JAMB UTME - Economics - 2021
Question 1 Report
Economics may be defined as ________
Answer Details
Economics may be defined as the study of human behavior in the allocation of scarce resources. This includes the production, consumption, and distribution of goods and services, as well as the study of markets and prices, money and banking, and other related areas.
Question 2 Report
A firm is at its optimum size when ___________
Answer Details
A firm is at its optimum size when it produces the greatest output at a minimum cost. This means that the firm is operating at its most efficient level and is able to maximize its profits. While having a motive to increase output and ensuring that marginal cost is less than marginal revenue are important considerations, they do not necessarily guarantee that the firm is at its optimum size. The most important factor is to achieve the most efficient production level while minimizing costs.
Question 3 Report
Mono production economies are those that____
Answer Details
Mono production economies are those that produce one main commodity, often to the exclusion of other types of economic activity. This can lead to a heavy dependence on a single product, making the economy vulnerable to fluctuations in demand and prices for that commodity. Examples of mono production economies include countries that heavily rely on oil or other natural resources as their primary source of income.
Question 4 Report
A good measure of the standard of living usually used for international comparison is_______
Question 5 Report
Which of the following sets fully represents factors of production?
Answer Details
The set that fully represents factors of production is: "Land, labour, capital, enterprise, technology". This set includes all the factors that are necessary to produce goods and services. - Land refers to natural resources such as soil, minerals, and water that are used in the production process. - Labour refers to the human effort that is used in the production process. - Capital includes all man-made goods that are used to produce other goods and services, such as machinery, tools, and buildings. - Enterprise refers to the management and organization of resources to produce goods and services. - Technology refers to the knowledge and techniques used in the production process. The other sets listed do not fully represent all the factors of production. - Sunlight, machinery, man, land: This set includes land and machinery (capital), but it does not include labour, enterprise, or technology. - Land, water, weather: This set includes land and water, which are natural resources, but it does not include labour, capital, enterprise, or technology. - Money, market, middlemen: This set includes financial resources, markets, and intermediaries, but it does not include any of the other factors of production.
Question 6 Report
An economic problem arises when________
Answer Details
An economic problem arises when there are scarcity and choices involved. This is because there are limited resources to meet unlimited wants and needs, and individuals, businesses, and governments must make choices about how to allocate those resources efficiently. Scarcity is a fundamental concept in economics, and it necessitates the need to make choices, trade-offs, and prioritize between various wants and needs. The other options mentioned in the question (few sellers, many buyers, and short supply of money) may be factors that influence market conditions or individual economic decisions, but they are not the fundamental cause of the economic problem.
Question 7 Report
Palm oil industry is located in Old Bendel State because the state______
Question 8 Report
In a free market economy. the rationing of scarce goods is done principally by_______
Question 9 Report
Petroleum 'glut' in international trade means______
Answer Details
Petroleum 'glut' in international trade means an oversupply of petroleum.
Question 10 Report
Surplus in balance of payments leads to ________
Answer Details
An increase in foreign reserves is the correct answer. A surplus in the balance of payments means that a country is earning more from its exports and foreign investments than it is spending on imports and foreign investments. This leads to an inflow of foreign currency into the country, which increases its foreign reserves. Therefore, "Increase in foreign reserves," is the correct answer. A surplus in the balance of payments may or may not directly affect the government budget surplus, and it does not lead to a decrease in foreign reserves.
Question 11 Report
If the quantity demanded of a commodity increases from 20 to 30 when there is an increase in price from N4 to N5, the elasticity of deman is_______
Answer Details
The elasticity of demand can be calculated using the formula: Elasticity of Demand = % Change in Quantity Demanded / % Change in Price We can calculate the percentage change in quantity demanded as: % Change in Quantity Demanded = ((New Quantity Demanded - Old Quantity Demanded) / Old Quantity Demanded) x 100% % Change in Quantity Demanded = ((30 - 20) / 20) x 100% % Change in Quantity Demanded = 50% We can calculate the percentage change in price as: % Change in Price = ((New Price - Old Price) / Old Price) x 100% % Change in Price = ((5 - 4) / 4) x 100% % Change in Price = 25% Substituting these values in the formula, we get: Elasticity of Demand = 50% / 25% Elasticity of Demand = 2 Therefore, the elasticity of demand is 2.
Question 12 Report
Which of these is not a cause of high population growth in Nigeria?
Question 13 Report
What is the most important factor influencing the location of the iron and steel industry at Ajaokuta?
Answer Details
The most important factor influencing the location of the iron and steel industry at Ajaokuta is the nearness of raw material. Ajaokuta is located in Kogi state, which is close to large deposits of iron ore in Itakpe. This proximity to a reliable source of raw material is a crucial factor for the location of the iron and steel industry, as it reduces transportation costs and ensures a consistent supply of the necessary inputs for the production process. While the availability of labour, power, and access to transport facilities are also important factors, the proximity to raw material is considered the most significant factor in the location of the iron and steel industry at Ajaokuta.
Question 14 Report
Which of the following is NOT a character of perfect competition?
Answer Details
The option that is NOT a character of perfect competition is "Supply and demand are equal." In perfect competition, the supply and demand are not necessarily equal, but they interact to determine the market price. The other three options are characteristics of perfect competition: - Products are identical: In perfect competition, all firms sell the same product, and there are no differences in quality or features among them. - There is perfect knowledge: Buyers and sellers have complete information about the market, including prices, quality, and availability of products. - There is no advertising: In perfect competition, firms do not advertise because they sell identical products, and there is no need to differentiate their products from their competitors.
Question 15 Report
In a sole proprietorship, the decisions are made by the ______
Answer Details
In a sole proprietorship, the decisions are made by the owner. Since a sole proprietorship is a business owned and operated by a single individual, the owner has complete control over all decisions related to the business, including management, finances, and operations. There is no board of directors or management team to share decision-making responsibilities with the owner, and the government is not involved in the day-to-day decisions of the business.
Question 16 Report
This table illustrates the law of _________
Answer Details
No official explanation is available for this question at this time. Please check contributions posted by others below. If you can provide an explanation to help other student learn
Question 17 Report
The price mechanism______
Answer Details
The price mechanism is a mechanism that allocates scarce resources by regulating supply and demand. When demand for a particular good or service increases, the price of that good or service will rise, which in turn encourages suppliers to increase the quantity of the good or service that they produce. Conversely, if demand for a good or service decreases, the price will fall, and suppliers will be less incentivized to produce that good or service. In this way, the price mechanism helps to efficiently allocate resources to their most valuable uses by providing incentives for both consumers and producers to make choices that are consistent with market conditions.
Question 18 Report
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_______
Question 19 Report
In Nigeria, cheques are not money because________
Answer Details
In Nigeria, cheques are not generally acceptable as a medium of exchange. While cheques can be used to transfer funds between bank accounts, they are not considered as a legal tender or widely accepted as a means of payment in Nigeria. Many businesses and individuals prefer to use cash or electronic payment options, such as bank transfers or mobile payments, for transactions. Additionally, while there may be challenges with banking access in some rural areas, the lack of banks in these areas does not directly impact the use of cheques in Nigeria.
Question 20 Report
The Power Holding Company of Nigeria (PHCN) is a ________
Answer Details
The Power Holding Company of Nigeria (PHCN) is a Public Corporation.
Question 21 Report
Which of these is not usually the function of a wholesaler?
Question 22 Report
Use the table below to answer the question below;
The international production set for Nigeria and Austria is;
The Opportunity cost ratio tor cocoa and lace Tor Austria and Nigeria is_______
Question 23 Report
Inflation is likely to benefit_______
Question 24 Report
The petro-chemical industries are located in Rivers State of Nigeria due to ________
Answer Details
The petro-chemical industries are located in Rivers State of Nigeria due to the presence of oil deposits.
Question 25 Report
The value of money depends primarily on _________
Answer Details
The value of money depends primarily on the general price level.
Question 26 Report
Full employment is a situation in which _______
Answer Details
Full employment is a situation in which all those who are able and eligible to work can find employment, i.e., the level of unemployment in the economy is very low, and the economy is operating at or very close to its maximum potential output. It does not necessarily mean that every adult is employed or that only the disabled are not employed, as there may be other reasons why someone may not be seeking employment, such as personal choices, retirement, or full-time education.
Question 27 Report
Pricing and Output decisions of sellers are highly inter-dependent in markets known as _________
Answer Details
Pricing and output decisions of sellers are highly inter-dependent in markets known as Oligopoly. In an oligopoly market, a small number of firms dominate the market and each firm has a significant impact on the market. Therefore, the pricing and output decisions of one firm will have a significant impact on the other firms in the market. As a result, firms in an oligopoly market often engage in strategic behavior and consider the actions of their competitors when making pricing and output decisions.
Question 28 Report
Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a Visa for a period of ________
Answer Details
Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a visa for a period of 90 days.
Question 29 Report
Retailers in an economy perform the function of ______
Question 30 Report
If the price of a commodity falls and the quantity purchased does not rise, the commodity can be described as________
Answer Details
If the price of a commodity falls and the quantity purchased does not rise, the commodity can be described as "inferior."
Question 31 Report
Inflation can be curbed by _______
Answer Details
Inflation can be curbed by reducing aggregate demand.
Question 32 Report
By utility we mean________
Answer Details
By utility, we mean the power of satisfying a want or need.
Question 33 Report
When a nation's exports are greater than its imports,_________
Answer Details
A favourable balance of trade exists.
Question 34 Report
Which of the following countries is not a member of the Economic Community of West African States?
Answer Details
Sudan is not a member of the Economic Community of West African States (ECOWAS).
Question 35 Report
A typical corporate form of business organization is owned by ______
Answer Details
A typical corporate form of business organization is owned by shareholders.
Question 36 Report
Division of Labour is limited by the________
Question 37 Report
Money becomes a very poor store of value in a period of _______
Answer Details
Money becomes a very poor store of value in a period of inflation, as the value of money decreases over time due to the increase in the general price level of goods and services.
Question 38 Report
Oligopoly means _________
Answer Details
Oligopoly means that there are few sellers in the market. This market structure is characterized by a small number of large firms that dominate the market and have the ability to influence the market price of goods or services. These firms often engage in strategic behavior, such as price-fixing or colluding, to maintain their market power and maximize their profits.
Question 39 Report
The PAYE ( Pay As You Earn) in Nigeria is an example of ______
Answer Details
The PAYE (Pay As You Earn) in Nigeria is an example of a progressive tax. This is because the amount of tax paid is proportional to the income earned by the taxpayer. The more income earned, the higher the tax rate and the more tax paid. As a result, the tax burden falls more heavily on those with higher incomes, making it a progressive tax.
Question 40 Report
Use the table below to answer the question below;
The international production set for Nigeria and Austria is;
From the table, it can be deduced that_______
Answer Details
From the table, it can be deduced that Nigeria should produce cocoa and Austria should produce lace. This is because Nigeria has a comparative advantage in producing cocoa since its opportunity cost of producing cocoa is lower than that of Austria, while Austria has a comparative advantage in producing lace since its opportunity cost of producing lace is lower than that of Nigeria. Therefore, each country should specialize in producing the good in which it has a comparative advantage and then trade with each other to maximize their total output and welfare.
