JAMB Economics 2021 past questions

Checked by the Skolra question team · Last updated 15 October 2026

Ten questions from the 2021 JAMB Economics paper, with answers and explanations. We hold 40 questions from this paper, and the Skolra app has all of them.

JAMB Economics 2021 questions and answers

1. 1.

   Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a Visa for a period of ________

   1. A
      30 days
   2. B
      6 months
   3. C
      90 days
      Correct
   4. D
      one year
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   Answer: C

   The ECOWAS free movement protocol permits member state citizens to reside visa-free for up to 90 days.

2. 2.

   Oligopoly means _________

   1. A
      many firms producing identical goods
   2. B
      one firm controls the entire market
   3. C
      a market with numerous small competitors
   4. D
      a market dominated by a few large firms
      Correct
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   Answer: D

   An oligopolistic market has a small number of dominant firms whose actions significantly affect each other. Examples include petroleum refining and automobile manufacturing.

3. 3.

   Palm oil industry is located in Old Bendel State because the state______

   1. A
      has government subsidies only
   2. B
      is the largest state in Nigeria
   3. C
      has the climate and vegetation suitable for palm tree cultivation
      Correct
   4. D
      has the largest population
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   Answer: C

   Old Bendel State's tropical climate and natural vegetation support abundant palm tree growth. The industry developed due to environmental suitability.

4. 4.

   In a free market economy. the rationing of scarce goods is done principally by_______

   1. A
      queuing or first-come-first-served basis
   2. B
      the price mechanism
      Correct
   3. C
      government decree
   4. D
      lottery systems
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   Answer: B

   Free markets rely on prices to ration scarce goods. As demand exceeds supply, prices rise, limiting purchases to those who can afford higher prices.

5. 5.

   If Mr. A earns N2.000 a year while Mr. B earns N8000 but Mr. A pays N200 in tax per annum while Mr. B pays N400, such tax is_______

   1. A
      regressive
      Correct
   2. B
      lump sum
   3. C
      progressive
   4. D
      proportional
   Show answerHide answer

   Answer: A

   A regressive tax takes a larger proportion from lower earners than from higher earners. Here, Mr. A (earning N2,000) pays 10% while Mr. B (earning N8,000) pays only 5%.

6. 6.

   Which of the following countries is not a member of the Economic Community of West African States?

   1. A
      Nigeria
   2. B
      Kenya
      Correct
   3. C
      Ghana
   4. D
      Senegal
   Show answerHide answer

   Answer: B

   ECOWAS (Economic Community of West African States) comprises West African nations. Kenya is in East Africa and is not an ECOWAS member.

7. 7.

   Mono production economies are those that____

   1. A
      depend on the production and export of one main commodity
      Correct
   2. B
      produce everything they consume internally
   3. C
      use only one type of technology
   4. D
      export only to one trading partner
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   Answer: A

   Mono-production economies rely excessively on a single export product for income. This creates vulnerability to commodity price fluctuations.

8. 8.

   By utility we mean________

   1. A
      the ability to perform a specific function at work
   2. B
      the satisfaction or benefit obtained from consuming a good or service
      Correct
   3. C
      the total cost of producing a commodity
   4. D
      the physical usefulness of an object only
   Show answerHide answer

   Answer: B

   Utility is an economic concept measuring the satisfaction derived from consuming goods or services. Unlike physical usefulness alone, it encompasses the subjective benefit to the consumer.

9. 9.

   The Power Holding Company of Nigeria (PHCN) is a ________

   1. A
      cooperative organization
   2. B
      public utility monopoly
      Correct
   3. C
      non-governmental organization
   4. D
      private profit-maximizing firm
   Show answerHide answer

   Answer: B

   PHCN was a state-owned enterprise with monopoly control over electricity supply. As a public utility, it provided essential services rather than maximizing private profit.

10. 10.

    Inflation can be curbed by _______

    1. A
       reducing the money supply and increasing interest rates
       Correct
    2. B
       lowering the central bank discount rate
    3. C
       increasing government spending
    4. D
       printing more money
    Show answerHide answer

    Answer: A

    Anti-inflationary policies reduce the money in circulation and make borrowing more expensive, decreasing spending and demand for goods, pulling prices down.

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

Spotted a wrong answer? Tell us from the app or on the contact page and we check it.

Practise all 40 questions we hold from the 2021 paper, on a timed CBT screen

Every question has the answer and an explanation, in the Skolra app.

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