Although JAMB topics for Economics exams may vary from year to year. However, typical topics covered in JAMB Economics exams include microeconomics, macroeconomics, economic systems, international trade, money and banking, public finance, and economic development. It’s best to consult the official JAMB website or the syllabus provided by your institution for the most current. some common topics that often appear include:
- Demand and Supply
- Elasticity of Demand and Supply
- Production and Cost
- Market Structures (Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition)
- National Income Accounting
- Money and Banking
- Economic Growth and Development
- Inflation and Deflation
- Fiscal Policy
- Monetary Policy
- International Trade
- Exchange Rates
- Economic Systems
- Public Finance
- Poverty and Income Distribution
Studying these topics thoroughly should help you prepare effectively for your JAMB Economics exam.
For the purpose of study, Here are short notes about each of the topics mentioned:
Demand and Supply:
Demand: The quantity of a good or service that consumers are willing and able to buy at various prices during a specific period.
Supply: The quantity of a good or service that producers are willing and able to offer for sale at various prices during a specific period.
Elasticity of Demand and Supply:
Elasticity measures the responsiveness of quantity demanded or supplied to changes in price.
Elastic demand/supply: Quantity demanded/supplied changes significantly in response to price changes.
Inelastic demand/supply: Quantity demanded/supplied changes slightly in response to price changes.
Production and Cost:
Production: Process of converting inputs (factors of production) into outputs (goods and services).
Cost: Expenses incurred by a firm in producing a good or service, including fixed costs and variable costs.
Market Structures:
Perfect Competition: Many buyers and sellers, identical products, easy entry and exit, no market power.
Monopoly: Single seller, unique product, significant barriers to entry, complete market power.
Oligopoly: Few large firms, differentiated or homogeneous products, interdependence, strategic behavior.
Monopolistic Competition: Many firms, differentiated products, some market power, easy entry and exit.
National Income Accounting:
Measures the total economic output of a country over a specific period.
Includes GDP (Gross Domestic Product), GNP (Gross National Product), NDP (Net Domestic Product), and NNP (Net National Product).
Money and Banking:
Money: Medium of exchange, unit of account, and store of value.
Banking: Financial institutions that accept deposits and make loans, facilitating the flow of funds in the economy.
Economic Growth and Development:
Economic Growth: Increase in a country’s output of goods and services over time.
Economic Development: Improvement in the standard of living, quality of life, and overall well-being of a society.
Inflation and Deflation:
Inflation: Persistent increase in the general price level of goods and services.
Deflation: Persistent decrease in the general price level of goods and services.
Fiscal Policy:
Government’s use of taxation and spending to influence the economy.
Goals include economic stability, growth, and reducing unemployment.
Monetary Policy:
Central bank’s control of the money supply and interest rates to achieve economic objectives.
Goals include price stability, full employment, and economic growth.
International Trade:
Exchange of goods and services across borders.
Benefits include specialization, economies of scale, and access to a wider range of products.
Exchange Rates:
Price of one currency in terms of another.
Determined by supply and demand in the foreign exchange market.
Economic Systems:
Different approaches to organizing and coordinating economic activity, including capitalism, socialism, and mixed economies.
Public Finance:
Government’s revenue and expenditure decisions to achieve economic and social goals.
Includes taxation, public spending, and budgeting.
Poverty and Income Distribution:
Distribution of income and wealth among individuals in a society.
Poverty refers to a condition of inadequate income or resources to meet basic needs.
These notes provide a concise overview of key topics in economics, suitable for a blog post or study reference.
Here are some sample JAMB questions covering the topics mentioned:
Question 1: What happens to the equilibrium price and quantity of a good when there is an increase in demand and a simultaneous decrease in supply?
Answer choices:
a) Price increases, quantity decreases
b) Price decreases, quantity increases
c) Price increases, quantity increases
d) Price decreases, quantity decreases
Correct answer: a) Price increases, quantity decreases
Question 2: If the price of a good increases by 10% and the quantity demanded decreases by 5%, what is the price elasticity of demand?
Answer choices:
a) 0.5
b) 1.0
c) 1.5
d) 2.0
Correct answer: b) 1.0
Question 3: In the short run, if a firm experiences diminishing marginal returns, what happens to its total cost?
Answer choices:
a) Total cost increases at a decreasing rate
b) Total cost increases at a constant rate
c) Total cost increases at an increasing rate
d) Total cost decreases at a decreasing rate
Correct answer: c) Total cost increases at an increasing rate
Question 4: Which market structure is characterized by a large number of firms, homogeneous products, and ease of entry and exit?
Answer choices:
a) Monopoly
b) Oligopoly
c) Perfect Competition
d) Monopolistic Competition
Correct answer: c) Perfect Competition
Question 5: If a country’s GDP is $500 billion, its depreciation is $50 billion, and indirect taxes are $30 billion, what is its net domestic product (NDP)?
Answer choices:
a) $450 billion
b) $480 billion
c) $520 billion
d) $530 billion
Correct answer: b) $480 billion
Question 6: When the central bank sells government securities in the open market, what is the effect on the money supply and interest rates?
Answer choices:
a) Money supply decreases, interest rates increase
b) Money supply decreases, interest rates decrease
c) Money supply increases, interest rates increase
d) Money supply increases, interest rates decrease
Correct answer: a) Money supply decreases, interest rates increase
These sample questions cover various topics typically tested in JAMB Economics exams and can help students assess their understanding of the subject matter.
