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JAMB UTME Economics 2012 past questions and answers

This 2012 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 2012 set with instant marking.

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Sample JAMB UTME Economics 2012 questions

1. A country should specialize in producing a good when it can make that good at a lower
  1. opportunity cost than its trading partner
  2. money cost than every other country
  3. price than all goods it imports
  4. volume than its domestic consumers require

Answer: A. opportunity cost than its trading partner

Comparative advantage is determined by lower opportunity cost, not necessarily lower absolute cost.

2. A tariff is a
  1. limit on the quantity of an imported good
  2. tax imposed on an imported good
  3. payment made to exporters
  4. ban on all foreign exchange transactions

Answer: B. tax imposed on an imported good

A tariff is a tax or duty charged on imported goods.

3. If the naira depreciates against the US dollar, other things being equal, Nigerian importers will find that
  1. fewer naira are needed to buy each dollar
  2. imports become cheaper in naira
  3. more naira are needed to buy each dollar
  4. the dollar price of Nigerian exports must rise

Answer: C. more naira are needed to buy each dollar

Depreciation lowers the naira's value, so more naira are required to purchase a dollar.

4. If a country's export price index is 120 and its import price index is 100, its net barter terms-of-trade index is
  1. 20
  2. 83.3
  3. 100
  4. 120

Answer: D. 120

The terms-of-trade index is (export price index / import price index) x 100, giving 120.

5. A country exports merchandise worth N800 million and imports merchandise worth N650 million; its balance of trade is
  1. a surplus of N150 million
  2. a deficit of N150 million
  3. a surplus of N1,450 million
  4. balanced at N800 million

Answer: A. a surplus of N150 million

The merchandise balance is exports minus imports, or N800 million - N650 million = N150 million surplus.

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