JAMB UTME - Economics - 2018
Question 1 Report
The establishment of industries in rural areas will help to reduce____________-
Answer Details
The establishment of industries in rural areas will help to reduce Urban-Rural migration. Urban-Rural migration refers to the movement of people from urban (city) areas to rural (countryside) areas in search of better living conditions, employment opportunities, and a lower cost of living. This migration often leads to overcrowding, strain on urban resources, and an increase in poverty in both urban and rural areas. When industries are established in rural areas, it creates employment opportunities for people living in those areas. This leads to an improvement in the standard of living of the local population, as they can find employment opportunities near their homes and do not need to move to urban areas. As a result, people are less likely to migrate from rural areas to urban areas in search of better opportunities, which helps to reduce Urban-Rural migration. In addition, the establishment of industries in rural areas also leads to an increase in economic activity in those areas, which stimulates local economies and creates new business opportunities. This, in turn, can lead to a reduction in poverty, an improvement in infrastructure and services, and an overall improvement in the quality of life for people living in rural areas.
Question 2 Report
The reward for capital is___________
Answer Details
The reward for capital is interest. Capital refers to the money or assets that are used to invest in a business or enterprise. When someone invests their capital into a business, they expect to earn a return on their investment. The return on investment for capital is called interest. Interest is the amount of money paid by the borrower to the lender for the use of their capital. This can be in the form of regular interest payments or a lump sum at the end of the investment period. The interest rate is determined by various factors such as market conditions, inflation, and risk. Therefore, interest is the primary reward for capital.
Question 3 Report
One of the major forms of migration that tends to create problem in all developing countries is that of___________
Answer Details
The major form of migration that tends to create problems in developing countries is rural-urban migration. This refers to the movement of people from rural areas to urban areas in search of better economic opportunities and a higher standard of living. There are several reasons why rural-urban migration occurs. In rural areas, there may be limited job opportunities, low wages, and a lack of access to basic services such as healthcare, education, and clean water. In contrast, urban areas offer more job opportunities, higher wages, and better access to services. However, rural-urban migration can create several problems. Firstly, it can lead to overcrowding and strain on urban infrastructure, such as housing, transportation, and public services. This can result in poor living conditions for migrants and contribute to the spread of diseases. Secondly, rural-urban migration can lead to social problems such as crime, poverty, and inequality. Migrants may face discrimination and difficulty integrating into urban communities, which can exacerbate social tensions. Finally, rural-urban migration can have negative impacts on rural areas, as it can result in a loss of skilled workers and a decline in agricultural productivity. This can have serious consequences for food security and rural development. Overall, while rural-urban migration can provide benefits for migrants in terms of economic opportunities and access to services, it can also create significant challenges for both urban and rural areas.
Question 5 Report
When a union is composed of workers with the same skill , it is called____________
Answer Details
When a union is composed of workers with the same skill, it is called a craft union. This means that the union represents workers who have the same type of training or expertise in a particular craft or trade. For example, a union of electricians, plumbers, or carpenters would be considered craft unions. These workers often have specific skills that are honed through years of training and experience, and the craft union helps to protect their interests, such as negotiating better wages, benefits, and working conditions. By focusing on a specific skill, craft unions can advocate for their members' unique needs and ensure that they receive fair treatment in the workplace.
Question 6 Report
The bank type responsible for the formulation of rules and regulations guiding the banking industry is known as?
Answer Details
The bank type responsible for the formulation of rules and regulations guiding the banking industry is the Central bank. A central bank is an independent financial institution that oversees the monetary policy and banking system of a country. Its main functions include regulating commercial banks, managing the country's money supply, and controlling inflation. The central bank is also responsible for formulating rules and regulations that guide the banking industry, as well as ensuring compliance with these rules. In many countries, the central bank is the lender of last resort, meaning that it provides emergency loans to commercial banks in times of financial crisis. Examples of central banks include the Federal Reserve in the United States, the European Central Bank in Europe, and the Bank of Japan in Japan.
Question 7 Report
The number of people who are qualified to work and who offer themselves for employment is called____________?
Answer Details
The term used to describe the number of people who are qualified to work and who offer themselves for employment is called the "Working Population". The working population refers to individuals who are of working age and are either employed or actively seeking employment. This group of people is considered to be the supply of labor in the economy and is an important factor in determining the overall health and stability of the labor market. It's important to note that the working population can be influenced by various factors such as migration, education levels, and the availability of job opportunities. Understanding the size and composition of the working population can provide valuable insights into the current state of the labor market and can inform decisions related to economic and labor policies.
Question 8 Report
The population density of a town made up of 50 square kilometer land area and 100 million people is________
Answer Details
To calculate the population density, we need to divide the total population by the land area. Population density = Total population / Land area In this case, the total population is 100 million and the land area is 50 square kilometers. So, Population density = 100 million / 50 square kilometers Simplifying the above expression, we get: Population density = 2 million people per square kilometer Therefore, the correct option is "2 million people per square kilometer".
Question 9 Report
From the graph above the consumer will attain equilibrium at point_______________
Answer Details
Question 10 Report
The use of income and expenditure instruments or policies to control or regulate the economic activities of a country is known as?
Answer Details
The use of income and expenditure instruments or policies to control or regulate the economic activities of a country is known as Fiscal Policy. Fiscal policy involves the use of government spending and taxation to influence the economy's performance. For example, during a recession, the government may increase its spending to stimulate economic growth and create jobs. Alternatively, during a period of high inflation, the government may reduce its spending and increase taxes to reduce the amount of money in circulation and lower inflation. Fiscal policy can be used to achieve various economic objectives, such as stabilizing the economy, promoting economic growth, and reducing income inequality. It is an essential tool for governments to manage the economy and ensure its stability and growth over the long term.
Question 11 Report
Given the table, if the total budget of the country to be 100 million naira, what is the ratio of expenditure on manufacturing to agriculture
Answer Details
Total budget = N100,000,000
Portion of pie chart covered in degree = 360
Expenditure on manufacturing = x/N100,000,000 × 3600 = 360
3600x = 360 × N100,000,000
x = 360×N100,000,000/3600
x=N10,000,000
Therefore, the budget allocated to Manufacturing is N10,000,000
Total budget = N100,000,000
Portion of pie chart covered in degree = 720
Expenditure on Agriculture = x/N100,000,000 × 3600 = 720
3600x = 720 × N100,000,000
x = 720 × N100,000,000/3600
x = N20,000,000
Therefore, the budget allocated to Agriculture is N20,000,000
Ratio of expenditure on Manufacturing to Agriculture;
Ratio = 10,000,000:20,000,000
=1:2
Question 12 Report
Which of the following is an advantage of localization of industry?
Answer Details
Localization of industries refers to the concentration of firms or industries producing similar product in one area. As major firms concentrate in one area, other subsidiary firms that assist the major firms in the production of goods usually emerge.
Question 13 Report
The reduction in the value of a country’s currency in relation to the value of the currencies of other nation is known as____________
Answer Details
The reduction in the value of a country's currency in relation to the value of the currencies of other nations is known as "Devaluation". When a country's currency is devalued, it means that the value of its currency has decreased compared to the currencies of other countries. This can happen for a number of reasons, including a decrease in the demand for the country's goods and services, a decrease in the country's economic growth, or a decrease in the country's foreign reserves. A devaluation makes a country's exports cheaper and more competitive on the global market, which can help boost the country's economy. However, it can also lead to higher prices for imported goods, which can negatively impact the country's consumers. In simple terms, devaluation is when a country's currency becomes less valuable compared to other currencies.
Question 14 Report
In a developing economy, productivity is measured by the____________
Answer Details
Question 15 Report
Calculate the population density of Nigeria, having a total population of 180 million with a total land area of 923,768 sq km?
Answer Details
To calculate the population density of Nigeria, we need to divide the total population of Nigeria by its total land area. So, Population density of Nigeria = Total population of Nigeria / Total land area of Nigeria Plugging in the values, we get: Population density of Nigeria = 180,000,000 / 923,768 sq km Solving this equation, we get: Population density of Nigeria = 195 people per sq km (rounded to the nearest whole number) Therefore, is the correct answer. Nigeria has a population density of approximately 195 people per square kilometer, which means that on average, there are 195 people living in every square kilometer of land in Nigeria. This number is relatively high compared to some other countries, but it is important to note that population density varies widely depending on factors such as geography, climate, and economic development.
Question 16 Report
The effects on the demand for product A caused by a change in the price of product B is Called____________
Question 17 Report
If a demand curve that intersects a perfectly inelastic supply curve shift is rightward, then____________
Answer Details
Question 18 Report
Import duty and tariffs is an instrument used for international trade restriction and so is __________?
Answer Details
In other to encourage or discourage the importation of certain goods from certain countries discriminate duties are charged on these goods.
Question 19 Report
Which of the following is an invisible item?
Answer Details
The invisible item in the list is "Banking services". In economics, visible items are tangible goods that can be physically seen and touched, while invisible items are intangible services that cannot be physically seen or touched. Petroleum services, processed rice, and processed milk are all visible items because they are tangible goods that can be seen, touched, and measured. On the other hand, banking services are intangible and cannot be physically seen or touched. Examples of banking services include providing loans, managing savings accounts, facilitating transactions, and offering financial advice. Therefore, banking services are considered an invisible item because they are intangible and cannot be physically seen or touched.
Question 20 Report
A capital market differs from the money market in that in the former _____?
Answer Details
A capital market differs from the money market in that in the former, the loans sought are long term, whereas in the money market, the loans sought are short term. A capital market refers to the financial market where companies and governments can raise long-term funds by issuing and selling securities such as stocks, bonds, and other financial instruments. Investors who buy these securities are essentially lending money to the issuing entity for a longer duration, with the expectation of receiving interest payments and eventual repayment of the principal amount. The securities traded in the capital market have longer maturities, typically longer than a year. On the other hand, the money market is a financial market where short-term financial instruments such as treasury bills, commercial paper, and certificates of deposit are traded. The loans in the money market are typically for a duration of less than a year, with the purpose of meeting short-term funding needs. The interest rates on these loans are generally lower than in the capital market, given their short-term nature. In summary, while both markets deal with financial instruments, the primary difference between them is the duration of the loans sought, with the capital market focusing on long-term funding needs and the money market on short-term funding needs.
Question 21 Report
The ultimate objectives of economics is to_________?
Answer Details
The ultimate objective of economics is to make the best use of scarce resources. This means that economics seeks to understand how people, businesses, and societies allocate limited resources such as land, labor, capital, and technology in order to satisfy unlimited wants and needs. The goal is to ensure that resources are used in the most efficient and effective way possible, so that people can enjoy a higher standard of living and greater economic prosperity.
Question 22 Report
Utility is the satisfaction derived from____________
Answer Details
Utility is an economic term introduced by Daniel Bernoulli referring to the total satisfaction received from consuming a good or service.
Question 24 Report
Taxes and government expenditures are instruments of____________
Answer Details
Taxes and government expenditures are instruments of fiscal policy. Fiscal policy refers to the government's use of its spending and taxation powers to influence the economy. By adjusting the level of taxes and government spending, the government can influence the level of economic activity and control inflation. For example, if the government wants to stimulate economic growth, it may lower taxes and increase government spending. This increases consumer spending and investment, which can boost economic activity. On the other hand, if the government wants to slow down inflation, it may raise taxes and decrease government spending, which can reduce consumer spending and slow down economic growth. In summary, fiscal policy is a crucial tool used by governments to manage their economies and maintain economic stability.
Question 25 Report
The Economic Commission for Africa was set up by the_________
Answer Details
The Economic Commission for Africa (ECA) was set up by the United Nations (UN) in 1958. The ECA is one of the UN's five regional commissions and it was established to promote economic and social development in Africa. The ECA's primary objective is to provide research and policy analysis, as well as technical assistance, to African governments, with the goal of supporting their efforts to achieve sustainable and inclusive economic growth. The ECA also works to promote regional integration and cooperation among African countries, as well as to foster partnerships with other regions of the world. Therefore, the correct answer is the UNO.
Question 26 Report
If the standard deviation of a given data is 8.2, find its variance_______________
Answer Details
The variance of a given data is the square of the standard deviation. Therefore, if the standard deviation of a given data is 8.2, the variance can be calculated as follows: Variance = Standard deviation^2 Variance = 8.2^2 Variance = 67.24 So, the variance of a given data with a standard deviation of 8.2 is 67.24.
Question 27 Report
The current stage of the economy is depicted in curve I. The movement of curve I to II suggests___________
Answer Details
Question 28 Report
Consider the following statements:
1. Climate and availability of water largely determines the pattern of the population distribution.
2. Density of population helps in getting a better understanding of the spatial distribution of population in relation to land
Which of the statement(s) given above is/are correct
Answer Details
Both statements are correct. Climate and availability of water are important factors that can affect where people choose to live. Areas with a favorable climate and a reliable source of water are often more attractive to people, leading to higher population densities in those regions. On the other hand, areas with harsh climates or limited access to water may have lower population densities. Density of population refers to the number of people living in a given area. By understanding the population density in different regions, we can get a better understanding of how densely populated an area is and how the population is distributed over the land. This information is useful in a variety of fields, including urban planning, resource management, and public health.
Question 30 Report
The coefficient of the price elasticity of supply is always_____________
Answer Details
The coefficient of the price elasticity of supply is positive. This means that as the price of a good or service increases, the quantity of it that is supplied will increase as well. Conversely, if the price decreases, the quantity supplied will decrease. The degree to which the quantity supplied responds to changes in price is what the coefficient of the price elasticity of supply measures. A perfectly elastic supply has an elasticity of infinity, meaning that even a small change in price will result in a large change in the quantity supplied. On the other hand, a perfectly inelastic supply has an elasticity of zero, meaning that the quantity supplied does not change in response to price changes.
Question 31 Report
The study of Economics becomes necessary because of the______________
Answer Details
The study of Economics becomes necessary because of the "scarcity of resources". Economics is the study of how societies use limited resources to satisfy their unlimited wants and needs. Because resources such as land, labor, and capital are limited, and human wants and needs are unlimited, there is always scarcity. Scarcity means that people have to make choices about what goods and services they will produce and consume because they cannot have everything they want. Therefore, the study of economics helps to provide a framework for making decisions about how to allocate scarce resources in the most efficient and effective way possible to maximize benefits to society. In conclusion, the study of economics becomes necessary because of the scarcity of resources, which creates the need to make choices and allocate resources efficiently to satisfy the unlimited wants and needs of society.
Question 32 Report
Efficiency of labour in a country is determined by the following except the____________
Answer Details
Efficiency of labour may be defined as the ability of labour to increase output without increasing the quantity of labour. Increase in efficiency is usually expressed in terms of increase in output of labour within a shorter period of time without any fall in the quality of goods and services produced. Factors which affect efficiency of labour include Education and training, attitude to work, working conditions of workers. However, total population is not a factor that affects efficiency of workers.
Question 33 Report
The basic economic problems of society include___________
Answer Details
The basic economic problems of society refer to the fundamental challenges that arise from the limited availability of resources and the unlimited wants and needs of individuals and society as a whole. The three main economic problems are scarcity, choice, and opportunity cost. Scarcity refers to the limited availability of resources, such as land, labor, and capital, relative to the unlimited wants and needs of individuals and society. This means that choices must be made about what to produce, how to produce it, and for whom it should be produced. The second economic problem is choice. Because resources are scarce, individuals and societies must make choices about what goods and services to produce and consume. This requires answering questions like "what to produce," "how much to produce," "how to produce it," and "for whom to produce it." These choices have important consequences for the allocation of resources and the distribution of income and wealth. The third economic problem is opportunity cost. This refers to the cost of choosing one option over another, as measured by the value of the best alternative foregone. In other words, every time we make a choice, we give up the opportunity to do something else with those resources. This means that the cost of any choice is not only the direct cost of producing or consuming a good, but also the opportunity cost of not using those resources in some other way. In summary, the basic economic problems of society include scarcity, choice, and opportunity cost. These problems arise from the limited availability of resources relative to the unlimited wants and needs of individuals and society, and require making choices about what to produce, how to produce it, and for whom it should be produced.
Question 34 Report
The privatization of public enterprises will lead to efficient management of resources in the economy. This statement can best be described as_____________
Answer Details
Question 35 Report
The savings deposit in a commercial bank is called____________?
Question 36 Report
The mean is the best measure of central tendency because it__________
Answer Details
The mean is considered the best measure of central tendency because it is a balancing point in an observation. Central tendency refers to the tendency of data to cluster around a particular value in a distribution. The three measures of central tendency are mean, median, and mode. The mean is the arithmetic average of a set of data and is calculated by summing all of the values and dividing by the number of values in the set. The mean is the balancing point in an observation because it takes into account all the values in a set of data and calculates their average. It is the sum of all the values in the set divided by the total number of values. Because the mean is based on all the values in the data set, it is less likely to be affected by extreme values (outliers) than other measures of central tendency, such as the median or mode. In addition to being a balancing point in an observation, the mean has several other advantages as a measure of central tendency. For example, it is easy to calculate and is a useful tool for comparing different data sets. It can also be calculated from incomplete data, which is not the case with other measures of central tendency. Overall, the mean is the best measure of central tendency because it is a balancing point in an observation and takes into account all the values in a data set, making it less likely to be influenced by extreme values.
Question 37 Report
The policy by which government encourages producers of export goods to produce and export more in order to earn more foreign exchange is called__________
Answer Details
The policy by which the government encourages producers of export goods to produce and export more in order to earn more foreign exchange is called export promotion. This policy is aimed at increasing the volume and value of a country's exports, thereby increasing its foreign exchange earnings. Export promotion can take many forms, including providing financial incentives, such as subsidies and tax breaks, to producers of export goods. It can also involve providing training and support to help exporters improve their competitiveness, as well as promoting a country's exports through trade shows and other marketing initiatives. The goal of export promotion is to help a country's businesses increase their exports, create jobs, and boost the economy.
Question 38 Report
In other to enhance the utility of a particular commodity, it was moved from a place where it has little utility to another area where its utility is higher. This form of utility is referred to as?
Answer Details
The form of utility that refers to the enhancement of a commodity's usefulness by moving it from a place where it has little utility to another area where its utility is higher is called "place utility." For example, a bottle of water may have low utility in a store shelf where there is an abundance of water, but it would have a higher utility in a desert where water is scarce. By moving the water bottle from the store shelf to the desert, the place utility of the water bottle is increased. On the other hand, marginal utility refers to the additional satisfaction or benefit that a person derives from consuming an extra unit of a good or service, while form utility refers to the value added to a commodity by transforming it into a more useful form, such as processing raw materials into finished products. Total utility, on the other hand, refers to the overall level of satisfaction or benefit that a person derives from consuming a particular quantity of a good or service.
Question 39 Report
The minimum number of share holders for joint stock companies is_______________
Answer Details
Question 40 Report
Mortgage banks give loans to investors on a long term basics to_____________
Answer Details
Mortgage banks give loans to investors on a long-term basis to build houses. When people want to buy a home, they may not have enough money to pay for it all at once. In this case, they can apply for a mortgage loan from a bank. A mortgage is a loan that is used to buy a property and is usually paid back over a period of several years. Mortgage banks specialize in giving out loans for the purpose of purchasing property, such as homes or other buildings. The loan is typically secured by the property being purchased, which means that if the borrower cannot repay the loan, the bank can take possession of the property to recoup its losses. Investors who want to build houses can also get mortgage loans from banks. In this case, the loan is used to finance the construction of the property, and the property serves as collateral for the loan. Overall, the primary purpose of mortgage banks is to give long-term loans to investors who want to buy or build houses. By providing this service, mortgage banks help to stimulate the housing market and make it easier for people to achieve their dreams of homeownership.
