JAMB UTME - Economics - 2019

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The demand for labor is a "derived demand". This means that the demand for labor is not a direct demand for labor itself, but rather it is derived from the demand for goods and services that labor can produce. In other words, businesses hire workers because they need them to produce the goods and services that they sell. For example, if a business sells pizzas, it will need workers to make the pizzas, deliver the pizzas, and serve the customers. The demand for labor in this case is derived from the demand for pizzas. If the demand for pizzas increases, the demand for labor to produce and deliver the pizzas will also increase. Therefore, the demand for labor is closely tied to the demand for the goods and services that labor produces, and it is derived from that demand.

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The term M33 comprises M11 together with deposits on deposit accounts held by banks and discount houses. In economics, M33 refers to a measure of the money supply in an economy, which includes all of the components of M11 (i.e. notes and coins in circulation, and deposits held by banks and building societies), as well as the deposits held by discount houses. Discount houses are financial institutions that specialize in providing short-term loans to other financial institutions, such as banks. Because they hold deposits from these other financial institutions, their deposits are included in measures of the money supply like M33. , banks only, and banks, discount houses, and stock exchanges, are not complete answers because they do not include the role of discount houses in M33. discount houses only, is not a complete answer because it excludes the role of banks in M33. banks and discount houses, is the correct and complete answer.

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The reason why the average curve and the marginal curve are U-shaped in the short-run and flatter in the long-run is due to economies of scale. Economies of scale refer to the cost advantages that firms experience as they increase their production output. In the short-run, firms are often operating at less than their optimal capacity and therefore may experience diseconomies of scale as they increase output, which leads to higher average costs and a U-shaped average curve. Meanwhile, the marginal cost curve intersects the average cost curve at its minimum point, which is why it is also U-shaped in the short-run. However, in the long-run, firms have more time to adjust their inputs and can increase the scale of their operations. As they do so, they can experience economies of scale, which lead to lower average costs and a flatter average curve. This means that the marginal cost curve intersects the average cost curve at a lower point than in the short-run, making it flatter. Overall, this illustrates how economies of scale can affect a firm's production costs and how this can be reflected in the shape of the average and marginal cost curves.

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Changes in demand can be influenced by various factors. Among them, changes in consumer preferences, real income, distribution of incomes, and levels of taxation can all affect the quantity of a good or service that consumers are willing and able to buy at a given price. I. Changes in consumer preferences refer to shifts in the tastes and preferences of consumers. For example, if people start to prefer healthier food options, the demand for fruits and vegetables may increase while the demand for processed foods may decrease. II. Changes in real income can also impact demand. If people's real income increases, they may be able to afford more goods and services, which can lead to an increase in demand for those products. Conversely, if real income decreases, consumers may cut back on their spending, leading to a decrease in demand. III. Changes in the distribution of incomes can also affect demand. If the distribution of incomes becomes more unequal, with some people becoming much richer and others becoming much poorer, this can impact the demand for certain products. For example, if the rich become richer, they may be more willing to purchase luxury goods, leading to an increase in demand for those products. On the other hand, if the poor become poorer, they may not be able to afford certain goods, leading to a decrease in demand. IV. Changes in levels of taxation can impact demand by affecting the disposable income of consumers. If taxes increase, consumers may have less disposable income, leading to a decrease in demand for certain goods and services. Conversely, if taxes decrease, consumers may have more disposable income, leading to an increase in demand for certain products. Therefore, the answer is: I, II, III, IV, since all four factors can account for changes in demand.

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Secondary production refers to the process of transforming raw materials into finished goods, typically in a factory setting. Out of the four options, only one involves transforming raw materials into finished goods in a factory setting, and that is option II, an automobile assembly-line worker. A bricklayer (option I) works in construction and is not involved in transforming raw materials into finished goods in a factory setting. An accountant (option III) works in the service sector and is not involved in producing goods. A cinema projectionist (option IV) is also not involved in producing goods but rather in providing a service. Therefore, the answer is option II, an automobile assembly-line worker.

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Low productivity and inefficiency is not a way by which government encourages industrialization. In fact, it is the opposite. Encouraging industrialization means creating a favorable environment for businesses to grow and increase productivity. Low productivity and inefficiency hinder the growth of industries, making it difficult for the government to encourage industrialization. On the other hand, protection of infant industries, establishment of Nigeria Enterprises Promotion Decree, and establishment of higher institutions are ways by which the government can encourage industrialization. Protection of infant industries involves offering support and protection to new and growing businesses to help them establish and grow. The establishment of Nigeria Enterprises Promotion Decree provides support and incentives for local businesses to grow and expand. The establishment of higher institutions provides a well-educated workforce, which is essential for industrial growth and development.

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The last link in the channel of distribution is the Consumer. The channel of distribution refers to the path that a product takes from the producer to the final customer. The producer creates the product, and it is then sold to a wholesaler, who sells it to a retailer, and finally, the retailer sells it to the consumer. The consumer is the end user of the product and is the last link in the chain of distribution. In other words, the consumer is the person who ultimately buys the product and uses it for their own purposes. The channel of distribution is important because it helps to ensure that the product reaches the end user in a timely and efficient manner.

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The determination of price by bargaining between buyers and sellers is called Haggling or Higgling. This is a process where buyers and sellers negotiate the price of a product or service, typically in an informal setting. The buyer wants to pay as little as possible, while the seller wants to get as much as they can. They both compromise and agree on a price that is acceptable to both parties. Haggling is common in open-air markets, street vendors, and in some cultures it's a part of the normal purchasing process. In this process, the buyer and the seller communicate and exchange information about the value of the product or service, and how much each is willing to pay or receive. The price is ultimately determined through a give-and-take negotiation, and both parties must agree on the final price for the transaction to occur.

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The measure of location that is not a measure of location is "Range". A measure of location gives us an idea of where most of the values in a data set are concentrated. Arithmetic mean, Harmonic mean, and Geometric mean are all measures of location that give us a single value to represent the center of the data set. For example, the arithmetic mean is the sum of all the values divided by the number of values. The harmonic mean is the reciprocal of the arithmetic mean of the reciprocals of the data values. The geometric mean is the nth root of the product of n values. On the other hand, the range is a measure of spread, which gives us an idea of how spread out the values in a data set are. The range is simply the difference between the largest and smallest values in a data set.

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The quantity demanded (Qd) of a commodity is related to its price (P) through the equation Qd = 80 - 2P. So, if we know the price of the commodity, we can use this equation to find the quantity demanded. In this case, the price is given as ₦3. So, we can plug in this value of price into the equation to find the quantity demanded: Qd = 80 - 2P Qd = 80 - 2 * 3 Qd = 80 - 6 Qd = 74 Therefore, the quantity demanded when the price is ₦3 is 74 units.

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In the short-run, a monopoly can make abnormal profit. Abnormal profit is a profit that is higher than the normal profit a company would make in a competitive market. This is because a monopoly has market power, meaning it has control over the price of its product and can set it higher than the market price, leading to higher profits. However, it's important to note that this situation is only temporary and in the long-run, competition and other factors can drive down prices and eliminate the abnormal profit.

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Industrialization is the process of transforming an economy from primarily agriculture and handicrafts to one based on the manufacturing of goods. This process usually involves the development of new technologies, the growth of factories, and an increase in the production of goods. The goal of industrialization is to increase economic growth and improve the standard of living for a society. During industrialization, the production of goods becomes more efficient and large-scale, and people move from rural areas to cities to work in factories. In short, industrialization is the transformation of a society from traditional ways of making things to more modern and efficient methods of production.

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A retailer is distinguished by the nature of its sales, which is in units. Retailers sell products in small quantities directly to consumers for their personal or household use. They purchase products from wholesalers or manufacturers and sell them to the end-users at a markup. This type of retailing typically involves a physical store where customers can browse and purchase products, but it can also include online retailing. The focus of retailing is on selling individual units of products to the consumer, rather than selling in bulk to other businesses.

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Consumer's surplus is represented by the area above the demand curve and below the market price. In the diagram, this would be the area represented by VWX. Consumer's surplus measures the difference between the amount that consumers are willing to pay for a good and the amount they actually pay. In the diagram, consumers are willing to pay more for the good up to the market price, represented by the height of the demand curve. The area VWX represents the amount by which they are benefiting from the market, as they are paying less than they would be willing to pay. So, the answer to the question is the area VWX represents consumer's surplus.

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The term "Money at call and short notice" in a bank's assets represents the bank's loans to the money markets. Money at call and short notice refers to loans that the bank has made to other financial institutions or borrowers that can be quickly repaid upon request or on short notice, typically within 24 hours or less. These loans are typically used to finance short-term funding needs, such as meeting daily operational expenses or managing cash flows. The money markets are where short-term borrowing and lending takes place, typically for a period of less than a year. This includes activities such as interbank lending, commercial paper, and repurchase agreements. By providing loans to the money markets, banks are able to earn interest income while also helping to facilitate the flow of funds between borrowers and lenders. In summary, "Money at call and short notice" represents the bank's loans to the money markets, which are a key part of the financial system for short-term borrowing and lending.

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The shape of the demand curve determines whether a monopolist is able to increase their revenue by restricting output. A monopolist is the only seller in the market and has some control over the price of the good or service they provide. If the demand for their product is high, they can increase the price, and if they restrict the quantity of the product they supply, the price will go up even more. The demand curve shows the relationship between the price of a good and the quantity of it that consumers are willing and able to buy. If the demand curve is downward sloping, it means that as the price of the good increases, the quantity demanded decreases. This is because consumers will switch to cheaper alternatives when the price of the good goes up. So, if the monopolist restricts their output, the price will go up and they will make more profit as long as the demand curve remains downward sloping. However, if the demand curve becomes perfectly inelastic, meaning that the quantity demanded does not change with the price, then the monopolist will not be able to increase their revenue by restricting output. Therefore, in simple terms, the shape of the demand curve determines whether a monopolist can increase their revenue by restricting output.

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A commodity is defined as normal when its demand changes in the same direction as income. This means that as income increases, demand for the commodity will also increase, and as income decreases, demand for the commodity will decrease. Normal goods are those goods for which demand increases as income increases, and decreases as income decreases. For example, as people's incomes increase, they may choose to buy more luxury items such as expensive cars, jewelry, or designer clothing, which would be considered normal goods. On the other hand, as people's incomes decrease, they may choose to cut back on these purchases and switch to more budget-friendly options, causing demand for normal goods to decrease.

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The lands that belong to the community as a whole, rather than to individuals, are referred to as "communal land." Communal land is a type of property that is owned and managed collectively by a community, rather than by individual landowners. In many cases, communal land is held by a community as a shared resource that is used for various purposes, such as farming, grazing, or hunting. Communal land can be found in various forms, including indigenous lands, public lands, and lands held in common by small communities. These lands are often governed by customary or traditional rules and practices that have been developed over time by the community members. The use and management of communal land can be beneficial for communities that depend on the land for their livelihoods, as it allows for collective decision-making and sharing of resources. However, it can also present challenges when there are disputes over land use or when outside interests seek to exploit the resources on communal land.

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A contractionary monetary policy is used to control inflation. Inflation is a sustained increase in the general price level of goods and services in an economy over time. It occurs when there is too much money chasing too few goods, leading to an increase in demand and upward pressure on prices. A contractionary monetary policy is a type of economic policy used by central banks to reduce the money supply and increase the cost of borrowing, with the aim of slowing down the economy and reducing inflationary pressures. This can be achieved through several measures, such as raising interest rates, increasing reserve requirements for banks, and selling government securities in the open market. By reducing the supply of money and making it more expensive to borrow, the central bank aims to reduce spending and investment in the economy, which can help to lower inflation. A contractionary monetary policy is the opposite of an expansionary monetary policy, which is used to stimulate economic growth by increasing the money supply and lowering interest rates.

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The determination of wages in a labor market depends on the interaction between the demand for and supply of labor. In simple terms, employers demand labor to produce goods and services, while workers supply their labor to earn wages. The wage rate is then determined by the equilibrium point where the demand for labor meets the supply of labor in the market. When there is a high demand for labor and a low supply, wages tend to increase because employers are competing for a limited number of workers. On the other hand, when there is a low demand for labor and a high supply, wages tend to decrease because there are more workers than jobs available. Other factors such as government policies, economic conditions, and the skills and qualifications of workers can also influence the wage rate, but the main determinant is the interaction between the demand for and supply of labor in the market.

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An import quota is a permit that allows an importer to bring a certain quantity of foreign goods into a country. It is a government-imposed limit on the quantity of a certain good that can be imported into a country during a specific period of time. The purpose of an import quota is to protect domestic producers and limit the amount of foreign competition in the domestic market. The government sets the quota to regulate the flow of goods into the country and to ensure that domestic producers are not overwhelmed by foreign competition.

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Adam Smith's theory of value stated that the value of a commodity depends on the amount of labour expended on its production. Smith believed that in a market economy, the value of a good or service is determined by the amount of work required to produce it. According to his theory, the more time and effort that goes into making a product, the more valuable it becomes. This idea is known as the "labour theory of value." In simple terms, the value of a product is determined by the effort and time put into making it. The more effort and time required, the more valuable the product is considered to be. This theory is considered to be one of the foundations of classical economics and is still widely studied and discussed today.

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An oil spill is the release of a liquid petroleum hydrocarbon into the environment. This can occur in a variety of ways, such as from an oil tanker that leaks or a pipeline that ruptures. The oil can contaminate the water and harm wildlife, as well as damage the natural environment and disrupt human activities such as fishing and tourism. It is important to take measures to prevent and clean up oil spills to minimize their impact on the environment and local communities.

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The MC (marginal cost) curve will cut the AC (average cost) curve at the minimum point on the AC curve. This is because the minimum point on the AC curve represents the lowest average cost of production, and the MC curve intersecting the AC curve at this point indicates that the marginal cost of producing one more unit is equal to the average cost. In other words, at the minimum point on the AC curve, any further increase in production would lead to an increase in the average cost.

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An isoquant shows equal level of output. An isoquant is a curve that represents all the possible combinations of inputs (such as labor and capital) that can produce the same level of output for a particular product or service. In other words, it represents all the different ways to produce the same amount of output using different combinations of inputs. So, all points on an isoquant represent the same level of output, and this level of output gives us the same satisfaction or usefulness. As we move along the isoquant, we can produce the same output using different combinations of inputs, but the level of output remains constant. In simple terms, an isoquant is a line that shows the different combinations of inputs that can produce the same level of output.

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Inductive reasoning is a method of analysis that draws conclusions from data rather than general principles already known. In simple terms, inductive reasoning takes specific observations or pieces of evidence and uses them to form a general conclusion or pattern. For example, if you observe that every time it rains, the streets get wet, you can use inductive reasoning to conclude that rain causes the streets to get wet. In contrast, deductive reasoning starts with a general principle or premise and uses it to reach a specific conclusion. For example, if you know that all birds have feathers and you observe a creature with feathers, you can use deductive reasoning to conclude that it's a bird. Inductive reasoning is often used in scientific research, where data is collected and analyzed to form hypotheses or theories that can then be tested through further experimentation.

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If the demand for a commodity is perfectly elastic, it means that even a small change in price will cause a significant change in the quantity demanded. In other words, consumers are very sensitive to changes in price, and if the price increases, they will simply buy another substitute product that is cheaper. Now, if a tax is imposed on this commodity, it will cause the price of the commodity to increase. Since the demand is perfectly elastic, consumers will not be willing to pay the higher price and will switch to substitute products. As a result, the entire incidence of the tax falls on the seller or producer of the commodity. This is because the higher price caused by the tax will result in a decrease in the quantity demanded, and the producer will have to reduce the price in order to sell the product. Therefore, the producer bears the entire burden of the tax. In summary, if the demand for a commodity is perfectly elastic, the incidence of a tax on that commodity will be entirely on the seller or producer, as consumers are very sensitive to price changes and will switch to substitute products if the price increases.