JAMB UTME - Economics - 2024

The middle value of an array figure arranged in descending order is referred to as the

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The middle value of an array of figures arranged in descending order is referred to as the median.

To understand this concept, imagine you have a collection of numbers, and you want to find the one that sits right in the middle when all numbers are lined up from the largest to the smallest (or even from smallest to largest, as the median remains the same).

• If there is an odd number of values in your dataset, the median is the number that is directly in the middle. For example, in the dataset {9, 7, 5}, the median is 7, as it is the middle number.


• If there is an even number of values, the median is calculated by taking the average of the two middle numbers. For instance, in the dataset {10, 8, 6, 4}, the two middle numbers are 8 and 6, and their average is (8 + 6) / 2 = 7. Therefore, 7 is the median.

The median is very useful as a measure of central tendency because it is not affected by extremely large or small values in the dataset, which could skew other measurements like the mean. Thus, it provides a better representation of a typical value within the dataset, especially when dealing with outliers.

An industry operating in a perfect competitive market situation will maximum profit when

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In a perfectly competitive market, an industry or firm will maximize its profit when its Marginal Cost (MC) equals Marginal Revenue (MR). This is a fundamental principle of microeconomics that ensures the firm's resources are being used most efficiently.

Here's why:

• Marginal Cost (MC) is the additional cost incurred from producing one more unit of a good or service.
• Marginal Revenue (MR) is the additional revenue generated from selling one more unit of a good or service.

If MC = MR, the cost of producing an additional unit is exactly equal to the revenue it generates, meaning any increase or decrease in production would not improve profitability. At this point, the firm is efficiently allocating its resources.

If MC < MR; it means that the cost of producing an extra unit is less than the revenue it brings. The firm can increase its profit by producing and selling more units.

Conversely, if MC > MR; the cost of producing an extra unit exceeds the revenue it brings, and the firm should reduce production to avoid losses.

Therefore, to achieve maximum profit, a firm in a perfectly competitive market should continue adjusting its output until the cost of the last unit produced is exactly equal to the revenue it produces, which occurs at MC = MR.

Which of the following is NOT a function of the IMF?

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The International Monetary Fund (IMF) is an international organization that primarily focuses on ensuring the stability of the international monetary system. Here are some of its core functions:

• Providing financial aid to members experiencing balance of payment difficulties: The IMF provides financial assistance to countries facing balance of payment problems. This helps stabilize their economies and restore growth.
• Promoting international monetary cooperation: The IMF encourages international collaboration in monetary policies to sustain financial stability and growth across nations.
• Exchange rate stabilization: The IMF works with countries to help stabilize their exchange rates by providing policy advice and financial assistance, aiming to avoid competitive devaluations and maintain global economic equilibrium.

The statement that is NOT a function of the IMF is "assisting member countries in printing and issuing their currency." The IMF does not assist countries in printing or issuing their currency. This activity is typically managed by each country's own central bank or monetary authority. Thus, this function does not fall under the responsibilities of the IMF.

The largest component of national income in developing countries consist of

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In developing countries, the largest component of national income typically consists of wages and salaries. This means that the income earned by individuals from their employment or labor work forms a significant part of the national income. Several reasons contribute to this:

• Labor-Intensive Economy: Developing countries often have labor-intensive sectors such as agriculture, manufacturing, and services, which employ a large number of people. These sectors need a substantial workforce, leading to the major share of national income coming from wages and salaries.
• Lower Levels of Capital: Capital refers to tools, equipment, and machinery used in production. Developing countries may have lower levels of capital investment, focusing more on labor to boost production, which again increases the share of wages and salaries in national income.
• Demographics: Developing countries often have younger populations with a high dependency on labor for earning income. This means most people derive their livelihood through working jobs rather than owning businesses or properties, leading to wages and salaries dominating national income.

In contrast, components like rent and profit tend to form a smaller component of national income in developing economies. While these components are important, they are usually not as predominant as wages and salaries due to the lesser commercialization and capital-intensive industries compared to developed countries.

What is the median term in the distribution below; 14, 13 29,15,13,17,12.

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To find the median of a set of numbers, the first step is to arrange the numbers in ascending order (from smallest to largest).

The given numbers are: 14, 13, 29, 15, 13, 17, 12.

Arrange them in ascending order: 12, 13, 13, 14, 15, 17, 29.

The median is the number that appears in the middle of this ordered list. Since there are 7 numbers in this list, the middle number is the fourth one.

In the ordered sequence 12, 13, 13, 14, 15, 17, 29, the median is 14.

The diagram below represent

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The diagram you are referring to represents the Circular Flow of Income. This is a crucial concept in economics that demonstrates how money moves within an economy between different sectors. Let me explain it further in a simple and clear manner.

The Circular Flow of Income exhibits the interactions and transactions that occur between two major groups in an economy: the households and the firms. It is important to note that:

• Households: They are the owners of factors of production such as labor, land, and capital. Households provide these resources to firms.
• Firms: They produce goods and services using the factors of production provided by households. Firms pay households for these resources in the form of wages, rent, interest, and profits.

The flow of economic resources and money can be explained in two key types:

• Real Flow: This involves the flow of actual goods and services from firms to households, and the flow of factors of production from households to firms.
• Monetary Flow: This involves the flow of money in the form of payments made by firms to households for their resources, and the flow of money from households to firms to purchase goods and services.

In an expanded model of the circular flow, other components may be included, such as the government, financial sector, and foreign markets, which illustrate additional flows such as taxes, government spending, savings, investments, and exports/imports.

Overall, the Circular Flow of Income provides a fundamental understanding of how economic activity is interconnected and how different sectors interact with one another in a continuous cycle.

The following determine the level of consumption EXCEPT

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The level of consumption generally refers to the amount of goods and services that households are willing and able to purchase. This can be influenced by several factors:

Level of Income: The more income people earn, the more they can spend on goods and services, which directly affects consumption levels. With higher income, households typically increase their consumption.

The Rate of Taxes Paid: Taxes directly impact disposable income, which is the income available after tax deductions. Higher taxes reduce disposable income and may lead to lower consumption, while lower taxes increase disposable income and can potentially boost consumption.

Savings: When households allocate a portion of their income to savings, this reduces the immediate level of consumption. Therefore, high levels of savings can indicate lower levels of consumption.

The Political Climate: Although the political climate can affect the economy in various ways, it is generally not a direct and immediate determinant of consumption levels. The political climate can influence factors like economic stability and government policies, but it is not a direct factor in determining how much households consume.

Based on these explanations, the factor that determines the level of consumption the least is the political climate, because its effects are indirect and less immediate compared to the direct effects of income, taxes, and savings on consumption.

Which of the following will NOT bring about an increase in Labour force?

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To determine which option will NOT bring about an increase in the labor force, let's examine the impact of each one:

1. **Decrease in death rate:** When the death rate decreases, more people are living longer, which means that they remain available to be a part of the workforce. Thus, this can contribute to an increase in the labor force.

2. **Better medical services:** Improved medical services often lead to healthier individuals who can participate in work for longer durations. Good health can increase the number of individuals who can work and potentially extend their working life, thus leading to an increase in the labor force.

3. **Immigration:** Immigration allows people from other countries to enter and work in a new country. This directly increases the number of people who are available to work in that country, thereby increasing the labor force.

4. **Emigration:** Emigration is when people leave a country to work or live elsewhere. When individuals emigrate, they reduce the number of people available to work in the original country. Thus, **emigration** will NOT bring about an increase in the labor force; instead, it can contribute to a decrease.

In summary, the option that will NOT bring about an increase in the labor force is **Emigration**.

An exceptional demand curve can result from

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An exceptional demand curve occurs when demand does not follow the typical downward slope from left to right. Instead, the demand curve may slope upward. Let’s consider some scenarios that could lead to this unusual situation.

Increase in Price of Raw Materials: This typically affects the supply side rather than the demand side. When prices of raw materials increase, production costs go up, possibly reducing supply, but not necessarily impacting demand directly. Therefore, this is not usually a reason for an exceptional demand curve.

Change in Taste of Consumer: If consumers suddenly prefer a particular product, they may be willing to buy more even if the price rises. This shift in consumer preferences can lead to an upward-sloping demand curve, reflecting increased demand despite higher prices.

Increase in the Size of the Population: More people can lead to higher overall demand, but each individual’s demand curve typically still slopes downward due to the law of diminishing marginal utility. Therefore, population increase alone generally does not cause an exceptional demand curve.

Expectation of Future Price Increase: When consumers expect prices to rise in the future, they may choose to buy more now to avoid paying higher prices later. This situation can lead to an upward-sloping demand curve as current demand increases with rising prices, due to future price expectations.

In summary, an exceptional demand curve is usually caused by changes in consumer tastes or expectations of future price increases, making current demand behave in an unexpected way compared to the usual downward slope.

The demand for factors of production is said to be

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In economics, the demand for factors of production is best described as being derived. What this means is that the demand for these factors, like labor, land, and capital, is not for their own sake but because of the demand for the goods and services they can produce.

To put it simply, businesses need these factors of production to create products. If there is a high demand for a particular product, there will naturally be a higher demand for the factors needed to produce that product. Conversely, if there is little to no demand for a product, then the demand for the factors required to produce it will also decrease.

For example, if there is a high demand for cars, a car manufacturing company will need more metal, labor, and machinery, which are the factors of production, to make more cars. Thus, the demand for these factors is based on, or derived from, the demand for the cars themselves.

A firm's average cost decreases in the long-run because of

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In the long run, a firm's average cost decreases primarily because of increasing returns to scale. This occurs when a firm's output increases by a proportion greater than the increase in inputs. In simpler terms, when a company gets bigger, it becomes more efficient at production. Consider the following reasons:

• **Economies of Scale**: As production scales up, certain costs such as fixed costs are spread over a larger number of goods, thus reducing the cost per unit.
• **Specialization and Division of Labor**: Larger firms often permit more specialization among workers and use more advanced technology, leading to increased productivity.
• **Bulk Purchasing**: Bigger firms can buy raw materials in large quantities at a discounted rate, which reduces the cost of production per unit.

Other options, like **diminishing average returns** or **decreasing marginal returns**, generally pertain to situations in the short run or under different conditions and would not directly explain a decrease in average costs in the long run. Additionally, while **decreasing average fixed cost** could reduce cost in the short run, in the long run, all costs are variable and focus instead shifts to how efficiently inputs are converted to outputs.

The contribution of petroleum to the economy of Nigerian is most prominent in the area of

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The most prominent contribution of petroleum to the Nigerian economy is in the area of revenue generation.

Here’s why:

1. Major Source of Government Revenue: The petroleum industry is the backbone of Nigeria's economy, significantly impacting the nation’s fiscal landscape. It contributes a substantial portion of government revenue through the sale of crude oil globally. This revenue is critical for funding various government activities and programs.

2. Foreign Exchange Earnings: Crude oil and natural gas exports are a primary source of foreign exchange earnings for Nigeria. These earnings are vital as they enable the country to engage in international trade, import goods, and services, and stabilize the national currency.

3. Budgetary Funding: The Nigerian annual budget heavily relies on oil revenues. Oil sales provide the funds necessary for the government to execute national projects, maintain public services, and drive economic policies.

In summary, while petroleum impacts Nigeria's economy in various ways such as infrastructure development and employment generation, its contribution to revenue generation is by far the most prominent and crucial for sustaining government functions and the overall economic health of the nation.

If government in a fiscal year has its revenue receipts less than the expenditure, such country is having

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When a government has its revenue receipts less than the expenditure in a fiscal year, the country is experiencing a deficit budget. Here's a simple explanation:

Revenue receipts are the funds government receives, mainly from taxes and other sources like fees, interests, etc.

Expenditure refers to the total amount of money the government spends on various needs like infrastructure, education, defense, welfare programs, and salaries.

If the money received (revenue receipts) is less than the money spent (expenditure), it indicates that the government is spending more than it is earning. This excess expenditure generates a gap which is known as a deficit.

To address this deficit, governments might need to borrow money or reduce spending to balance their finances in the future. Hence, when expenditure surpasses revenue, it results in a deficit budget.

In the equation Q = a - bp + e; Q and P are ... Variables respectively.

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In the given equation Q = a - bp + e, we need to understand the roles of the variables Q and P.

In any equation where we are trying to establish a relationship between two variables, one of the variables is usually controlled or changed deliberately, while the other one is observed as it changes in response. In such equations:

• The **independent variable** is the one that you control or change to see how it affects another variable. It is like the **cause** or **input**.
• The **dependent variable** is the one that changes as a result of the changes in the independent variable. It is like the **effect** or **output**.

In the equation Q = a - bp + e, **Q** is the outcome or result that we observe, and it depends on the value of **P**. Thus, **Q is the dependent variable** because it changes depending on the values of **P**. Conversely, **P** is the one that we can change or manipulate in the context of this equation, so **P is the independent variable**.

Therefore, the correct description for **Q** and **P** is that Q is the **dependent** variable, and P is the **independent** variable.

The willingness of an individual backed up with purchasing power at a given time is

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The concept you are referring to is effective demand. Let me explain it to you in a straightforward way:

Demand: Generally, demand refers to the desire or willingness of a consumer to purchase goods or services. However, just having the desire is not enough. Demand becomes impactful only when it is supported with the capability to purchase.

Effective demand: This is more than just a simple desire or demand. It represents the situation where an individual not only wants to purchase a product or service but also has the actual purchasing power to do so. This means they have the money or resources to back up their desire at a given time.

Desire: This term simply denotes a wish or want, without any implication of capability to fulfill it. For instance, many people might desire a luxury car, but not everyone can afford it.

Utility: This is a different concept entirely, referring to the satisfaction or benefit a consumer receives from consuming a product or service. It does not necessarily align with the ability to purchase.

In summary, when discussing the willingness to buy something and having the funds ready at that moment, it's referred to as effective demand because it combines the desire with the actual capacity to fulfill that desire.

A price floor is usually fixed

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A price floor is a **minimum price** set by the government for a particular good or service. It is designed to ensure that the price is not too low, often supporting producers by maintaining their income at a viable level.

For a price floor to be effective, it is usually fixed **above the equilibrium price.** Here's why:

• **Equilibrium Price** is where the supply of a product equals the demand for that product. It is the point at which the market is said to be in balance.
• When a price floor is set **above the equilibrium**, it means that the price consumers are willing to pay is less than the price producers are willing to accept. This leads to a decrease in quantity demanded by consumers since the price is too high for them.
• Thus, producers end up with **more goods available than what consumers are buying**, creating a **surplus**. This surplus occurs because the set price is prohibiting the market from reaching its natural balance or equilibrium.

Therefore, a price floor is usually fixed **above the equilibrium and causes surpluses.** This allows it to serve its purpose of protecting producer revenues while potentially benefiting certain industry stakeholders.

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

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If the price of commodity X increases and consumers start purchasing commodity Y instead, then commodities X and Y are considered substitutes. Substitutes are goods that can be used in place of one another; when the price of one goes up, consumers naturally shift their demand to the other because it serves a similar function or purpose.
Consider an example: if the price of coffee goes up, people might start drinking tea instead if tea serves as a similar alternative for their morning beverage needs. In this scenario, coffee and tea are substitutes. Therefore, the relationship between these goods is defined by consumers' ability to consider one in place of the other based on price.
In summary, when consumers replace their consumption of one good with another due to price change, the goods in question are substitutes.

The satisfaction derived from the consumption of a commodity is referred to as

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The satisfaction derived from the consumption of a commodity is referred to as utility. To explain this concept further, let's break it down:

Utility is an economic term that describes the pleasure, happiness, or satisfaction a consumer gets from consuming goods and services.

Here’s why it is the correct term:

• When you purchase or consume something, like a snack or a service, the positive feelings or fulfillment you get is called its utility.
• The concept of utility is used in economics to understand consumer behavior, such as how much of a product consumers might be willing to buy at different prices, based on the satisfaction they expect to gain.
• Increasing or maximizing one's utility often drives decisions, as individuals usually aim to derive the most satisfaction from their choices.

In summary, whenever we talk about the satisfaction from using or consuming goods, we are discussing the concept of utility.

The act of cultivating land and rearing of animal for man's use is

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The act of cultivating land and rearing of animals for man's use is known as agriculture.

Agriculture is an activity that involves growing crops and raising animals to provide food, fiber, medicinal plants, and other products used to sustain and enhance human life. It is a vital practice that has been developed over thousands of years, allowing civilizations to flourish by ensuring a stable supply of food and resources. This practice not only involves the cultivation of the land for crops but also includes various other activities such as animal husbandry, which is the breeding and care of farm animals.

Let me explain a bit about the other terms you mentioned:

• Forestry refers to the management and conservation of forests and woodlands. It involves the planting, maintaining, and caring for trees and forests. While it might also involve the cultivation of certain types of land, its primary focus is on trees rather than a wide range of crops or livestock.
• Mono culture is a term used to describe the cultivation of a single crop in a given area, year after year. This is a method within agriculture but does not encompass the full scope of agriculture, which includes diversity in crop and animal production.
• Horticulture is a branch of agriculture that focuses on the cultivation of plants, fruits, vegetables, flowers, and ornamental plants. It deals mainly with garden crops rather than large-scale agricultural crops and usually doesn't focus on animal rearing.

Thus, the most comprehensive term that covers both the cultivation of land and rearing of animals is agriculture.

A market situation with few sellers and many buyers is called

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The market situation you are referring to is called an oligopoly.

To put it simply, an oligopoly is a market structure where there are only a few sellers, or producers, who dominate the market, while there are many buyers. This creates a situation where the few sellers have significant control over the prices and market dynamics.

This structure is different from a perfect competition, where there are many sellers and buyers, with no single seller having significant market power. It is also different from a duopoly, which specifically refers to exactly two sellers.

The presence of a small number of sellers in an oligopoly leads to competitive strategies where the actions of one seller can influence the actions of others. This often results in strategic collaboration or competition, which affects prices and product offerings.

Stock exchange market deals with

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The stock exchange market primarily deals with the sales of second-hand securities. In this context, "second-hand securities" refer to financial instruments such as stocks and bonds that have already been issued by a company and are currently being traded among investors. When a company first issues stocks or bonds, it is done in the primary market. Once these securities are purchased and then resold by investors, they are traded in the secondary market, commonly known as the stock exchange.

Here's a simple rundown of how it works:

1. **Initial Offering:** A company looking to raise capital might issue stocks or bonds to investors. This takes place in the primary market through an Initial Public Offering (IPO) or similar mechanisms.

2. **Secondary Trading:** Once issued, these securities can be bought and sold on the stock exchange. Investors trade these securities based on supply and demand, trying to make a profit by buying low and selling high.

Therefore, the stock exchange acts as a platform where buyers and sellers meet to trade these second-hand securities. This buying and selling provide the liquidity required for the market to function efficiently and helps in price discovery of the securities based on market demand.

Which of the following NOT among the objectives of OPEC?

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When analyzing the objectives of OPEC (Organization of the Petroleum Exporting Countries), it is important to look at the core goals that this organization typically aligns with:

1. To stabilize the price of oil in the world market: This is indeed one of the primary objectives of OPEC. By coordinating the oil production levels among its members, OPEC strives to maintain oil price stability in the global market.

2. To stabilize the revenue from oil to producing countries: Another key objective of OPEC includes ensuring consistent and fair revenue for its oil-producing member countries. By influencing oil prices and production levels, OPEC helps in maintaining stable revenues for these nations.

3. To make sure that oil flows to all the consuming countries: Ensuring the continuous supply of oil to consuming countries is a goal aligned with OPEC's efforts to balance supply and demand for economic and energy stability worldwide.

4. To establish petroleum refineries in all member states: This is NOT among the objectives of OPEC. OPEC does not focus specifically on establishing petroleum refineries in all its member states. The organization's primary focus is on coordinating and unifying the petroleum policies among its member countries, not on the physical establishment of refineries.

A downward sloping demand curve means that

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When the price of a product decreases, consumers are generally willing to buy more of it. As a result, the quantity demanded increases. However, since each unit is sold at a lower price, the decline in price outweighs the increase in quantity, leading to a decrease in total revenue (total revenue = price x quantity). This is why a downward sloping demand curve indicates that the total revenue declines as the price is lowered.

From the diagram below, the equilibrium wage rate is

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The equilibrium wage rate is achieved when the demand for labour equals the supply of labour in a particular labour market. At this point, there is no excess demand or excess supply of labour, and the market is in balance.
From the diagram above, the equilibrium wage rate is W2.

The formular (N + 1)/2 is used to determine the

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The formula (N + 1)/2 is used to determine the median position in a dataset that is arranged in ascending or descending order. Understanding how to find the median is important because the median is a measure of central tendency that represents the middle value of a dataset. Here's a clear explanation of this concept:

When you have a set of numbers, the median is the number that falls in the middle when the numbers are arranged in either increasing or decreasing order. To find this middle value, you can use the formula (N + 1)/2, where N represents the total number of observations in the dataset.

For example, let's say you have a dataset with an odd number of observations: 3, 5, 7. Here, N is 3, so you apply the formula:

Median position = (3 + 1)/2 = 2

This calculation indicates that the second number in this ordered list is the median, which is 5.

If you have an even number of observations, such as 2, 4, 6, 8, you would calculate the median position as follows:

Median position = (4 + 1)/2 = 2.5

In this case, because 2.5 isn't an integer, the median is the average of the second and third numbers, which are 4 and 6. Therefore, the median is (4 + 6)/2 = 5.

In summary, the formula (N + 1)/2 is used to identify the position of the median in a list of numbers that are ordered, allowing us to understand where the middle point of the data lies.

The following are problems of development planning in Nigeria EXCEPT

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Nigeria, like many developing countries, faces several challenges in its development planning. These include issues such as inadequate capital, which limits the ability to fund critical development projects and infrastructure, thus hindering economic growth. Another significant challenge is the inadequate statistical data, which affects the ability to make informed, evidence-based policy decisions. Without reliable data, it's difficult to plan effectively and measure progress.

Poor implementation of economic planning is also a notable problem, as even the best-laid plans cannot yield results if not properly executed. This might be due to bureaucratic inefficiencies, corruption, or lack of capacity.

However, the statement under-population is not a commonly recognized problem in Nigeria. In fact, Nigeria is known for having a large and rapidly growing population, which sometimes poses its own challenges in terms of resource management and service provision. Therefore, the issue of under-population can be seen as an exception to the typical problems of development planning in Nigeria.

When an increase in the price of a commodity lead to a fall In the demand for another, the demand for the two commodities are said to be

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Competitive demand refers to a situation where two or more goods are seen as substitutes for each other. When the pric of one commodity increases, consumers tend to shift their demand towards the substitute commodity, resulting in a decrease in the demand for the original commodity.
For example, if the price of coffee increases significantly, some consumers may choose to switch to tea as a substitute. A: a result, the demand for coffee decreases while the demand for tea increases.

Economics problems arise in all societies because

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Economics problems arise in all societies primarily because resources are not in adequate supply. This is known as the fundamental economic problem of scarcity. In every society, there are limited resources but unlimited wants and needs. These resources include things like land, labor, and capital, which are necessary for producing goods and services. Since we do not have enough of these resources to satisfy everyone's desires, we face choices about how to allocate them efficiently.

The issue of scarcity leads to other economic problems such as deciding what to produce, how to produce it, and for whom it should be produced. These decisions are made by assessing opportunity costs and considering how to make the best possible use of the limited resources available.

While factors such as lack of proper planning or mismanagement by leaders can exacerbate economic problems, they are not the root cause. The core issue remains the limited availability of resources, compelling societies to prioritize and decide how best to meet the needs of their population.

When an economy is having a balance of payment surplus the best alternative opened to it is to

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When an economy is experiencing a balance of payments surplus, it means that the country is exporting more goods, services, and capital than it is importing. Essentially, there is more money flowing into the country than out of it. In such situations, one of the most viable actions to take is to increase its foreign reserves.

Here's why increasing foreign reserves is often the best option:

• Stability and Security: Increasing foreign reserves can help the country maintain better economic stability and provide a financial cushion. These reserves can be used in times of economic distress, for example, to stabilize the country's currency or to cover the balance of payments deficit if one arises in the future.
• Credibility and Investor Confidence: A healthy level of foreign reserves signals to international investors and creditors that the country is financially stable, which can lead to greater investor confidence and potentially more foreign investment.
• Currency Support: With a surplus, increasing reserves can support the country's currency value in global financial markets. This helps maintain favorable exchange rates and can be used strategically by the central bank to control currency appreciation.
• Flexibility in Monetary Policy: Higher foreign reserves give the central bank more flexibility in its monetary interventions. They can control inflation and manage interest rates more effectively.

Promoting imports, while it can help reduce the surplus by encouraging money to flow out of the country, may not always be the best course of action and depends on the country's economic goals and import needs. Borrowing from abroad is generally not necessary when the country has a surplus. Devaluing the currency is certainly not favorable in the context of a surplus as it can create inflationary pressures and reduce purchasing power internationally.

Which of the following is NOT a major role of OPEC in production, and marketing of petroleum?

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Refining of petroleum products in member countries is NOT a major role of OPEC in the production and marketing of petroleum.

Let me explain why:

• Stabilizing oil prices by putting a production ceiling: OPEC primarily works by coordinating and unifying the petroleum policies of its member countries. By setting production levels, it aims to stabilize the oil market to avoid excessive fluctuations in oil prices.
• Raising the revenue of member countries from oil through price increase: OPEC seeks to ensure that member countries receive fair and stable incomes from their petroleum resources. This often involves strategies to influence global oil prices.
• Ensuring efficient and regular supply of oil to the market: OPEC works to provide a reliable supply of oil to the global market, preventing shortages and ensuring that the supply meets demand.
• Refining of petroleum products in member countries: This is not a primary function of OPEC. While refining can occur within member countries, OPEC's core activities focus on the regulation of crude oil production and market stability rather than refining processes.

In summary, the main roles of OPEC include balancing oil production and prices and ensuring a steady supply, but they do not majorly focus on the refining of petroleum products.

f the population of a school is 600 and 60% are In JSS, how many students are in SSS?

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To determine how many students are in SSS, we first need to figure out how many students are in JSS. According to the problem, 60% of the school's population is in JSS.

Here's a simple breakdown:

• The total population of the school is 600.
• 60% of 600 is calculated by multiplying 600 by 0.60. Mathematically, this is:
• 600 x 0.60 = 360. So, there are 360 students in JSS.

Since the whole school has 600 students, and 360 of those are in JSS, we can find out how many are in SSS by subtracting the JSS students from the total number of students:

600 - 360 = 240

Hence, there are 240 students in SSS.

The following can be used to improve a country's balance of payment EXCEPT

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The balance of payments is a record of all financial transactions made between consumers, businesses, and the government in one country with others. It includes trade in goods and services, investments, and money transfers. To improve a country's balance of payments, particularly the trade balance, countries may implement certain policies.

Anti-dumping policies are used to prevent foreign companies from selling goods at a price lower than their market value to gain an unfair advantage. By implementing anti-dumping policies, a country can protect its domestic industries from unfair competition, which can help improve the balance of payments by reducing imports or encouraging domestic consumption.

Granting subsidies to export producers can help improve the balance of payments by making domestic products cheaper and more competitive in international markets. By lowering production costs, subsidies can help increase exports, leading to an improvement in the balance of payments.

Increasing import duties is another way to improve the balance of payments. By imposing higher taxes on imported goods, a country can discourage imports and encourage consumers to purchase domestically produced goods. This can improve the trade balance by reducing the outflow of money used to purchase foreign products.

On the other hand, decreasing taxation on personal income doesn't directly affect the balance of payments. Reducing personal income tax may increase disposable income for consumers, which could lead to more consumption. However, this increased consumption might not necessarily focus on domestic goods, and could instead lead to higher imports. Therefore, among the options listed, decreasing taxation on personal income is the one least likely to directly improve a country's balance of payments.

The formular used by the Expenditure approach to calculate National income is

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The expenditure approach is a common method used to calculate the national income, specifically the Gross Domestic Product (GDP) of a country. This approach sums up all expenditures or spending in the economy.

The correct formula for the expenditure approach is: Y = C + I + G + (X - M), where:

• C stands for Consumption: This is the total value of all goods and services consumed by households within the economy. It includes expenditures on items such as food, clothing, housing, and other personal expenses.
• I stands for Investment: This includes spending on capital goods that will be used to produce other goods and services in the future, such as machinery, buildings, and inventory.
• G stands for Government Spending: This is the total expenditure by the government on goods and services, including public sector salaries, defense, education, and infrastructure projects.
• (X - M) stands for Net Exports: This is calculated as total exports (X) minus total imports (M). Exports are goods and services sold to other countries, while imports are those bought from other countries. By subtracting imports from exports, we determine the net trade effect on the economy.

Putting it all together, this formula helps to calculate the total economic activity within a country by summing up consumption, investment, government spending, and net exports, giving a comprehensive picture of the national income.

Bayanin Amsa

The concept we are discussing here is the Price Elasticity of Demand (PED). It measures how much the quantity demanded of a commodity changes with a change in its price. The formula for calculating the price elasticity of demand is:

PED = (% Change in Quantity Demanded) / (% Change in Price)

First, we calculate the percentage change in quantity demanded:

• Initial quantity demanded = 100 units
• New quantity demanded = 80 units
• Change in quantity demanded = New quantity demanded - Initial quantity demanded = 80 - 100 = -20 units

Percentage change in quantity demanded:

= (Change in quantity demanded / Initial quantity demanded) × 100

= (-20 / 100) × 100 = -20%

Next, calculate the percentage change in price:

• Initial price = N8.00
• New price = N10.00
• Change in price = New price - Initial price = N10.00 - N8.00 = N2.00

Percentage change in price:

= (Change in price / Initial price) × 100

= (2 / 8) × 100 = 25%

Now, we can substitute these values into the formula for PED:

PED = (% Change in Quantity Demanded) / (% Change in Price)

= (-20%) / (25%)

= -0.8

The price elasticity of demand is -0.8. The negative sign indicates that there is an inverse relationship between price and quantity demanded, which is normal for most goods. This value rounded to the nearest value provided in your options is 0.8. This implies it is inelastic demand, meaning the quantity demanded is not very responsive to price changes.

Which of the following is the correct order in the chain of distribution?

Bayanin Amsa

The correct order in the chain of distribution is: Producer → Wholesaler → Retailer → Consumer.

Let's take a closer look at each stage in this sequence:

Producer: This is the first stage where the initial product is manufactured or created. The producer could be a manufacturer or a farmer, or anyone who creates goods or services to be sold.

Wholesaler: After the producer creates the goods, they typically sell them in large quantities to a wholesaler. The wholesaler buys in bulk and often offers products at a lower price, allowing them to distribute to various retailers.

Retailer: The wholesaler then sells these products to retailers. Retailers have stores or online platforms where consumers can purchase products in smaller quantities. Retailers make these products accessible to the general public.

Consumer: Finally, the consumer is the person or entity that purchases and uses the product. This is the last step in the distribution chain, where the goods reach their intended end-users.

This sequence ensures that goods move efficiently from creation to the hands of consumers through different intermediaries, making the distribution process systematic and effective.

Which of the following is NOT associated with minimum price legislation?

Bayanin Amsa

Minimum price legislation is a policy where the government sets a lower price limit for certain goods or services, meaning they cannot be sold below this set price. It is often intended to protect producers, ensuring they receive fair compensation and maintaining industry standards.

When a minimum price is set above the equilibrium price, it typically leads to several economic effects:

• Wastages of resources: This can occur because at the artificially high price, producers might overproduce as they want to profit from the higher price, leading to excess production that isn't effectively utilized or sold.
• Excess supply: This means that the quantity supplied exceeds the quantity demanded because the price is higher than what consumers are willing to pay. Thus, the market experiences surplus products.
• Unemployment: In some cases, particularly in labor markets, setting a minimum price (like minimum wage) can result in employers reducing hiring or cutting jobs because of higher wage costs, leading to unemployment.

Excess demand is NOT associated with minimum price legislation. Excess demand occurs when the price is set too low, leading to a situation where the quantity demanded exceeds the quantity supplied. This situation is commonly related to maximum price controls, not minimum price legislation.

Economic problem arises as a result of

Bayanin Amsa

The **economic problem** arises due to the fundamental concept of **scarcity**. In simple terms, scarcity means that the resources available to us are **limited**, while our desires and needs are **unlimited**. This situation forces us to make decisions about how best to allocate our resources efficiently.

Because of scarcity, every choice we make involves a **trade-off**. For instance, if you choose to spend your time studying economics instead of mathematics, you sacrifice the benefits you would have gained from studying mathematics. The concept associated with this scenario is called **opportunity cost**, which is essentially the value of the next best alternative forgone when making a decision.

Furthermore, scarcity leads to the necessity of **choice**. Individuals, businesses, and governments must decide what to produce, how to produce, and for whom to produce. These choices are influenced by the limited resources and the alternatives available.

While **money cost** is often considered in decisions, it is not the root cause of the economic problem. It is a **monetary representation of value** and is used as a tool to navigate scarcity and opportunity cost.

In essence, the **economic problem exists** because we have to make choices about how to use our scarce resources most effectively, and every choice involves an opportunity cost. This continual need to prioritize options is at the very heart of economics.

Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds

Bayanin Amsa

Under perfect competition, a profit-maximizing firm will hire labor up to the point where the marginal revenue product of labor (MRP) is equal to the wage rate. MRP represents the additional revenue generated by adding one more unit of labor.
Since the firm aims to maximize profits, it will continue hiring labor until the MRP is greater than or equal to the wage rate. At this point, the last unit of labor hired contributes more to total revenue than to total cost, resulting in increased profits for the firm.

The revolution of Cassava from ordinary food crop to export crop will lead to

Bayanin Amsa

The recent revolution of cassava from an ordinary food crop to an export crop is likely to lead to an increase in the price of cassava products.
When cassava transitions from being primarily used as a food crop to an export crop, its demand and value in the international market tend to increase. This increased demand can result in higher prices for cassava products such as cassava flour, starch, or other processed derivatives.

MPC + MPS equals

Bayanin Amsa

The terms MPC and MPS are concepts from economics that describe how households make spending and saving decisions out of their income. Let's break these down for a better understanding:

• MPC (Marginal Propensity to Consume): This represents the portion of additional income that a household is likely to spend on consumption rather than saving. For example, if someone's income increases by $100 and they spend $80 of that increase, their MPC would be 0.8 (80/100).
• MPS (Marginal Propensity to Save): Conversely, this is the portion of additional income that a household is likely to save rather than spend. Continuing the previous example, if the household saves $20 out of the $100 increase in income, their MPS would be 0.2 (20/100).

The sum of MPC and MPS must equal 1 because the additional income can only be spent or saved, meaning there aren’t any other alternatives for allocating this extra income. Therefore, mathematically, we express it as:

MPC + MPS = 1

In a closed economy model, the whole of any extra income is divided into consumption and saving, thereby making 1 the correct answer. So, whenever income changes, whatever portion is not spent (MPC) is saved (MPS), summing it up to one.