DTW JAMB Economics Preparatory

1. What is the primary concern of economics?

• a) Production of goods

• b) Distribution of wealth

• c) Allocation of scarce resources

• d) Maximizing profits

2. Production in economics refers to:

• a) Creating goods and services

• b) Generating profits

• c) Minimizing costs

• d) Marketing strategies

3. Division of labor and specialization lead to:

• a) Decreased productivity

• b) Increased efficiency

• c) Higher unemployment rates

• d) Lower wages

4. The theory of demand and supply primarily focuses on:

• a) Government interventions

• b) Consumer preferences

• c) Market equilibrium

• d) Technological advancements

5. When demand for a product decreases while supply remains constant, what is likely to happen to the price?

• a) Increase

• b) Decrease

• c) Remain the same

• d) Fluctuate

6. What does the law of demand state?

• a) Quantity demanded decreases as price decreases

• b) Quantity demanded decreases as price increases

• c) Quantity demanded increases as price decreases

• d) Quantity demanded increases as price increases

7. A shift in the demand curve to the right indicates:

• a) Increase in demand

• b) Decrease in demand

• c) Increase in supply

• d) Decrease in supply

8. If the price of a substitute good increases, what is likely to happen to the demand for the original good?

• a) Increase

• b) Decrease

• c) No change

• d) Fluctuate

9. In economics, elasticity measures:

• a) The quantity demanded relative to income

• b) The responsiveness of quantity demanded to price changes

• c) The impact of technology on production

• d) The level of competition in the market

10. Perfectly elastic demand occurs when:

• a) Consumers are extremely sensitive to price changes

• b) Consumers are not sensitive to price changes

• c) Price changes have no effect on quantity demanded

• d) Price changes lead to a proportional change in quantity demanded