JAMB UTME - Economics - 1993
Question 1 Report
It is impossible to satisfy all human wants because?
Answer Details
It is impossible to satisfy all human wants because the available resources are limited. Human wants are unlimited and keep increasing, but resources like land, labor, capital, and entrepreneurship that are used to produce goods and services are finite. As a result, people have to make choices about what they want to consume based on their level of income and the availability of resources. This is known as the problem of scarcity, and it means that people cannot have everything they want, leading to the need to make choices and trade-offs.
Question 2 Report
If the price elasticity of demand for a certain commodity is less than unity, then?
Answer Details
If the price elasticity of demand for a certain commodity is less than unity, then an increase in the price of the commodity will raise the total revenue of the producer. This means that the percentage increase in the price of the commodity will lead to a proportionately smaller decrease in the quantity demanded. As a result, the total revenue earned by the supplier will increase as the price increases. Conversely, if the price elasticity of demand is greater than unity, then an increase in the price of the commodity will lead to a decrease in total revenue, since the percentage decrease in quantity demanded will be proportionately larger than the percentage increase in price.
Question 3 Report
Which of the following functions does the wholesaler perform to save the retailer burden of carrying large stocks?`
I Breaking the bulk
Ii Packing the goods in smaller containers
Iii Providing vital information
Iv Grant credit facilities
Answer Details
Question 4 Report
Which of the following factors is NOT responsible for the rural/urban drift in Nigeria?
Question 5 Report
If the equilibrium price of a certain commodity is N120.00 and the government fixed its price at N110.00, the supply will be?
Answer Details
If the government fixed the price of a commodity below the equilibrium price, i.e., N110.00 < N120.00, then the quantity supplied by producers will be smaller than the equilibrium quantity because the producers will be unwilling to produce and supply the commodity at a price lower than what they would get in the equilibrium. Therefore, the correct option is "smaller than the equilibrium supply".
Question 6 Report
Production is said to be completed when?
Answer Details
Production is said to be completed when goods and services are produced and ready for distribution or sale to consumers. This means that the production process, which includes all activities involved in creating a good or service, has been fully executed and the output is ready to enter the market. The completion of production does not necessarily mean that the goods have been sold or the prices have been determined, as these are separate processes that occur after production. Packaging may also be part of the production process, but it is not the sole indicator of completion.
Question 7 Report
Below equilibrium, the gap between aggregate demand and the full employment level of income is called the?
Answer Details
Question 9 Report
The money market is a financial market that specializes in the provision of?
Answer Details
The money market is a financial market that specializes in providing short-term loans. These loans typically have a maturity period of less than one year and are used by businesses and governments to meet their short-term financing needs. Examples of short-term instruments traded in the money market include treasury bills, commercial papers, and certificates of deposit. By providing an avenue for borrowers to obtain short-term funding, the money market helps to ensure the smooth functioning of the economy by facilitating the efficient allocation of resources.
Question 10 Report
The main function of the price system is to?
Answer Details
The main function of the price system is to ensure efficient allocation of resources in the economic system. Prices act as signals to buyers and sellers about the relative scarcity or abundance of goods and services. When the demand for a product increases, the price goes up, signaling suppliers to produce more to meet the increased demand. When the supply of a product increases, the price goes down, signaling buyers to purchase more of the product. This mechanism ensures that resources are allocated to where they are most needed or valued, and that production is focused on meeting the most urgent needs and wants of consumers. By allocating resources efficiently, the price system helps to maximize social welfare and economic growth.
Question 11 Report
One of the most important factors that should be considered in the location of an industry is?
Answer Details
The availability of inputs and market is one of the most important factors that should be considered in the location of an industry. This means that the industry should be located in an area where there is easy access to raw materials needed for production, as well as a ready market to sell the finished products. If inputs are not easily available, the cost of production will increase due to transportation costs, leading to higher prices of the final product. Similarly, without a ready market, the industry will have a hard time selling its products, which could lead to low profits or even losses. Therefore, the location of an industry should be chosen with the availability of inputs and market in mind to ensure the success and profitability of the industry.
Question 12 Report
From the diagram above, a shift in the demand curve from DoDo to D1D1 implies
Answer Details
A shift in the demand curve from DoDo to D1D1 indicates a change in the quantity demanded of a commodity at each and every price level. This shift represents an increase or decrease in demand. When the demand curve shifts to the right, it implies that there is an increase in demand for the commodity, and the quantity demanded will be higher at every price level. Conversely, when the demand curve shifts to the left, it implies a decrease in demand for the commodity, and the quantity demanded will be lower at every price level. Therefore, the correct answer is "a rise in the demand for the commodity."
Question 13 Report
Which of the following are the advantages of Nigeria's membership of ECOWAS? i A greater opportunity for trade according to comparative cost advantage.
Ii A large market industries producing under condition of decreasing cost.
Iii Competition for home based monopoly firms
Answer Details
Question 14 Report
a debenture share entitles its holder to?
Answer Details
A debenture share entitles its holder to receive a fixed interest on sums invested. A debenture is a type of bond issued by a company that represents a long-term loan to the company. The holder of a debenture receives a fixed interest payment at a predetermined rate and for a specific time period, regardless of the company's financial performance. Unlike a stock, a debenture does not represent ownership in the company, so the holder does not have voting rights or the ability to participate in the annual general meeting of the company.
Question 15 Report
In the theory of production and cost, the average total cost of a firm is minimized when the marginal cost curve cuts the average total cost curve at its?
Answer Details
In the theory of production and cost, a firm aims to minimize its average total cost to maximize its profits. The average total cost is the total cost per unit of output. When the marginal cost curve cuts the average total cost curve at its lowest point, the firm achieves the lowest possible average cost per unit of output. This point is also known as the point of minimum efficient scale. Therefore, the correct answer is the "lowest point".
Question 17 Report
Economic development is distinguishable from economic growth because the former?
Answer Details
Question 18 Report
Devaluation is effective when?
Answer Details
Devaluation is effective when the demand for exports is price elastic. This means that a decrease in the price of the country's currency will lead to a significant increase in the quantity of exports demanded. In this situation, the country's exports become cheaper relative to other countries, making them more attractive to foreign buyers, which can increase export revenue and improve the country's balance of trade. However, devaluation can also lead to an increase in the price of imports, which can cause inflation and negatively impact the domestic economy.
Question 19 Report
According to the income approach to national income measurement, the national income of a country is equal to?
Answer Details
Question 20 Report
A modern corporation is owned by?
Answer Details
A modern corporation is owned by ordinary shareholders. These are individuals or institutions that invest their money by purchasing shares in the company. In exchange for their investment, they receive ownership rights, such as the right to vote on major decisions and the right to a share of the company's profits in the form of dividends. While debenture holders and creditors may also provide financing to the corporation, they do not own a share in the company's ownership. Preference shareholders, on the other hand, may have ownership rights that differ from those of ordinary shareholders, such as a guaranteed dividend payout, but they are still considered shareholders.
Question 21 Report
If 502.75 million tonnes of grains are consumed annually by a population of 88.5 million people, the per capita grains consumption will be?
Answer Details
To find the per capita grains consumption, we need to divide the total consumption of grains by the population. Per capita grains consumption = Total grains consumption / Population Plugging in the values given in the question, we get: Per capita grains consumption = 502.75 million tonnes / 88.5 million people Simplifying this expression, we get: Per capita grains consumption = 5.68 tonnes Therefore, the per capita grains consumption is 5.68 tonnes. The answer is: 5.68 tonnes.
Question 23 Report
What type of unemployment is revealed by the dotted lines on the graph?
Answer Details
Question 24 Report
A public liability company is different from a private limited company because i?
Answer Details
A public liability company is different from a private limited company because it can sell shares in the stock exchange. This means that the public liability company is publicly traded and its shares can be bought and sold by the general public. In contrast, a private limited company cannot sell shares to the public and is typically owned by a small group of shareholders. The other options mentioned in the question are characteristics that both types of companies share, such as being registered with the registrar of companies, being a legal entity, and being able to raise capital by way of loans.
Question 25 Report
A system in which the means of production is held in trust for the people by government is known as a?
Answer Details
A system in which the means of production is held in trust for the people by the government is known as a socialist economy. In this system, the government owns and controls major industries and resources such as land, factories, and utilities, and is responsible for distributing wealth and resources to the citizens. The goal is to promote social welfare and reduce economic inequality by ensuring that resources are used for the benefit of the whole society, rather than for the benefit of a few individuals or corporations.
Question 27 Report
The working population refers to?
Answer Details
The working population refers to the economically active segment of the population. These are individuals who are able and willing to work, and are either employed or actively seeking employment. The working population is generally between the ages of 15 and 64 years, and is often divided into various age brackets to assess the labor force participation rate and other labor market indicators.
Question 28 Report
Wheat grows best in?
Answer Details
Wheat grows best in a temperate climate. A temperate climate is characterized by moderate temperatures and adequate rainfall. These conditions are ideal for the growth of wheat as it requires a moderate temperature range and a sufficient supply of moisture. Wheat is a cool-season crop that grows best in regions with moderate temperatures, ranging from 15-25°C, during the growing season. The temperate climate zones of the world, including North America, Europe, and Asia, are well suited for wheat cultivation. In contrast, tropical climates are too hot and humid for wheat cultivation, while hot deserts are too dry and lack sufficient rainfall for successful wheat growth.
Question 29 Report
The above diagram showing the maximum possible combination of commodities X and Y produced in Nigeria is called the
Answer Details
The diagram mentioned in the question is a graph that shows the maximum amount of two goods (commodities X and Y) that can be produced using all the available resources and technology in Nigeria. It indicates the trade-off between the production of the two goods. This graph is called a "Production Possibility Curve (PPC)". It shows the different combinations of the two goods that can be produced when all resources are used efficiently, and it illustrates the concept of opportunity cost.
Question 30 Report
From which of the following does Nigeria derive trade concessions?
Answer Details
Question 31 Report
The joint ventures operating in the Nigerian oil industry are between?
Question 32 Report
Which of the following programmes in the monetary sector is aimed at enhancing the banking habit of the rural areas?
Answer Details
The program aimed at enhancing the banking habit of the rural areas is the community banking scheme. This is a policy implemented in the monetary sector to bring banking services closer to the grassroots population in rural areas. The community banking scheme involves the establishment of microfinance banks in the rural areas, which provides easy access to financial services such as savings, loans, and other banking services to the rural population. The scheme helps to increase financial inclusion and promote economic development in rural areas. The other options listed are not directly related to enhancing banking habit in rural areas, but rather, they are policies that focus on other aspects of the monetary sector.
Question 33 Report
Tariff on imports are meant to?
Answer Details
Tariffs on imports are meant to prevent or restrict foreign goods from entering a country's domestic market. Tariffs are a type of tax that is placed on imported goods, making them more expensive for domestic consumers and less competitive with domestic producers. The purpose of a tariff is often to protect domestic industries from foreign competition and to promote self-sufficiency in key industries. Tariffs can also generate revenue for the government.
Question 34 Report
Which of the following are the major disadvantage of direct system of taxation?i, Disincentive of hard work
Ii,Difficulties in assessment and collection
Iii, imperfection in tax assessment.
Answer Details
Question 35 Report
On the basis of the contribution to employment, the most important economic sector in West African is?
Answer Details
Question 36 Report
The sum of N80,000 is deposited in a bank and the cash ratio of the banking system is 10%. calculate the sum of money the bank can create from the deposit?
Question 37 Report
In the diagram, the marginal propensity to consume (MPC) is equal to
Answer Details
Question 39 Report
A firm faces diminishing returns when its?
Answer Details
A firm faces diminishing returns when its marginal output diminishes. Diminishing returns occur when the addition of one more unit of an input, such as labor or capital, to the production process leads to a smaller increase in output compared to previous additions of the same input. In other words, as more and more units of the input are added, the marginal output of each additional unit begins to decrease, ultimately leading to a point where total output may begin to decrease as well. This phenomenon is commonly observed in short-run production processes and can be caused by a variety of factors such as limited resources or inefficient production techniques.
Question 40 Report
At equilibrium, one of the distinctive features of monopoly compared with perfect competition is that in the former?`
Answer Details
Question 41 Report
Comparative advantage implies that a country will specialize in producing the commodity?
Answer Details
Comparative advantage implies that a country will specialize in producing the commodity with the lowest opportunity cost. Opportunity cost is the cost of an alternative that must be forgone in order to pursue a certain action. In the case of trade, countries specialize in producing the good or service for which they have a lower opportunity cost, meaning the cost of producing that good or service is lower compared to other countries. Therefore, a country will produce and export the good or service for which it has a comparative advantage, and import the goods or services for which it has a comparative disadvantage, thereby maximizing its economic welfare.
Question 42 Report
Since the mid-1980s, the most disturbing development in the industrial sector in Nigeria is?
Answer Details
The most disturbing development in the industrial sector in Nigeria since the mid-1980s is the issue of capacity under-utilization. This refers to a situation where industries are not operating at their full capacity due to various factors, such as poor infrastructure, inadequate power supply, low demand, lack of access to credit facilities, and poor government policies. As a result, many industries have been forced to shut down or operate below their optimal levels, leading to a decline in industrial output and economic growth.
Question 43 Report
Which of the following can be considered as being outside the objectives of public finance?
Answer Details
The deregulation of the economy can be considered as being outside the objectives of public finance. Public finance deals with the role of government in the economy, particularly in the areas of revenue generation, resource allocation, and expenditure management. The allocation of resources to various sectors of the economy, the objective of even distribution of income and wealth, and the achievement of economic stability are all within the objectives of public finance. However, deregulation is a policy that seeks to reduce the role of government in economic activities by removing regulations and restrictions. While it may have some economic benefits, it is not a primary objective of public finance.
Question 45 Report
The international Bank for Reconstruction and Development is important to developing countries because it?
Answer Details
The International Bank for Reconstruction and Development (IBRD) is important to developing countries because it offers loans to member countries for socio-economic activities. These loans are given to finance various development projects, such as infrastructure, health, education, and agriculture. The IBRD aims to reduce poverty and promote economic growth in developing countries by providing financial support for development projects. The loans are offered at low-interest rates and on flexible repayment terms, making them an attractive source of financing for developing countries. By providing these loans, the IBRD helps developing countries to achieve their economic and social development goals.
Question 46 Report
In thediagram above, what is the lowest possible price the monopolist could charge and still break even without there being excess demand?
Question 47 Report
The best index for international comparison of standards of living is the?
Answer Details
The best index for international comparison of standards of living is the per capita income. Per capita income refers to the average income earned by each individual in a particular country, which takes into account both the economic growth and population of the country. It is a widely used measure to compare living standards across different countries, as it gives an idea of how much income an average individual has in a particular country. Other measures like gross national product and net national income do not give a clear picture of how the income is distributed among the population, hence, per capita income is considered as a better index for international comparison of standards of living.
Question 48 Report
If profit maximization is assumed to be the objective of a business enterprise, labour must be paid a wage rate equal to the?
Answer Details
Labour must be paid a wage rate equal to the marginal revenue product of labour in the enterprise. This means that the wage rate should be equal to the additional revenue generated by the last unit of labour hired. If the wage rate is lower than the marginal revenue product of labour, the enterprise can increase profits by hiring more labour. On the other hand, if the wage rate is higher than the marginal revenue product of labour, the enterprise can increase profits by reducing the amount of labour employed. Therefore, paying a wage rate equal to the marginal revenue product of labour ensures that the enterprise is able to maximize profits while also compensating labour fairly for their contribution to the production process.
Question 49 Report
If labour productivity in the cement industry is increasing as output of cement is expanded, then the amount of labour per unit of output produced must be?
Answer Details
If labour productivity is increasing as the output of cement is expanded, it means that the industry is producing more cement with the same amount of labor or using less labor to produce the same amount of cement. Therefore, the amount of labor per unit of output produced must be decreasing.
Question 50 Report
The most popularly adopted industrialization strategy in West Africa is?
Answer Details
The most popularly adopted industrialization strategy in West Africa is import substitution. This strategy aims to produce domestically what would have been imported in order to reduce dependence on foreign goods and increase domestic production. This is achieved by imposing tariffs and other trade barriers on imported goods, making them more expensive than domestic goods, and thereby encouraging local production. The aim is to develop domestic industries that can compete globally by first satisfying local demand.
