JAMB UTME - Economics - 2022

The demand for labour is an example of

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The demand for labour is an example of derived demand. Derived demand refers to the demand for a good or service that arises from the demand for another good or service. In the case of labour, the demand for it is derived from the demand for the goods and services that labour produces. For example, a factory may demand more labour to increase production of a particular product to meet customer demand. The demand for labour is not a direct demand, but rather a demand that is derived from the demand for the final product.

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.

The sufficient condition for a firm to be in equilibrium is that the

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Economic goods are termed scarce when they are?

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Economic goods are termed scarce when they are "not available in sufficient quantities to satisfy all wants for them." Scarce resources are those that have a limited supply relative to the demand for them. This scarcity means that choices must be made about how the resources are allocated, and that not all wants or needs can be fully satisfied. The concept of scarcity is fundamental to the study of economics, as it is the basis for understanding the concepts of opportunity cost, trade-offs, and efficiency.

Commercial banks are different from development banks in that the latter

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Commercial banks and development banks serve different functions within the financial system. Commercial banks are focused on providing financial services to individuals and businesses, such as deposit accounts, loans, and credit cards. They generally lend on a short-term basis and deal in a variety of currencies, including foreign currencies. In contrast, development banks are focused on promoting economic development and supporting long-term projects that may not be attractive to commercial banks. They typically provide financing for large infrastructure projects, such as highways, railways, and power plants, as well as small and medium-sized enterprises. Development banks may be government-owned, private, or a combination of both, and their main goal is to support economic growth and development. Development banks may also offer technical assistance and advisory services to help businesses and governments develop the skills and expertise needed to manage large-scale projects effectively. Unlike commercial banks, development banks may not pay interest on current accounts and may have different lending terms and requirements based on the specific needs of the project or business being financed.

If the marginal utility of commodity is equal to its price, then

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If the marginal utility of a commodity is equal to its price, then the consumer is in equilibrium. This means that the consumer is getting the maximum satisfaction possible from the commodity, given its price. If the marginal utility was greater than the price, the consumer would be willing to pay more for an additional unit of the commodity, indicating that they are not yet at their maximum level of satisfaction. Conversely, if the marginal utility was less than the price, the consumer would not be willing to pay the price for an additional unit, indicating that they have already exceeded their maximum level of satisfaction. Therefore, when the marginal utility is equal to the price, the consumer is in a state of balance, and does not want to consume more or less of the commodity.

Privatization and commercialization of public enterprises in Nigeria is necessitated by

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The privatization and commercialization of public enterprises in Nigeria is necessitated by their operational inefficiency. Public enterprises in Nigeria, like in many other countries, have often been criticized for poor management, corruption, and inefficiency, which have resulted in heavy financial losses for the government. Privatization and commercialization are seen as a way to introduce more competition, increase efficiency, and reduce the financial burden on the government. While the IMF and the World Bank have encouraged privatization in many countries as a condition for receiving loans, in Nigeria, the privatization and commercialization policies were largely driven by domestic factors, including the need to improve the performance of public enterprises.

One benefit a country can derive from the extraction of crude oil is increase in

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A baker bought flour and other ingredients for S250.00, spent S52.00 on distribution, sold the bread for S320.00. The value added by the baker.

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The value added by the baker is $90.00. To calculate the value added by the baker, we need to subtract the cost of goods sold (COGS) from the revenue. The COGS in this case includes the cost of flour and other ingredients, which is not given, but we know that the baker spent a total of $250.00 on these items. We also need to include the cost of distribution, which is $52.00. So the total COGS is $250.00 + $52.00 = $302.00. The revenue from selling the bread is $320.00. Therefore, the value added by the baker is $320.00 - $302.00 = $18.00. In other words, the baker added $18.00 of value to the raw materials and distribution costs to produce and sell the bread. This value added represents the baker's contribution to the economy and is a measure of the wealth created by the baker's business.

The use of the bank rate, cash ratio and open market operations constitute

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The use of the bank rate, cash ratio, and open market operations are tools used in monetary policy. Monetary policy is a set of actions taken by a country's central bank to manage the supply of money and credit in the economy to achieve specific economic goals, such as controlling inflation, stabilizing prices, and promoting economic growth. The bank rate is the interest rate at which commercial banks can borrow money from the central bank. When the central bank increases the bank rate, it becomes more expensive for commercial banks to borrow money, which reduces the amount of money in circulation in the economy. Conversely, when the central bank lowers the bank rate, it becomes cheaper for commercial banks to borrow money, which increases the amount of money in circulation in the economy. The cash ratio is the percentage of deposits that commercial banks are required to hold in reserve with the central bank. When the central bank increases the cash ratio, it reduces the amount of money that commercial banks have available to lend, which reduces the amount of money in circulation in the economy. Conversely, when the central bank lowers the cash ratio, it increases the amount of money that commercial banks have available to lend, which increases the amount of money in circulation in the economy. Open market operations refer to the buying and selling of government securities by the central bank in the open market. When the central bank buys government securities, it injects money into the economy, which increases the amount of money in circulation. Conversely, when the central bank sells government securities, it withdraws money from the economy, which reduces the amount of money in circulation. So, the use of bank rate, cash ratio, and open market operations are all tools used in monetary policy to manage the amount of money in circulation in the economy, with the aim of achieving specific economic goals.

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.

A minimum price legislation is also called

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A minimum price legislation is also called a price floor. A price floor is a type of price control set by the government that sets a minimum price that must be paid for a particular good or service. The government typically sets a price floor in order to help support the producers of the good or service by ensuring they receive a certain level of income. For example, if the government sets a minimum price for agricultural goods, such as wheat or milk, it can help support farmers by ensuring that they receive a fair price for their products. A price floor is usually set above the equilibrium price of the good or service in question, which means that it can create a surplus of supply. This surplus can result in a number of economic issues, such as a buildup of inventory or a decrease in demand, which can lead to further government intervention or market adjustments. Overall, price floors and other types of price controls can be controversial, as they can have both positive and negative effects on producers, consumers, and the overall economy.

The line labelled M in the diagram above represent

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The curve labelled x is the

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IBRD as an international monetary institution is concerned with the

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The International Bank for Reconstruction and Development (IBRD) as an international monetary institution is concerned with the development of infrastructure in member nations. The IBRD, also known as the World Bank, was established to help finance the reconstruction and development of war-torn and developing countries after World War II. The bank provides loans, technical assistance, and other financial services to support projects in a variety of sectors, including infrastructure development, such as transportation, energy, and communication networks, among others. While the IBRD is concerned with the economic development of member nations, it is not primarily focused on financing private business or improving trade among member nations, although these may be outcomes of its operations. Additionally, the IBRD may also provide assistance to member nations facing balance of payments problems, but this is not its primary objective.

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

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The major role of multi-national companies in the petroleum industry in Nigeria is oil prospecting. These companies typically invest heavily in exploration, drilling, and production of crude oil in Nigeria, which is one of the largest oil-producing countries in Africa. The multi-national companies also play a significant role in the development of Nigeria's oil and gas infrastructure, including pipelines, storage facilities, and export terminals, which are necessary for getting the oil to international markets. While some of these companies are also involved in downstream activities such as oil marketing and refining, their primary role in Nigeria's petroleum industry is oil exploration and production.

An example of transfer payments in national income accounting is

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Transfer payments refer to payments made by the government or other institutions to individuals or other entities, without receiving any goods or services in return. These payments are typically made for social welfare purposes or to redistribute income. An example of a transfer payment in national income accounting is unemployment allowance paid to citizens who are unemployed. The government pays these allowances to support individuals who are currently out of work and seeking employment. This payment is considered a transfer payment because the government is not receiving any goods or services in return for the funds provided. Transfer payments are not included in the calculation of GDP because they do not represent the production of goods or services. However, they are important in measuring the overall economic well-being of a society, particularly in terms of income distribution and social welfare.

The increase in the demand for a commodity may lead to a decrease in the demand for another if both are

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The increase in the demand for a commodity may lead to a decrease in the demand for another if both are in competitive demand. When two goods are in competitive demand, they are seen as substitutes for each other, meaning that they can be used for the same purpose. For example, coffee and tea can be seen as substitutes for each other, since both are beverages that can be used to satisfy the same desire for a hot drink. So, if the demand for coffee increases, people may buy more coffee and less tea, because they see coffee as a substitute for tea. Similarly, if the demand for tea increases, people may buy more tea and less coffee, because they see tea as a substitute for coffee. On the other hand, if two goods are in complementary demand, they are often used together. For example, if the demand for cars increases, the demand for gasoline will also increase, since cars require gasoline to run. Similarly, if the demand for smartphones increases, the demand for phone cases may also increase, since people may want to protect their phones. In composite demand, a good has multiple uses, so an increase in demand for one use may not necessarily lead to a decrease in demand for another use. And in the case of goods of the same quality, an increase in demand for one good does not necessarily affect the demand for the other good, since they are not substitutes or complements.

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.

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.

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.

The main objective of marketing boards is to

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The main objective of marketing boards is to stabilize the incomes of cash crop farmers. Marketing boards help to regulate the supply and demand of cash crops, ensuring stable prices and incomes for farmers. They also provide support services to farmers, such as warehousing facilities and education on pricing, to help them sell their crops more effectively. While marketing boards may generate revenue for the government, their primary focus is on supporting and protecting the livelihoods of farmers.

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.

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.

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.

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.

An effect of inflation is that it

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An effect of inflation is that it "favors debtors at the expense of creditors." Inflation reduces the real value of money over time, which means that the value of debt also decreases. This can be an advantage for debtors, who are able to repay their debts with money that is worth less than when they borrowed it. In contrast, creditors are disadvantaged by inflation, as the value of the money they receive in repayment is worth less than the money they loaned out. Inflation can also have other effects, such as reducing the purchasing power of consumers, increasing uncertainty, and distorting economic decision-making.

The demand curve for goods of ostentation is usually

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A country's budget allocation to various sectors of the economy is shown in the pie chart above...

Use it to answer this question.

If the budget of the country was $7,200, how much is allocated to Education?

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Based on the pie chart, the Education sector is represented by 1/3 of the total budget allocation. To find out how much is allocated to Education, we can calculate 1/3 of the total budget: 1/3 x $7,200 = $2,400 Therefore, the answer is $2,400.00.

A disadvantage of a joint-stock company is

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A disadvantage of a joint-stock company is the potential for loss of controlling interest. In a joint-stock company, ownership is divided into shares, which can be bought and sold by individual shareholders. If a large number of shares are sold to other individuals or entities, it can dilute the ownership and control of the original shareholders, making it more difficult for them to have a significant say in the decision-making process. Limited liability is actually an advantage of a joint-stock company, as it protects shareholders from personal financial liability beyond their investment in the company. Continuity is also an advantage of a joint-stock company, as it can continue to exist even if shareholders come and go or if one or more shareholders die. Unlimited liability, on the other hand, is a disadvantage of a sole proprietorship or partnership, where the owner or partners can be held personally liable for the debts and obligations of the business.

What type of price elasticity of demand is the diagram above representing?

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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.

Budget deficit is the amount by which

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Budget deficit is the amount by which total expenditure exceeds revenue. A budget deficit occurs when a government or organization spends more money than it takes in through revenue, such as taxes or other sources of income. This can result in the accumulation of debt over time, which can have long-term implications for the financial health of the government or organization. While recurrent expenditure and capital expenditure are both types of expenditures that can contribute to a budget deficit, neither of these terms captures the full picture of a budget deficit. Recurrent expenditure refers to ongoing or routine expenses such as salaries, utilities, and other operating costs, while capital expenditure refers to spending on assets such as buildings, equipment, and infrastructure. A budget deficit can result from either type of expenditure, as well as from other sources of spending such as debt servicing or unexpected events that require emergency spending.

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.

To compare the standard of living among nations, the most widely used economic indicator is the

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To compare the standard of living among nations, the most widely used economic indicator is the real per capita income. This is a measure of the average income per person in a given country, adjusted for inflation to reflect the purchasing power of that income. It is calculated by dividing the real gross domestic product (GDP) of a country by its population, which gives a sense of the economic output per person. While per capita nominal income and real gross national income are also used as economic indicators, they do not take into account inflation or differences in the cost of living across countries, which can make them less useful for comparing living standards. Real domestic output is not as widely used as real per capita income as it does not take into account the size of the population, which is an important factor in determining the standard of living.

The price mechanism 

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The price mechanism is a system in an economy where the prices of goods and services are determined by the forces of supply and demand. This mechanism is responsible for regulating the balance between what consumers want to buy and what producers want to sell. As the demand for a particular item increases, the price of the item will rise, causing producers to increase supply to meet the demand. On the other hand, if the demand decreases, the price will fall, and producers will decrease their supply. In this way, the price mechanism helps allocate scarce resources by ensuring that the goods and services that are in high demand are produced and distributed more, while those that are not in high demand are produced and distributed less. In conclusion, the price mechanism does all of the above - regulates supply and demand, rations the consumers, rewards the producers, and allocates scarce resources - to ensure an efficient and effective allocation of resources in an economy.

Demand-pull inflation is likely to be caused by

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Demand-pull inflation occurs when the overall demand for goods and services in an economy exceeds the supply of those goods and services, leading to an increase in the general price level. This increase in demand may be caused by a number of factors, such as an increase in consumer confidence, an increase in government spending, or an increase in exports. Out of the given options, an increasingly large budget deficit is the most likely cause of demand-pull inflation. When the government spends more money than it collects in taxes, it may finance the deficit by borrowing from the central bank, other banks or the public. This increases the overall amount of money in circulation in the economy, which in turn leads to an increase in demand for goods and services. This increased demand can then lead to higher prices for those goods and services, resulting in demand-pull inflation. An increase in the cost of factor inputs, such as labor or raw materials, may also contribute to inflation, but this is known as cost-push inflation, which occurs when the cost of producing goods and services increases, leading to higher prices. An increase in the income tax rate and an increase in the bank lending rate can reduce the overall demand for goods and services and lead to a decrease in inflation.

A greater burden of the taxes on essential goods is borne by the

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A greater burden of the taxes on essential goods is typically borne by the lower income group. This is because essential goods such as food, clothing, and shelter make up a larger proportion of the budget of low-income households than they do for high-income households. When taxes are applied to these goods, the cost of living increases proportionally for low-income households, putting a greater burden on their limited resources. In contrast, high-income households can more easily absorb the higher costs without significantly affecting their standard of living.

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.