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JAMB UTME Economics 2016 past questions and answers

This 2016 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 2016 set with instant marking.

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Sample JAMB UTME Economics 2016 questions

1. In one day, Nigeria can produce either 6 units of rice or 3 units of cocoa, while Ghana can produce either 4 units of rice or 4 units of cocoa. Which country has a comparative advantage in rice production?
  1. Nigeria, because its opportunity cost of rice is lower
  2. Ghana, because it can produce more cocoa
  3. Both countries, because both can produce rice
  4. Neither country, because their output combinations differ

Answer: A. Nigeria, because its opportunity cost of rice is lower

Nigeria gives up 0.5 unit of cocoa per unit of rice, compared with Ghana's 1 unit, so Nigeria has the lower opportunity cost.

2. If the naira depreciates against other currencies, other things remaining equal, what is the most likely immediate effect on Nigerian imports and exports?
  1. Imports become cheaper in naira and exports become dearer to foreigners
  2. Imports become dearer in naira and exports become cheaper to foreigners
  3. Both imports and exports become cheaper in naira
  4. Neither imports nor exports are affected

Answer: B. Imports become dearer in naira and exports become cheaper to foreigners

A weaker naira raises the naira cost of foreign goods and lowers the foreign-currency price of Nigerian goods, assuming prices adjust.

3. Which item is normally recorded in the current account of a country's balance of payments?
  1. Purchase of foreign shares by residents
  2. A foreign loan received by the government
  3. Exports of goods and services
  4. A change in official foreign reserves

Answer: C. Exports of goods and services

The current account records trade in goods and services as well as income and current transfers.

4. A customs union among member countries is distinguished by the adoption of
  1. a common currency and a single central bank
  2. free movement of labour only
  3. a common tax rate on all domestic incomes
  4. free trade among members and a common external tariff

Answer: D. free trade among members and a common external tariff

A customs union removes trade barriers among members and applies a common tariff to imports from non-members.

5. A country has a population of 12 million people and an area of 24,000 square kilometres. What is its population density?
  1. 500 persons per square kilometre
  2. 2,000 persons per square kilometre
  3. 5,000 persons per square kilometre
  4. 288 persons per square kilometre

Answer: A. 500 persons per square kilometre

Population density is population divided by area, so 12,000,000 / 24,000 = 500 persons per square kilometre.

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