JAMB UTME - Economics - 2018

Maelezo ya Majibu

Maelezo ya Majibu

The ultimate objective of economics is to make the best use of scarce resources. This means that economics seeks to understand how people, businesses, and societies allocate limited resources such as land, labor, capital, and technology in order to satisfy unlimited wants and needs. The goal is to ensure that resources are used in the most efficient and effective way possible, so that people can enjoy a higher standard of living and greater economic prosperity.

Maelezo ya Majibu

Occupational distribution of population refers to the classification of the working population into different types of work they engage in. The occupational distribution in any population is influenced by factors which includes: The level of education, Availability of natural resources, The level of technology, The type of production activities.

Maelezo ya Majibu

An ad valorem tax is imposed on the value of a commodity. This type of tax is calculated as a percentage of the value of a product, rather than a fixed amount. For example, if a product is worth $100 and the ad valorem tax rate is 10%, the tax would be $10. The word "ad valorem" is Latin for "according to value". Ad valorem taxes are commonly used on consumer goods, such as clothing or electronics, and are applied at the point of sale. The purpose of this tax is to raise revenue for the government and to potentially regulate certain products by making them more expensive.

Maelezo ya Majibu

The correct answer is a mixed economy. A mixed economy is an economic system that combines elements of both the public (government) and private sectors. In a mixed economy, the government and private businesses work together to create economic growth and promote social welfare. In a mixed economy, the government is responsible for providing essential services such as healthcare, education, and infrastructure. The private sector, on the other hand, is responsible for creating goods and services that meet the demands of the market. This type of economy allows for the benefits of both capitalism (private enterprise) and socialism (public enterprise) to coexist. It allows the government to regulate and control certain aspects of the economy, while still allowing the private sector to operate and innovate freely. Many modern economies around the world are considered mixed economies, including the United States, Canada, and the United Kingdom.

Maelezo ya Majibu

Maelezo ya Majibu

The term used to describe the number of people who are qualified to work and who offer themselves for employment is called the "Working Population". The working population refers to individuals who are of working age and are either employed or actively seeking employment. This group of people is considered to be the supply of labor in the economy and is an important factor in determining the overall health and stability of the labor market. It's important to note that the working population can be influenced by various factors such as migration, education levels, and the availability of job opportunities. Understanding the size and composition of the working population can provide valuable insights into the current state of the labor market and can inform decisions related to economic and labor policies.

Maelezo ya Majibu

Mean= ∑fx/∑f

  =(16+10+48+48+54+20+144)/(2+1+4+3+3+1+6)

  =340/20

  =17.0

By calculation, the mean of the distribution is not 18

Maelezo ya Majibu

When a group data is involved, cumulative frequency is used. The formula will be:

  Median=[(N+1)/2]th

  For member of odd number items. That is, where N is odd

  Median=([N/2[N/2+1]th)/2

  For member of odd number items. That is, where N is odd

  Solution:

When a group data is involved, cumulative frequency is used. The formula will be:

  Median=[(N+1)/2]th

  For member of odd number items. That is, where N is odd

  Median=([N/2[N/2+1]th)/2

  For member of odd number items. That is, where N is odd

  Solution:

Maelezo ya Majibu

The business organization that is allowed to raise capital by sales of shares to more than twenty people is a Public limited liability company (PLC). A Public limited liability company is a type of business organization that is owned by shareholders who own shares of the company. These shares can be bought and sold by the general public, allowing the company to raise capital by selling shares to more than twenty people. In contrast, a Private limited liability company (Ltd) is a type of business organization that is owned by a small group of shareholders who are often family members or close friends. Private limited liability companies are not allowed to sell shares to the general public and are limited to selling shares to a maximum of 20 people. Partnerships and Sole proprietorships are not allowed to issue shares at all, as they are not considered separate legal entities from their owners. Instead, they raise capital by borrowing money from banks, investors or using their own funds.

Maelezo ya Majibu

Maelezo ya Majibu

The full meaning of NAPEP is National Poverty Eradication Programme. It is a government-led initiative aimed at reducing poverty and improving the standard of living for citizens in a given country. The program typically focuses on providing financial and other forms of support to those living in poverty, with the goal of helping them to become self-sufficient and better able to meet their own needs. The specific activities and approaches of NAPEP can vary from country to country, but the overarching goal is always to help people escape the cycle of poverty and build better lives for themselves and their families.

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Frequent change of leadership of member state creates a difference in ideology and this is a major problem of ECOWAS

Maelezo ya Majibu

Maelezo ya Majibu

Employer’s association is formed to enable members to adopt a common policy in labour negotiation. A good example of employers association is that of the Nigerian Employers’ Consultative Association (NECA).

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Localization of industries refers to the concentration of firms or industries producing similar product in one area. As major firms concentrate in one area, other subsidiary firms that assist the major firms in the production of goods usually emerge.

Maelezo ya Majibu

Want may be defined as insatiable desire or need by human beings to own goods or services that give satisfaction. Human wants or needs are many, and are usually described as insatiable because the means of satisfying them are limited or scarce

Maelezo ya Majibu

The reduction in the value of a country's currency in relation to the value of the currencies of other nations is known as "Devaluation". When a country's currency is devalued, it means that the value of its currency has decreased compared to the currencies of other countries. This can happen for a number of reasons, including a decrease in the demand for the country's goods and services, a decrease in the country's economic growth, or a decrease in the country's foreign reserves. A devaluation makes a country's exports cheaper and more competitive on the global market, which can help boost the country's economy. However, it can also lead to higher prices for imported goods, which can negatively impact the country's consumers. In simple terms, devaluation is when a country's currency becomes less valuable compared to other currencies.

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Capitalism or free market economy may be defined as the type of economic system in which the means of production are owned and controlled by private individuals that is; it is characterized by private ownership of the means of production. In this case, the private individuals play a greater role than the government in taking decisions on what to produce, how to produce, for whom to produce and the distribution of what has been produced.

Maelezo ya Majibu

Average revenue is obtained by dividing the total revenue by the number of units sold. Thus we have;

660/6 = 110 

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The transfer of public shareholding in corporations to private enterprise is called privatization. This means that the ownership and control of a company, which was previously held by the government or the public, is now transferred to a private company or individual. Privatization can take many forms, such as selling shares of a public company to private investors, selling off a state-owned enterprise to a private company, or outsourcing government services to private companies. The goal of privatization is usually to improve efficiency, increase competition, and reduce government spending. In summary, privatization refers to the transfer of ownership and control of public companies to private entities, which is done to improve the performance and efficiency of the organization.

Maelezo ya Majibu

number of people who scored above 6=5+4+9+6

  =24

Maelezo ya Majibu

The establishment of industries in rural areas will help to reduce Urban-Rural migration. Urban-Rural migration refers to the movement of people from urban (city) areas to rural (countryside) areas in search of better living conditions, employment opportunities, and a lower cost of living. This migration often leads to overcrowding, strain on urban resources, and an increase in poverty in both urban and rural areas. When industries are established in rural areas, it creates employment opportunities for people living in those areas. This leads to an improvement in the standard of living of the local population, as they can find employment opportunities near their homes and do not need to move to urban areas. As a result, people are less likely to migrate from rural areas to urban areas in search of better opportunities, which helps to reduce Urban-Rural migration. In addition, the establishment of industries in rural areas also leads to an increase in economic activity in those areas, which stimulates local economies and creates new business opportunities. This, in turn, can lead to a reduction in poverty, an improvement in infrastructure and services, and an overall improvement in the quality of life for people living in rural areas.

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The coefficient of the price elasticity of supply is positive. This means that as the price of a good or service increases, the quantity of it that is supplied will increase as well. Conversely, if the price decreases, the quantity supplied will decrease. The degree to which the quantity supplied responds to changes in price is what the coefficient of the price elasticity of supply measures. A perfectly elastic supply has an elasticity of infinity, meaning that even a small change in price will result in a large change in the quantity supplied. On the other hand, a perfectly inelastic supply has an elasticity of zero, meaning that the quantity supplied does not change in response to price changes.

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When a union is composed of workers with the same skill, it is called a craft union. This means that the union represents workers who have the same type of training or expertise in a particular craft or trade. For example, a union of electricians, plumbers, or carpenters would be considered craft unions. These workers often have specific skills that are honed through years of training and experience, and the craft union helps to protect their interests, such as negotiating better wages, benefits, and working conditions. By focusing on a specific skill, craft unions can advocate for their members' unique needs and ensure that they receive fair treatment in the workplace.

Maelezo ya Majibu

The economic term used to refer to human wants, desires, or needs is "Ends". In economics, ends refer to the goals or objectives that individuals or society aims to achieve. These are the things that people want or need, such as food, shelter, clothing, entertainment, or education. Ends are considered to be unlimited because there are always new wants or needs that arise as people's tastes and preferences change, as well as advances in technology and innovation. However, the resources to satisfy these ends are limited, which creates a problem of scarcity. To achieve these ends, individuals must use alternative means, or resources, such as labor, capital, or natural resources. Therefore, the correct option is "Ends".

Maelezo ya Majibu

In the long run, all production factors are variable. This means that in the long run, a firm can adjust all of its inputs, including labor, capital, and resources, to produce the level of output it desires. Unlike the short run, where some production factors are fixed and cannot be changed, the long run allows firms to make changes to all of their inputs, such as investing in new technology or equipment, hiring or firing employees, and even moving to a new location. For example, in the short run, a bakery may only be able to increase its production by hiring more workers or working longer hours, as its oven and baking equipment are fixed. But in the long run, the bakery could invest in new, larger equipment to increase its production capacity, as well as relocate to a larger facility or even open new stores. Therefore, in the long run, all production factors can be adjusted, making them variable, while in the short run, some factors are fixed, making them less adaptable to changes in production levels.

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The type of business finance that entitles the holder to a fixed rate of dividend is called "preferred stock." Preferred stock is a type of investment in a company that gives shareholders a higher priority claim on dividends compared to common stockholders. This means that if the company distributes profits as dividends, the holders of preferred stock will receive their dividend payments first, before common stockholders. In addition to priority dividend payments, preferred stockholders may also have other advantages over common stockholders, such as the ability to vote on certain matters, and a greater degree of safety in the event of bankruptcy or liquidation. The key feature of preferred stock is that it provides a fixed rate of dividend, which is agreed upon at the time of issuance. This means that the company is obligated to pay a certain amount of dividend to preferred stockholders, regardless of how the company performs financially. This can make preferred stock a relatively stable investment option, especially for investors who are seeking a regular income stream.

Maelezo ya Majibu

Maelezo ya Majibu

The policy by which the government encourages producers of export goods to produce and export more in order to earn more foreign exchange is called export promotion. This policy is aimed at increasing the volume and value of a country's exports, thereby increasing its foreign exchange earnings. Export promotion can take many forms, including providing financial incentives, such as subsidies and tax breaks, to producers of export goods. It can also involve providing training and support to help exporters improve their competitiveness, as well as promoting a country's exports through trade shows and other marketing initiatives. The goal of export promotion is to help a country's businesses increase their exports, create jobs, and boost the economy.

Maelezo ya Majibu

Maelezo ya Majibu

The concept of division of labor is usually associated with Adam Smith, a Scottish economist who lived in the 18th century. Smith is known as the father of modern economics and his book "The Wealth of Nations" is considered a landmark in the history of economic thought. Division of labor is the process of breaking down the production of goods or services into smaller tasks, with each worker specializing in a particular task. Smith argued that this specialization allows workers to become more efficient and productive, as they become more skilled at their specific task over time. He famously used the example of a pin factory to illustrate the benefits of division of labor, showing how the productivity of the workers could be increased by breaking down the process of pin-making into smaller, specialized tasks. Smith believed that the division of labor not only increased productivity, but also led to economic growth and prosperity. By allowing each worker to focus on their specific task, and by encouraging trade and exchange between different workers and regions, the economy as a whole could become more efficient and produce more goods and services. This, in turn, would lead to greater wealth and prosperity for society as a whole. Overall, Smith's ideas about the division of labor had a profound impact on the development of modern economics and are still widely studied and discussed today.

Maelezo ya Majibu

To calculate the population density, we need to divide the total population by the land area. Population density = Total population / Land area In this case, the total population is 100 million and the land area is 50 square kilometers. So, Population density = 100 million / 50 square kilometers Simplifying the above expression, we get: Population density = 2 million people per square kilometer Therefore, the correct option is "2 million people per square kilometer".

Maelezo ya Majibu

Maelezo ya Majibu

Diminishing returns set in at point T in the production function. In a production function, adding more units of input (such as labor or capital) typically leads to an increase in output at a certain rate. However, as the amount of input increases beyond a certain point, the rate of output increase begins to decline. This is known as the law of diminishing returns. In the diagram, points R and S represent the increasing phase of the production function where output increases at an increasing rate as more input is added. However, at point T, the rate of increase in output begins to slow down, indicating that the law of diminishing returns has set in. Beyond point T, adding more input will result in smaller increases in output, and may even cause a decrease in output if the input becomes too excessive, as shown by point V. Therefore, point T is where diminishing returns set in, indicating the optimal level of input for maximum output.

Maelezo ya Majibu

Maelezo ya Majibu

Y = C + I
Y = 50 + 0.75 + 45
Y - 0.75 = 50 + 45
Y (1 - 0.75) = 95
0.25y = 95
Y = 95/0.25
Y = 380

Maelezo ya Majibu

The variance of a given data is the square of the standard deviation. Therefore, if the standard deviation of a given data is 8.2, the variance can be calculated as follows: Variance = Standard deviation^2 Variance = 8.2^2 Variance = 67.24 So, the variance of a given data with a standard deviation of 8.2 is 67.24.

Maelezo ya Majibu

Factors that affect the size of Labour Force include the following: Size of population of a country, official school leaving age, retirement age, pursuit of higher education, age, structure of population, role of women in the society, number of working hours and working days, the number of disabled, the number of people willing to work, migration.

Maelezo ya Majibu

In an open economy, GNP (Gross National Product) is measured as: C + I + G + (X - M), where: - C represents private consumption expenditures by individuals and households. - I represents gross investment by businesses, such as spending on capital goods like machinery, buildings, and equipment. - G represents government spending on goods and services. - X represents exports, which are goods and services produced domestically and sold to foreign countries. - M represents imports, which are goods and services produced in foreign countries and purchased domestically. The formula above takes into account both domestic and foreign economic activities. The net difference between exports (X) and imports (M) is included to determine the impact of international trade on the economy. Therefore, by using the formula C + I + G + (X - M) to measure GNP in an open economy, we can get a better understanding of the overall economic activity, including the impact of international trade on the economy.