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JAMB UTME Economics 2024 past questions and answers

This 2024 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 2024 set with instant marking.

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Sample JAMB UTME Economics 2024 questions

1. A country that relies heavily on exporting one primary commodity is most likely to reduce its vulnerability to external shocks by
  1. diversifying its industrial and export base
  2. increasing imports of finished goods
  3. restricting the use of locally available raw materials
  4. concentrating investment on the existing export crop

Answer: A. diversifying its industrial and export base

A wider range of industries and exports reduces the economy's dependence on the price of a single commodity.

2. When several firms in the same industry locate near one another and gain access to shared skilled workers and suppliers, the resulting cost advantage is called
  1. internal diseconomies of scale
  2. external economies of scale
  3. a transfer payment
  4. an indirect tax

Answer: B. external economies of scale

External economies arise when firms benefit from advantages created by the growth or location of the industry as a whole.

3. Crude petroleum is classified as an exhaustible natural resource because
  1. it is available only to public enterprises
  2. its use does not involve opportunity cost
  3. the known stock can be depleted and is not quickly replaced
  4. its supply expands automatically when its price rises

Answer: C. the known stock can be depleted and is not quickly replaced

Petroleum reserves are finite on human time scales and extraction reduces the remaining stock.

4. Which policy is most likely to help convert revenue from a country's exhaustible mineral resources into lasting economic benefits?
  1. Using all mineral revenue for current consumption
  2. Keeping mineral prices below extraction cost
  3. Banning investment in education and infrastructure
  4. Investing part of the resource revenue in productive assets and human capital

Answer: D. Investing part of the resource revenue in productive assets and human capital

Investment in productive and human assets helps replace some of the wealth lost as a finite resource is depleted.

5. The owner of a sole proprietorship is personally responsible for business debts that exceed the firm's assets; this is known as
  1. limited liability
  2. unlimited liability
  3. separate legal personality
  4. transferability of shares

Answer: B. unlimited liability

Unlimited liability means the owner's personal assets may be used to meet the business's debts.

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