JAMB UTME - Economics - 2024

Detalhes da Resposta

Nigeria's agricultural policies are fundamentally designed to enhance and support the agricultural sector for the overall benefit of its economy and citizens. Let's analyze the objectives given:

• Provision of food: This is a core objective of agricultural policies. Ensuring food security by making food consistently available and affordable is a primary aim to combat hunger and malnutrition.
• Provision of agricultural raw materials to industrial sectors: Agricultural policies seek to supply raw materials such as cotton, cocoa, and rubber to industries, supporting the economy's industrial sectors.
• Creation of rural employment: Job creation in rural areas is a crucial focus. By developing agriculture, more employment opportunities can be generated, reducing rural poverty and discouraging rural-urban migration.
• Increasing prices of agricultural Inputs: Contrary to the other objectives, raising the prices of agricultural inputs is generally not an aim of agricultural policies. Instead, policies often aim to reduce costs or provide subsidies for inputs to support farmers, make farming more profitable, and enhance overall productivity.

Therefore, the statement that does not align with the typical objectives of agricultural policies in Nigeria is the increasing prices of agricultural Inputs. Instead, policies are often geared towards making inputs more affordable to support agricultural growth.

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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.

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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.

Detalhes da Resposta

The system of farming that involves the use of a large hectare of land planted with economic crops is known as plantation farming.

Explanation: Plantation farming is an agricultural system where a single crop is grown extensively over a large area. This system is specifically designed for the cultivation of high-demand crops, often termed as "economic crops," because they are produced for their commercial value rather than for direct consumption by the farmers. Such crops include coffee, tea, rubber, sugarcane, cotton, and palm oil.

Key Characteristics of Plantation Farming:

• Large-scale production: Plantation farms occupy vast expanses of land to maximize the output of a single type of crop.
• Monoculture: Typically, a single crop is cultivated, allowing specialization and efficiency in farming practices.
• Commercial orientation: The primary goal is to produce crops for sale, often aiming at international markets.
• Use of advanced techniques: Plantation farming often employs modern agricultural techniques, such as mechanization, irrigation, and the use of fertilizers and pesticides, to enhance productivity.
• Capital intensive: There is a significant investment in both infrastructure and labor to manage the large scale of operations.

In contrast, smaller or subsistence farmers often engage in diverse cropping systems with multiple types of plants cultivated for personal or local consumption. Plantation farming, on the other hand, is designed to produce large quantities of a specific, economically valuable crop to meet regional or global demands.

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In the context of business organizations, the term that stands out as not fitting among the others is **Entrepreneurship**.

To understand why, let's briefly define each term:

• Co-operative Society: This is a type of business organization owned and operated by a group of individuals for their mutual benefit. Co-operatives are often established in sectors like agriculture or retail, where members pool resources to achieve common goals, such as better marketing of their products.
• Partnership: This refers to a business organization where two or more individuals manage and operate a business together, sharing profits, liabilities, and responsibilities. Partnerships are common in professional practices like law firms or medical practices.
• Public Corporation: A public corporation is a business entity that has been incorporated through a legal process and issues shares to the public through a stock exchange. Shareholders own the corporation, and it is usually distinguished by being large and having significant public presence, such as multinational companies.
• Entrepreneurship: While entrepreneurship involves starting and operating a business, it is not a formal type of business organization like the others. Instead, it refers to the process and activities undertaken by an entrepreneur to establish a new enterprise or bring a new idea to market.

Thus, the odd one out is Entrepreneurship, because it describes the activity of establishing and managing a business rather than being a structured form of business organization like the others mentioned.

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The United Nations Conference on Trade and Development (UNCTAD) is a UN body that focuses on trade and development issues, particularly those affecting developing countries. One of the functions of UNCTAD is to facilitate the transfer of technology from developed to less developed countries. This involves promoting the dissemination and adoption of technology in less developed countries to enhance their productive capacities, economic growth, and development.
UNCTAD recognizes that technology plays a crucial role in bridging the development gap between countries. By facilitating the transfer of technology, UNCTAD aims to enable developing countries to access and utilize advanced knowledge, skills, and technological innovations available in developed countries. This transfer of technology can occur through various means such as technical assistance, capacity building, knowledge sharing, and promoting partnerships between developed and developing countries.

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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.

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In income determination theory, the acceleration principle suggests that investment is the primary driver or cause, whil income is the resulting effect. The acceleration principle states that changes in investment levels lead to amplified or accelerated changes in income.
The acceleration principle posits that changes in investment levels have a multiplier effect on income. When investment increases, it leads to increased production, employment, and income generation.

Detalhes da Resposta

In economics, a change in demand is influenced by several factors, but one of the options provided is NOT a factor that leads to a change in demand. This factor is the price of the good or service.

Here’s why:

The Price of the Good or Service: When we talk about demand, we focus on a demand curve that represents the relationship between the price of a good and the quantity demanded. A change in the price of the good itself does not shift the demand curve; instead, it results in a movement along the demand curve. Therefore, changes in the price of the good or service itself do not cause a change in demand but rather a change in the quantity demanded.

In contrast, the following factors do cause shifts in the demand curve (change in demand):

A Change in Real Income: When consumers have more or less income, their ability to purchase goods and services changes. If real income increases, consumers can afford to buy more, shifting the demand curve to the right. Conversely, a decrease in real income shifts the demand curve to the left.

Government Policy: Policies such as taxes, subsidies, regulations, or import restrictions can impact consumer purchasing power or the attractiveness of a product, influencing demand. For example, a subsidy on solar panels might increase their demand as they become more affordable.

Increase in Population: An increase in population typically increases demand for various goods and services as more people in the economy need these products, causing a rightward shift in the demand curve.

Detalhes da Resposta

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.

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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.

Detalhes da Resposta

To understand the concept of marginal utility and price, let's delve into a simple explanation. Marginal utility refers to the additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service. Meanwhile, the price of a commodity is what the consumer pays to acquire that good or service.

In economic terms, a consumer is said to be in equilibrium when they have allocated their resources in such a way that they get the most satisfaction or utility from their consumption. The consumer equilibrium condition is achieved when the marginal utility per unit of expenditure is the same for all commodities.

Therefore, when the marginal utility of a commodity is equal to its price, it means the consumer is maximizing their satisfaction with the resources available. The consumer has no incentive to change the consumption bundle because they are already getting the highest possible satisfaction. In other words, the consumer is getting just as much utility from the last unit of the good as it costs. Consequently, the consumer is in equilibrium.

Thus, the correct explanation is: The consumer is in equilibrium.

Detalhes da Resposta

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.

Detalhes da Resposta

The concept of the circular flow of income represents how money moves within an economy among consumers, businesses, and various markets. In this circular flow, three key elements can either add to or reduce the flow of funds: **leakages** and **injections**.

Leakages are the flows of money that exit the circular flow. They reduce the amount of money that circulates within the economy. Common leakages include savings, taxes, and imports. For instance, when individuals save money instead of spending it, that money is not used to purchase goods or services, thus exiting the circular flow.

Injections, on the other hand, are the activities or financial inflows that add funds to the circular flow of income, ensuring continued economic activity. They increase the total amount of money circulating in the economy. These include investment, government spending, and exports.

• Investment: When businesses invest in capital goods, they increase the production capability, leading to more employment and income.
• Government Spending: When the government spends on infrastructure, social services, or other public projects, it injects money directly into the economy.
• Exports: When a country sells goods and services to other countries, new money flows into the country's economy from foreign buyers.

The expenditure approach is a method for calculating a nation's Gross Domestic Product (GDP) by considering the total expenditure on the nation's final output of goods and services in a year. While this approach helps to measure the size of the economy, it is not directly responsible for adding funds to the circular flow. Instead, it relies on the activities of consumption, investment, government spending, and net exports.

In conclusion, it is the concept of injection that directly adds funds to the circular flow, stimulating economic activities and growth by multiplying the effects of initial spending through the economy.

Detalhes da Resposta

A persistent fall in the general price level is known as deflation.

To understand this better, let's break it down:

• General Price Level: This refers to the average of current prices across the entire spectrum of goods and services produced in the economy. It is like taking a snapshot of what prices look like overall in the economy.


• Deflation: This is the term used when the general price level is consistently decreasing over time. In simpler terms, it means that prices of goods and services are falling, making them cheaper for consumers. This might sound beneficial to consumers initially, but prolonged deflation can lead to reduced consumer spending, as people may delay purchases in anticipation of even lower prices. This can subsequently slow down economic growth and potentially lead to an economic recession.

Hence, when we say "persistent fall in the general price level," we are accurately describing deflation.

Detalhes da Resposta

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.

Detalhes da Resposta

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.

Detalhes da Resposta

The use of tax and expenditure policy to regulate the economy is known as fiscal policy.

Fiscal policy refers to the government's use of its spending levels and tax rates to influence a nation's economy. It is primarily the responsibility of the government to adjust its spending and tax rates to either promote economic growth or control inflation. By doing so, the government aims to achieve macroeconomic objectives such as controlling inflation, reducing unemployment, and achieving economic growth.

There are two main types of fiscal policy:

• Expansionary Fiscal Policy: This involves increasing government spending and/or decreasing taxes to stimulate economic growth. It is often used in times of recession or economic downturns to increase demand and reduce unemployment.
• Contractionary Fiscal Policy: This involves decreasing government spending and/or increasing taxes to cool down an overheated economy. It is employed to control inflation when the economy is growing too quickly.

In summary, fiscal policy is crucial because it directly impacts the economy by influencing the level of aggregate demand through changes in government spending and taxation.

Detalhes da Resposta

Economic planning is an important policy tool used by governments to coordinate their efforts in improving the nation's economy. Let's look at the objectives:

Equitable allocation of resources: This is indeed an objective of economic planning. It ensures that resources are distributed evenly across different sectors and regions to promote balanced development and reduce regional disparities.

Achieving economic growth: Another key objective of economic planning is to spur economic growth. This involves increasing the capacity of the economy to produce goods and services, enhancing the standard of living, and elevating the overall wealth of the nation.

Creating employment: Economic planning aims to create jobs for the population. By fostering industries and fostering investment, economic planning attempts to reduce unemployment rates and provide more job opportunities.

Widening the income gap: This is NOT an objective of economic planning. Economic plans generally aim to reduce, not widen, the income gap between different segments of society. A widening income gap can lead to increased poverty and social unrest, which are contrary to the goals of economic planning focused on promoting equality and social harmony.

Detalhes da Resposta

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.

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Wholesalers play a significant role in the distribution of goods and services for several key reasons:

1. Bulk Purchasing and Distribution: Wholesalers buy large quantities of goods from producers and sell them in smaller lots to retailers, which allows them to benefit from economies of scale. This bulk buying helps keep costs low for retailers and ultimately consumers.

2. Bridging the Gap: By acting as an intermediary between producers and retailers, wholesalers play a crucial role in the supply chain. They enable manufacturers to focus on production while handling the complexities of distribution and logistics.

3. Financial Support: Wholesalers sometimes provide credit to retailers, allowing them to purchase goods and pay later. They also assist producers by buying inventory upfront, providing necessary funds for the producers to continue their business.

4. Information Exchange: Wholesalers gather market trends and feedback from retailers and share this information with producers. This helps producers adjust their products to meet consumer demands more effectively.

5. Inventory Management: Wholesalers manage storage and inventory, reducing the burden on manufacturers and retailers. They ensure a steady supply of products, minimizing the risk of stockouts or overproduction.

In summary, wholesalers are essential in the distribution network because they facilitate product flow, support financial operations, manage distribution logistics, and collect market intelligence.

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To effectively compare the standard of living between Nigeria and Ghana, the most suitable method is through the use of per capita income. Let me explain why this is considered the best approach:

Per Capita Income is a measure that calculates the average income earned per person in a specific country or region in a given year. It is determined by dividing the country's total income by its population. This method provides a clear indicator of how much income, on average, each individual has, which gives insight into the general well-being and standard of living of the population.

Let's break it down further:

• Gross National Income: While it provides information about the total income of a country including foreign earnings, it does not account for distribution across the population. It may also include incomes that are not directly improving the local living standards.
• Net National Income: This takes into account depreciation but still does not efficiently measure what each individual is earning or living on.
• Net Disposable Income: This provides information about the income available to countries after taxes and transfers, yet doesn't offer a per-person analysis.

In contrast, per capita income specifically focuses on the income available to each person, thus offering a more direct reflection of the purchasing power and financial well-being of an individual within these countries. Therefore, when comparing the standard of living between Nigeria and Ghana, per capita income is a more practical and clearer measure.

Detalhes da Resposta

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.

Detalhes da Resposta

In the context of production, the Total Product (TP) refers to the total quantity of output produced by a firm. The Marginal Product (MP) is the additional output obtained by employing one more unit of a specific input, while keeping all other inputs constant.

When the Total Product starts to fall, it indicates that each additional unit of input is contributing less and less to the total output, to the extent that the output is actually decreasing. This means that any added input is no longer producing additional output but instead reducing it. Therefore, the Marginal Product in this situation is actually negative.

Here is why:

• Consider the scenario where adding extra workers or resources does not increase output, and might even disrupt production.
• At this point, the contribution of added input becomes detrimental, causing a decline in the total output.
• Thus, the Marginal Product turns negative, because the next unit of input is not just unproductive, it makes the overall production lower than before.

Detalhes da Resposta

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.

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In Nigeria, marketing boards were established to regulate and promote agricultural products. Their primary functions include activities like grading farm produce to ensure quality standards and marketing farm produce by finding markets where these products can be sold. They are also responsible for fixing prices for farm produce to stabilize farmers' incomes and protect them from market fluctuations.

However, one activity that marketing boards do not typically perform is the importation of farm produce. Marketing boards are mainly concerned with the domestic production and distribution of local agricultural products, whereas the importation would fall under international trade domains and different regulatory agencies. Thus, the importation of farm produce is not a usual function of marketing boards in Nigeria.

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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.

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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.

Detalhes da Resposta

The equilibrium price in economics is a fundamental concept where the market operates most efficiently. To understand it fully, consider the following explanation:

When demand equates supply, it indicates the price at which the quantity of goods consumers are willing to buy (demand) is exactly equal to the quantity of goods producers are willing to sell (supply). This is the point where the market reaches equilibrium. At this price, there is no excess supply or demand, meaning that resources are being used most effectively, and there is no pressure on the price to change.

In contrast:

• If the price equals demand only, this would imply a scenario that doesn't exist in standard economic terms because equilibrium involves both supply and demand.
• When demand is less than supply, it suggests a surplus in the market, leading to downward pressure on price as sellers attempt to clear excess stock.
• If demand is greater than supply, it leads to a shortage, resulting in upward pressure on prices as consumers compete to buy the limited available goods.

Thus, at equilibrium price, demand equates supply, ensuring the market operates smoothly without surplus or shortage.

Detalhes da Resposta

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.

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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.

Detalhes da Resposta

Localization of industries, also known as industrial clustering or agglomeration, refers to the concentration of similar industries or related businesses in a specific geographic area. While there are various advantages associated with localization, such as promoting knowledge spillovers, fostering collaboration, and enhancing economies of scale, it can also have disadvantages.
One of the disadvantages is the creation of structural unemployment. When industries concentrate in a particular region job opportunities may become limited to that specific area. As a result, workers in other regions or industries may face challenges in finding employment, leading to structural unemployment. This can be particularly problematic if the localized industry experiences a decline or faces disruptions, resulting in job losses for a significant portion of the workforce.

Detalhes da Resposta

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.

Detalhes da Resposta

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.

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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.

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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.

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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.

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Holding money to take care of contingencies is known as the precautionary motive.

Let me explain this further in a simple way:

• Imagine you keep aside some money for unexpected events, such as medical emergencies, car repairs, or other sudden expenses that might occur. This act of saving money for unforeseen needs is called the precautionary motive.
• The main purpose here is to have money on hand to tackle emergencies or any sudden need without having to struggle or sell other assets quickly.
• This behavior is different from having money for regular expenses, which is known as the transactions motive, where the money is kept for day-to-day spending like groceries and bills.
• It is also different from speculative motive, where money is held to take advantage of future investment opportunities.
• Lastly, expansionary motive typically relates to policy measures encouraging broader economic growth and isn't directly about individual money-holding behavior for emergencies.

Detalhes da Resposta

A producer who can influence the price of a product but cannot determine the quantity to be sold is best described as a monopolist.

Here's an explanation:

In a monopoly, there is only one producer or seller who dominates the entire market for a particular product or service. This producer has the power to influence the price because they are the sole supplier, and there are no close substitutes. However, while they can set the price based on their objectives, the actual quantity sold is determined by the market demand at that specific price.

The other terms are different:

• Duopoly refers to a market structure where there are two dominant producers. Here, each producer needs to consider the other's actions before setting prices or quantities.
• Monopsonist is a scenario where there is only one buyer, not one seller.
• Oligopoly refers to a market structure where a small number of firms have significant control. Firms in an oligopoly influence prices but must consider the reactions of other firms.

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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.