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Question 1 Report
Which of the following is an advantage of division of labour?
Answer Details
One advantage of division of labor is the production of specialized goods. When tasks are divided and workers specialize in a particular task, they become more efficient at it, which can lead to higher productivity and higher quality output. This specialization allows for the production of goods that are specific to a particular market or customer demand. For example, in a car factory, one worker may specialize in assembling the engine while another specializes in installing the seats. This specialization can lead to the production of cars that are designed for specific purposes or customers, such as sports cars or family cars. Therefore, the advantage of division of labor is that it can lead to the production of goods that are tailored to meet specific needs and demands.
Question 2 Report
International trade is based on the law of
Answer Details
International trade is based on the law of comparative cost advantage, which states that countries should specialize in producing and exporting goods that they can produce at a lower opportunity cost than other countries, and import goods that they cannot produce efficiently. In other words, countries should produce the goods that they can produce most efficiently, and trade with other countries to obtain goods that they cannot produce efficiently. By doing so, countries can increase their overall production and consumption, and ultimately improve their standard of living. The law of comparative cost advantage was developed by the economist David Ricardo, and is widely accepted as a key principle of international trade.
Question 3 Report
Which of the following is a reward to a factor of production?
Answer Details
Interest is a reward to a factor of production. It is the payment made by a borrower of funds to the owner of the funds, usually in return for the use of those funds over a period of time. In the context of factors of production, interest is a reward to capital, which is one of the four factors of production (the others being land, labor, and entrepreneurship). When capital is used to produce goods and services, it earns interest as a reward for its contribution to the production process.
Question 4 Report
One of the advantages of large scale production is that
Answer Details
One of the advantages of large scale production is that the firm can use labor-saving machinery. Large scale production means producing goods in large quantities, which requires a lot of labor. However, by using machinery to automate certain tasks, the amount of labor required can be reduced, which can result in cost savings for the firm. Machinery can also increase production efficiency and consistency, resulting in higher quality products at lower costs. This can give the firm a competitive advantage by allowing them to offer their products at a lower price than their competitors.
Question 5 Report
Which of the following is a liability of commercial banks?
Answer Details
A liability is an obligation or debt that a company owes to others. In the case of commercial banks, a liability refers to the money that the bank owes to its depositors and other creditors. This means that if someone deposits money in a bank, the bank is liable to return that money to the depositor on demand or as per the agreed terms. Out of the given options, the liability of commercial banks is "deposits" since it is the money that the bank owes to its customers who have deposited their money in the bank. Money at call, loans to customers, and overdrafts are assets of commercial banks since they represent the money that the bank has lent out to its customers.
Question 6 Report
Economics is best described as the study of
Answer Details
Economics can be best described as the study of how individuals, organizations, and societies make choices to allocate limited resources to satisfy their unlimited wants and needs. It covers a wide range of topics, including the production and consumption of goods and services, the distribution of income and wealth, the role of markets and government, and the behavior of individuals and institutions in the economy. In short, economics is concerned with understanding and improving the functioning of the economy as a whole.
Question 7 Report
A nation's net export is negative when her
Answer Details
When a nation's imports exceed its exports, its net export becomes negative. This means that the country is spending more on foreign goods and services than it is earning from its own exports. Essentially, a negative net export indicates that a country is importing more than it is exporting, leading to a deficit in its balance of trade. This deficit can have a negative impact on the country's economy, as it may result in a loss of jobs, reduced economic growth, and increased national debt.
Question 9 Report
Who among the following will benefit from inflation?
Answer Details
Inflation refers to the increase in prices of goods and services over time. This can result in a decrease in the purchasing power of money. Out of the options given, debtors are the ones who can benefit from inflation. This is because inflation leads to a decrease in the value of money, which can effectively reduce the real value of debt. For instance, if a debtor took out a loan of $1000, with an interest rate of 5%, and there is a 3% inflation rate, then the real interest rate on the loan will be only 2%. Therefore, the debtor pays back the loan with money that is worth less than the money that was borrowed. On the other hand, savers and creditors are negatively affected by inflation because the real value of their savings and investments decrease as the purchasing power of money decreases. Pensioners who rely on fixed incomes and savings may also be negatively impacted by inflation if the cost of living increases faster than their income.
Question 10 Report
Warehouse facilities in the distribution and marketing of products are provided by
Answer Details
Warehouse facilities in the distribution and marketing of products are provided by wholesalers. Wholesalers are businesses that buy large quantities of products from manufacturers and sell them in smaller quantities to retailers or other businesses. They often provide warehousing facilities for the products they purchase, which allows them to store large quantities of goods until they are needed by retailers or other customers. By providing these warehousing facilities, wholesalers help to ensure that products are available to retailers when they need them, and they also help to reduce the cost of distribution by consolidating shipments and reducing transportation costs.
Question 11 Report
Budget surplus implies that
Question 12 Report
The National Electrical Power Authority (NEPA) in Nigeria is a
Answer Details
As of my knowledge cut-off date of September 2021, the National Electric Power Authority (NEPA) in Nigeria was a public corporation established by the Nigerian government to oversee the generation, transmission, and distribution of electricity across the country. However, it is important to note that governmental organizations can undergo changes in their structure and classification over time.
Question 13 Report
personal savings are generally low in West Africa because of
Answer Details
Personal savings are generally low in West Africa because of the level of income of people. Many people in West Africa have low incomes, which makes it difficult for them to save money. In many cases, people's income is barely enough to cover their basic needs, such as food, housing, and healthcare. As a result, they have little or no money left over to save. In addition, many people in West Africa work in the informal sector, where they may not have access to formal banking services or other financial products that could help them save money. This can also make it difficult for people to save, even if they have some money left over after paying for basic expenses.
Question 14 Report
Terms of trade is used to describe
Answer Details
Terms of trade refers to the rate at which a country's exports exchange for imports from another country. It is a measure of the relative value of a country's exports in comparison to its imports. If a country's terms of trade improve, it means that it can buy more imports with the same amount of exports. On the other hand, if a country's terms of trade deteriorate, it means that it has to export more to buy the same amount of imports. Therefore, terms of trade are an important economic indicator that affects a country's balance of payments, international trade, and economic growth.
Question 15 Report
A commodity is said to have derived demand when it
Answer Details
A commodity is said to have derived demand when it is demanded because of what it can help to produce. In other words, the demand for the commodity is derived from the demand for other goods and services that it can contribute to producing. For example, the demand for steel may be derived from the demand for cars or buildings. This is different from a commodity with direct demand, which is demanded for immediate consumption or use.
Question 16 Report
The value of money is best determined by its
Answer Details
The value of money is best determined by its purchasing power. This means the amount of goods and services that can be purchased with a certain amount of money. The more purchasing power a currency has, the more valuable it is. Portability and being recognized are important factors in making a currency functional, but they do not directly determine its value. The size of a currency note is irrelevant to its value.
Question 17 Report
Land is a factor of production because it
Answer Details
Land is considered a factor of production because it is a natural resource that can be used to create goods and services. It is a free gift of nature that is not man-made, and as such, it is an important resource for economic development. Land can be used to grow crops, raise livestock, extract natural resources such as minerals and oil, build factories and homes, and provide recreational opportunities. Land ownership is important because it determines who has the right to use the land and who benefits from the economic activities that take place on it. Therefore, land plays an important role in the creation of utility and economic growth.
Question 18 Report
Cheques are not money because
Answer Details
Cheques are not money because they are not generally acceptable as a medium of exchange. While cheques can be used to transfer money from one account to another, they are not as widely accepted as physical currency. Not all businesses or individuals accept cheques, and they may be subject to verification and clearance procedures that can take several days. Money, on the other hand, is generally accepted as a medium of exchange and is widely recognized and valued within a given economy.
Question 19 Report
A limited liability company is owned by the
Answer Details
A limited liability company is owned by the shareholders. This means that individuals or other companies can purchase shares of the company, which represents ownership in the company. Shareholders are entitled to a portion of the company's profits, and their liability is limited to the amount they have invested in the company. This means that if the company were to go bankrupt or be sued, the shareholders would not be personally responsible for the company's debts beyond the amount they invested.
Question 20 Report
Malthus population theory stated that
Answer Details
Malthus population theory stated that the population may outgrow the means of subsistence. This means that if the population continues to grow at a faster rate than the food supply, people will eventually face a crisis of overpopulation and starvation. According to Malthus, this crisis would occur because population tends to increase geometrically while food supply increases only arithmetically. Therefore, Malthus argued that population growth should be controlled through measures such as late marriages and celibacy to avoid the catastrophe of overpopulation.
Question 21 Report
An economic system in which the state owns and controls the means of production is known as
Answer Details
A socialist economy is an economic system in which the state owns and controls the means of production. This means that the government owns and operates businesses and industries, such as factories and farms, and manages the allocation of resources and distribution of goods and services. The goal of a socialist economy is to promote social welfare and eliminate economic inequalities, with the belief that collective ownership and control will lead to a more equal and fair society. In a socialist economy, there is typically little or no private ownership of property, and decisions about production and distribution are made by the government.
Question 22 Report
The main objective of setting up private businesses is to
Answer Details
The main objective of setting up private businesses is to maximize profits. Private businesses are established and operated with the primary goal of generating profits for the owners or shareholders. The desire for profit maximization drives private businesses to undertake various activities, including research and development, marketing, and cost reduction measures, among others. This profit motive also encourages private businesses to innovate and invest in new technology and machinery, leading to economic growth and job creation.
Question 23 Report
Which of the following is not likely to be an effect of a growing population?
Answer Details
High per capita income is not likely to be an effect of a growing population. A growing population generally leads to a rise in demand for goods and services, which in turn creates more job opportunities. However, this increase in demand can lead to an increase in prices, resulting in a fall in the standard of living. Additionally, a growing population may also lead to increased competition for resources, which can lead to unemployment. Therefore, high per capita income is not likely to be an effect of a growing population.
Question 24 Report
One of the criticisms of population increase is that it result in
Answer Details
One of the criticisms of population increase is that it can result in an increase in government expenditure. As the population grows, the government needs to provide more services and infrastructure to meet the needs of the growing population, such as schools, hospitals, roads, and housing. These services and infrastructure require funding, which can lead to an increase in government expenditure. This can put pressure on the government's budget and may result in a need for higher taxes or government debt.
Question 25 Report
When elasticity is zero the demand curve is
Answer Details
When elasticity is zero, the demand curve is perfectly inelastic. Perfectly inelastic demand means that the quantity demanded does not change when the price changes. In other words, the demand is completely insensitive to price changes. This can occur when a good or service has no substitutes and is considered a necessity, such as life-saving drugs or medical treatments. For example, if a life-saving drug costs $100 per dose and the quantity demanded does not change, even if the price is increased to $1,000 per dose, then the demand is perfectly inelastic. The quantity demanded remains the same regardless of the change in price. When graphed, the demand curve for a perfectly inelastic good or service is a vertical line, because the price does not affect the quantity demanded. This means that the demand curve has zero slope and elasticity is equal to zero.
Question 26 Report
The location of timber and plywood industries in West Africa is mainly influenced by the availability of
Answer Details
The location of timber and plywood industries in West Africa is mainly influenced by the availability of raw materials. This is because the production of timber and plywood requires a large supply of wood, and West Africa is home to vast forests and timber reserves. The location of these industries is therefore determined by the proximity of these forests and reserves to the factories. Additionally, the availability of raw materials can also affect the cost of production, making it more cost-effective to locate the factories closer to the sources of wood. While factors such as transport, water, and labor supply may also play a role in the location of these industries, the primary determinant is the availability of raw materials.
Question 27 Report
inflation can be controlled by increasing
Answer Details
Inflation can be controlled by increasing aggregate supply. Aggregate supply refers to the total amount of goods and services that producers are willing and able to supply in an economy. When aggregate supply increases, it leads to a decrease in prices, which reduces inflation. This is because as the supply of goods and services increases, there is less pressure on prices to rise due to increased competition among producers. Therefore, increasing aggregate supply is one of the ways that governments can control inflation.
Question 28 Report
An increase in the demand for butter reduces the demand for margarine, this type of demand is called
Answer Details
This type of demand is called a "competitive demand". Competitive demand occurs when two or more products or goods can be used as substitutes for each other. In the given scenario, butter and margarine are substitutes for each other. As the demand for butter increases, consumers are likely to switch to butter from margarine, which will decrease the demand for margarine. This shows how the demand for one product can affect the demand for another related product.
Question 29 Report
The most frequent occurring value in a given data is the
Answer Details
The most frequent occurring value in a given data is called the mode. This means that when we have a set of data, we count how many times each value appears, and the mode is the value that appears most often. For example, in the set of data {1, 2, 2, 3, 4, 4, 4, 5}, the mode is 4, because it appears three times, which is more than any other value in the set.
Question 30 Report
Economist speaks about ‘opportunity cost’ when a consumer
Answer Details
Opportunity cost is the value of the best alternative that is forgone when making a choice. In other words, when a consumer has to choose between two or more options, the opportunity cost is the value of the next best alternative that they are giving up. For example, if a consumer has $10 and has to choose between buying a book for $5 or buying a movie ticket for $8, the opportunity cost of buying the book is the value of the movie ticket that they could have bought instead. Understanding opportunity cost is important because it helps consumers to make better decisions. By considering the opportunity cost of each choice, consumers can make more informed decisions about how to allocate their limited resources, such as time or money. By choosing the option with the lowest opportunity cost, consumers can minimize their costs and maximize their satisfaction.
Question 32 Report
Which of the following is a function of merchant banks?
Answer Details
Merchant banks are financial institutions that offer financial services and advice to businesses, corporations and governments. One of the functions of merchant banks is to act as acceptance houses. This means that they accept bills of exchange from their clients, which allows the clients to get immediate access to cash rather than waiting for the bills to mature. The merchant bank then holds onto the bills until they mature and collects the full amount owed. This service helps businesses to manage their cash flow and improve their liquidity. The other options are not functions of merchant banks.
Question 33 Report
Which of the following is a problem of trade by barter?
Answer Details
The problem with trade by barter is the difficulty in determining fair exchange rates for goods and services. Unlike in a monetary economy where the value of goods and services is determined by a common currency, in a barter system, the value of goods and services is subjective and can vary between traders. For example, a farmer may need a new plow and offer to trade some of his crops for it. However, the person with the plow may value the crops differently than the farmer, leading to a disagreement over the fair exchange rate. This can result in a breakdown in trade and limit the potential benefits of trade. In addition, barter systems may also suffer from issues such as hoarding and limited specialization. Without a common currency, individuals may hoard goods in anticipation of future needs, leading to inefficient allocation of resources. Also, without specialization, individuals may lack the expertise to produce certain goods or services, limiting the potential gains from trade. Overall, the problem with trade by barter is the difficulty in determining fair exchange rates, which can limit the potential benefits of trade and lead to inefficient allocation of resources.
Question 34 Report
Gross Domestic Product (GDP) at market price plus net factor income from abroad gives
Answer Details
The term "Gross Domestic Product (GDP)" refers to the total value of all goods and services produced within a country's borders in a given period of time. However, some factors of production, such as labor or capital, may be owned by foreigners. In such cases, the net factor income from abroad refers to the difference between the income earned by domestic factors of production in foreign countries and the income earned by foreign factors of production in the domestic country. By adding net factor income from abroad to GDP at market price, we get Gross National Product (GNP), which is the total value of all goods and services produced by a country's domestic factors of production, regardless of their location. Therefore, the correct option is "gross national product."
Question 35 Report
The greatest revenue earning industry in Nigeria is
Answer Details
The greatest revenue earning industry in Nigeria is oil and gas, which falls under the category of mining. Nigeria is one of the largest oil-producing countries in Africa and the world. The oil and gas industry has played a significant role in the country's economy, contributing a substantial percentage to the Gross Domestic Product (GDP) and serving as a major source of foreign exchange earnings. The industry also provides employment opportunities and is a major driver of infrastructural development in the country.
Question 36 Report
A market equilibrium exist when
Answer Details
A market equilibrium exists when the quantity of a good or service demanded by buyers is equal to the quantity supplied by sellers at a specific price. In other words, a market equilibrium is reached when the demand for a product is matched by the supply of that product, resulting in a stable price. At the equilibrium price, buyers are willing to purchase exactly the same quantity of the product that sellers are willing to sell. There is no excess demand or excess supply in the market. Buyers who are willing to pay the equilibrium price are able to purchase the product, and sellers who are willing to sell at that price are able to sell their product. When the price is above the equilibrium level, the quantity supplied exceeds the quantity demanded, resulting in a surplus. This surplus causes sellers to lower their prices to sell their excess supply, which eventually brings the market back to equilibrium. On the other hand, when the price is below the equilibrium level, the quantity demanded exceeds the quantity supplied, resulting in a shortage. This shortage causes buyers to bid up the price to obtain the product, which eventually brings the market back to equilibrium. Overall, a market equilibrium is a state of balance between supply and demand, where both buyers and sellers are able to trade at a mutually agreed upon price.
Question 37 Report
which of the following is not a benefit derived by Nigeria from the petroleum industry?
Question 38 Report
Subsistence production means that goods and services are
Answer Details
Subsistence production refers to the production of goods and services for the purpose of consumption by the producer and their household, rather than for sale to others or for the market. In other words, the focus is on producing what is necessary for one's own survival and needs, rather than for profit or exchange with others. Examples of subsistence production include growing vegetables in a home garden for personal consumption or making clothes at home for one's own use.
Question 39 Report
The cost which firm will incur whether it is in production or not, is referred to as
Answer Details
The cost which a firm has to incur regardless of whether it produces any output or not, is called a fixed cost. Fixed costs are expenses that are not dependent on the level of production and must be paid even if there is no activity. These costs include things like rent, salaries, and property taxes. For example, consider a factory that produces bicycles. It has to pay a fixed rent of $10,000 per month, regardless of whether it produces 100 bicycles or none at all. This is a fixed cost that the factory has to pay every month. In contrast, variable costs are expenses that vary with the level of production, such as raw materials or labor. For example, the cost of steel needed to manufacture bicycles is a variable cost. The more bicycles the factory produces, the more steel it will need, and the higher the variable cost will be. Understanding the difference between fixed and variable costs is important for businesses because it can help them make better decisions about pricing, production levels, and profitability.
Question 40 Report
Census figure of most countries in West Africa is inaccurate because of
Answer Details
The inaccurate census figure of most countries in West Africa is because of the high degree of illiteracy. Illiteracy makes it difficult for people to understand the importance of participating in the census exercise. Some people may also be afraid to reveal their actual numbers due to suspicion or distrust of the government. As a result, census figures tend to be lower than the actual population, making it difficult for government planners to accurately allocate resources and plan for the future.
Question 41 Report
Which business organization enjoys tax-free point in est Africa?
Answer Details
In East Africa, cooperative societies enjoy tax-free points. A cooperative society is a business organization that is owned and operated by a group of individuals for their mutual benefit. These societies are formed to provide goods and services to their members at affordable prices. The East African governments recognize the importance of these organizations in promoting economic growth and development, and therefore, they offer tax exemptions to encourage their establishment and operation. This tax exemption policy is aimed at promoting investment, job creation, and economic growth. Therefore, cooperative societies in East Africa enjoy tax-free points.
Question 42 Report
Which of the following is a function of the Central Bank of Nigeria?
Answer Details
The function of the Central Bank of Nigeria (CBN) as a "banker's bank" means that it provides banking services to other banks and financial institutions in the country. This includes maintaining their accounts, providing loans and advances, and facilitating transactions between them. By acting as a banker's bank, the CBN helps to ensure the stability of the banking system in Nigeria. It also plays a key role in setting monetary policy, which involves controlling the money supply and interest rates to achieve macroeconomic objectives such as price stability, economic growth, and employment. Therefore, the correct option from the given list is "serving as banker's bank."
Question 43 Report
Despite the benefits large firms enjoy, it could be limited by the
Answer Details
Large firms enjoy several benefits, such as economies of scale, brand recognition, and bargaining power. However, the extent of these benefits could be limited by the size of the market they operate in. A firm can only grow as much as the market allows, and if the market is small or saturated, the firm's potential for growth and profit will also be limited. Additionally, the growth of specialization and technological advancements may also limit a firm's ability to maintain its competitive advantage, as smaller firms may be more nimble and able to adapt to changing market conditions. Therefore, despite their size and advantages, large firms still face limitations that can affect their success in the long run.
Question 44 Report
Which of the following statements about population is correct?
Answer Details
The correct statement about population is that under-population implies that available resources are not used to full capacity. Under-population occurs when the number of people in a particular area is lower than what is necessary to fully utilize the available resources, such as land, labor, and capital. As a result, there is excess capacity, and resources are not utilized to their full potential. For example, consider a small town with a population of 1,000 people and several factories. If the factories can employ up to 2,000 people, the town is underpopulated. In this case, the available labor force is not sufficient to fully utilize the factories' capacity. Therefore, the factories are not operating at their full potential, and the town is not benefiting from the maximum possible output. In contrast, over-population occurs when the number of people in a particular area exceeds the available resources, resulting in a decline in per capita output and standard of living. Optimum population, on the other hand, refers to the level of population that maximizes the use of available resources and results in sustainable economic growth and development. It is neither fixed nor does it lead to overcrowding of cities.
Question 45 Report
Deficit in the balance of payment is financed through
Answer Details
A deficit in the balance of payment occurs when a country's import expenditure exceeds its export earnings. To finance this deficit, a country can use various methods, including borrowing from foreign countries, selling assets to foreigners, and receiving foreign aid. These transactions fall under the capital account of the balance of payment. The capital account reflects the flows of funds between a country and its trading partners that are not related to trade in goods and services. Therefore, a deficit in the balance of payment is usually financed through the capital account.
Question 46 Report
The incidence of an increase in tax on a commodity with perfectly inelastic demand will be on the
Answer Details
In the case of a commodity with perfectly inelastic demand, consumers are willing to pay any price for it, so an increase in tax on this commodity will be passed entirely onto the consumer. Therefore, the incidence of the tax will be on the consumer.
Question 47 Report
Localization of industry refers to the
Answer Details
Localization of industry refers to the concentration of the firms of an industry in a particular area. This is often due to factors such as the availability of raw materials, infrastructure, skilled labor, and government policies. Localization of industry has the advantage of creating economies of scale, reducing transportation costs, facilitating knowledge and technology sharing, and improving competition. It can also lead to the development of industrial clusters, which can foster innovation and productivity growth.
Question 48 Report
The table below shows the supply and demand for kilograms of maize per month in thousands. Use the information in the table to answer the questions that follow.
| Quantity supplied (000) | Price per thousand kilogram ($) | Quantity Demanded (000) |
| 16 | 3.00 | 3 |
| 13 | 2.50 | 5 |
| 9 | 2.00 | 9 |
| 6 | 1.50 | 14 |
| 3 | 1.00 | 19 |
| 1 | 0.50 | 26 |
(a) (i) If the government fixed the price of maize at $1.50 per thousand kilogram, what will be the excess demand for maize
(ii) If the government fails to enforce the fixed price, what will happen to the price of maize
(b) How can the government maintain a fixed price of $3.00 per thousand kilogram for maize?
(c) In relation to the equilibrium price, what will be the effects on the quantities demanded and supplied if the government enforced a fixed price of $1.00?
Answer Details
None
Question 49 Report
What factors limit the size of indigenous firms in West Africa
Answer Details
None
Question 50 Report
(a) What is a market economy?
(b) Highlight the features of a market economy.
None
Answer Details
None
Question 52 Report
How can a huge national debt affect the economy of a country?
Answer Details
None
Question 53 Report
The following data relate to a closed economy of a country where all production takes place in two firms. Use the information in the table to answer the questions that follow:
| Items | Firm A (in 000 Dollars) | Firm B (in 000 Dollars) |
| Sales | 200 | 400 |
| Raw material | 100 | 60 |
| Labour costs | 80 | 160 |
| Depression | 16 | 40 |
| Profits | 4 | 140 |
(a)(i) Which of the items listed above is an intermediate input?
(ii) What happens to intermediate inputs in the calculation of the national income?
(iii) Calculate the Gross Domestic Product (GDP) of the country.
(b)(i) Calculate the total amount of depreciation of the country
(ii) Calculate the Net Domestic Product of the country.
Answer Details
None
Question 54 Report
(a) What is a perfectly competitive market?
(b) Explain the conditions necessary for a perfectly competitive market,
Question 55 Report
In what ways will West African countries benefit from economic integration?
Answer Details
None
Question 56 Report
Explain the factors which influence the level of wages in your country.
Answer Details
None
Question 57 Report
(a) Distinguish between fixed and variable costs.
(b) Under which conditions will a firm continue to operate at a loss in the short run? (Use figures or a diagram to explain your answer).
Answer Details
None
Question 58 Report
(a) Distinguish between direct and indirect taxes.
(b) What are the advantages of direct taxes?
Answer Details
None
Question 59 Report
Explain the factors which influence the level of employment in your country.
Answer Details
None
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