JAMB UTME - Economics - 2022

In the long run, all production factors are

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In the long run, all production factors are "variable." This means that in the long run, a firm can adjust all of its production inputs, including labor, capital, and technology, to change the scale of its operations. In the short run, some inputs may be fixed, such as the size of the factory, which can only be changed in the long run. But in the long run, all inputs can be varied to optimize production and increase efficiency. The ability to adjust all inputs in the long run is what distinguishes the long run from the short run in the theory of production.

Which of the following situations can give rise to economic problems

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If inflation is anticipated, people may

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If inflation is anticipated, people may choose to spend less money. This is because inflation reduces the purchasing power of money, meaning that the same amount of money can buy fewer goods and services. In response, people may decide to be more frugal with their spending, save more money, or look for ways to reduce their expenses. By spending less, they can try to maintain their purchasing power and avoid the negative effects of inflation.

The theory of comparative advantage states that a commodity should be produced in that nation where the

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The theory of comparative advantage states that a commodity should be produced in that nation where the opportunity cost is least. Opportunity cost is the cost of choosing one option over another, and in the context of comparative advantage, it refers to the cost of producing a particular good or service in terms of what has to be given up to produce it. A country should specialize in producing and exporting the goods and services for which it has a comparative advantage, which means that it can produce them at a lower opportunity cost than other countries. While the absolute cost and absolute money cost of production can be important factors in determining the competitiveness of a particular commodity, the theory of comparative advantage emphasizes the importance of considering opportunity cost. Furthermore, the production possibility curve, which shows the maximum combination of two goods that can be produced with a given set of resources, is not directly related to the theory of comparative advantage, although it can help illustrate some of the concepts involved in the theory.

Which of the following industries will add more value to primary products?

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The industry that adds more value to primary products is the processing industry. The processing industry takes raw materials, such as those produced by the mining industry, and turns them into finished products through various manufacturing processes. This added value comes from transforming the raw materials into something that is more useful and valuable to consumers. The service industry, on the other hand, provides services to individuals and businesses, such as consulting, financial advice, or customer support. While the service industry is important for the economy, it does not add value to primary products in the same way that the processing industry does. The construction industry involves the building of structures and infrastructure, such as buildings, roads, and bridges. While the construction industry uses materials produced by the mining industry, it does not add value to these materials in the same way that the processing industry does. In conclusion, the processing industry is the industry that adds the most value to primary products by transforming raw materials into finished goods that are more useful and valuable to consumers.

If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing

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The firm is said to be experiencing diseconomies of scale if the cost of production continues to increase as its output rises. Diseconomies of scale occur when the firm becomes too large, and the increased complexity and coordination costs of managing a large organization outweigh the benefits of increased production. This can result in a decrease in efficiency, productivity, and profitability for the firm.

A country's budget allocation to various sectors of the economy is shown in the pie chart above...
Use it to answer this question

What is the ratio of expenditure on health to Agriculture if the yearly budget is 7200?

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A major characteristic of natural resources is they

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A major characteristic of natural resources is that they are free gifts of nature. This means that they are not produced by humans, but are found naturally in the environment. Examples of natural resources include water, air, forests, minerals, and fossil fuels. However, although natural resources are free in the sense that they are not created by humans, their extraction, production, and transportation often involve costs. Additionally, some natural resources may become scarce over time due to overuse or depletion, leading to increased prices and a greater focus on sustainability and conservation efforts.

Increasing national income without effective control of population size in a country can lead to

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Under flexible exchange rates, a deficit could be corrected by

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Under flexible exchange rates, a deficit could be corrected by the appreciation of other currencies. Flexible exchange rates are determined by market forces of supply and demand, without any government intervention. This means that the value of a country's currency can fluctuate based on changes in economic conditions and market expectations. In the case of a deficit, the demand for a country's currency will decrease, causing its value to fall relative to other currencies. This depreciation can make the country's exports cheaper and more competitive, while making imports more expensive, which can help correct the deficit. On the other hand, the appreciation of other currencies can make a country's exports more expensive and reduce demand for them, which can worsen the deficit.

An advantage of the sole proprietorship over the partnership form of business organization is that

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An advantage of the sole proprietorship over the partnership form of business organization is that it relies on the decision of one individual and does not require the consent or involvement of others. This can make decision-making more efficient and effective, and reduce the possibility of conflicts between partners. In contrast, partnerships require consensus and agreement among multiple individuals, which can be time-consuming and challenging, especially when there are disagreements. However, it is important to note that a sole proprietorship does not enjoy limited liability for debt in the event of failure, and its existence is limited by the individual owner's life span.

A firm's average cost decreases in the long-run because of

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A firm's average cost can decrease in the long-run due to increasing returns to scale. This means that as the firm increases its production, it experiences a decrease in its average cost. This can be due to various factors such as specialization, economies of scale, and better utilization of resources. For example, a firm that produces 100 units of a product might have an average cost of $10 per unit. However, if it increases its production to 200 units, it might be able to reduce its average cost to $8 per unit. This could be due to the fact that the firm can take advantage of bulk discounts on raw materials, use more efficient production methods, and spread its fixed costs over a larger number of units. Therefore, when a firm experiences increasing returns to scale, it can reduce its average cost in the long-run, which can lead to higher profits and a competitive advantage in the market.

Gross National Product (GNP) less the provision for the wear and tear of assets is the

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The term "Gross National Product (GNP) less the provision for the wear and tear of assets" refers to the Net National Product (NNP). The Net National Product (NNP) is a measure of the total economic output of a country, which takes into account the depreciation or wear and tear of the country's capital assets. Capital assets are things like buildings, machinery, and other long-term investments that contribute to a country's economic output. When we subtract the depreciation from the Gross National Product (GNP), which is the total value of goods and services produced by a country's residents, we arrive at the Net National Product (NNP). The reason we need to subtract depreciation from the GNP is that capital assets, such as buildings and machinery, wear out over time and lose value. If we didn't account for this loss of value, we would overestimate the country's economic output. For example, suppose the GNP of a country is $1 trillion, and the depreciation or wear and tear on its capital assets is $100 billion. In that case, the NNP of the country would be $900 billion ($1 trillion - $100 billion). In summary, the Net National Product (NNP) is the Gross National Product (GNP) minus the provision for the wear and tear of assets or depreciation. It gives us a more accurate measure of a country's economic output by accounting for the loss of value in capital assets over time.

Statutory organisations usually established by Acts of parliament are called

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Statutory organizations usually established by Acts of parliament are called public corporations. A public corporation is a type of legal entity that is established by the government through legislation to perform a specific function or provide a particular service to the public. Public corporations can be formed at the national, state, or local level, and can take a variety of forms depending on their specific mandate. While public enterprises are also entities that are owned and controlled by the government, they may not necessarily be established by Acts of parliament. Cooperative societies are typically voluntary organizations formed by individuals or businesses to pool resources and share risks, while joint-stock companies are privately owned businesses that are established to generate profit for their shareholders.

A possible factor which limits the extent of growth of a firm is the

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One possible factor that limits the extent of growth of a firm is the unwillingness to share ownership and control. When a firm is controlled by a single owner or a small group of owners who are not willing to share ownership or decision-making power, it can limit the firm's ability to raise capital, make strategic partnerships, or expand into new markets. In contrast, allowing outside investors or partners to have a stake in the company can provide the firm with access to more resources, expertise, and new opportunities for growth.

The ordinary partner in a partnership

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The ordinary partner in a partnership typically has unlimited liability in case of business failure. This means that they can be held personally liable for any debts or obligations of the business that are not satisfied by the assets of the partnership. This is a major disadvantage of a partnership, as it exposes the personal assets of the partners to the risk of loss in the event of business failure. While the extent of the involvement of the ordinary partner in the management of the business may vary, they are typically expected to take an active part in the management and decision-making of the partnership. As such, they cannot be said to take no active part in the management of the business. Furthermore, as a general rule, partners are jointly and severally liable for the actions of the partnership, which means that they can be sued personally on matters relating to the business. Limited liability, on the other hand, is a characteristic of some types of business entities such as limited liability companies (LLCs) and corporations.

Fiscal policy measures imply a change in

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Fiscal policy measures imply a change in government revenue and expenditure to regulate an economy. Fiscal policy is a tool used by governments to influence the economy by adjusting their spending levels and tax rates. This can be done by either increasing or decreasing government spending and taxes in order to achieve specific economic goals, such as controlling inflation, boosting employment, or promoting economic growth. For example, if the government wants to stimulate economic growth, it may increase its spending on infrastructure projects or offer tax incentives to businesses. Conversely, if the government wants to control inflation, it may decrease government spending and increase taxes to reduce the amount of money circulating in the economy. Therefore, fiscal policy measures involve making changes to both government revenue and expenditure in order to achieve specific economic objectives.

Which of the following cannot be classified as a natural resource?

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An iron rod cannot be classified as a natural resource. A natural resource is a material or substance that occurs naturally in the environment and can be used for economic gain. Natural resources can be classified into renewable and non-renewable resources. Renewable resources are those that can be replenished over time, such as solar energy, wildlife, and forests. Non-renewable resources are those that cannot be replenished, such as minerals and fossil fuels, including gold. An iron rod is not a natural resource because it is a manufactured item made from iron, which is a natural resource. The iron has been extracted from the earth and processed to make the rod, which is then used for various purposes. So, while the raw material (iron) may be a natural resource, the finished product (the iron rod) is not.

The major role of multi-national companies in the petroleum industry in Nigeria is

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The major role of multi-national companies in the petroleum industry in Nigeria is oil prospecting. These companies typically invest heavily in exploration, drilling, and production of crude oil in Nigeria, which is one of the largest oil-producing countries in Africa. The multi-national companies also play a significant role in the development of Nigeria's oil and gas infrastructure, including pipelines, storage facilities, and export terminals, which are necessary for getting the oil to international markets. While some of these companies are also involved in downstream activities such as oil marketing and refining, their primary role in Nigeria's petroleum industry is oil exploration and production.

Occupational mobility as applied to factors of production means the case by which

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Holding money to take care of contingencies is

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Holding money to take care of contingencies is a precautionary motive. This means that people keep money saved in case of unexpected events or emergencies, such as a sudden illness, job loss, or car repair. By having money set aside, they are better prepared to handle these situations and can avoid going into debt or facing financial hardship. In short, holding money for precautionary reasons is a way to protect one's financial security and peace of mind.

The stock exchange is an example of the

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The stock exchange is an example of a capital market. A capital market is a market where individuals and institutions trade financial securities, such as stocks and bonds, with the goal of raising capital. In other words, the capital market is where businesses can go to raise money by selling ownership in the company (stocks) or borrowing money (bonds) from investors. The stock exchange is a specific type of capital market where publicly-traded companies can sell ownership in the form of stocks to the public. Investors can buy and sell these stocks on the exchange, and the value of the stocks can rise or fall based on various factors, such as the company's financial performance, overall market conditions, and investor sentiment. Overall, the stock exchange and other capital markets play an important role in facilitating the flow of capital and resources throughout the economy, helping businesses raise funds to invest in growth and development, and providing investors with opportunities to earn a return on their investment.

If the marginal utility of commodity is equal to its price, then

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If the marginal utility of a commodity is equal to its price, then the consumer is in equilibrium. This means that the consumer is getting the maximum satisfaction possible from the commodity, given its price. If the marginal utility was greater than the price, the consumer would be willing to pay more for an additional unit of the commodity, indicating that they are not yet at their maximum level of satisfaction. Conversely, if the marginal utility was less than the price, the consumer would not be willing to pay the price for an additional unit, indicating that they have already exceeded their maximum level of satisfaction. Therefore, when the marginal utility is equal to the price, the consumer is in a state of balance, and does not want to consume more or less of the commodity.

Economics problems arise in all societies because

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Economics problems arise in all societies because of the fundamental concept of scarcity. Scarcity means that the resources available to society are limited, while the wants and needs of individuals are virtually unlimited. This leads to a situation where individuals, businesses, and governments have to make choices about how to allocate scarce resources in the most efficient and effective way possible. For example, a society may want to provide free healthcare to all its citizens, but it may not have the resources to do so. Alternatively, a business may want to produce more products, but it may not have the resources to expand its production line. These are just two examples of the countless economic choices that are made every day. Mismanagement of resources by leaders, lack of planning, inadequate supply of resources, and underutilization of economists are some of the factors that can exacerbate economic problems in a society. However, the underlying cause of economic problems is the scarcity of resources, which requires individuals and institutions to make difficult choices about how to allocate those resources.

Which of the following activities will not lead to economic growth?

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Massive importation of consumer goods will not lead to economic growth. Economic growth refers to an increase in the capacity of an economy to produce goods and services over a period of time. It is measured by the growth in the gross domestic product (GDP) of a country. Massive importation of consumer goods may lead to an increase in consumption, but it does not lead to an increase in the productive capacity of an economy. This is because consumer goods are used for immediate consumption and do not contribute to the production of other goods and services. On the other hand, capital goods like machinery, equipment, and infrastructure are used to produce other goods and services, and their importation can lead to economic growth by increasing the productive capacity of an economy. Intensive capital formation and the use of modern technology also contribute to economic growth by increasing the efficiency and productivity of an economy.

A price floor is usually fixed

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A price floor is typically set above the equilibrium price, and it creates a surplus of goods or services. When the price is set above the equilibrium level, it causes suppliers to offer more products than buyers are willing to purchase at that higher price. This leads to a surplus, where there are more goods available than there are buyers willing to buy them. Therefore, a price floor usually causes surpluses, and not shortages.

Which of the following factors may not affect the efficiency of labour?

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Among the given options, the factor that may not affect the efficiency of labor is the race and color of the workforce. The efficiency of labor refers to the amount of output that a worker can produce within a given time frame. Education and training can enhance workers' skills and knowledge, improving their ability to perform their jobs efficiently. Providing welfare services such as healthcare, childcare, and paid time off can also increase worker satisfaction and well-being, which can positively impact their productivity. The quality of other factor inputs, such as machinery, raw materials, and technology, can also have a significant impact on labor efficiency. High-quality inputs can facilitate and enhance workers' ability to produce more output in less time, increasing their efficiency. However, the race and color of the workforce do not inherently affect the efficiency of labor. A worker's productivity is determined by their individual skills, knowledge, and work ethic, regardless of their race or color. Discrimination based on race or color can negatively impact worker morale, job satisfaction, and opportunities, which can indirectly affect labor efficiency. Still, race or color itself is not a direct determinant of worker efficiency.

The line labelled M in the diagram above represent

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An exceptional demand curve can result from

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An exceptional demand curve can result from an expectation of future price increase. When people think that the price of a good or service is going to increase in the future, they may start buying more of it now in order to avoid paying the higher price later. This increase in demand can cause the price of the good or service to go up in the present, creating an exceptional demand curve that deviates from the typical downward-sloping demand curve. The other factors, such as an increase in the price of raw materials, increase in the size of the population, or change in taste of consumers, can also impact the demand for a good or service, but an expectation of future price increase is a unique factor that can result in an exceptional demand curve.

Positive check as envisaged by Thomas Malthus can be prevented if

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Thomas Malthus proposed the concept of a positive check, which refers to a population control mechanism in which natural disasters, disease, and famine limit the population growth. However, positive checks are not desirable as they lead to high levels of human suffering. To prevent positive checks, it is necessary to implement measures that help to control population growth while maintaining the well-being of individuals. One way to achieve this is by reducing the death rate through improved healthcare, better nutrition, and access to safe water and sanitation. Another approach is to promote moral restraint, which involves encouraging individuals to delay marriage and childbearing until they are economically stable and can provide for their children. Additionally, building more hospitals can help to improve access to healthcare, which can contribute to reducing the death rate and improving overall health outcomes. Natural calamities, on the other hand, can lead to positive checks, and as such, they are not a desirable solution for preventing population growth. Instead, efforts should focus on implementing sustainable population control measures that promote economic development, education, and access to healthcare, while also protecting the environment.

The figure above shows change in demand for commodity x which is a normal good. Use it to answer the questions that follows

Which of the following caused the change in demand from D0 D0 to D2 D2?

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A disadvantage of a jont-stock company is

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A disadvantage of a joint-stock company is limited control in management by shareholders. In a joint-stock company, shareholders own a portion of the company and can make money by selling their shares for a profit or receiving dividends. However, shareholders do not typically have direct control over the day-to-day management of the company. Instead, a board of directors and executive management team make decisions on behalf of the company. This lack of control in management can be seen as a disadvantage for shareholders who may have different ideas about how the company should be run or who may not agree with the decisions made by the board or executive management team. Additionally, shareholders may not be able to influence the direction of the company as much as they would like. Overall, while joint-stock companies offer benefits such as limited liability for shareholders, this disadvantage in control over management may be a concern for some investors.

A supply curve parallel to the X-axis indicates

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An effect of inflation is that it

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An effect of inflation is that it "favors debtors at the expense of creditors." Inflation reduces the real value of money over time, which means that the value of debt also decreases. This can be an advantage for debtors, who are able to repay their debts with money that is worth less than when they borrowed it. In contrast, creditors are disadvantaged by inflation, as the value of the money they receive in repayment is worth less than the money they loaned out. Inflation can also have other effects, such as reducing the purchasing power of consumers, increasing uncertainty, and distorting economic decision-making.

A made obstacle to economic development is

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A major obstacle to economic development is low farm productivity. Agriculture is a significant sector in many developing countries, and low farm productivity can have a significant impact on economic growth and development. Low productivity in agriculture can result from a range of factors, including inadequate access to credit, poor infrastructure, low-quality inputs, and limited knowledge of modern farming techniques. This can limit the production of food and raw materials for industrial processes, resulting in higher prices, reduced exports, and lower economic growth. Increasing farm productivity is often a key focus of development programs and policies aimed at promoting economic development in developing countries.

If a demand curve that intersects a perfectly inelastic supply shifts rightward, then

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If a demand curve that intersects a perfectly inelastic supply shifts rightward, the equilibrium price will increase, but the quantity supplied will remain the same. In this scenario, a shift in the demand curve to the right indicates that there is an increase in demand for the product at every price level, leading to a new equilibrium price and quantity. However, the supply is perfectly inelastic, meaning that the quantity supplied cannot increase to meet the new demand. Therefore, the equilibrium quantity remains the same, while the equilibrium price increases. So, only the price will increase in this scenario.

A consumer of a single commodity is in equilibrium when

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A consumer of a single commodity is in equilibrium when they have reached a point where they are satisfied with the amount of the commodity they have purchased and consumed, and do not feel the need to buy any more or any less of it. This equilibrium can be achieved in different ways, but one common way is when the marginal utility, or the additional satisfaction gained from consuming one more unit of the commodity, is equal to the price paid for that unit. In other words, the consumer is willing to pay the price because they feel they are getting enough satisfaction from the additional unit. At this point, the consumer has no incentive to buy more of the commodity, because the marginal utility would be lower than the price, and they would feel like they are overpaying for the satisfaction gained. Conversely, if the price were to decrease, the marginal utility would be higher than the price, and the consumer may feel like they are getting a good deal and may want to purchase more of the commodity. Ultimately, the consumer is in equilibrium when they have found a balance between the satisfaction gained from the commodity and the price paid for it.

The International Bank for Reconstruction and Development(IBRD) performs the following functions except-------

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The International Bank for Reconstruction and Development (IBRD) is a specialized agency of the United Nations that provides loans, technical assistance, and other services to developing countries. Out of the options provided, the IBRD does not reduce tariffs among its members. Its main focus is on granting long-term loans to member countries for development projects, providing technical expertise to help those countries implement those projects successfully, and developing human resources in those countries. Tariff reduction is not one of its main functions.

An example of transfer payments in national income accounting is

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Transfer payments refer to payments made by the government or other institutions to individuals or other entities, without receiving any goods or services in return. These payments are typically made for social welfare purposes or to redistribute income. An example of a transfer payment in national income accounting is unemployment allowance paid to citizens who are unemployed. The government pays these allowances to support individuals who are currently out of work and seeking employment. This payment is considered a transfer payment because the government is not receiving any goods or services in return for the funds provided. Transfer payments are not included in the calculation of GDP because they do not represent the production of goods or services. However, they are important in measuring the overall economic well-being of a society, particularly in terms of income distribution and social welfare.

The pie chart above represent the total population of a school of 1,200. The shaded area of 60∘ shows the population of the underaged pupils.

What is the population of the matured students?

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Since the entire pie chart represents the total population of the school, and the shaded area of 60∘ represents the underaged pupils, then the remaining unshaded area of the pie chart must represent the population of matured students. To find the measure of the unshaded area, we can subtract the measure of the shaded area from the total measure of the pie chart, which is 360∘ (since a circle has 360 degrees). So the unshaded area is: 360∘ - 60∘ = 300∘ The unshaded area of 300∘ represents the population of the matured students. To find the actual population of the matured students, we need to convert the 300∘ into a proportion of the total population. The proportion of the matured students is: 300∘ / 360∘ = 5/6 This means that the population of the matured students is 5/6 of the total population of the school, which is: (5/6) x 1200 = 1000 Therefore, the population of the matured students is 1000.