JAMB UTME - Economics - 2022

Which of the following factors is not a cause of diminishing returns?

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The factor that is not a cause of diminishing returns is "Technological innovations". Diminishing returns refers to the decrease in marginal output or production as more units of a variable input (such as labor or capital) are added to a fixed amount of other inputs (such as land or machinery). This occurs because the fixed inputs become increasingly scarce relative to the variable inputs, which can lead to inefficiencies and reduced productivity. The other three factors listed - an increase in variable inputs, land fragmentation, and constant technology - can all contribute to diminishing returns. For example, adding more workers to a fixed amount of land may lead to overcrowding and reduced productivity (land fragmentation). Similarly, if technology remains constant while more inputs are added, the additional inputs may not be fully utilized and may even become redundant. In contrast, technological innovations can actually help to overcome diminishing returns by allowing for more efficient use of inputs and increasing productivity. New technologies can improve the efficiency of production processes, reduce waste, and create new products or services, all of which can lead to increased output and economic growth.

Which of the following is not emphasized in a product possibility curve?

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The concept of unemployment of labor is not emphasized in a product possibility curve. A product possibility curve is a graphical representation of the trade-off between two goods that an economy can produce, given its limited resources and technology. The curve shows the maximum combinations of the two goods that can be produced with the available resources, taking into account that some resources are better suited for producing one good over the other. The emphasis is on the scarcity of resources and the efficiency with which they are being used, not on the employment of labor.

The sufficient condition for a firm to be in equilibrium is that the

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Which of the following factors is not a reason for farmers' unstable incomes?

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The production cost that varies inversely with output is the

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The type of unemployment found among workers who leave their jobs in search of other jobs is termed

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The type of unemployment found among workers who leave their jobs in search of other jobs is called frictional unemployment. This occurs when individuals are between jobs and are actively searching for new employment opportunities. Frictional unemployment is typically short-term and is a natural part of the job search process. It can occur due to various reasons such as workers seeking better job opportunities, moving to a new location, or recently graduating from school. Although frictional unemployment may be a temporary situation for individuals, it can have an impact on the economy if the time taken to find a new job is prolonged. However, it is generally seen as a less problematic form of unemployment than other types, such as structural or cyclical unemployment, which can have more severe and long-lasting effects on the economy.

Nation engage in external trade because of difference in

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Nations engage in external trade because of the differences in comparative cost, also known as comparative advantage. Comparative advantage is the ability of a country to produce goods or services at a lower opportunity cost than another country. Opportunity cost is the cost of one choice in terms of the best alternative that must be given up. In other words, it's the cost of producing one product in terms of the number of other products that could have been produced instead. For example, let's say that Country A can produce both cars and computers, but it can only produce one of them at a time. If Country A devotes all its resources to producing cars, it can produce 100,000 cars per year. If it devotes all its resources to producing computers, it can produce 50,000 computers per year. Meanwhile, Country B can produce 60,000 cars per year or 30,000 computers per year. In this case, Country A has a comparative advantage in producing cars because it has a lower opportunity cost of producing cars compared to computers. As a result, Country A can produce cars at a lower cost and sell them to Country B, which can in turn produce computers at a lower cost and sell them to Country A. This allows both countries to benefit from trade and improve their overall welfare. In summary, nations engage in external trade because of the differences in comparative cost, which allow countries to specialize in producing goods and services that they can produce more efficiently and trade with other countries for goods and services that they cannot produce efficiently. This creates mutual benefits for all countries involved.

The mining sector of an economy contributes 60% to the Gross Domestic Product(GDP). If the GDP is $540, what is the contribution of the mining sector?

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If the mining sector contributes 60% to the Gross Domestic Product (GDP), then its contribution can be calculated by multiplying the GDP by 60% (or 0.60, which is the decimal equivalent of 60%).

So, the contribution of the mining sector to the GDP is:

Contribution of mining sector = GDP x 60%

= $540 x 0.60

= $324

Therefore, the contribution of the mining sector to the GDP is $324. 

Privatization and commercialization of public enterprises in Nigeria is necessitated by

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The privatization and commercialization of public enterprises in Nigeria is necessitated by their operational inefficiency. Public enterprises in Nigeria, like in many other countries, have often been criticized for poor management, corruption, and inefficiency, which have resulted in heavy financial losses for the government. Privatization and commercialization are seen as a way to introduce more competition, increase efficiency, and reduce the financial burden on the government. While the IMF and the World Bank have encouraged privatization in many countries as a condition for receiving loans, in Nigeria, the privatization and commercialization policies were largely driven by domestic factors, including the need to improve the performance of public enterprises.

Which of the following cannot be classified as a natural resource?

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An iron rod cannot be classified as a natural resource. A natural resource is a material or substance that occurs naturally in the environment and can be used for economic gain. Natural resources can be classified into renewable and non-renewable resources. Renewable resources are those that can be replenished over time, such as solar energy, wildlife, and forests. Non-renewable resources are those that cannot be replenished, such as minerals and fossil fuels, including gold. An iron rod is not a natural resource because it is a manufactured item made from iron, which is a natural resource. The iron has been extracted from the earth and processed to make the rod, which is then used for various purposes. So, while the raw material (iron) may be a natural resource, the finished product (the iron rod) is not.

What type of price elasticity of demand is the diagram above representing?

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The main objective of marketing boards is to

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The main objective of marketing boards is to stabilize the incomes of cash crop farmers. Marketing boards help to regulate the supply and demand of cash crops, ensuring stable prices and incomes for farmers. They also provide support services to farmers, such as warehousing facilities and education on pricing, to help them sell their crops more effectively. While marketing boards may generate revenue for the government, their primary focus is on supporting and protecting the livelihoods of farmers.

If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing

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The firm is said to be experiencing diseconomies of scale if the cost of production continues to increase as its output rises. Diseconomies of scale occur when the firm becomes too large, and the increased complexity and coordination costs of managing a large organization outweigh the benefits of increased production. This can result in a decrease in efficiency, productivity, and profitability for the firm.

Economic goods are termed scarce goods when they are

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Economic goods are termed scarce goods when they are not available in sufficient quantity to satisfy all wants for them. In other words, when there is a limited supply of a good or resource, but a potentially unlimited demand for it, that good is considered to be scarce. This concept is fundamental to economics because it helps to explain why goods have value and why individuals and societies must make choices about how to allocate scarce resources.

In a pie chart, the population of a city is represented by 45. If the country has a population of 10 million people, then the city's population is?

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To solve this problem, we need to first understand what a pie chart is and how it works. A pie chart is a circular graph that is divided into sectors, with each sector representing a proportion of the whole. The size of each sector is proportional to the quantity it represents, so we can use it to determine the percentage or fraction of the whole that each quantity represents.

In this case, the city's population is represented by 45 degrees of the pie chart. If we assume that the pie chart represents the entire country's population, which is 10 million people, then the fraction of the country's population represented by the city is:

45 degrees / 360 degrees = 1/8

This means that the city's population is 1/8 of the entire country's population. To find out the actual population of the city, we can multiply the fraction by the total population:

(1/8) x 10 million = 1.25 million

Therefore, the correct answer is 1.25 million.

Cooperative societies are formed mainly to

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Cooperative societies are primarily formed to promote and maintain the welfare of their members. This means that the members of a cooperative society come together to work towards achieving common goals that benefit everyone in the society. Cooperative societies are usually formed by a group of individuals who share a common interest, such as farming, housing, or credit. By working together, members can access resources that they may not have been able to on their own, such as bulk purchasing of materials, access to credit, or sharing of knowledge and skills. In a cooperative society, the focus is not on maximizing profits for individual members, but rather on achieving benefits that are shared by the entire group. By working together, members can create a sustainable and mutually beneficial organization that can help to address the needs of the community. Therefore, the main purpose of cooperative societies is to promote the welfare of members by providing a platform for collective action and collaboration.

To compare the standard of living among nations, the most widely used economic indicator is the

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To compare the standard of living among nations, the most widely used economic indicator is the real per capita income. This is a measure of the average income per person in a given country, adjusted for inflation to reflect the purchasing power of that income. It is calculated by dividing the real gross domestic product (GDP) of a country by its population, which gives a sense of the economic output per person. While per capita nominal income and real gross national income are also used as economic indicators, they do not take into account inflation or differences in the cost of living across countries, which can make them less useful for comparing living standards. Real domestic output is not as widely used as real per capita income as it does not take into account the size of the population, which is an important factor in determining the standard of living.

There is unemployment of resources when production is

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Unemployment of resources occurs when production is below the production possibility curve, which means that the economy is not using all of its available resources to produce goods and services. These unused resources can include labor, capital, land, and natural resources. When production is within the production possibility curve, it means that the economy is using all of its resources efficiently and producing as much as it can given its current level of resources. Along the production possibility curve, the economy is also producing efficiently, but it is not using all of its resources. If production is outside the production possibility curve, it means that the economy is not capable of producing that level of output given its current resources. Finally, if production is adequate to meet market demand, it means that the economy is producing enough goods and services to satisfy the needs and wants of consumers. In summary, unemployment of resources occurs when the economy is not using all of its available resources to produce goods and services, which results in an output level below the production possibility curve.

If workers at the school canteen cannot sell during the holidays, this is example of

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If workers at the school canteen cannot sell during the holidays, this is an example of seasonal unemployment. This means that the workers are temporarily out of work due to changes in demand for their labor, in this case because the school is not in session. Seasonal unemployment is a common occurrence in industries that are heavily influenced by the time of year, such as agriculture, tourism, and retail. While the workers may have other employment options, they are currently without work due to the seasonality of the school canteen.

Wholesalers play an important in the distribution of goods and services because they

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Wholesalers play an important role in the distribution of goods and services because they act as intermediaries between producers and retailers. Wholesalers buy goods in large quantities from producers and then sell them in smaller quantities to retailers. This enables producers to focus on their production process without worrying about marketing and distribution. On the other hand, retailers can buy smaller quantities of goods from wholesalers, which allows them to stock a variety of products without having to buy in bulk. Wholesalers also provide other important services, such as financing and logistics. They may provide credit to both producers and retailers, allowing them to manage their cash flow and invest in their businesses. Additionally, wholesalers can handle the transportation and storage of goods, which can be a complex and expensive task for smaller businesses. Therefore, wholesalers play a crucial role in the distribution process, providing valuable services and enabling the smooth flow of goods and services from producers to retailers, and ultimately to consumers.

An example of transfer payments in national income accounting is

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Transfer payments refer to payments made by the government or other institutions to individuals or other entities, without receiving any goods or services in return. These payments are typically made for social welfare purposes or to redistribute income. An example of a transfer payment in national income accounting is unemployment allowance paid to citizens who are unemployed. The government pays these allowances to support individuals who are currently out of work and seeking employment. This payment is considered a transfer payment because the government is not receiving any goods or services in return for the funds provided. Transfer payments are not included in the calculation of GDP because they do not represent the production of goods or services. However, they are important in measuring the overall economic well-being of a society, particularly in terms of income distribution and social welfare.

A firm that closes down will still incur

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Even if a firm closes down, it will still incur some fixed costs. Fixed costs are expenses that must be paid regardless of the level of production or whether the business is operating or not. These costs include things like rent, insurance, salaries of employees on long-term contracts, and equipment leases. Variable costs, on the other hand, are expenses that vary depending on the level of production or business activity. For example, the cost of materials or labor directly related to producing goods or services. If the firm closes down, it will not incur variable costs because it will not be producing any goods or services. Total cost is the sum of fixed and variable costs, so if the firm is not producing anything, the total cost will be equal to the fixed cost. Marginal cost is the cost of producing one additional unit of a good or service. If the firm is closed down, there is no production, so there is no marginal cost.

In the event of bankruptcy, owners of joint-stock companies lose

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In the event of bankruptcy, owners of joint-stock companies (also known as shareholders) typically only lose the capital they have invested in the company. They do not lose their private properties or personal assets. When an individual buys shares in a joint-stock company, they become a partial owner of the company. As a shareholder, they are entitled to receive a share of the company's profits in the form of dividends. However, if the company goes bankrupt and cannot meet its financial obligations, the shareholders may lose the value of their investment, meaning the shares they hold in the company become worthless. Therefore, shareholders may lose the capital they invested in the company, but they are not responsible for any additional debts or liabilities the company may have. Shareholders are only liable to lose the value of their shares and do not have to worry about losing their personal assets or private properties.

An example of commodity money is

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An example of commodity money is silver. Commodity money is a physical object that has intrinsic value in addition to its value as a medium of exchange. Historically, commodities such as gold and silver have been used as a form of money because they are scarce and have inherent value. For example, silver is used not only as money, but also for jewelry, silverware, and other industrial applications. In this way, its value is based on its usefulness in addition to its value as a medium of exchange. In contrast, modern forms of money, such as currency notes, mobile money, and cheques, are not commodities in and of themselves but represent a claim on goods and services.

Fixing the prices of agricultural products can be a problem because of the

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Fixing the prices of agricultural products can be a problem because of the unpredictable output of farmers. Agricultural output can vary due to a variety of factors including weather, pests, disease, and other unpredictable factors. This variability can make it difficult to accurately predict the supply of agricultural products and set prices accordingly. While the instability of government policies, activities of marketing boards, and the size of agricultural exports can also have an impact on the pricing of agricultural products, the unpredictable output of farmers is a primary factor that can create challenges in setting prices. Instability of government policies can create uncertainty in the market, while the activities of marketing boards can sometimes lead to distortions in supply and demand. The size of agricultural exports can also influence prices by affecting the balance of supply and demand in domestic and international markets.

The supply curve of a locally-produced good may shift to the right if

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A downward sloping demand curve means that

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A downward sloping demand curve means that as the price of a good decreases, the quantity demanded of that good increases. In other words, there is an inverse relationship between the price of a good and the quantity of that good demanded by consumers. This is the fundamental law of demand in economics.

As the price of a good decreases, consumers are more willing and able to purchase it, which leads to a higher quantity demanded. Conversely, as the price of a good increases, consumers are less willing and able to purchase it, which leads to a lower quantity demanded.

Therefore, the correct answer is - price must be lowered to sell more of the good. Total revenue may increase or decrease as the price changes depending on the magnitude of the change in price and quantity demanded.

The pie chart above represent the total population of a school of 1,200. The shaded area of 60∘ shows the population of the underaged pupils.

What is the population of the matured students?

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Since the entire pie chart represents the total population of the school, and the shaded area of 60∘ represents the underaged pupils, then the remaining unshaded area of the pie chart must represent the population of matured students. To find the measure of the unshaded area, we can subtract the measure of the shaded area from the total measure of the pie chart, which is 360∘ (since a circle has 360 degrees). So the unshaded area is: 360∘ - 60∘ = 300∘ The unshaded area of 300∘ represents the population of the matured students. To find the actual population of the matured students, we need to convert the 300∘ into a proportion of the total population. The proportion of the matured students is: 300∘ / 360∘ = 5/6 This means that the population of the matured students is 5/6 of the total population of the school, which is: (5/6) x 1200 = 1000 Therefore, the population of the matured students is 1000.

A situation in which all inputs are doubled and output also doubles is known as

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The situation in which all inputs are doubled and the output also doubles is known as "constant returns to scale." This means that if a firm increases all of its inputs by a certain proportion, the output will also increase by the same proportion. In other words, the production function exhibits constant returns to scale if increasing all inputs by a constant factor results in an output increase by the same constant factor.

An electrical engineer who is teaching physics in a secondary school is said to be

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The middlemen is responsible for

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The middlemen is responsible for "breaking the bulk". Middlemen are intermediaries between producers and consumers in the distribution process. They play a crucial role in getting products from the producers to the consumers, and they perform a variety of functions such as transportation, storage, and marketing. One important function of middlemen is to break the bulk of products. This means they take large quantities of goods from producers and break them down into smaller units that can be sold to consumers in the desired quantities. For example, a farmer may produce tons of wheat, but consumers may only want to buy it in small quantities. Middlemen can purchase the bulk quantity from the farmer, then break it down into smaller units that can be sold to individual consumers. Breaking the bulk is important for several reasons. It allows for greater efficiency in the distribution process, as products can be transported and stored more easily in smaller units. It also allows for greater flexibility in meeting consumer demand, as products can be sold in the quantities that consumers desire. Finally, it can help to reduce costs for both producers and consumers, as middlemen can aggregate products from multiple producers and sell them at a lower cost than individual producers could achieve on their own.

The major role of multi-national companies in the petroleum industry in Nigeria is

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The major role of multinational companies in the petroleum industry in Nigeria is oil prospecting. Multinational companies, also known as International Oil Companies (IOCs), play a significant role in the exploration and production of oil and gas in Nigeria. These companies invest heavily in the exploration of new oil fields, as well as the development and production of existing fields. While some IOCs are also involved in oil marketing and refining, their primary role in Nigeria is oil prospecting. The IOCs in Nigeria include major companies such as Shell, ExxonMobil, Chevron, and Total.

Producers operating in a free market economy are more efficient as a result of

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Producers operating in a free market economy are more efficient as a result of the existence of competition. In a free market, businesses compete with each other for customers by offering better quality products, lower prices, or both. This competition forces producers to be efficient and innovative in order to remain competitive and attract customers. As a result, businesses are motivated to increase productivity, reduce waste, and improve their products and services to meet customer needs. The competition also leads to more choices for consumers and lower prices, as businesses strive to provide the best value for money. In contrast, if there were no competition, businesses would have less incentive to improve their operations, resulting in lower efficiency and higher prices for consumers.

The increase in the demand for a commodity may lead to a decrease in the demand for another if both are

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The increase in the demand for a commodity may lead to a decrease in the demand for another if both are in competitive demand. When two goods are in competitive demand, they are seen as substitutes for each other, meaning that they can be used for the same purpose. For example, coffee and tea can be seen as substitutes for each other, since both are beverages that can be used to satisfy the same desire for a hot drink. So, if the demand for coffee increases, people may buy more coffee and less tea, because they see coffee as a substitute for tea. Similarly, if the demand for tea increases, people may buy more tea and less coffee, because they see tea as a substitute for coffee. On the other hand, if two goods are in complementary demand, they are often used together. For example, if the demand for cars increases, the demand for gasoline will also increase, since cars require gasoline to run. Similarly, if the demand for smartphones increases, the demand for phone cases may also increase, since people may want to protect their phones. In composite demand, a good has multiple uses, so an increase in demand for one use may not necessarily lead to a decrease in demand for another use. And in the case of goods of the same quality, an increase in demand for one good does not necessarily affect the demand for the other good, since they are not substitutes or complements.

What happens when the central bank increases the bank rate in an economy

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When the central bank increases the bank rate, it becomes more expensive for banks to borrow money from the central bank. This, in turn, leads banks to charge higher interest rates on loans they give to their customers. As a result, borrowing becomes more expensive for customers, so they might choose to borrow less money or pay off existing loans. This discourages borrowing and slows down the overall spending in the economy. On the other hand, since banks have to pay a higher interest rate to the central bank, they might be able to increase the interest they charge on loans, which would increase their profits. The increase in the bank rate does not directly impact the money supply in the economy. The central bank can use other tools, such as open market operations, to influence the money supply.

Which of the following situations can give rise to economic problems

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An exceptional demand curve can result from

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An exceptional demand curve can result from an expectation of future price increase. When people think that the price of a good or service is going to increase in the future, they may start buying more of it now in order to avoid paying the higher price later. This increase in demand can cause the price of the good or service to go up in the present, creating an exceptional demand curve that deviates from the typical downward-sloping demand curve. The other factors, such as an increase in the price of raw materials, increase in the size of the population, or change in taste of consumers, can also impact the demand for a good or service, but an expectation of future price increase is a unique factor that can result in an exceptional demand curve.

An important factor hindering the rapid development of the industrial sector in Nigeria.

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An effect of inflation is that it

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An effect of inflation is that it "favors debtors at the expense of creditors." Inflation reduces the real value of money over time, which means that the value of debt also decreases. This can be an advantage for debtors, who are able to repay their debts with money that is worth less than when they borrowed it. In contrast, creditors are disadvantaged by inflation, as the value of the money they receive in repayment is worth less than the money they loaned out. Inflation can also have other effects, such as reducing the purchasing power of consumers, increasing uncertainty, and distorting economic decision-making.

PN equals average revenue or marginal revenue cure of

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