JAMB UTME - Economics - 2019
Pergunta 1 Relatório
A contractionary monetary policy is used to control__________
Detalhes da Resposta
A contractionary monetary policy is used to control inflation. Inflation is a sustained increase in the general price level of goods and services in an economy over time. It occurs when there is too much money chasing too few goods, leading to an increase in demand and upward pressure on prices. A contractionary monetary policy is a type of economic policy used by central banks to reduce the money supply and increase the cost of borrowing, with the aim of slowing down the economy and reducing inflationary pressures. This can be achieved through several measures, such as raising interest rates, increasing reserve requirements for banks, and selling government securities in the open market. By reducing the supply of money and making it more expensive to borrow, the central bank aims to reduce spending and investment in the economy, which can help to lower inflation. A contractionary monetary policy is the opposite of an expansionary monetary policy, which is used to stimulate economic growth by increasing the money supply and lowering interest rates.
Pergunta 2 Relatório
The shape of the production possibility frontier is determined by the_________
Detalhes da Resposta
Pergunta 3 Relatório
One of these is not an assumption of the cardinalist theory of utility?
Detalhes da Resposta
Pergunta 4 Relatório
The birth rate in 1976 for a certain country with a population of 10m was 8.0. This means that in 1976,___________
Detalhes da Resposta
In 1976, there were 8 live births for every 1,000 people in the population of the country. This means that for a population of 10 million people, there would be 8 x 10,000 = 80,000 live births in the country.
Pergunta 5 Relatório
Consider the diagram below which shows a demand curve (d).
Total expenditure on a commodity is represented by the area TUVW. Consumer's surplus is represented by__________
Detalhes da Resposta
Consumer's surplus is represented by the area above the demand curve and below the market price. In the diagram, this would be the area represented by VWX. Consumer's surplus measures the difference between the amount that consumers are willing to pay for a good and the amount they actually pay. In the diagram, consumers are willing to pay more for the good up to the market price, represented by the height of the demand curve. The area VWX represents the amount by which they are benefiting from the market, as they are paying less than they would be willing to pay. So, the answer to the question is the area VWX represents consumer's surplus.
Pergunta 6 Relatório
If we move from 8 to 6, the elasticity of demand is_______
Detalhes da Resposta
Pergunta 7 Relatório
The basic principle underlying location of industry is the tendency for production of a commodity to be located on the basis of______
Detalhes da Resposta
The basic principle underlying the location of industry is the tendency for production of a commodity to be located on the basis of "relative costs and benefits." The location of industry is determined by a variety of factors such as access to raw materials, labor supply, transportation, energy, and infrastructure. However, the primary factor is the cost and benefit analysis of each potential location. Industries tend to locate where the benefits of the location outweigh the costs. For example, an industry that requires large quantities of water may locate near a river or lake where water is abundant and cheap. An industry that produces heavy goods may locate near a port or railhead to reduce transportation costs. An industry that produces high-value products may locate near a skilled workforce or a research and development center to take advantage of the availability of talent. In general, industries seek to minimize their costs and maximize their benefits by locating in areas that provide the best combination of factors. This is why certain industries tend to be concentrated in particular regions or countries where the relative costs and benefits of production are most favorable.
Pergunta 8 Relatório
If two commodities are unrelated, a change in the price of one will____________
Detalhes da Resposta
If two commodities are unrelated, a change in the price of one will have no effect on the quantity demanded of the other. This is because unrelated commodities are not substitutes for each other, so a change in the price of one will not affect the demand for the other. For example, if the price of apples increases, it will not affect the demand for bananas, since apples and bananas are not substitutes for each other. Similarly, if the price of bananas decreases, it will not affect the demand for apples. This is because the demand for each commodity is determined by its own factors, such as income, tastes, and preferences, and not by the price of other unrelated commodities.
Pergunta 10 Relatório
An economy in which the whole income is not consumed is referred to as______
Detalhes da Resposta
Pergunta 12 Relatório
A rise in the supply of a commodity cause__________
Detalhes da Resposta
When the supply of a commodity increases, it means that there is more of that commodity available in the market than before. This increase in supply causes the market to shift, leading to a change in the equilibrium price and quantity of that commodity. As the supply of the commodity increases, sellers will want to sell more of the commodity, but buyers may not want to buy as much at the higher price. This creates a surplus, where there is more supply than demand, causing the price to decrease. As the price decreases, buyers are more willing to buy the commodity, and sellers may reduce the amount they are willing to sell, until the market reaches a new equilibrium. This new equilibrium will have a lower price and a higher quantity bought and sold than before the increase in supply. Therefore, the correct answer is: a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold.
Pergunta 13 Relatório
Industrialization is the process of___________
Detalhes da Resposta
Industrialization is the process of transforming an economy from primarily agriculture and handicrafts to one based on the manufacturing of goods. This process usually involves the development of new technologies, the growth of factories, and an increase in the production of goods. The goal of industrialization is to increase economic growth and improve the standard of living for a society. During industrialization, the production of goods becomes more efficient and large-scale, and people move from rural areas to cities to work in factories. In short, industrialization is the transformation of a society from traditional ways of making things to more modern and efficient methods of production.
Pergunta 14 Relatório
A form of tax that is midly progressive and regressive is_______
Detalhes da Resposta
Pergunta 15 Relatório
John an apprentice, engineer and amateur trumpet player, was earning ₦30 per week before accepting Full-time employment in a top orchestra, for which he now receives ₦150 per week. ₦120 of his current weekly earnings can be described as________
Detalhes da Resposta
Pergunta 16 Relatório
As indifference curve shows equal level of satisfaction at all points, An isoquant shows equal level of_________
Detalhes da Resposta
An isoquant shows equal level of output. An isoquant is a curve that represents all the possible combinations of inputs (such as labor and capital) that can produce the same level of output for a particular product or service. In other words, it represents all the different ways to produce the same amount of output using different combinations of inputs. So, all points on an isoquant represent the same level of output, and this level of output gives us the same satisfaction or usefulness. As we move along the isoquant, we can produce the same output using different combinations of inputs, but the level of output remains constant. In simple terms, an isoquant is a line that shows the different combinations of inputs that can produce the same level of output.
Pergunta 17 Relatório
In a perfect competition, the market price is determined by_______
Detalhes da Resposta
In a perfect competition, the market price is determined by the market supply and demand junctions. This means that the price is set by the intersection of the supply of goods and services offered by producers and the demand for those goods and services by consumers. When there is a high demand for a good or service, the price will go up, and when there is a low demand, the price will go down. This is because producers will raise their prices when there is high demand in order to make more profit, and they will lower their prices when there is low demand to try to sell more goods. On the other hand, consumers will be willing to pay more for a good or service when there is high demand and they will be less willing to pay when there is low demand. The market price is a result of the negotiation between producers and consumers, and it reflects the balance between supply and demand in the market.
Pergunta 18 Relatório
Among the disadvantages of the one-man business is the fact that______
Detalhes da Resposta
The main disadvantage of a one-man business is that the proprietor is personally liable for the firm's debts. This means that if the business is unable to pay its debts, the proprietor's personal assets, such as their savings, property, or other valuables, can be used to settle the debt. This can put the proprietor's personal financial stability at risk and may discourage them from taking on certain business ventures or expanding the business.
Pergunta 19 Relatório
The method obtained by adding all the reward of factors of production in national income is________
Detalhes da Resposta
The method of adding up all the rewards of the factors of production in national income is known as the "income approach." The income approach calculates national income by summing up all the income received by individuals and firms in the economy. This includes wages, salaries, interest, rent, and profits earned by the factors of production, such as labor, capital, and land. The idea behind this approach is that the total income generated in an economy is equal to the total amount spent on consumption and investment, and this spending creates the demand for goods and services produced in the economy. This method provides a comprehensive picture of the total income generated in the economy and is useful in understanding the distribution of income among different groups in the economy and the sources of economic growth.
Pergunta 20 Relatório
ECOWAS was formed for the purpose of________
Detalhes da Resposta
ECOWAS, or the Economic Community of West African States, was formed for the purpose of promoting co-operation and integration among its member countries. This means that the organization was created to help the countries work together and coordinate their efforts in areas such as trade, politics, and development. The goal of ECOWAS is to promote economic and social progress in the region and improve the lives of the people living in West Africa.
Pergunta 22 Relatório
A commodity is defined as normal when its demand changes in the same direction as______
Detalhes da Resposta
A commodity is defined as normal when its demand changes in the same direction as income. This means that as income increases, demand for the commodity will also increase, and as income decreases, demand for the commodity will decrease. Normal goods are those goods for which demand increases as income increases, and decreases as income decreases. For example, as people's incomes increase, they may choose to buy more luxury items such as expensive cars, jewelry, or designer clothing, which would be considered normal goods. On the other hand, as people's incomes decrease, they may choose to cut back on these purchases and switch to more budget-friendly options, causing demand for normal goods to decrease.
Pergunta 23 Relatório
Most of the National debts is "dead weight" in the sense that is____
Detalhes da Resposta
Most of the national debt is "dead weight" in the sense that it is not covered by any real asset. This means that the debt is not backed up by any tangible property or valuable resource. Instead, it is simply a financial obligation that the government owes to its creditors, who have loaned the government money. The government must pay back this debt with interest, which can add up over time and become a burden on the economy. This type of debt is sometimes referred to as "dead weight" because it does not contribute to the growth or development of the economy, but instead represents a financial obligation that must be met.
Pergunta 24 Relatório
The basic and essential economic problems in a community are related to choice and________
Detalhes da Resposta
The basic and essential economic problems in a community are related to choice and scarcity. Scarcity refers to the limited availability of resources in any given community. These resources can include natural resources, such as land, water, and minerals, as well as human-made resources, such as factories, machines, and tools. Because these resources are limited, there is never enough of them to satisfy everyone's wants and needs. This scarcity means that individuals, businesses, and governments must make choices about how to allocate these resources in the most efficient way possible. This requires making trade-offs and decisions about what goods and services to produce, how to produce them, and who should receive them. , Freedom, and Politics, are not directly related to the basic and essential economic problems of choice and scarcity. Social class, may be related to economic problems, but is not a fundamental concept in economics.
Pergunta 25 Relatório
An example of a market which approaches fairly near to perfection is____________
Detalhes da Resposta
Pergunta 26 Relatório
If the demand for a commodity is perfectly elastic, the incidence of a tax on that commodity will be, other things being equal, entirely on the_______
Detalhes da Resposta
If the demand for a commodity is perfectly elastic, it means that even a small change in price will cause a significant change in the quantity demanded. In other words, consumers are very sensitive to changes in price, and if the price increases, they will simply buy another substitute product that is cheaper. Now, if a tax is imposed on this commodity, it will cause the price of the commodity to increase. Since the demand is perfectly elastic, consumers will not be willing to pay the higher price and will switch to substitute products. As a result, the entire incidence of the tax falls on the seller or producer of the commodity. This is because the higher price caused by the tax will result in a decrease in the quantity demanded, and the producer will have to reduce the price in order to sell the product. Therefore, the producer bears the entire burden of the tax. In summary, if the demand for a commodity is perfectly elastic, the incidence of a tax on that commodity will be entirely on the seller or producer, as consumers are very sensitive to price changes and will switch to substitute products if the price increases.
Pergunta 27 Relatório
The release of a liquid petroleum hydrocarbon into the environment is_______
Detalhes da Resposta
An oil spill is the release of a liquid petroleum hydrocarbon into the environment. This can occur in a variety of ways, such as from an oil tanker that leaks or a pipeline that ruptures. The oil can contaminate the water and harm wildlife, as well as damage the natural environment and disrupt human activities such as fishing and tourism. It is important to take measures to prevent and clean up oil spills to minimize their impact on the environment and local communities.
Pergunta 28 Relatório
Whatever form an economic system may take, choice is essential for members of the community because resources are__________
Detalhes da Resposta
Scarce. This means that there is not enough of a certain resource to meet the demand or needs of everyone in the community. As a result, choices have to be made about how to allocate these limited resources among different individuals, groups, or uses. When resources are scarce, it is important to make decisions about their use in the most efficient and effective way possible.
Pergunta 29 Relatório
The sector which contribute highly to the economy is___________
Detalhes da Resposta
Pergunta 30 Relatório
The term "Money at call and short notice" in a bank's assets represents the bank's loans to______
Detalhes da Resposta
The term "Money at call and short notice" in a bank's assets represents the bank's loans to the money markets. Money at call and short notice refers to loans that the bank has made to other financial institutions or borrowers that can be quickly repaid upon request or on short notice, typically within 24 hours or less. These loans are typically used to finance short-term funding needs, such as meeting daily operational expenses or managing cash flows. The money markets are where short-term borrowing and lending takes place, typically for a period of less than a year. This includes activities such as interbank lending, commercial paper, and repurchase agreements. By providing loans to the money markets, banks are able to earn interest income while also helping to facilitate the flow of funds between borrowers and lenders. In summary, "Money at call and short notice" represents the bank's loans to the money markets, which are a key part of the financial system for short-term borrowing and lending.
Pergunta 31 Relatório
The money market equilibrium is defined as_________
Detalhes da Resposta
The money market equilibrium is defined as when the demand and supply of money are equal. In other words, the amount of money people want to hold (demand) is equal to the amount of money available (supply). Think of the money market as a marketplace where people buy and sell money. Just like any other market, when there is high demand for a product, its price (in this case, the interest rate) will increase. When there is low demand, the price (interest rate) will decrease. In the money market, the interest rate is a measure of the cost of borrowing money. If there is a high demand for money, people are willing to pay a higher interest rate to borrow it. This results in an increase in the interest rate. On the other hand, if there is low demand for money, people are not willing to pay a high interest rate, and the interest rate decreases. When the demand and supply of money are equal, the interest rate will be at the level where the quantity of money that people want to hold is equal to the amount of money available. This is the money market equilibrium.
Pergunta 32 Relatório
Let capital formation = CF, Production = P, C = consumption. Then CF =_______
Detalhes da Resposta
Capital formation (CF) is equal to P minus C, where P is production and C is consumption. Capital formation refers to the process of creating new capital goods, such as factories, machines, and infrastructure, which are used to produce goods and services. This process requires investment in new capital goods and is therefore reflected as a reduction in consumption. So, CF = P - C, where P is the total amount of goods and services produced and C is the amount consumed by households, businesses, and government. This equation shows that the amount of new capital being formed is equal to the difference between what is produced and what is consumed. In simpler terms, capital formation is the amount of investment made in the economy to increase its productive capacity and support future economic growth.
Pergunta 33 Relatório
An economy system that uses what is regarded as the "Market mechanism" is called_______
Detalhes da Resposta
Capitalism is an economic system that uses the market mechanism. In a capitalist economy, individuals and businesses own and operate the means of production, and the prices of goods and services are determined by supply and demand in the marketplace. In simple terms, this means that people are free to produce and sell whatever they want, and consumers are free to buy whatever they want, at prices that are determined by the market. This creates an economy that is driven by competition and innovation, and is often associated with growth and prosperity. It is important to note that capitalism can take on different forms, ranging from a more laissez-faire approach with minimal government intervention, to a more regulated form with a larger role for the government in managing the economy.
Pergunta 34 Relatório
A method of analysis that draws conclusions from data rather than general Principles already known is________
Detalhes da Resposta
Inductive reasoning is a method of analysis that draws conclusions from data rather than general principles already known. In simple terms, inductive reasoning takes specific observations or pieces of evidence and uses them to form a general conclusion or pattern. For example, if you observe that every time it rains, the streets get wet, you can use inductive reasoning to conclude that rain causes the streets to get wet. In contrast, deductive reasoning starts with a general principle or premise and uses it to reach a specific conclusion. For example, if you know that all birds have feathers and you observe a creature with feathers, you can use deductive reasoning to conclude that it's a bird. Inductive reasoning is often used in scientific research, where data is collected and analyzed to form hypotheses or theories that can then be tested through further experimentation.
Pergunta 35 Relatório
Economics is a social science concerned with the proper use and______
Detalhes da Resposta
Economics is a social science concerned with the proper use and allocation of resources for growth. Economics is the study of how society uses its limited resources to satisfy its unlimited wants and needs. It is concerned with how individuals, businesses, and governments make choices about how to use resources to produce goods and services, and how these goods and services are distributed among the members of society. The proper use and allocation of resources are essential for economic growth, which is the increase in the production and consumption of goods and services over time. This growth is achieved through the efficient use of resources to create more goods and services, which can then be distributed to meet the needs of society. Economics helps us to understand how resources are allocated and used in different economies and how these decisions affect the overall well-being of individuals and societies.
Pergunta 36 Relatório
The most reliable and acceptable index of economic growth is the__________
Detalhes da Resposta
Pergunta 37 Relatório
A supply curve slopes upwards from the left to the right indicating__________
Detalhes da Resposta
A supply curve that slopes upwards from left to right indicates a positive slope. This means that as the price of a good or service increases, the quantity supplied by suppliers also increases. In other words, producers are willing to supply more of a good or service at higher prices. To understand why this is the case, think about it from the perspective of a supplier. If the price of a good or service goes up, it becomes more profitable for suppliers to produce and sell that good or service. As a result, suppliers are incentivized to increase their production in order to take advantage of the higher prices and earn more profits. This is why the quantity supplied by suppliers tends to increase as the price of a good or service increases. It's important to note that this explanation applies to the long run. In the short run, supply may be relatively fixed and a supply curve may be upward sloping or even backward sloping, indicating that the quantity supplied doesn't change much in response to changes in price. However, over the long run, suppliers have more time to adjust their production levels and the supply curve typically slopes upward.
Pergunta 38 Relatório
If wage rate is less than the average revenue product, the firms would be earning________
Detalhes da Resposta
If the wage rate is less than the average revenue product (ARP), the firms would be earning a profit. The ARP is the amount of revenue generated by one unit of labor and is typically greater than the wage rate. If the firm is paying its workers less than the amount of revenue they generate, the firm will have extra revenue left over, which is a profit. So, in this situation, the firm would either be earning a normal profit or a super normal profit, depending on the size of the gap between the wage rate and the ARP. A normal profit is the minimum level of profit necessary for a firm to stay in business, while a super normal profit is a profit that is higher than the normal profit.
Pergunta 39 Relatório
The arithmetic mean of 5, 8, 10, 15, 24 and 28 is_______
Detalhes da Resposta
To find the arithmetic mean of a set of numbers, you need to add up all the numbers and divide the sum by the total number of numbers. In this case, we have six numbers, so we need to add them up and divide by 6. Adding up the numbers, we get: 5 + 8 + 10 + 15 + 24 + 28 = 90 Then, we divide the sum by the total number of numbers: 90 / 6 = 15 Therefore, the arithmetic mean of 5, 8, 10, 15, 24 and 28 is 15.
Pergunta 40 Relatório
Which of the following persons is engaged in "Secondary Production"?
I - a bricklayer
II - an automobile assembly-line worker
III - an accountant
IV - a cinema projectionist
Detalhes da Resposta
Secondary production refers to the process of transforming raw materials into finished goods, typically in a factory setting. Out of the four options, only one involves transforming raw materials into finished goods in a factory setting, and that is option II, an automobile assembly-line worker. A bricklayer (option I) works in construction and is not involved in transforming raw materials into finished goods in a factory setting. An accountant (option III) works in the service sector and is not involved in producing goods. A cinema projectionist (option IV) is also not involved in producing goods but rather in providing a service. Therefore, the answer is option II, an automobile assembly-line worker.
