JAMB UTME - Economics - 2022

Economic goods are termed scarce goods when they are

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Economic goods are termed scarce goods when they are not available in sufficient quantity to satisfy all wants for them. In other words, when there is a limited supply of a good or resource, but a potentially unlimited demand for it, that good is considered to be scarce. This concept is fundamental to economics because it helps to explain why goods have value and why individuals and societies must make choices about how to allocate scarce resources.

A consumer of a single commodity is in equilibrium when

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A consumer of a single commodity is in equilibrium when they have reached a point where they are satisfied with the amount of the commodity they have purchased and consumed, and do not feel the need to buy any more or any less of it. This equilibrium can be achieved in different ways, but one common way is when the marginal utility, or the additional satisfaction gained from consuming one more unit of the commodity, is equal to the price paid for that unit. In other words, the consumer is willing to pay the price because they feel they are getting enough satisfaction from the additional unit. At this point, the consumer has no incentive to buy more of the commodity, because the marginal utility would be lower than the price, and they would feel like they are overpaying for the satisfaction gained. Conversely, if the price were to decrease, the marginal utility would be higher than the price, and the consumer may feel like they are getting a good deal and may want to purchase more of the commodity. Ultimately, the consumer is in equilibrium when they have found a balance between the satisfaction gained from the commodity and the price paid for it.

In the event of bankruptcy, owners of joint-stock companies lose

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In the event of bankruptcy, owners of joint-stock companies (also known as shareholders) typically only lose the capital they have invested in the company. They do not lose their private properties or personal assets. When an individual buys shares in a joint-stock company, they become a partial owner of the company. As a shareholder, they are entitled to receive a share of the company's profits in the form of dividends. However, if the company goes bankrupt and cannot meet its financial obligations, the shareholders may lose the value of their investment, meaning the shares they hold in the company become worthless. Therefore, shareholders may lose the capital they invested in the company, but they are not responsible for any additional debts or liabilities the company may have. Shareholders are only liable to lose the value of their shares and do not have to worry about losing their personal assets or private properties.

Which of the following cannot be classified as a natural resource?

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An iron rod cannot be classified as a natural resource. A natural resource is a material or substance that occurs naturally in the environment and can be used for economic gain. Natural resources can be classified into renewable and non-renewable resources. Renewable resources are those that can be replenished over time, such as solar energy, wildlife, and forests. Non-renewable resources are those that cannot be replenished, such as minerals and fossil fuels, including gold. An iron rod is not a natural resource because it is a manufactured item made from iron, which is a natural resource. The iron has been extracted from the earth and processed to make the rod, which is then used for various purposes. So, while the raw material (iron) may be a natural resource, the finished product (the iron rod) is not.

If a demand curve that intersects a perfectly inelastic supply shifts rightward, then

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If a demand curve that intersects a perfectly inelastic supply shifts rightward, the equilibrium price will increase, but the quantity supplied will remain the same. In this scenario, a shift in the demand curve to the right indicates that there is an increase in demand for the product at every price level, leading to a new equilibrium price and quantity. However, the supply is perfectly inelastic, meaning that the quantity supplied cannot increase to meet the new demand. Therefore, the equilibrium quantity remains the same, while the equilibrium price increases. So, only the price will increase in this scenario.

The curve labelled x is the

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The stock exchange is an example of the

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The stock exchange is an example of a capital market. A capital market is a market where individuals and institutions trade financial securities, such as stocks and bonds, with the goal of raising capital. In other words, the capital market is where businesses can go to raise money by selling ownership in the company (stocks) or borrowing money (bonds) from investors. The stock exchange is a specific type of capital market where publicly-traded companies can sell ownership in the form of stocks to the public. Investors can buy and sell these stocks on the exchange, and the value of the stocks can rise or fall based on various factors, such as the company's financial performance, overall market conditions, and investor sentiment. Overall, the stock exchange and other capital markets play an important role in facilitating the flow of capital and resources throughout the economy, helping businesses raise funds to invest in growth and development, and providing investors with opportunities to earn a return on their investment.

If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing

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The firm is said to be experiencing diseconomies of scale if the cost of production continues to increase as its output rises. Diseconomies of scale occur when the firm becomes too large, and the increased complexity and coordination costs of managing a large organization outweigh the benefits of increased production. This can result in a decrease in efficiency, productivity, and profitability for the firm.

In a pie chart, the population of a city is represented by 45. If the country has a population of 10 million people, then the city's population is?

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To solve this problem, we need to first understand what a pie chart is and how it works. A pie chart is a circular graph that is divided into sectors, with each sector representing a proportion of the whole. The size of each sector is proportional to the quantity it represents, so we can use it to determine the percentage or fraction of the whole that each quantity represents.

In this case, the city's population is represented by 45 degrees of the pie chart. If we assume that the pie chart represents the entire country's population, which is 10 million people, then the fraction of the country's population represented by the city is:

45 degrees / 360 degrees = 1/8

This means that the city's population is 1/8 of the entire country's population. To find out the actual population of the city, we can multiply the fraction by the total population:

(1/8) x 10 million = 1.25 million

Therefore, the correct answer is 1.25 million.

The distinction between capital and recurrent expenditure lies in the

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In a country with large population of full-time house wives, national income

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Producers operating in a free market economy are more efficient as a result of

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Producers operating in a free market economy are more efficient as a result of the existence of competition. In a free market, businesses compete with each other for customers by offering better quality products, lower prices, or both. This competition forces producers to be efficient and innovative in order to remain competitive and attract customers. As a result, businesses are motivated to increase productivity, reduce waste, and improve their products and services to meet customer needs. The competition also leads to more choices for consumers and lower prices, as businesses strive to provide the best value for money. In contrast, if there were no competition, businesses would have less incentive to improve their operations, resulting in lower efficiency and higher prices for consumers.

Which of the following factors may not affect the efficiency of labour?

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Among the given options, the factor that may not affect the efficiency of labor is the race and color of the workforce. The efficiency of labor refers to the amount of output that a worker can produce within a given time frame. Education and training can enhance workers' skills and knowledge, improving their ability to perform their jobs efficiently. Providing welfare services such as healthcare, childcare, and paid time off can also increase worker satisfaction and well-being, which can positively impact their productivity. The quality of other factor inputs, such as machinery, raw materials, and technology, can also have a significant impact on labor efficiency. High-quality inputs can facilitate and enhance workers' ability to produce more output in less time, increasing their efficiency. However, the race and color of the workforce do not inherently affect the efficiency of labor. A worker's productivity is determined by their individual skills, knowledge, and work ethic, regardless of their race or color. Discrimination based on race or color can negatively impact worker morale, job satisfaction, and opportunities, which can indirectly affect labor efficiency. Still, race or color itself is not a direct determinant of worker efficiency.

The demand for labour is an example of

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The demand for labor is an example of "derived demand." Derived demand refers to the demand for a factor of production or a good that arises as a result of the demand for another good or service. In the case of labor, it is not demanded for its own sake but rather because it is needed to produce goods and services that consumers demand. The demand for labor is therefore derived from the demand for the goods and services that labor helps to produce.

An example of commodity money is

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An example of commodity money is silver. Commodity money is a physical object that has intrinsic value in addition to its value as a medium of exchange. Historically, commodities such as gold and silver have been used as a form of money because they are scarce and have inherent value. For example, silver is used not only as money, but also for jewelry, silverware, and other industrial applications. In this way, its value is based on its usefulness in addition to its value as a medium of exchange. In contrast, modern forms of money, such as currency notes, mobile money, and cheques, are not commodities in and of themselves but represent a claim on goods and services.

If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is

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The elasticity of demand measures the responsiveness of the quantity demanded of a commodity to a change in its price. In this case, when the price of the commodity increased from $4.00 to $5.00, the quantity demanded increased from 20 units to 30 units. To calculate the elasticity of demand, we use the following formula: Elasticity of demand = (percent change in quantity demanded) / (percent change in price) First, let's find the percent change in quantity demanded: (30 units - 20 units) / 20 units = 0.50 or 50% Next, let's find the percent change in price: (5.00 - 4.00) / 4.00 = 0.25 or 25% Finally, let's plug in the values into the formula: Elasticity of demand = 0.50 / 0.25 = 2.00 So, the elasticity of demand in this case is 2.00. This means that a 1% increase in price leads to a 2% decrease in the quantity demanded.

Fixing the prices of agricultural products can be a problem because of the

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Fixing the prices of agricultural products can be a problem because of the unpredictable output of farmers. Agricultural output can vary due to a variety of factors including weather, pests, disease, and other unpredictable factors. This variability can make it difficult to accurately predict the supply of agricultural products and set prices accordingly. While the instability of government policies, activities of marketing boards, and the size of agricultural exports can also have an impact on the pricing of agricultural products, the unpredictable output of farmers is a primary factor that can create challenges in setting prices. Instability of government policies can create uncertainty in the market, while the activities of marketing boards can sometimes lead to distortions in supply and demand. The size of agricultural exports can also influence prices by affecting the balance of supply and demand in domestic and international markets.

Statutory organisations usually established by Acts of parliament are called

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Statutory organizations usually established by Acts of parliament are called public corporations. A public corporation is a type of legal entity that is established by the government through legislation to perform a specific function or provide a particular service to the public. Public corporations can be formed at the national, state, or local level, and can take a variety of forms depending on their specific mandate. While public enterprises are also entities that are owned and controlled by the government, they may not necessarily be established by Acts of parliament. Cooperative societies are typically voluntary organizations formed by individuals or businesses to pool resources and share risks, while joint-stock companies are privately owned businesses that are established to generate profit for their shareholders.

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The concept described in the given scenario is called "double coincidence of wants." It refers to the situation where two parties have goods or services that the other party desires and are willing to exchange, and both parties are able to meet each other's wants at the same time. In the example, the housewife wants tomatoes, and she has meat that she can offer in exchange. However, she can only trade with someone who has tomatoes and also wants meat. The double coincidence of wants occurs when both parties have what the other wants, and both are willing and able to trade. This concept is important in understanding how bartering works, which is an exchange of goods and services without the use of money.

A disadvantage of a jont-stock company is

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A disadvantage of a joint-stock company is limited control in management by shareholders. In a joint-stock company, shareholders own a portion of the company and can make money by selling their shares for a profit or receiving dividends. However, shareholders do not typically have direct control over the day-to-day management of the company. Instead, a board of directors and executive management team make decisions on behalf of the company. This lack of control in management can be seen as a disadvantage for shareholders who may have different ideas about how the company should be run or who may not agree with the decisions made by the board or executive management team. Additionally, shareholders may not be able to influence the direction of the company as much as they would like. Overall, while joint-stock companies offer benefits such as limited liability for shareholders, this disadvantage in control over management may be a concern for some investors.

If the price of commodity X rises and consumers shift to commodity Y, then commodities X and Y are

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Commodities X and Y are substitutes. Substitute goods are products that can be used in place of each other. When the price of commodity X rises, consumers shift to commodity Y because it is a cheaper alternative to X. An example of substitute goods is coffee and tea - if the price of coffee increases, some people may switch to drinking tea instead.

The largest component of national income in developing countries consist of

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In developing countries, the largest component of national income is typically wages and salaries. This means that the majority of the income earned in these countries comes from the money that people make from their jobs or employment. Wages and salaries are paid to workers in exchange for their labor, and they are typically the main source of income for most people in developing countries. This income can come from a variety of sources, including working in factories, farming, providing services, or working in other industries. While profits and rent can also be important sources of income in some cases, they generally make up a smaller proportion of national income in developing countries. Profits are the earnings that businesses make after deducting their expenses, while rent is the income that comes from owning property or other assets. In summary, the largest component of national income in developing countries is typically wages and salaries, which are earned by workers in exchange for their labor.

Which of the following industries will add more value to primary products?

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The industry that adds more value to primary products is the processing industry. The processing industry takes raw materials, such as those produced by the mining industry, and turns them into finished products through various manufacturing processes. This added value comes from transforming the raw materials into something that is more useful and valuable to consumers. The service industry, on the other hand, provides services to individuals and businesses, such as consulting, financial advice, or customer support. While the service industry is important for the economy, it does not add value to primary products in the same way that the processing industry does. The construction industry involves the building of structures and infrastructure, such as buildings, roads, and bridges. While the construction industry uses materials produced by the mining industry, it does not add value to these materials in the same way that the processing industry does. In conclusion, the processing industry is the industry that adds the most value to primary products by transforming raw materials into finished goods that are more useful and valuable to consumers.

What happens when the central bank increases the bank rate in an economy

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When the central bank increases the bank rate, it becomes more expensive for banks to borrow money from the central bank. This, in turn, leads banks to charge higher interest rates on loans they give to their customers. As a result, borrowing becomes more expensive for customers, so they might choose to borrow less money or pay off existing loans. This discourages borrowing and slows down the overall spending in the economy. On the other hand, since banks have to pay a higher interest rate to the central bank, they might be able to increase the interest they charge on loans, which would increase their profits. The increase in the bank rate does not directly impact the money supply in the economy. The central bank can use other tools, such as open market operations, to influence the money supply.

The major role of multi-national companies in the petroleum industry in Nigeria is

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The major role of multinational companies in the petroleum industry in Nigeria is oil prospecting. Multinational companies, also known as International Oil Companies (IOCs), play a significant role in the exploration and production of oil and gas in Nigeria. These companies invest heavily in the exploration of new oil fields, as well as the development and production of existing fields. While some IOCs are also involved in oil marketing and refining, their primary role in Nigeria is oil prospecting. The IOCs in Nigeria include major companies such as Shell, ExxonMobil, Chevron, and Total.

The International Bank for Reconstruction and Development(IBRD) performs the following functions except-------

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The International Bank for Reconstruction and Development (IBRD) is a specialized agency of the United Nations that provides loans, technical assistance, and other services to developing countries. Out of the options provided, the IBRD does not reduce tariffs among its members. Its main focus is on granting long-term loans to member countries for development projects, providing technical expertise to help those countries implement those projects successfully, and developing human resources in those countries. Tariff reduction is not one of its main functions.

Wholesalers play an important in the distribution of goods and services because they

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Wholesalers play an important role in the distribution of goods and services because they act as intermediaries between producers and retailers. Wholesalers buy goods in large quantities from producers and then sell them in smaller quantities to retailers. This enables producers to focus on their production process without worrying about marketing and distribution. On the other hand, retailers can buy smaller quantities of goods from wholesalers, which allows them to stock a variety of products without having to buy in bulk. Wholesalers also provide other important services, such as financing and logistics. They may provide credit to both producers and retailers, allowing them to manage their cash flow and invest in their businesses. Additionally, wholesalers can handle the transportation and storage of goods, which can be a complex and expensive task for smaller businesses. Therefore, wholesalers play a crucial role in the distribution process, providing valuable services and enabling the smooth flow of goods and services from producers to retailers, and ultimately to consumers.

In perfectly elastic supply, the supply curve

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In perfectly elastic supply, the supply curve is a horizontal line. This means that the quantity of a good that a supplier is willing to sell is not affected by changes in the price of the good. The supplier will sell any quantity of the good at the market price, no matter how high or low it is. In other words, the supply is perfectly responsive to changes in the price, so the supply curve is flat.

Increasing national income without effective control of population size in a country can lead to

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A major function of the retailer is to

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A major function of the retailer is to break bulk and sell products in small units to consumers. This means that retailers purchase goods in large quantities from wholesalers or manufacturers and then sell them in smaller quantities to individuals or households. By doing so, retailers make it easier for consumers to access a wide range of products, as they do not have to buy in bulk or directly from the manufacturer. Additionally, retailers often play a key role in generating demand for products through advertising and marketing efforts. By showcasing products in stores and online, and through various forms of advertising, retailers can help to build brand awareness and encourage consumers to purchase products. While some retailers may offer credit to wholesalers or consumers, this is not a primary function of retailing. Similarly, while retailers can help to reduce the cost of distribution by consolidating products and shipping them in bulk, this is a secondary function of retailing that supports the primary function of breaking bulk and selling products in small units.

A situation in which all inputs are doubled and output also doubles is known as

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The situation in which all inputs are doubled and the output also doubles is known as "constant returns to scale." This means that if a firm increases all of its inputs by a certain proportion, the output will also increase by the same proportion. In other words, the production function exhibits constant returns to scale if increasing all inputs by a constant factor results in an output increase by the same constant factor.

Economics problems arise in all societies because

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Economics problems arise in all societies because of the fundamental concept of scarcity. Scarcity means that the resources available to society are limited, while the wants and needs of individuals are virtually unlimited. This leads to a situation where individuals, businesses, and governments have to make choices about how to allocate scarce resources in the most efficient and effective way possible. For example, a society may want to provide free healthcare to all its citizens, but it may not have the resources to do so. Alternatively, a business may want to produce more products, but it may not have the resources to expand its production line. These are just two examples of the countless economic choices that are made every day. Mismanagement of resources by leaders, lack of planning, inadequate supply of resources, and underutilization of economists are some of the factors that can exacerbate economic problems in a society. However, the underlying cause of economic problems is the scarcity of resources, which requires individuals and institutions to make difficult choices about how to allocate those resources.

PN equals average revenue or marginal revenue cure of

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The ordinary partner in a partnership

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The ordinary partner in a partnership typically has unlimited liability in case of business failure. This means that they can be held personally liable for any debts or obligations of the business that are not satisfied by the assets of the partnership. This is a major disadvantage of a partnership, as it exposes the personal assets of the partners to the risk of loss in the event of business failure. While the extent of the involvement of the ordinary partner in the management of the business may vary, they are typically expected to take an active part in the management and decision-making of the partnership. As such, they cannot be said to take no active part in the management of the business. Furthermore, as a general rule, partners are jointly and severally liable for the actions of the partnership, which means that they can be sued personally on matters relating to the business. Limited liability, on the other hand, is a characteristic of some types of business entities such as limited liability companies (LLCs) and corporations.

An important factor hindering the rapid development of the industrial sector in Nigeria.

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A possible factor which limits the extent of growth of a firm is the

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One possible factor that limits the extent of growth of a firm is the unwillingness to share ownership and control. When a firm is controlled by a single owner or a small group of owners who are not willing to share ownership or decision-making power, it can limit the firm's ability to raise capital, make strategic partnerships, or expand into new markets. In contrast, allowing outside investors or partners to have a stake in the company can provide the firm with access to more resources, expertise, and new opportunities for growth.

The advantage which firms obtain directly from expanding their operations are referred to as

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The advantage which firms obtain directly from expanding their operations are referred to as "internal economies of scale." Internal economies of scale occur when a firm's average cost of production decreases as it increases the scale of its operations. This can be due to a variety of factors, such as increased specialization of labor, greater use of capital equipment, or better purchasing power for inputs. Internal economies of scale enable a firm to become more efficient and competitive as it grows, which can result in higher profits and a stronger market position. The opposite of internal economies of scale is internal diseconomies of scale, which occur when the average cost of production increases as a firm becomes too large or complex to manage efficiently.

Cooperative societies are formed mainly to

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Cooperative societies are primarily formed to promote and maintain the welfare of their members. This means that the members of a cooperative society come together to work towards achieving common goals that benefit everyone in the society. Cooperative societies are usually formed by a group of individuals who share a common interest, such as farming, housing, or credit. By working together, members can access resources that they may not have been able to on their own, such as bulk purchasing of materials, access to credit, or sharing of knowledge and skills. In a cooperative society, the focus is not on maximizing profits for individual members, but rather on achieving benefits that are shared by the entire group. By working together, members can create a sustainable and mutually beneficial organization that can help to address the needs of the community. Therefore, the main purpose of cooperative societies is to promote the welfare of members by providing a platform for collective action and collaboration.

The effect of changes in the condition of demand on a demand schedule with the price constant is a

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The effect of changes in the condition of demand on a demand schedule with the price constant is a shift of the demand curve. When there is a change in any factor that affects the quantity demanded at each price level, such as income, tastes and preferences, prices of related goods, or population, the entire demand curve shifts to a new position. This means that at each price level, the quantity demanded changes, leading to a new demand schedule. A movement along the demand curve occurs when there is a change in price, leading to a change in quantity demanded, while the other factors remain constant. Deflation or hyperbola formation are not terms typically used to describe changes in demand.

Which of the following situations can give rise to economic problems

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