Key Areas to Study for JAMB Economics in 2025/2026

Key Areas to Study for JAMB Economics in 2025/2026; If you’re preparing for the JAMB Economics exam in 2025/2026, it’s important to focus on the right areas of study to do well. Economics can be hard, but with the right teaching and understanding of key topics, you can make it easier for yourself. This article will guide you through the most important topics you need to focus on for your JAMB Economics preparation.

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What is JAMB Economics?

JAMB Economics is a subject that tests your understanding of economics, principles, and theories. The exam usually covers topics in both Microeconomics (which focuses on individual economic units like households and firms) and Macroeconomics (which looks at the economy as a whole, including inflation, unemployment, and government policies).

The exam consists of multiple-choice questions, and you need to have a good understanding of the key areas to score high marks. In this article, we will discuss the major topics you should focus on to prepare very well for the JAMB Economics exam in 2025/2026.

Key Areas to Focus on for JAMB Economics 2025/2026

1. Basic Economic Terms

Understanding the basic terms of Economics is very important because they form the foundation of everything else you will study. Some of the terms you should focus on include:

Scarcity: This is the basic problem in Economics. It means that resources are limited, but human wants are unlimited. Understand how scarcity leads to the need for choice and opportunity cost.
Choice and Opportunity Cost: Opportunity cost refers to the value of the next best alternative that you give up when you make a choice. This concept is key in understanding how people and societies make decisions.
Economic Systems: Learn about different economic systems like capitalism, socialism, and mixed economies. Understand how each system answers the basic questions of what, how, and for whom to produce.
Utility: This is the satisfaction or pleasure that people get from consuming goods and services. Understand the law of diminishing marginal utility and how it affects consumer behavior.

These basic concepts are tested frequently in JAMB Economics, so make sure you understand them clearly.

2. Demand and Supply

One of the most important topics you need to focus on is demand and supply. These two forces drive the market. Key points to study in this topic include:

Law of Demand and Law of Supply: The law of demand states that as the price of a good increases, the quantity demanded decreases, and vice versa. The law of supply states that as the price of a good increases, the quantity supplied increases.
Market Equilibrium: This occurs when the quantity demanded equals the quantity supplied at a particular price. Understand how market equilibrium is reached and what happens when there is a surplus or shortage.
Factors Affecting Demand and Supply: Learn about the factors that can cause shifts in the demand and supply curves, such as changes in income, tastes, or the price of related goods.

This is a very important topic in Economics, and questions related to demand and supply frequently appear in the JAMB exam.

3. Elasticity

Elasticity refers to how responsive the demand or supply of a good is to changes in price or income. Key areas to study under elasticity include:

Price Elasticity of Demand (PED): This measures how much the quantity demanded changes in response to a change in the price of a good. Understand how to calculate PED and know the different types (elastic, inelastic, and unitary elasticity).
Price Elasticity of Supply (PES): Similar to PED, but this measures how much the quantity supplied changes in response to a change in price.
Income Elasticity of Demand (YED): This measures how the demand for a good changes as consumer income changes.
Cross Elasticity of Demand (XED): This measures how the demand for one good changes when the price of another good changes.

Questions on elasticity often appear in JAMB Economics, so make sure you understand the calculations and concepts involved.

4. Theory of Production

The theory of production explains how businesses use factors of production (land, labor, capital, and entrepreneurship) to produce goods and services. Some key points to focus on include:

Factors of Production: Understand the four main factors of production—land, labor, capital, and entrepreneurship—and how they are used in the production process.
Law of Variable Proportions: This law explains how output changes when one factor of production is varied while others remain fixed.
Returns to Scale: This concept explains how production changes when all factors of production are increased by the same proportion. Learn the difference between increasing, constant, and decreasing returns to scale.

Having a solid understanding of production theory will help you answer questions related to how goods and services are produced.

5. National Income

National income is the total income earned by a country’s residents in a given period. Key areas to study under national income include:

Methods of Measuring National Income: Learn about the three main methods of measuring national income: the income method, the output method, and the expenditure method.
Gross Domestic Product (GDP): Understand what GDP is, how it is measured, and what it tells us about a country’s economy.
Problems of Measuring National Income: Understand the challenges involved in measuring national income, such as the informal economy and unreported income.
Real vs Nominal GDP: Learn the difference between nominal GDP (measured at current prices) and real GDP (adjusted for inflation).

National income is a key topic for JAMB Economics, and you will need to understand the concepts and formulas involved.

6. Money and Banking

Money and banking is another important area of study for JAMB Economics. Key topics include:

Functions of Money: Learn the different functions of money, such as being a medium of exchange, a store of value, a unit of account, and a standard of deferred payment.
Central Bank and Commercial Banks: Understand the role of the Central Bank in controlling the money supply, setting interest rates, and regulating commercial banks.
Money Supply: Study the different types of money supply (M1, M2, etc.) and how they affect the economy.
Inflation: Understand what inflation is, its causes, and its effects on the economy. Learn about the different types of inflation (demand-pull, cost-push) and how inflation is measured.

Having a solid understanding of money and banking will help you in answering related questions.

7. Government and the Economy

Finally, you need to focus on the role of the government in the economy. Key areas to study include:

Fiscal Policy: Learn how the government uses taxation and government spending to influence the economy.
Monetary Policy: Understand how the Central Bank uses tools like interest rates and money supply to control inflation and stabilize the economy.
Public Debt: Learn about the types of public debt, its effects on the economy, and how governments manage debt.

Understanding government rules will help you see how decisions made by governments affect the economy.

Tips for Preparing for JAMB Economics in 2025/2026

Here are some tips to help you do well in your JAMB Economics exam:

1. Understand the terms Thoroughly

Make sure you understand the key terms and principles of Economics. Don’t just memorize formulas—understand how and why they work.

2. Practice with Past Questions

Going through past JAMB Economics questions will help you get familiar with the format of the exam and the kind of questions that are asked. It will also help you improve your time management.

3. Use Economics Textbooks and Online Resources

Use recommended Economics textbooks to study. You can also find online resources like videos and study guides that can make learning easier.

4. Focus on Calculations

Economics involves a lot of calculations, especially when it comes to topics like elasticity, national income, and money supply. Practice solving calculation problems to improve your skills.

5. Study Regularly

Set aside time each day to study Economics. Consistency is key to mastering the subject and performing well in the exam.

Conclusion

To do well in JAMB Economics in 2025/2026, you need to focus on the key areas we’ve discussed, such as demand and supply, elasticity, production theory, national income, and government policies. By understanding these concepts deeply and practicing regularly, you’ll be well-prepared to succeed in the exam. Good luck with your studies!