JAMB UTME - Economics - 2012 | Green Bridge CBT

Question 1 Report

An emerging agricultural export crop in Nigeria is

cassava

cotton

cocoa Correct answer

soya beans

Answer Details

Read lesson note on Money And Inflation (JAMB)

Money And Inflation

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Question 2 Report

An ad valorem tax is imposed on

special commodities

exports

imports

the value of a commodity Correct answer

Answer Details

An ad valorem tax is imposed on the value of a commodity. This means that the tax is calculated as a percentage of the price of the commodity. For example, if a 10% ad valorem tax is imposed on a product that costs $100, the tax would be $10. Ad valorem taxes are commonly used by governments to raise revenue from the sale of goods and services. They are often applied to luxury items or goods that are considered non-essential, such as cigarettes, alcohol, and jewelry. One advantage of ad valorem taxes is that they can be adjusted based on changes in the market price of the commodity. For example, if the price of a product increases, the tax revenue will also increase, even if the tax rate remains the same. However, one disadvantage of ad valorem taxes is that they can be regressive, meaning that they have a greater impact on low-income individuals than on high-income individuals. This is because low-income individuals may spend a larger proportion of their income on goods and services that are subject to ad valorem taxes. In summary, an ad valorem tax is imposed on the value of a commodity and is calculated as a percentage of the price of the commodity. They are often used by governments to raise revenue from the sale of luxury items or non-essential goods and services.

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 3 Report

The cost elasticity of supply is a useful instrument for measuring

profit

productivity Correct answer

national income

price index

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Supply

The Theory Of Production

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Question 4 Report

Rapid economic development in Nigeria is realizable by

continuous dependence on oil

concentrating more on agriculture

developing the tourism industry

diversifying the economy Correct answer

Answer Details

Rapid economic development in Nigeria is realizable by diversifying the economy. Nigeria has been heavily reliant on oil as the main source of revenue and foreign exchange earnings. However, this dependence on a single commodity has made the economy vulnerable to fluctuations in oil prices and reduced its ability to withstand external shocks. Diversifying the economy would involve expanding other sectors such as agriculture, manufacturing, services, and tourism. By doing so, Nigeria can increase its revenue base, create jobs, and reduce its reliance on oil. For instance, developing the agricultural sector would not only increase food production but also create employment opportunities for farmers, processors, and distributors, while tourism development would attract foreign exchange and increase Nigeria's GDP. Similarly, investing in manufacturing can lead to the production of goods for both domestic and export markets, leading to increased foreign exchange earnings. Therefore, diversifying the economy is a sustainable way of achieving rapid economic development in Nigeria. It will help to reduce the country's dependence on oil and build a more resilient and diversified economy that can withstand external shocks and support long-term economic growth.

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Question 5 Report

The money that commands a higher market value than its face value is called

paper money

standard money

commodity money

fiat money Correct answer

Answer Details

The money that commands a higher market value than its face value is called "fiat money." This type of money is not backed by a physical commodity, such as gold or silver, but is considered legal tender because a government says it is. People trust and accept it as a form of payment because it is widely used and accepted. The value of fiat money is determined by supply and demand, just like any other good or service in the market.

Read lesson note on Money And Inflation (WAEC)

Money And Inflation

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Question 6 Report

A deficit balance of payments is measured by subtracting the debits from the credits in the

current account

current and capital accounts

current and escrow accounts

capital and escrow accounts Correct answer

Answer Details

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

International Trade And Balance Of Payments

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Question 7 Report

A rise in income will, ceteris paribus, bring about

a movement along the demand curve

a leftward shift of the demand curve Correct answer

a rightward shift of the demand curve

no effect on the demand curve

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Demand (WAEC)

The Theory Of Demand

Demand

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Question 8 Report

A strategy for improving agriculture in Nigeria will involve

controlling the prices of agricultural products Correct answer

ensuring self-sufficiency in food production

reducing agricultural exports

establishing commondity boards

Answer Details

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

Read lesson note on Money And Inflation (JAMB)

Read lesson note on Agriculture In Nigeria (JAMB)

Petroleum And The Nigerian Economy

Money And Inflation

Agriculture In Nigeria

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Question 9 Report

The supply of cocoa is influenced by

seasonal conditions

the efficacy of fertilizer used Correct answer

the demand for beverages

the availability of close substitutes

Answer Details

Read lesson note on Supply (WAEC)

Supply

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Question 10 Report

A discriminatory monopoly is characterized by

a common elasticity in different markets Correct answer

different elasticities in different markets

a finite elasticity in all markets

zero elasticity in all markets

Answer Details

Read lesson note on Market Structure (JAMB)

Market Structure

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Question 11 Report

Fixing price above equilibrium will cause

demand and supply to remain constant

an increase in quantity supplied Correct answer

an increase in supply

a decrease in quantity supplied

Answer Details

Fixing price above equilibrium will cause a decrease in quantity supplied. The equilibrium price and quantity are determined by the intersection of the demand curve and supply curve. At this point, the quantity supplied is equal to the quantity demanded, and the market is said to be in equilibrium. If the price is fixed above the equilibrium price, it creates a situation where the quantity supplied is greater than the quantity demanded. This is because at the higher price, consumers are less willing to buy the product, while producers are willing to supply more because of the higher profit margin. As a result, there will be a surplus of the product in the market, with producers unable to sell all of their output. This surplus will cause sellers to lower their prices to sell their excess products, eventually resulting in a new equilibrium price where the quantity supplied equals the quantity demanded. Therefore, fixing the price above equilibrium is not sustainable in the long run as it creates a surplus and reduces the profitability of the sellers. Instead, prices should be allowed to fluctuate according to market conditions to ensure that the market remains in equilibrium and that resources are allocated efficiently.

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Question 12 Report

If a firm doubles all inputs in the long run and the total output is less than doubled, this results in

diminishing returns

constant returns to scale

increasing returns to scale

decreasing returns to scale Correct answer

Answer Details

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 13 Report

One of the functions of ECOWAS is to

provide funds for infrastructural development

determine prices of exports Correct answer

redistribute income among citizens

provide employment for citizens of member nations

Answer Details

Read lesson note on International Economic Organizations (WAEC)

International Economic Organizations

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Question 14 Report

The consumer is at equilibrium at point

N Correct answer

Answer Details

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

The Theory Of Consumer Behaviour

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Question 15 Report

When the slope of the total utility curve is declining, the marginal utility of a consumer will be increasing if he

stops consuming more of the commodity

reduces the quantity consumed

increases the quantity consumed

Correct answer

consumes more of another commodity

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

The Theory Of Supply

The Theory Of Demand

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Question 16 Report

If the GDP is ₦60 billion, what is the difference between the contributions of oil and manufacturing sectors?

₦11.7 billion

₦13.3 billion

₦21.7 billion

₦26.6 billion Correct answer

Answer Details

Read lesson note on Industrialization (WAEC)

Read lesson note on National Income (WAEC)

Industrialization

National Income

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Question 17 Report

If all factors are variable in the long run,firms will experience

decreasing returns to scale

increasing returns to scale Correct answer

diminishing returns

economies of scale

Answer Details

Read lesson note on The Theory Of Supply (JAMB)

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Supply

The Theory Of Production

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Question 18 Report

Comparison of interpersonal utility is impossible because

utility is measured in utils Correct answer

marginal utility is not observable

utility is subjectively determined

individual income differ

Answer Details

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 19 Report

The equilibrium point of a firm is attained at the point where the isoquant is

greater than the isocost

less than the isocost Correct answer

tangent to the isocost

greater than the output

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Theory Of Production (WAEC)

The Theory Of Production

Theory Of Production

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Question 20 Report

A major disadvantage of a socialist economy is that

corruption is rampant Correct answer

consumer's sovereignty is lost

income inequality is entrenched

there is high level of unemployment

Answer Details

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Question 21 Report

If quantity supplied is constant irrespective of price changes, the supply elasticity is

unitary

infinity

fairly elastic

perfectly inelastic Correct answer

Answer Details

The supply elasticity is considered perfectly inelastic when the quantity supplied of a good or service remains constant regardless of changes in the price. This means that no matter how much the price changes, the quantity supplied will always stay the same. For example, if the price of a life-saving drug increases, the supplier will still produce the same quantity of the drug because the demand for the drug is constant and people will still need it no matter the price. In simple terms, the supply of a perfectly inelastic good or service does not change in response to price changes.

Read lesson note on The Theory Of Supply (JAMB)

The Theory Of Supply

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Question 22 Report

The major function of money market is to

provide funds for long-term financing

provide funds short-term financing

Correct answer

stabilize the value of the local currency

stabilize domestic prices

Answer Details

The major function of the money market is to provide funds for short-term financing. In other words, it is a financial market where short-term obligations such as government bonds, certificates of deposit, and commercial paper are bought and sold. The money market is designed to provide a safe and secure place for individuals, businesses, and governments to invest their money for a short period of time, typically one year or less. The primary goal of the money market is to ensure the availability of short-term funds for those who need them, and to provide a low-risk investment option for those who have short-term funds to invest.

Read lesson note on Money And Inflation (JAMB)

Money And Inflation

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Question 23 Report

A change in the pump price of petrol in Nigeria has a direct effect on the

prices of consumer goods

prices of essential goods Correct answer

cost of raw materials

cost of transportation

Answer Details

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Economics As A Science (JAMB)

Read lesson note on Money And Inflation (JAMB)

The Theory Of Production

Economics As A Science

Money And Inflation

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Question 24 Report

The investment expenditure of an economy changes by N 2 million and MPC is 0.75

The multiplier is

2 Correct answer

Answer Details

D right ans is option B. 4, where Multiplier = 1/ 1 - MPC. MPC is 0.75.

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 25 Report

A policy aimed at enhancing globalization of the Nigerian economy is

indigenization

dereglation

commercialization

privatization Correct answer

Answer Details

Read lesson note on International Trade (JAMB)

Read lesson note on Economic Integration (WAEC)

International Trade

Economic Integration

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Question 26 Report

If the quantity of rice bought decreases from 250 tonnes to 200 tonnes owing to a 2% rise in price, it shows that there is a change in

consumers' income

demand

consumers' tastes

quantity damanded Correct answer

Answer Details

The change described in the question shows a change in quantity demanded. Quantity demanded refers to the amount of a good or service that consumers are willing and able to purchase at a given price, while all other factors remain constant. In this case, we are told that the price of rice has increased by 2%, which would lead to a decrease in the quantity demanded of rice. This is because consumers may find rice to be relatively more expensive compared to other substitutes, and therefore may choose to buy less rice. We are also given information that the quantity of rice bought has decreased from 250 tonnes to 200 tonnes. This further confirms that there has been a change in the quantity demanded of rice. Therefore, we can conclude that the change described in the question shows a change in quantity demanded, and not consumers' income, demand, or consumers' tastes.

Read lesson note on Demand (WAEC)

Read lesson note on Economics As A Science (JAMB)

Demand

Economics As A Science

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Question 27 Report

The invisible hand promotes the interests of

consumers

society

government Correct answer

producers

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 28 Report

The reward on machinery and equipment in the process of production is known as

profit

interest

Correct answer

rent

wages

Answer Details

'Capital' - investment in man-made aids to production including buildings, factories, computers. The reward for capital is interest.

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 29 Report

The Malthusian theory was concerned about the relationship between

population growth rates of the rich and the poor nations

population density and national income

population growth rate and natural resources Correct answer

age distribution of population

Answer Details

The Malthusian theory was concerned about the relationship between population growth rate and natural resources. The theory, proposed by Thomas Malthus, stated that population grows at a geometric rate (i.e. faster) while food production grows at an arithmetic rate (i.e. slower). This means that eventually, the population would outstrip the food supply and lead to famine, war, and other problems. Malthus believed that population control was necessary to avoid such problems, and he recommended practices such as late marriage and birth control to limit population growth.

Read lesson note on National Income (WAEC)

Read lesson note on Population (JAMB)

National Income

Population

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Question 30 Report

Net National Product is derived by deducting

net exports from GNP

subsidies from GDP

taxes from GDP

depreciation from GNP Correct answer

Answer Details

Net National Product (NNP) is calculated by subtracting depreciation from Gross National Product (GNP). Depreciation is a measure of the wear and tear on a country's capital goods, such as buildings, machinery, and equipment, over a certain period of time. In other words, NNP takes into account the decrease in value of a country's capital goods, which are used to produce goods and services, over time. By subtracting depreciation, NNP gives a more accurate picture of a country's economic performance, as it reflects the actual production of goods and services, rather than just the value of the capital goods used to produce them.

Read lesson note on National Income (WAEC)

National Income

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Question 31 Report

A sugar industry is best located near the source of

labour Correct answer

raw materials

power

capital

Answer Details

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

Factors Of Production And Their Theories

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Question 32 Report

To move from point M to K, the consumer has to increase the

consumption of X and reduce the consumption of Y

expenditure on Y

expenditure on X

Correct answer

consumption of Y and reduce the consumption of X

Answer Details

Read lesson note on Banking (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

Banking

The Theory Of Demand

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Question 33 Report

If the price of an item increases by 8% while the quantity demanded falls from 1500 units to 1492 units, the demand is said to be

perfectly elastic

inelastic Correct answer

elastic

perfectly inelastic

Answer Details

If the price of an item increases by 8% while the quantity demanded falls from 1500 units to 1492 units, the demand is said to be inelastic. Elasticity of demand is a measure of how much the quantity demanded of a good or service changes in response to a change in its price. When demand is inelastic, this means that changes in price have a relatively small effect on the quantity demanded. In this case, we can see that the price of the item increased by 8%, but the quantity demanded only fell by 0.5%. This suggests that the item is something that people still need or want, even at the higher price. If the item had been perfectly elastic, a small increase in price would cause a large decrease in quantity demanded. If the item had been elastic, a small increase in price would still cause a significant decrease in quantity demanded. If the item had been perfectly inelastic, changes in price would have no effect on the quantity demanded. In summary, if the price of an item increases by 8% while the quantity demanded falls from 1500 units to 1492 units, the demand is said to be inelastic. This means that changes in price have a relatively small effect on the quantity demanded.

Read lesson note on The Theory Of Production (JAMB)

Read lesson note on Demand (WAEC)

The Theory Of Production

Demand

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Question 34 Report

The sign of the slope of a graph in economic analysis is important because it

shows whether a good is normal or inferior

shows the relationship between variables

reveals the magnitude of the change between variables

helps to determine the unit of measurement of variables Correct answer

Answer Details

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Methods And Tools Of Economic Analysis

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Question 35 Report

The long-run average cost curve touches to the short-run average cost curves at the

minimum points of all short run average cost curves

declining points of all short-run average cost curves

minimum point of only one of the short-run cost curves

rising points of all short-run average cost curves Correct answer

Answer Details

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 36 Report

The percentage contribution of manufacturing sector is

67.5

40.0

32.4

25.0 Correct answer

Answer Details

Read lesson note on Industry And Industrialization (JAMB)

Industry And Industrialization

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Question 37 Report

If a basket of commodities cost N120 in the base year and N240 in the current year, calculate the price index

100

200 Correct answer

240

300

Answer Details

To calculate the price index, we need to compare the cost of the basket of commodities in the base year and in the current year. The formula for the price index is: Price index = (Cost of basket in current year / Cost of basket in base year) * 100 Using this formula: Price index = (N240 / N120) * 100 = 200 So, the price index is 200. In simple terms, the price index measures how much the cost of a basket of goods has changed over time. A price index of 200 means that the cost of the basket of goods has increased by 100% from the base year to the current year.

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on Economics As A Science (JAMB)

Theory Of Price Determination

Economics As A Science

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Question 38 Report

The investment expenditure of an economy changes by N 2 million and MPC is 0.75

What is the change in income?

N0.5m

N1.5m

N2.6m

N8.0m Correct answer

Answer Details

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 39 Report

The minimum amount which banks are required to deposit with the central bank is determined by the

liquidity ratio

cash reserve ratiominimum lending rate

minimum lending rate Correct answer

aggregate credit ceiling

Answer Details

Read lesson note on Banking (JAMB)

Banking

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Question 40 Report

Patents and copyrights enable monopolists to

determine the quality of their products

determine the scale of their products Correct answer

restrict information flow to new firms

restrict entry of new firms

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 41 Report

From this diagram, the minimum wage OW will lead to

full employment of resources

unemployment

inflation

full employment of factors of production Correct answer

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on The Theory Of Price Determination (JAMB)

The Theory Of Demand

The Theory Of Price Determination

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Question 42 Report

Long-term funds for investment projects are sourced from the

money market

commodity market

foreign exchange market

capital market Correct answer

Answer Details

Long-term funds for investment projects are sourced from the capital market. The capital market is where long-term financial instruments, such as stocks, bonds, and other securities, are bought and sold. It is a marketplace where businesses and governments can raise funds for their long-term investment projects by issuing stocks and bonds to investors. Investors who buy stocks become part owners of the business, while investors who buy bonds lend money to the business or government that issued the bonds. Both stocks and bonds provide a way for businesses and governments to raise capital for their investment projects. One advantage of sourcing long-term funds from the capital market is that it allows businesses and governments to finance their projects without having to rely solely on their own internal funds or short-term loans from banks. This can provide greater financial flexibility and stability. Another advantage of the capital market is that it provides investors with the opportunity to earn higher returns than they might receive from other types of investments, such as savings accounts or money market funds. However, investing in the capital market can also involve greater risk than some other types of investments. In summary, the capital market is where long-term funds for investment projects are sourced from through the issuance of stocks and bonds to investors. This can provide businesses and governments with greater financial flexibility and stability, while also offering investors the opportunity to earn higher returns.

Read lesson note on Banking (JAMB)

Read lesson note on Theory Of Costs (JAMB)

Read lesson note on Economics As A Science (JAMB)

Banking

Theory Of Costs

Economics As A Science

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Question 43 Report

An important contribution of small-scale industries to the Nigerian economy is in the area of

technological development

foregin exchange earnings

raw materials processing

labour employment Correct answer

Answer Details

Small-scale industries play a significant role in providing employment to the people in Nigeria. These industries create job opportunities for the locals and help in reducing the unemployment rate in the country. Additionally, small-scale industries also help in supporting the local economy by providing goods and services to the local market. This, in turn, boosts the economic growth of the country and contributes to the overall development of the nation.

Read lesson note on Industry And Industrialization (JAMB)

Industry And Industrialization

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Question 44 Report

An important function of the price system is to

ensure that producers' profits remain high

guarantee full employment of resources

allocate resources to most productive uses

protect the economic interests of government Correct answer

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on The Theory Of Price Determination (JAMB)

Read lesson note on Supply (WAEC)

Theory Of Price Determination

The Theory Of Price Determination

Supply

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Question 45 Report

The primary reason for desiring economic growth is to

control inflation

reduce poverty

redistribute income Correct answer

raise standard of living

Answer Details

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Question 46 Report

In a village of 50 persons, 10 immigrated, 25 died and 5 emigrated in year. Determine the total population

30 Correct answer

Answer Details

To determine the total population, we need to add up all the people who were in the village at the beginning of the year, and subtract those who left or died during the year, and add those who immigrated during the year. At the beginning of the year, there were 50 people in the village. 10 people immigrated during the year, so we add 10 to the initial population: 50 + 10 = 60 25 people died during the year, so we subtract 25 from the population: 60 - 25 = 35 5 people emigrated during the year, so we subtract 5 from the population: 35 - 5 = 30 Therefore, the total population at the end of the year is 30. Hence, the answer is 30.

Read lesson note on Population (JAMB)

Population

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Question 47 Report

From the above, calculate the price elasticity of demand

5.0

2.0

1.0

0.5

Correct answer

Answer Details

Read lesson note on The Theory Of Demand (JAMB)