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JAMB UTME Economics 2021 past questions and answers

This 2021 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 2021 set with instant marking.

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Sample JAMB UTME Economics 2021 questions

1. A country's GDP at market prices is ₦840 billion. Indirect taxes are ₦70 billion and subsidies are ₦20 billion. What is GDP at factor cost?
  1. ₦750 billion
  2. ₦930 billion
  3. ₦890 billion
  4. ₦790 billion

Answer: D. ₦790 billion

GDP at factor cost equals GDP at market prices minus indirect taxes plus subsidies: 840 - 70 + 20 = ₦790 billion.

2. Which of the following is excluded when estimating a country's current national income?
  1. Wages paid to teachers
  2. Rent received by a landlord
  3. The sale of a used car between two households
  4. Profit earned by a local factory

Answer: C. The sale of a used car between two households

The sale of a used car is not current production, so its value is excluded from current national income.

3. If nominal national income rises by 12% while the general price level rises by 5%, which statement best describes real national income?
  1. It has remained unchanged
  2. It has fallen by 7%
  3. It has risen by exactly 17%
  4. It has risen by approximately 7%

Answer: D. It has risen by approximately 7%

Real growth is approximately nominal growth minus inflation, so it is about 12% - 5% = 7%.

4. A major limitation of using per capita income to compare welfare across countries is that it
  1. always excludes income earned abroad
  2. measures only the value of exports
  3. cannot be calculated from national income
  4. does not reveal how income is distributed

Answer: D. does not reveal how income is distributed

Per capita income is an average and can conceal substantial differences in income distribution.

5. A persistent rise in the general price level caused by excessive aggregate demand is known as
  1. structural inflation
  2. cost-push inflation
  3. demand-pull inflation
  4. deflation

Answer: C. demand-pull inflation

Demand-pull inflation occurs when aggregate demand persistently exceeds the economy's capacity to produce.

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