literature in English Likely Questions and Answers2026 JAMB Chemistry Likely Questions and Answers2026 JAMB Physics Likely Questions and AnswersWAEC English Language Past Questions and Answers PDF DownloadWAEC Mathematics Past Questions and Answers PDF DownloadLoad MoreEnd of Content. 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