JAMB UTME - Economics - 2021 | Green Bridge CBT

Question 1 Report

Retailers in an economy perform the function of ______

Distribution. Correct answer

Exchange

Investment

Production

Answer Details

Read lesson note on Distributive Trade (WAEC)

Distributive Trade

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Question 2 Report

A typical corporate form of business organization is owned by ______

Shareholders Correct answer

A local government

The president of a country

Foreigners and citizens of the country.

Answer Details

A typical corporate form of business organization is owned by shareholders.

Read lesson note on Business Organizations (WAEC)

Business Organizations

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Question 3 Report

An economic problem arises when________

Sellers are few

Scarcity and choices are involved Correct answer

Buyers are many

Money is in short supply

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.

Read lesson note on Definition And Scope Of Economics (WAEC)

Read lesson note on Economics As A Science (JAMB)

Definition And Scope Of Economics

Economics As A Science

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Question 4 Report

A good measure of the standard of living usually used for international comparison is_______

Per capita income (PCI) Correct answer

Gross national product (GND)

Net national income (NNI)

Gross domestic product (GDP)

Answer Details

Read lesson note on National Income (WAEC)

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

National Income

Economics As A Science

Economic Systems

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Question 5 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_______

Nigeria should produce cocoa and lace

Nigeria can benefit from producing lace only

Austria should produce lace and Nigeria should produce cocoa Correct answer

Austria should produce cocoa and lace

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.

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Question 6 Report

The value of money depends primarily on _________

The gold backing of the currency

The general price level Correct answer

Government decree that it is legal tender

None of the above

Answer Details

The value of money depends primarily on the general price level.

Read lesson note on Money And Inflation (WAEC)

Money And Inflation

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Question 7 Report

Division of Labour is limited by the________

Size of labour firm

Availability of raw material

Size of the labour force Correct answer

Absolute size of the country's population

Answer Details

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Economic Systems (JAMB)

Economics As A Science

Economic Systems

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Question 8 Report

If the price of a commodity falls and the quantity purchased does not rise, the commodity can be described as________

Scarce

Normal

Superior.

Inferior Correct answer

Answer Details

If the price of a commodity falls and the quantity purchased does not rise, the commodity can be described as "inferior."

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Economics As A Science (JAMB)

The Theory Of Demand

Economics As A Science

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Question 9 Report

What is the most important factor influencing the location of the iron and steel industry at Ajaokuta?

Availability of labour in the area

Availability of power

Nearness of raw material Correct answer

Access to transport facilities

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.

Read lesson note on Agriculture (WAEC)

Read lesson note on National Income (WAEC)

Agriculture

National Income

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Question 10 Report

Which of the following is NOT a character of perfect competition?

Supply and demand are equal Correct answer

Products are identical

There is perfect knowledge

There is no advertising

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.

Read lesson note on Market Structures (WAEC)

Read lesson note on Industry And Industrialization (JAMB)

Market Structures

Industry And Industrialization

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Question 11 Report

Petroleum 'glut' in international trade means______

Higher prices for the Consumption of petroleum.

An Oversupply of petroleum. Correct answer

A fall in in petroleum production.

A higher petroleum price offered by the buyer.

Answer Details

Petroleum 'glut' in international trade means an oversupply of petroleum.

Read lesson note on International Trade (JAMB)

International Trade

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Question 12 Report

The petro-chemical industries are located in Rivers State of Nigeria due to ________

Coal deposit

Palm oil products

Favourable soil

Oil deposits Correct answer

Answer Details

The petro-chemical industries are located in Rivers State of Nigeria due to the presence of oil deposits.

Read lesson note on Petroleum And The Nigerian Economy (JAMB)

Petroleum And The Nigerian Economy

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Question 13 Report

Which of these is not a cause of high population growth in Nigeria?

Improved hygiene

Reduction in death rate

Family planning unit of Nigeria Correct answer

Increased birth rate

Answer Details

Read lesson note on Population (JAMB)

Population

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Question 14 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_______

1.5:2 Correct answer

2:2

2:1.5

0.5:1.5

Answer Details

Read lesson note on International Trade (JAMB)

Read lesson note on Theory Of Price Determination (WAEC)

International Trade

Theory Of Price Determination

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Question 15 Report

This table illustrates the law of _________

Increasing returns

Diminishing returns

Diminishing marginal utility Correct answer

Increasing total utility

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

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 16 Report

Pricing and Output decisions of sellers are highly inter-dependent in markets known as _________

Monopoly

Oligopoly
Correct answer

Monopolistic competition

Perfect competition

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.

Read lesson note on Market Structure (JAMB)

Market Structure

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Question 17 Report

In a sole proprietorship, the decisions are made by the ______

Government

Management

Owner Correct answer

Board of Directors

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.

Read lesson note on Business Organizations (WAEC)

Read lesson note on Market Structures (WAEC)

Business Organizations

Market Structures

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Question 18 Report

The PAYE ( Pay As You Earn) in Nigeria is an example of ______

Flat rate Tax

Community tax

Regressive tax

Progressive tax Correct answer

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.

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 19 Report

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

Land is suitable for oil

Is a palm tree growing area Correct answer

Soil is unsuitable for other crops

Imports raw materials for palm oil industry

Answer Details

Read lesson note on Money And Inflation (JAMB)

Money And Inflation

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Question 20 Report

By utility we mean________

Uselessness

Power of satisfying a want

Correct answer

Beneficial

Consumable

Answer Details

By utility, we mean the power of satisfying a want or need.

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Economics As A Science (JAMB)

The Theory Of Demand

Economics As A Science

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Question 21 Report

When a nation's exports are greater than its imports,_________

The net foreign trade is zero

A favourable balance of trade exists Correct answer

A favourable balance of payment exists

An unfavourable balance of trade exists

Answer Details

A favourable balance of trade exists.

Read lesson note on International Trade (JAMB)

International Trade

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Question 22 Report

Which of these is not usually the function of a wholesaler?

Branding Correct answer

Storage

Transport

Advertising

Answer Details

Read lesson note on Banking (JAMB)

Read lesson note on Distributive Trade (WAEC)

Read lesson note on Economics As A Science (JAMB)

Banking

Distributive Trade

Economics As A Science

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Question 23 Report

Oligopoly means _________

single buyer in the market

few buyers in the market.

few sellers in the market Correct answer

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.

Read lesson note on Market Structure (JAMB)

Market Structure

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Question 24 Report

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

Sudan Correct answer

Gambia

Togo

Nigeria

Answer Details

Sudan is not a member of the Economic Community of West African States (ECOWAS).

Read lesson note on Economic Integration (WAEC)

Economic Integration

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Question 25 Report

Which of the following sets fully represents factors of production?

Sunlight, machinery, man, land

Land, water, weather

Money, market, middlemen

Land, labour, capital, enterprise, technology Correct answer

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.

Read lesson note on Factors Of Production And Their Theories (JAMB)

Factors Of Production And Their Theories

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Question 26 Report

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

Public limited company

Private authority

Public Corporation Correct answer

Public Liability company

Answer Details

The Power Holding Company of Nigeria (PHCN) is a Public Corporation.

Read lesson note on Public Finance (JAMB)

Public Finance

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Question 27 Report

Economics may be defined as ________

The study of human behaviour in the allocation of scarce resources Correct answer

The study of money and banking

The study of markets and prices

The study of production and distribution

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.

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Question 28 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_______

Progressive

Proportional

Indirect

Regressive Correct answer

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 29 Report

Mono production economies are those that____

Produce one main commodities Correct answer

Have a rich cultural heritage.

Specialize in agricultural industries.

Produce only raw materials.

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.

Read lesson note on Agriculture (WAEC)

Agriculture

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Question 30 Report

Inflation can be curbed by _______

Deficit budget

Paying higher wages

Increased aggregate demand

Reducing aggregate demand Correct answer

Answer Details

Inflation can be curbed by reducing aggregate demand.

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Question 31 Report

In Nigeria, cheques are not money because________

Most Nigerians cannot identity them

They are not legal tender Correct answer

There are no banks in rural areas

They are not generally acceptable as a medium of exchange

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.

Read lesson note on Money And Inflation (JAMB)

Money And Inflation

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Question 32 Report

The price mechanism______

Rations the consumers

Rewards the producers

Regulates supply and demand Correct answer

Allocates scarce resources.

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.

Read lesson note on Theory Of Price Determination (WAEC)

Theory Of Price Determination

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Question 33 Report

Inflation is likely to benefit_______

Debtors Correct answer

Persons with back savings

Creditors

Persons who lived on fixed pension funds

Answer Details

Read lesson note on Money And Inflation (WAEC)

Read lesson note on The Theory Of Consumer Behaviour (JAMB)

Money And Inflation

The Theory Of Consumer Behaviour

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Question 34 Report

Surplus in balance of payments leads to ________

Government budget surplus

Increase in foreign reserves Correct answer

Decrease in foreign reserves

None of the above

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.

Read lesson note on International Trade And Balance Of Payments (WAEC)

International Trade And Balance Of Payments

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Question 35 Report

Full employment is a situation in which _______

Every adult is employed.

Only the disable are not employed.

All adults who can work are employed.

All those who are able and eligible can find employment Correct answer

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.

Read lesson note on Population And Labour Market (WAEC)

Population And Labour Market

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Question 36 Report

Money becomes a very poor store of value in a period of _______

Harvest

Deflation

Recession

Inflation Correct answer

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.

Read lesson note on Money And Inflation (WAEC)

Money And Inflation

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Question 37 Report

A firm is at its optimum size when ___________

It has a motive to increase output

It produces the greatest output at a minimum cost

Correct answer

Marginal cost equals marginal revenue

Marginal cost is less than marginal revenue

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.

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Theory Of Costs (JAMB)

The Theory Of Production

Theory Of Costs

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Question 38 Report

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

100 days

30 days

90 days Correct answer

14 days

Answer Details

Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a visa for a period of 90 days.

Read lesson note on Economic Integration (WAEC)

Economic Integration

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Question 39 Report

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

Consumers Correct answer

The government

The price mechanism

All of the above

Answer Details

Read lesson note on Economic Systems (JAMB)

Economic Systems

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Question 40 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_______

Zero

2 Correct answer

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.

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

Theory Of Price Determination

The Theory Of Demand

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