JAMB UTME - Economics - 2017

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The correct answer is: Form utility. Form utility is the process of changing the form, shape, or structure of a commodity or product in order to increase its usefulness or utility to consumers. This can involve converting raw materials into finished goods, assembling various components into a final product, or changing the physical characteristics of a product to better suit consumer needs. For example, a clothing manufacturer may take raw materials like cotton or silk and transform them into finished garments like shirts, pants, and dresses. By doing so, the manufacturer is adding form utility to the raw materials, which increases their value to consumers. Another example is the process of packaging food items. By putting food into a can, box, or other type of container, the food becomes more convenient to store, transport, and consume. This additional form utility increases the value of the food to consumers and allows producers to charge a higher price. Form utility is an important concept in economics because it helps explain how value is created in the production and distribution of goods and services. By adding form utility to a product, producers are able to differentiate their offerings from those of competitors, increase consumer demand, and ultimately earn a profit.

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The average product (AP) of the 4th unit of labor is 15kg. The average product is calculated by dividing the total output by the number of workers. In this case, the total output is 60kg and the number of workers is 4, so the average product is 60/4 = 15kg. This means that, on average, each additional worker contributes 15kg to the total production.

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To get equilibrium price and quantity:
i) Get function solved for Qs and Qd (quantity supplied) and Qd (quantity demanded)
ii) Set Qs equal to Qd
iii) Solve for P (equilibrium price)
iv) Plug your P back into your Qs and Qd function to get the quantity.
when, Qd = 10 − 2p and Qs = 5 + 3p
if Qd = Qs then,
10 − 2p = 5 + 3p
solving for p: 10 − 5 = 3p + 2p
5 = 5p
p = 1 (given in the equation)
Equilibrium Quantity will be gotten by plugging P into Qd and Qs respectively;
Qd = 10 − 2p Qs = 5 + 2p
= 10 − 2(1) = 5 + 3(1)
= 10 − 2 = 5 + 3
= 8

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Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action. Opportunity cost helps the government in the preparation of budget, since it assists in the effective allocation of scarce resources to certain sector of the economy. It helps in making certain decision e.g. the priority areas that may require immediate attention.

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Goods sold in perfectly competitive markets are generally homogenous. This means that the products are of the same quality, have the same features and characteristics, and are interchangeable with each other. In a perfectly competitive market, there are many buyers and sellers, and no single buyer or seller has any significant market power to influence the price of the good. As a result, the products are sold at the market price, which is determined by supply and demand, and all buyers and sellers receive the same price for the product. This is why the goods must be homogenous - if they were not, then some sellers could charge a higher price for a higher quality product, and buyers would have an incentive to only buy the higher quality product, which would create market power and reduce competitiveness.

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The Economic Community of West African States (ECOWAS) is a regional organization of 15 West African countries established on 28 May 1975. Its main goal is the promotion of the economic integration among its members. Indeed, ECOWAS is one the five regional pillars of the African Economic Community (AEC). ECOWAS has three official languages: English, French, and Portuguese. Members producing the same or identical goods can form cartel or monopolies and obtain better bargaining or deals from other countries outside its membership

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There is an increase in the quantity supplied if the quantity supplied increases as a result of an
increase in price of the commodity.

From the graph, an increase in the price of the commodity from p1 to p2 brought about a
corresponding increase in quantity supplied from q1 to q2.

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To find the average product of the 3rd unit of labor, we need to divide the total output produced by 3 workers by the number of workers, which is 3. Looking at the table provided, we can see that the total output produced by 3 workers is 150 units. Therefore, the average product of the 3rd unit of labor is 150/3 = 50. This means that on average, each of the 3 workers produced 50 units of output. So the answer is 50.

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A mono-economy is an economy relying on one major export or natural resources to bring most
of the currency into the country.
Nigeria is dependent on crude oil. Before now, agriculture and mining were the primary drivers of
Nigeria’s economy but these has been abandoned since the 70’s as a result of the discovery of oil.
Nigeria is now a mono-economic country that is, now relies solely on crude oil as her major source
of revenue.

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This is because, according to the concept of equilibrium, if supply increases while demand remains constant, there will be an excess of supply over demand. This will bring about a decrease in the equilibrium price of the commodity and an increase in the equilibrium quantity. This gave rise to the fifth law of demand and supply which states that: “an increase in the supply of a commodity will cause the equilibrium price to fall and the quantity demanded to increase, while a decrease in supply will cause the equilibrium price to rise but the quantity demanded will fall”.

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The factor of production that is typically considered inelastic is land. In economics, the term "inelastic" refers to a situation where the quantity supplied or demanded of a good or service does not change much in response to changes in its price. In the case of land, the supply is generally considered to be fixed, meaning that the quantity of land available for use in a particular area is unlikely to change significantly in response to changes in its price. This means that if the price of land were to increase, the quantity of land supplied would not increase by a significant amount, as there is a limited amount of land available. Similarly, if the price of land were to decrease, the quantity of land supplied would not decrease by a significant amount, as landowners are unlikely to reduce the amount of land they own in response to a price change. In contrast, factors like labor, capital, and wages are generally considered to be more elastic, as changes in their price can often result in changes in the quantity supplied or demanded. For example, if the wage rate for a particular type of labor were to increase, workers might be more willing to work longer hours or take on additional jobs, which would increase the quantity of labor supplied. Overall, the concept of elasticity is an important one in economics, as it helps to explain how changes in price can affect the behavior of consumers and producers in a market.

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Equilibrium price is the price where the demand for a product or a service is equal to the supply of the product or service. At equilibrium, both consumers and producers are satisfied, thereby keeping the price of the product or the service stable.

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The Malthusian population theory highlights the relationship between population and means of
subsistence. The main features of Malthusian theory about population are;
i. That population was growing at a geometric progressions such as 2,4,6,8,16,32, etc, while
food production or supply was growing at an arithmetical progression such as 1,2,3,4,5,
etc.
ii. That there is a tendency for all living things to grow beyond the food available to them
iii. That unless population increase is matched with means of subsistence, negative and
positive checks will come into force.
iv. That the checks can be war, diseases, epidemics and famine.
v. That population is essentially limited by the means of subsistence.

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where;
N = number of items in the distribution
X = is variable

x̄ = Arithmetic mean
∑ = sum of

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Rubber is a coagulated, elastic latex. Plants that produce elastic latexes are largely neotropical. Commercial rubber is produced from latex of Hevea brasiliensis.

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The budget that would increase government expenditure is a deficit budget. A deficit budget is a budget where government expenditure exceeds its revenue or income. This means that the government will have to borrow money or take out loans to finance its expenses. This budget can be used to finance important projects such as infrastructure development, social welfare programs, or to stimulate economic growth. On the other hand, a surplus budget is a budget where government revenue exceeds its expenditure. This type of budget is used to pay off debt, build up savings, or reduce taxes. A balanced budget policy is a budget where government expenditure is equal to its revenue, with no deficit or surplus. Finally, a zero-based budget is a budgeting method where all expenses must be justified for each new period, as if no budget existed before. It is a way of reducing spending, rather than increasing it. In summary, a deficit budget increases government expenditure, while a surplus budget reduces it.

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The economic question of "how to produce" refers to, which techniques are to be adopted? This question is important because the choice of technique depends on the prices of the factors of production.

That is, if labour is cheap and capital is expensive, a labor-intensive technique would be considered and vice-versa. The prices of labour and capital are determined by the demand for and supply of labour and capital respectively.

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The indicator of economic growth that is not in the list is "High Level of Unemployment." CPI (Consumer Price Index) and PPI (Producer Price Index) are measures of inflation, which is the rate at which the general level of prices for goods and services is increasing over time. Inflation is an important consideration for economic growth because if it is too high, it can negatively impact economic activity. GDP (Gross Domestic Product) is a measure of the total value of all goods and services produced within a country's borders in a specific time period. GDP is one of the most commonly used indicators of economic growth because it reflects the overall level of economic activity in a country. On the other hand, a high level of unemployment is not an indicator of economic growth. In fact, high unemployment is often a sign of a struggling economy. Unemployment means that there are fewer people working and contributing to the production of goods and services, which can lead to a decrease in economic activity. When people are unemployed, they may also have less money to spend, which can further reduce economic growth. Therefore, a high level of unemployment is not a positive indicator of economic growth.

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The price system is a mechanism through which prices of goods and services are determined by the forces of supply and demand. One of its primary functions is to regulate production and consumption in the economy. As prices rise, it signals to producers that there is high demand for their products and they should produce more. This, in turn, encourages a higher volume of production, as producers aim to take advantage of the higher prices and generate greater profits. On the other hand, if prices fall, it signals to producers that there is low demand for their products, and they may scale back production. Similarly, the price system also regulates consumption. When prices of certain goods or services are high, consumers tend to reduce their consumption of those products, while they may increase their consumption of substitutes that are relatively cheaper. For example, if gasoline prices rise, consumers may reduce their driving or switch to more fuel-efficient cars. Therefore, the price system acts as a self-regulating mechanism that helps to allocate resources in the economy efficiently. It encourages the production of goods and services that are in high demand and discourages the production of goods and services that are in low demand, while also regulating consumption patterns.

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partnership may be defined as a type of business organization in which two to twenty persons
agree legally to setup and manage a business outfit with the sole aim of making profit. The people
involved in partnership agreement are called partners and they share the profit, losses and risk of
the business.
A family owned business is any business in which two or more family members are involved and
the majority of ownership or control lies within a family.

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The production possibility curve illustrates the concept of opportunity cost and scarcity, but does not necessarily illustrate the concept of risk. The production possibility curve shows the trade-off between two goods and the maximum amount of one good that can be produced for every possible level of production of the other good. It demonstrates the idea of opportunity cost, which is the cost of one choice in terms of the best alternative choice. Scarcity is also shown through the production possibility curve, as the curve assumes that resources are limited and that choosing to produce more of one good means producing less of the other. Allocative efficiency is a point on the production possibility curve where the economy is producing at the most efficient level, meaning that the resources are being used in such a way as to produce the maximum amount of both goods. Risk, on the other hand, refers to uncertainty about the outcome of an action or decision and is not necessarily illustrated by the production possibility curve.

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The correct statement is: Traditional budgeting starts with last year's funding appropriation. Traditional budgeting typically uses the previous year's budget as a starting point and then makes adjustments based on changes in circumstances or goals for the upcoming year. This process assumes that the previous year's spending was appropriate and does not necessarily consider all alternatives to current operations. Zero-based budgeting, on the other hand, requires that all activities and expenses start from a zero base and must be justified for inclusion in the budget. This approach aims to reduce inefficiencies and identify unnecessary expenses by examining each line item and evaluating its necessity and value to the organization. Zero-based budgeting does not produce a single level of appropriation but rather evaluates each activity and expense individually to determine its priority and level of funding. In summary, traditional budgeting is more focused on incremental changes and building upon the previous year's budget, while zero-based budgeting requires a more thorough examination of expenses and a justification for each line item in the budget.

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Personal income, disposable income, and transfer earnings are NOT sources of government revenue. Government revenue refers to the money collected by the government to fund its operations and provide services to its citizens. It comes from various sources, including taxes, fees, licenses, fines, grants, aids, borrowing, interest, dividends, profits, and earnings. Personal income, disposable income, and transfer earnings are all related to individuals' income and spending. Personal income is the amount of money an individual earns from all sources. Disposable income is the amount of money an individual has left after paying taxes. Transfer earnings refer to income received from government transfer payments, such as Social Security. While the government may be interested in monitoring these types of income, they do not represent a direct source of revenue for the government. The government may use taxation policies to affect personal income and disposable income, but they do not directly collect them as revenue. Therefore, personal income, disposable income, and transfer earnings are NOT sources of government revenue.

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The production within the domestic territory of a country is called the "gross domestic product" or "GDP." Gross domestic product (GDP) is a measure of the total value of all goods and services produced within the geographical boundaries of a country during a given period, typically a year. This includes all production by businesses, households, and the government. GDP is an important indicator of a country's economic performance and is often used as a proxy for measuring its standard of living. It reflects the size of a country's economy and provides a broad measure of its economic activity. In contrast to gross domestic product, "gross national product" (GNP) measures the total value of all goods and services produced by a country's citizens, both domestically and abroad, during a given period. However, since it includes production by citizens abroad, it can be influenced by factors such as international trade and investment, making it less reflective of the economic activity within a country's borders.

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To find the arithmetic mean, we need to divide the sum of all the values by the total number of values. In this case, we have the sum of the frequencies, denoted by ∑fx, which is 340 and the total number of values, denoted by N, which is 20. So, the formula for the arithmetic mean is: Mean = (sum of values) / (total number of values) In this case, the "values" are the frequencies multiplied by their corresponding values, i.e. f1x1 + f2x2 + ... + fnxn. So, we can write: Mean = (f1x1 + f2x2 + ... + fnxn) / N But we already know that ∑fx = f1x1 + f2x2 + ... + fnxn = 340, so we can substitute this into the formula and get: Mean = ∑fx / N = 340 / 20 = 17 Therefore, the arithmetic mean is 17.

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Economic growth is the process by which the productive capacity of an economy increase over a given period, leading to a rise in the level of the national income.
Gross domestic product is the total market value of all goods and services produced by a country in a specific time period typically a year. This includes earnings from foreign investments.

GDP = Consumption +Government +investment +Export − Imports
GDP is considered the broadest indicator of economic growth because GDP represent the market value of all goods and services produced by the economy during the given period including personal consumption, government purchase, private inventories, paid in construction cost and the foreign trade balance (export added, import are subtracted).
There are other indicators of economic growth such as; Consumer Price Index (CPI), Producer Price Index (PPI), Consumer Confidence Index (CCI), Money supply, Employment and others. However, High tax rate, Technology Development and High interest rate are not a part of the list.

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The correct answer is: Your utility grows at a slower and slower rate as you consume more and more units of a good. The law of diminishing marginal utility is a fundamental principle in economics that explains how the satisfaction or usefulness that a person gets from consuming additional units of a good or service decreases as they consume more of it. In other words, the more you have of something, the less you will enjoy or benefit from having more of it. For example, if you are hungry and you eat one slice of pizza, you will probably enjoy it very much. But if you keep eating more and more slices of pizza, your enjoyment will start to decrease as you become full. Eventually, you may not want any more pizza at all, even if there is still some left. This principle is important because it helps explain why people make certain choices about what to buy and consume. As the satisfaction from consuming each additional unit of a good decreases, people will be willing to pay less for each additional unit. This is why demand curves slope downward - people are willing to buy more of a good at lower prices.

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Production possibility curve (PPC) shows the possible combination of different commodities that can be produced in a given economy given the prevailing level of technology, if all the available productive resources are efficiently utilised.
The reason for the shape of the PPC is something called the law of increasing opportunity costs. Basically, what this means is that as an economy devotes more of its resources to one kind of product, it becomes less efficient because, not all resources are equally suitable for all the industries. If resources are transferred from good A to B, initially the resources to be transferred will be those which could be the least efficient for A. Later, as more of good B needs to be produced, the resources that may be very efficient for good B and not so efficient for good B may also be transferred. In this situation, the economy loses on both sides. That means, the economy is usually inefficient on both ends of the PPC curve while it is the most efficient when resources are appropriately allocated for both goods according to their suitability which make the PPC to be curved. This is why the PPC is flatter at its end point and more curved in the middle.

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The type of partnership in business is called a "limited partnership". A limited partnership is a type of partnership where there are two types of partners: general partners and limited partners. The general partners are responsible for managing the business and are personally liable for the business's debts and obligations. The limited partners, on the other hand, are passive investors who contribute capital to the business but do not take part in its management. They are not personally liable for the business's debts and obligations beyond the amount of their investment. This type of partnership is often used when one or more investors want to invest in a business but do not want to take an active role in its management. The limited partnership structure allows them to do so while also limiting their personal liability for the business's debts and obligations.

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There are quite a number of aims of ECOWAS however, one of the major aim of ECOWAS treaty was for the establishment of a common market with the aim of liberalising trade within the region

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To find the modal value of a set of numbers, we need to find the number that appears most frequently in the set. In this case, the set of numbers is 3, 8, 4, 6, 3, 5, 2, 7, 3, and 5. To find the modal value, we need to count the frequency of each number in the set. - The number 3 appears three times in the set. - The number 8 appears once. - The number 4 appears once. - The number 6 appears once. - The number 5 appears twice. - The number 2 appears once. - The number 7 appears once. Since the number 3 appears most frequently in the set (three times), it is the modal value. Therefore, the answer is 3. In summary, the modal value of a set of numbers is the number that appears most frequently in the set. In this case, the number 3 appears most frequently, so it is the modal value.

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The consumption function C = 10 + 0.6Y relates the level of consumption (C) to the level of income (Y). If Y is 20, then we can substitute this value into the equation and solve for C: C = 10 + 0.6Y C = 10 + 0.6(20) C = 10 + 12 C = 22 Therefore, the value of C if Y is 20 is 22. This means that if the level of income (Y) is 20, then the level of consumption (C) would be 22. The consumption function shows that consumption increases with an increase in income. In this case, the consumption function suggests that for every one unit increase in income, consumption would increase by 0.6 units.

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The economic questions about what and how to produce in an economy are answered by the system of economy practiced in that society. The economic system is the way a society organizes the production, distribution, and consumption of goods and services. The decisions about what goods and services to produce, how to produce them, and for whom to produce them are influenced by the economic system in place. For example, in a market economy, the decisions about what to produce, how to produce it, and for whom to produce it are mainly made by private enterprises in response to market demand. In a command economy, these decisions are made by the government. In a mixed economy, the decisions are made by both private enterprises and the government. Therefore, the economic system in place plays a crucial role in answering the economic questions about what and how to produce in an economy.

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Tariffs are taxes or duties imposed on imports and exports by the government of a country. The idea behind tariffs is to restrict the volume of trade or improve the international terms of trade.

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This is one of the reasons government participates in the location of industries. When such industries are located, goods are made available and the people get employment and earn income hence, their standard of living will be improved

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This question is a little bit tricky to answer because out of the 4 options provided only one is not a
participant in the (Nigeria) money market and that is the mortgage banks because mortgage loans
are usually not in short term of say 13months which makes it not fit into the money market
characterised by short term loans. The central bank, Money deposit bank and insurance companies
are all participant of the money market because they offer short term loans.

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The most direct economic impact of a trans-boundary pest or disease is the loss or reduced
efficiency of agricultural production weather of reduced productivity on crops or animals can be
long lasting. Although the loss of output from a trans-boundary pest or diseases may appear easy
to identify, it can nevertheless be difficult to measure in precise economic terms.

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When the government fixes the price of essential commodities, this is referred to as Price Control. This means that the government sets a specific price for certain goods, usually ones that are considered essential for everyday life such as food and medicine, and that price cannot be changed by market forces such as supply and demand. The government does this in order to ensure that these essential goods are affordable for everyone, especially those with low incomes. The goal of price control is to prevent prices from becoming too high, but it can also lead to shortages of the controlled goods if the fixed price is not high enough to cover the cost of producing them. In simple terms, price control is when the government sets the price for certain goods instead of letting the market determine the price.

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A completely competitive market exists when each member is a price taker. In a competitive market, there are many buyers and sellers, none of whom can influence the market price on their own. In other words, each member of the market is a price taker, meaning they must accept the market price for the goods or services they are buying or selling. Because no single buyer or seller has enough market power to set the price, the market price is determined solely by the interaction of supply and demand. In a completely competitive market, the goods or services being bought and sold are identical, so there is perfect substitutability between suppliers, and buyers will choose the lowest price available. Overall, a completely competitive market is considered to be efficient, because it results in a fair and optimal allocation of resources, as each member is incentivized to produce and consume at the market-determined price.