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Cracking the IIT JAM Economics exam requires not just theory but also practice with real exam-level problems. The IIT JAM Economics 2025 Question Paper with Solutions gives aspirants a first-hand look at the kind of questions asked, the weightage of topics, and the strategies needed to score well. Working through the 2025 question paper PDF with detailed solutions helps students identify their strong and weak areas, while also building confidence for the upcoming exam. In this article, we provide a comprehensive analysis of the IIT JAM Economics 2025 paper, along with step-by-step solutions to questions and preparation tips for IIT JAM 2026 aspirants.
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Practising IIT JAM previous year papers is an integral part of the IIT JAM preparation strategy. The benefits include:
Understanding Exam Structure: It helps aspirants get familiar with the division of sections, mark distribution, and question types.
Time Management Skills: Solving papers under timed conditions improves speed and accuracy.
Identifying Key Topics: Students can identify high-frequency topics in microeconomics, macroeconomics, statistics, and the Indian economy.
Boosting Problem-Solving Efficiency: Regular practice sharpens analytical skills and improves problem-solving speed.
Simulating Exam Conditions: Attempting previous papers in a controlled, timed environment develops IIT JAM 2026 exam temperament.
The IIT JAM Economics exam is divided into three sections – Multiple Choice Questions (MCQ), Multiple Select Questions (MSQ), and Numerical Answer Type (NAT). The IIT JAM exam pattern and IIT JAM negative marking scheme is summarised below:
Section | Question Type | Number of Questions | Marks per Question | Total Marks |
Section A | MCQ | 30 | 1 or 2 | 50 |
Section B | MSQ | 10 | 2 | 20 |
Section C | NAT | 20 | 1 or 2 | 30 |
Total | — | 60 | — | 100 |
Additional Details:
Negative Marking: Only MCQs have negative marking (⅓ for 1-mark, ⅔ for 2-mark questions).
Duration: 3 hours.
Syllabus Coverage: Includes Microeconomics, Macroeconomics, Statistics & Econometrics, Mathematical Economics, Growth & Development, Indian Economy, and Public Economics.
The difficulty level of the IIT JAM 2025 question paper was rated moderate to difficult. Certain sections required a deep understanding of concepts, while others tested speed and accuracy.
Microeconomics & Macroeconomics (30%)
Topics included consumer and producer theory, production functions, utility maximisation, IS-LM model, and growth theory.
Analytical reasoning and diagram-based questions tested conceptual understanding.
Statistics & Econometrics (30%)
Covered probability distributions, regression analysis, hypothesis testing, time series, and AR processes.
Questions required both formula-based calculation and conceptual clarity.
Mathematical Economics (15%)
Included optimisation problems, differential equations, and the application of calculus in economics.
Indian Economy & Public Finance (25%)
Questions focused on budget deficits, fiscal policies, trade, development issues, and government programs.
Practising IIT JAM Economics 2025 questions with detailed solutions helps candidates understand the exam pattern, improve accuracy, and strengthen conceptual clarity. Below are selected solved questions to give an idea of question types and solutions:
Q 1. For a positively skewed frequency distribution, _________.
(A) Mean > Median > Mode
(B) Mean < Median < Mode
(C) Mode > Mean > Median
(D) Median > Mode > Mean
Answer:
(A) Mean > Median > Mode
Explanation:
In a positively skewed (right-skewed) distribution, the tail stretches to the right, meaning there are a few unusually high values.
These high values pull the mean to the right, making it greater than the median, while the mode remains the peak of the distribution (the most frequent value).
So the order is: Mean > Median > Mode.
Q 2. In 1991, ________ Committee was set up by the Government of India to examine the structure, organisation, and functions of the Indian financial system.
(A) Rangarajan
(B) Reddy
(C) Narasimham
(D) Chakravarty
Answer:
(A) Rangarajan
Explanation:
In 1991, the Government of India set up the Rangarajan Committee to examine the structure, organisation, and functions of the Indian financial system.
The committee’s recommendations focused on improving the efficiency, regulation, and stability of financial institutions in India.
Q 3. The inflation targeting policy adopted by the Reserve Bank of India in 2015 prescribed the targeted inflation to vary between ________ percent.
(A) 2-6
(B) 2-7
(C) 3-8
(D) 3-7
Answer:
(D) 3–7
Explanation:
In 2015, the Reserve Bank of India (RBI) formally adopted an inflation targeting framework under the RBI Act, 1934 (amendment).
The target was set in terms of Consumer Price Index (CPI) inflation with a mid-point of 4% and a tolerance band of ±2%, i.e., the range is 3% to 7%.
The main objective was to maintain price stability while supporting economic growth.
Q 4. Which one of the following is distinct from the others?
(A) Histogram
(B) Pictogram
(C) Ogive
(D) Frequency polygon
Answer:
(B) Pictogram
Explanation:
Histogram, Ogive, and Frequency Polygon are all graphical representations of frequency distributions using axes, scales, and plots.
Pictogram, on the other hand, represents data using pictures or symbols rather than a standard graph. It is more illustrative and less mathematical in nature.
So, Pictogram is distinct from the others.
Q 5. Which one of the following is the shut-down condition for a profit-maximising firm in a perfectly competitive market?
P- Price, AVC- Average Variable Cost, ATC- Average Total Cost
(A) P<AVC
(B) P>AVC
(C) P<ATС
(D) P> ATC
Answer:
(A) P < AVC
Explanation:
In a perfectly competitive market, a profit-maximising firm will continue producing as long as it can cover its variable costs.
Shut-down condition: The firm should shut down in the short run if the market price (P) falls below the average variable cost (AVC), i.e., P < AVC.
Reason: If P < AVC, the firm cannot even cover the variable costs of production, and continuing production would increase losses.
If P > AVC, the firm may incur losses but can cover variable costs and part of fixed costs, so it continues production.
Preparing for IIT JAM 2026 Economics requires a smart strategy, focused study, and regular practice to master core concepts and improve problem-solving speed. Below are the key IIT JAM 2026 preparation tips to help aspirants excel in the exam.
Using the right study material can make a big difference. Standard textbooks like Varian for Microeconomics, Dornbusch and Fischer for Macroeconomics, and Gujarati for Econometrics provide strong conceptual clarity. Complement these with NCERT Math books and IIT JAM-specific guides to strengthen exam-oriented practice.
Solving previous year IIT JAM question papers helps aspirants get familiar with question patterns, difficulty levels, and recurring topics. Coupled with timed IIT JAM 2026 mock tests, this practice improves accuracy, builds speed, and boosts confidence, while also helping identify and improve weak areas.
IIT JAM tests understanding more than memorisation. Focus on grasping models, graphs, and theoretical frameworks in Micro and Macro. Strengthen basics in Probability, Regression, and Calculus to tackle Statistics and Mathematics questions effectively.
Effective time management is crucial both during preparation and in the exam. Break study sessions into focused blocks, attempt easier questions first in the test, and avoid getting stuck on challenging problems. Keep the last few weeks dedicated to revising formulas, key theorems, and high-frequency topics to consolidate learning.
Preparing for IIT JAM Economics 2026 requires the right set of books that cover both core concepts and advanced problem-solving techniques. Below are the recommended books for IIT JAM Economics 2026.
Topic | Book/Author |
Microeconomics | Varian – Microeconomic Analysis |
Macroeconomics | Blanchard – Macroeconomics |
Econometrics | Gujarati – Basic Econometrics |
Mathematical Economics | Alpha C. Chiang – Mathematical Economics |
Indian Economy | Ramesh Singh – Indian Economy |
Frequently Asked Questions (FAQs)
IIT JAM and JEE are designed for different purposes, so the difficulty comparison depends on perspective. JEE (Main/Advanced) tests problem-solving at the undergraduate engineering entry level, with a focus on Physics, Chemistry, and Math, and has a massive applicant pool. IIT JAM, on the other hand, is for postgraduate entry into IITs and focuses on subject depth (Economics, Mathematics, Physics, etc.). JEE is generally considered tougher due to competition volume and syllabus breadth, but IIT JAM requires more conceptual depth in the chosen subject.
Cracking IIT JAM in just 15 days is very challenging but not impossible if you already have a strong base in Economics or the chosen subject. In such a short time, focus only on high-weightage topics, revise important formulas and theorems, and practice previous year papers. While you may not master the entire syllabus, smart revision and accuracy can still help secure a decent score.
The responsibility of conducting IIT JAM rotates among the IITs every year. For 2026, the organizing IIT will be IIT Bombay. Candidates should check the official JAM portal for confirmation, as the conducting institute is also responsible for releasing the syllabus, exam pattern, and application details.
The IIT JAM Economics 2025 paper had 60 questions divided into three sections: Multiple Choice Questions (MCQs), Multiple Select Questions (MSQs), and Numerical Answer Type (NAT) questions. The total marks were 100, with varying weightage across the question types.
On Question asked by student community
Congratulations on clearing IIT JAM 2025! That’s a great achievement.
Hello,
Yes, you can appear in IIT JAM with 65% in 12th because you don't need 12th marks in IIT JAM. In IIT JAM they need your bachelor's degree, and you must have a minimum aggregate mark of 55% in this degree; then you can appear in IIT JAM. This means overall IIT JAM doesn't need 12th marks; instead, it needs bachelor's degree marks.
I hope it resolves your query!!
Yes, the IIT JAM Mathematics syllabus is mostly the same as what is taught in B.Sc. Mathematics. Core topics like Calculus, Algebra, Differential Equations, and Real Analysis overlap. However, JAM tests deeper understanding and problem-solving skills, often at a higher difficulty level than typical B.Sc. exams. Some topics may also be covered more rigorously or appear in more applied forms. So while the syllabus is similar, focused preparation is needed to match JAM’s level.
Hello
With an IIT JAM rank of 2167 in the General category, top-tier Indian Institutes of Technology such as IIT Delhi, IIT Bombay, IIT Kanpur, and IIT Banaras Hindu University are unlikely options, as their closing ranks are typically in the low hundreds to a few thousands. However, you are still in a good position for several reputable government colleges through both the IIT JAM counselling and the Centralised Counselling for Master of Science and Technology (CCMN) channels.
If you belong to the Scheduled Caste category, you have a strong chance at getting admission to IIT Banaras Hindu University in the Master of Science in Physics program.
If you are in the General category, apply through the Centralised Counselling for Master of Science and Technology to National Institutes of Technology such as NIT Silchar, NIT Srinagar, and others.
You should register for the Centralised Counselling for Master of Science and Technology for admission to National Institutes of Technology and Centrally Funded Technical Institutions, and carefully prioritize your preferences in subjects like Physics, Chemistry, or Mathematics.
You may also explore the Indian Institutes of Science Education and Research option:
If you are interested, register for the IISER Aptitude Test and aim for a rank below approximately 2000.
Keep alternative plans in mind:
Consider reputable National Institutes of Technology in your state or nearby, such as the National Institute of Technology Agartala, National Institute of Technology Nagpur, and similar institutions
Hello aspirant,
Yes you can definitely appear for IIT JAM without mathematics in class 12, as JAM is based on your Bachelor's degree background. It depends on the subject you choose for your bachelor's degree and your graduation. You can also keep checking the IIT JAM eligibility pdf for your target subject.
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