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JAMB UTME Economics 2025 past questions and answers

This 2025 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 2025 set with instant marking.

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Sample JAMB UTME Economics 2025 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 country has a comparative advantage in cloth production?
  1. Country X, because its opportunity cost of cloth is lower
  2. Country Y, because it can produce more wine
  3. Country X, because it has an absolute advantage in both goods
  4. Neither country, because their resources are identical

Answer: A. Country X, because its opportunity cost of cloth is lower

The opportunity cost of one unit of cloth is 0.5 unit of wine in X and 1 unit in Y, so X has comparative advantage in cloth.

2. A government imposes a tariff on imported footwear primarily by
  1. setting a maximum quantity of footwear that may be imported
  2. levying a tax on footwear brought into the country
  3. prohibiting all foreign footwear from entering the country
  4. paying local producers for every pair they export

Answer: B. levying a tax on footwear brought into the country

A tariff is a tax imposed on imported goods, often to raise revenue or protect domestic producers.

3. Which of the following is normally recorded in a country's current account of the balance of payments?
  1. A resident's purchase of foreign shares
  2. A government loan received from abroad
  3. Receipts from exporting cocoa
  4. A central bank's sale of foreign reserves

Answer: C. Receipts from exporting cocoa

Exports of goods such as cocoa are recorded as credits in the current account.

4. If a country's currency is devalued, other things being equal, its exports are likely to become
  1. more expensive to foreign buyers and less competitive
  2. unchanged in price to foreign buyers in every case
  3. unavailable because devaluation bans exports
  4. cheaper to foreign buyers and potentially more competitive

Answer: D. cheaper to foreign buyers and potentially more competitive

A lower external value of the currency reduces the foreign-currency price of domestic exports, assuming prices do not adjust.

5. A customs union differs from a free trade area because members of a customs union also
  1. apply a common external tariff to imports from non-members
  2. use one currency and one central bank
  3. allow no movement of goods between member states
  4. abolish all taxes collected by member governments

Answer: A. apply a common external tariff to imports from non-members

A customs union removes trade barriers among members and adopts a common tariff against non-members.

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