JAMB UTME - Economics - 1993

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Akọwa Nkọwa

Akọwa Nkọwa

A system in which the means of production is held in trust for the people by the government is known as a socialist economy. In this system, the government owns and controls major industries and resources such as land, factories, and utilities, and is responsible for distributing wealth and resources to the citizens. The goal is to promote social welfare and reduce economic inequality by ensuring that resources are used for the benefit of the whole society, rather than for the benefit of a few individuals or corporations.

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A firm faces diminishing returns when its marginal output diminishes. Diminishing returns occur when the addition of one more unit of an input, such as labor or capital, to the production process leads to a smaller increase in output compared to previous additions of the same input. In other words, as more and more units of the input are added, the marginal output of each additional unit begins to decrease, ultimately leading to a point where total output may begin to decrease as well. This phenomenon is commonly observed in short-run production processes and can be caused by a variety of factors such as limited resources or inefficient production techniques.

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Wheat grows best in a temperate climate. A temperate climate is characterized by moderate temperatures and adequate rainfall. These conditions are ideal for the growth of wheat as it requires a moderate temperature range and a sufficient supply of moisture. Wheat is a cool-season crop that grows best in regions with moderate temperatures, ranging from 15-25°C, during the growing season. The temperate climate zones of the world, including North America, Europe, and Asia, are well suited for wheat cultivation. In contrast, tropical climates are too hot and humid for wheat cultivation, while hot deserts are too dry and lack sufficient rainfall for successful wheat growth.

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If the government fixed the price of a commodity below the equilibrium price, i.e., N110.00 < N120.00, then the quantity supplied by producers will be smaller than the equilibrium quantity because the producers will be unwilling to produce and supply the commodity at a price lower than what they would get in the equilibrium. Therefore, the correct option is "smaller than the equilibrium supply".

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The main function of the price system is to ensure efficient allocation of resources in the economic system. Prices act as signals to buyers and sellers about the relative scarcity or abundance of goods and services. When the demand for a product increases, the price goes up, signaling suppliers to produce more to meet the increased demand. When the supply of a product increases, the price goes down, signaling buyers to purchase more of the product. This mechanism ensures that resources are allocated to where they are most needed or valued, and that production is focused on meeting the most urgent needs and wants of consumers. By allocating resources efficiently, the price system helps to maximize social welfare and economic growth.

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A shift in the demand curve from DoDo to D1D1 indicates a change in the quantity demanded of a commodity at each and every price level. This shift represents an increase or decrease in demand. When the demand curve shifts to the right, it implies that there is an increase in demand for the commodity, and the quantity demanded will be higher at every price level. Conversely, when the demand curve shifts to the left, it implies a decrease in demand for the commodity, and the quantity demanded will be lower at every price level. Therefore, the correct answer is "a rise in the demand for the commodity."

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The working population refers to the economically active segment of the population. These are individuals who are able and willing to work, and are either employed or actively seeking employment. The working population is generally between the ages of 15 and 64 years, and is often divided into various age brackets to assess the labor force participation rate and other labor market indicators.

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A modern corporation is owned by ordinary shareholders. These are individuals or institutions that invest their money by purchasing shares in the company. In exchange for their investment, they receive ownership rights, such as the right to vote on major decisions and the right to a share of the company's profits in the form of dividends. While debenture holders and creditors may also provide financing to the corporation, they do not own a share in the company's ownership. Preference shareholders, on the other hand, may have ownership rights that differ from those of ordinary shareholders, such as a guaranteed dividend payout, but they are still considered shareholders.

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The availability of inputs and market is one of the most important factors that should be considered in the location of an industry. This means that the industry should be located in an area where there is easy access to raw materials needed for production, as well as a ready market to sell the finished products. If inputs are not easily available, the cost of production will increase due to transportation costs, leading to higher prices of the final product. Similarly, without a ready market, the industry will have a hard time selling its products, which could lead to low profits or even losses. Therefore, the location of an industry should be chosen with the availability of inputs and market in mind to ensure the success and profitability of the industry.

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The most popularly adopted industrialization strategy in West Africa is import substitution. This strategy aims to produce domestically what would have been imported in order to reduce dependence on foreign goods and increase domestic production. This is achieved by imposing tariffs and other trade barriers on imported goods, making them more expensive than domestic goods, and thereby encouraging local production. The aim is to develop domestic industries that can compete globally by first satisfying local demand.

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To find the per capita grains consumption, we need to divide the total consumption of grains by the population. Per capita grains consumption = Total grains consumption / Population Plugging in the values given in the question, we get: Per capita grains consumption = 502.75 million tonnes / 88.5 million people Simplifying this expression, we get: Per capita grains consumption = 5.68 tonnes Therefore, the per capita grains consumption is 5.68 tonnes. The answer is: 5.68 tonnes.

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The International Bank for Reconstruction and Development (IBRD) is important to developing countries because it offers loans to member countries for socio-economic activities. These loans are given to finance various development projects, such as infrastructure, health, education, and agriculture. The IBRD aims to reduce poverty and promote economic growth in developing countries by providing financial support for development projects. The loans are offered at low-interest rates and on flexible repayment terms, making them an attractive source of financing for developing countries. By providing these loans, the IBRD helps developing countries to achieve their economic and social development goals.

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A public liability company is different from a private limited company because it can sell shares in the stock exchange. This means that the public liability company is publicly traded and its shares can be bought and sold by the general public. In contrast, a private limited company cannot sell shares to the public and is typically owned by a small group of shareholders. The other options mentioned in the question are characteristics that both types of companies share, such as being registered with the registrar of companies, being a legal entity, and being able to raise capital by way of loans.

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Comparative advantage implies that a country will specialize in producing the commodity with the lowest opportunity cost. Opportunity cost is the cost of an alternative that must be forgone in order to pursue a certain action. In the case of trade, countries specialize in producing the good or service for which they have a lower opportunity cost, meaning the cost of producing that good or service is lower compared to other countries. Therefore, a country will produce and export the good or service for which it has a comparative advantage, and import the goods or services for which it has a comparative disadvantage, thereby maximizing its economic welfare.

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Tariffs on imports are meant to prevent or restrict foreign goods from entering a country's domestic market. Tariffs are a type of tax that is placed on imported goods, making them more expensive for domestic consumers and less competitive with domestic producers. The purpose of a tariff is often to protect domestic industries from foreign competition and to promote self-sufficiency in key industries. Tariffs can also generate revenue for the government.

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Labour must be paid a wage rate equal to the marginal revenue product of labour in the enterprise. This means that the wage rate should be equal to the additional revenue generated by the last unit of labour hired. If the wage rate is lower than the marginal revenue product of labour, the enterprise can increase profits by hiring more labour. On the other hand, if the wage rate is higher than the marginal revenue product of labour, the enterprise can increase profits by reducing the amount of labour employed. Therefore, paying a wage rate equal to the marginal revenue product of labour ensures that the enterprise is able to maximize profits while also compensating labour fairly for their contribution to the production process.

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The deregulation of the economy can be considered as being outside the objectives of public finance. Public finance deals with the role of government in the economy, particularly in the areas of revenue generation, resource allocation, and expenditure management. The allocation of resources to various sectors of the economy, the objective of even distribution of income and wealth, and the achievement of economic stability are all within the objectives of public finance. However, deregulation is a policy that seeks to reduce the role of government in economic activities by removing regulations and restrictions. While it may have some economic benefits, it is not a primary objective of public finance.

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The diagram mentioned in the question is a graph that shows the maximum amount of two goods (commodities X and Y) that can be produced using all the available resources and technology in Nigeria. It indicates the trade-off between the production of the two goods. This graph is called a "Production Possibility Curve (PPC)". It shows the different combinations of the two goods that can be produced when all resources are used efficiently, and it illustrates the concept of opportunity cost.

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The money market is a financial market that specializes in providing short-term loans. These loans typically have a maturity period of less than one year and are used by businesses and governments to meet their short-term financing needs. Examples of short-term instruments traded in the money market include treasury bills, commercial papers, and certificates of deposit. By providing an avenue for borrowers to obtain short-term funding, the money market helps to ensure the smooth functioning of the economy by facilitating the efficient allocation of resources.

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Devaluation is effective when the demand for exports is price elastic. This means that a decrease in the price of the country's currency will lead to a significant increase in the quantity of exports demanded. In this situation, the country's exports become cheaper relative to other countries, making them more attractive to foreign buyers, which can increase export revenue and improve the country's balance of trade. However, devaluation can also lead to an increase in the price of imports, which can cause inflation and negatively impact the domestic economy.

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If the price elasticity of demand for a certain commodity is less than unity, then an increase in the price of the commodity will raise the total revenue of the producer. This means that the percentage increase in the price of the commodity will lead to a proportionately smaller decrease in the quantity demanded. As a result, the total revenue earned by the supplier will increase as the price increases. Conversely, if the price elasticity of demand is greater than unity, then an increase in the price of the commodity will lead to a decrease in total revenue, since the percentage decrease in quantity demanded will be proportionately larger than the percentage increase in price.

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The best index for international comparison of standards of living is the per capita income. Per capita income refers to the average income earned by each individual in a particular country, which takes into account both the economic growth and population of the country. It is a widely used measure to compare living standards across different countries, as it gives an idea of how much income an average individual has in a particular country. Other measures like gross national product and net national income do not give a clear picture of how the income is distributed among the population, hence, per capita income is considered as a better index for international comparison of standards of living.

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It is impossible to satisfy all human wants because the available resources are limited. Human wants are unlimited and keep increasing, but resources like land, labor, capital, and entrepreneurship that are used to produce goods and services are finite. As a result, people have to make choices about what they want to consume based on their level of income and the availability of resources. This is known as the problem of scarcity, and it means that people cannot have everything they want, leading to the need to make choices and trade-offs.

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If labour productivity is increasing as the output of cement is expanded, it means that the industry is producing more cement with the same amount of labor or using less labor to produce the same amount of cement. Therefore, the amount of labor per unit of output produced must be decreasing.

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Production is said to be completed when goods and services are produced and ready for distribution or sale to consumers. This means that the production process, which includes all activities involved in creating a good or service, has been fully executed and the output is ready to enter the market. The completion of production does not necessarily mean that the goods have been sold or the prices have been determined, as these are separate processes that occur after production. Packaging may also be part of the production process, but it is not the sole indicator of completion.

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The most disturbing development in the industrial sector in Nigeria since the mid-1980s is the issue of capacity under-utilization. This refers to a situation where industries are not operating at their full capacity due to various factors, such as poor infrastructure, inadequate power supply, low demand, lack of access to credit facilities, and poor government policies. As a result, many industries have been forced to shut down or operate below their optimal levels, leading to a decline in industrial output and economic growth.

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A debenture share entitles its holder to receive a fixed interest on sums invested. A debenture is a type of bond issued by a company that represents a long-term loan to the company. The holder of a debenture receives a fixed interest payment at a predetermined rate and for a specific time period, regardless of the company's financial performance. Unlike a stock, a debenture does not represent ownership in the company, so the holder does not have voting rights or the ability to participate in the annual general meeting of the company.

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In the theory of production and cost, a firm aims to minimize its average total cost to maximize its profits. The average total cost is the total cost per unit of output. When the marginal cost curve cuts the average total cost curve at its lowest point, the firm achieves the lowest possible average cost per unit of output. This point is also known as the point of minimum efficient scale. Therefore, the correct answer is the "lowest point".

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The program aimed at enhancing the banking habit of the rural areas is the community banking scheme. This is a policy implemented in the monetary sector to bring banking services closer to the grassroots population in rural areas. The community banking scheme involves the establishment of microfinance banks in the rural areas, which provides easy access to financial services such as savings, loans, and other banking services to the rural population. The scheme helps to increase financial inclusion and promote economic development in rural areas. The other options listed are not directly related to enhancing banking habit in rural areas, but rather, they are policies that focus on other aspects of the monetary sector.