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JAMB UTME Economics 2011 past questions and answers

This 2011 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 2011 set with instant marking.

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Sample JAMB UTME Economics 2011 questions

1. Country X can produce either 10 units of cloth or 5 units of wine with its resources, while Country Y can produce either 6 units of cloth or 6 units of wine. Which specialisation is consistent with comparative advantage?
  1. X in wine and Y in cloth
  2. X in cloth and Y in wine
  3. Both countries in cloth
  4. Both countries in wine

Answer: B. X in cloth and Y in wine

One unit of cloth costs X 0.5 units of wine but costs Y 1 unit of wine, so X has comparative advantage in cloth and Y in wine.

2. A government imposes a tariff on imported footwear mainly to achieve which immediate effect?
  1. Increase the foreign supply of footwear
  2. Eliminate all domestic production costs
  3. Raise the price of imports and protect domestic producers
  4. Make domestic consumers demand unlimited footwear

Answer: C. Raise the price of imports and protect domestic producers

A tariff raises the cost of imported goods and can give domestic producers protection from foreign competition.

3. A country's current account is most likely to record a deficit when, during a period, its payments for imported goods and services are greater than its receipts from exports and other current transactions. What does this indicate?
  1. Current payments exceed current receipts
  2. Its capital account must be in surplus
  3. Its official reserves have necessarily increased
  4. Its exports of goods exceed all imports

Answer: A. Current payments exceed current receipts

A current-account deficit occurs when current outflows, including import payments, exceed current receipts.

4. If a country devalues its currency, what is the usual direct effect on the domestic-currency price of imports, other things being equal?
  1. It falls because foreign goods become cheaper
  2. It remains fixed by the balance of payments
  3. It becomes zero for essential goods
  4. It rises because more domestic currency is needed to buy foreign currency

Answer: D. It rises because more domestic currency is needed to buy foreign currency

Devaluation lowers the currency's foreign-exchange value, so importers generally need more domestic currency to pay for the same foreign goods.

5. If a country's export price index is 120 and its import price index is 150, what is its terms-of-trade index?
  1. 125
  2. 80
  3. 30
  4. 270

Answer: B. 80

The terms-of-trade index is (export price index / import price index) x 100, which is (120 / 150) x 100 = 80.

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