JAMB UTME - Economics - 2018
Question 1 Report
In an open economy, the GNP is measured as_____________?
Answer Details
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.
Question 2 Report
The policy by which government encourages producers of export goods to produce and export more in order to earn more foreign exchange is called__________
Answer Details
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.
Question 3 Report
The transfer of public share holding in corporations to private enterprise is___________?
Answer Details
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.
Question 4 Report
The expression of cost in terms of alternative forgone is referred to as ____?
Answer Details
The expression of cost in terms of alternative forgone is referred to as "Opportunity cost". Opportunity cost is the cost of an alternative that must be forgone in order to pursue a certain action or decision. In other words, it is the value of the next best alternative that you have to give up in order to choose a certain option. For example, if you have $100 and you can either buy a new book or go to a concert, the opportunity cost of buying the book is the value you would have received from going to the concert (and vice versa). If you choose to buy the book, you give up the experience of going to the concert, and if you choose to go to the concert, you give up the value you would have received from the book. Opportunity cost is an important concept in decision making, economics, and business, because it helps us understand the trade-offs that we make when we make choices with limited resources. By considering the opportunity cost of different options, we can make more informed and rational decisions about how to allocate our resources.
Question 5 Report
The mean is the best measure of central tendency because it__________
Answer Details
The mean is considered the best measure of central tendency because it is a balancing point in an observation. Central tendency refers to the tendency of data to cluster around a particular value in a distribution. The three measures of central tendency are mean, median, and mode. The mean is the arithmetic average of a set of data and is calculated by summing all of the values and dividing by the number of values in the set. The mean is the balancing point in an observation because it takes into account all the values in a set of data and calculates their average. It is the sum of all the values in the set divided by the total number of values. Because the mean is based on all the values in the data set, it is less likely to be affected by extreme values (outliers) than other measures of central tendency, such as the median or mode. In addition to being a balancing point in an observation, the mean has several other advantages as a measure of central tendency. For example, it is easy to calculate and is a useful tool for comparing different data sets. It can also be calculated from incomplete data, which is not the case with other measures of central tendency. Overall, the mean is the best measure of central tendency because it is a balancing point in an observation and takes into account all the values in a data set, making it less likely to be influenced by extreme values.
Question 7 Report
The Economic Community of West African States (ECOWAS) has been slow in achieving its objective because of______________
Answer Details
Frequent change of leadership of member state creates a difference in ideology and this is a major problem of ECOWAS
Question 8 Report
When a variable is associated with time period, it is_____________
Question 9 Report
A country's budget allocation to various sectors of the economy is shown in the pie chart.
If the budget of the country was $7,200.00, how much is allocated to education?
Answer Details
The pie chart shows the budget allocation of a country. The total budget is $7,200.00. To find out how much is allocated to education, we need to look at the portion of the pie chart that represents education. Based on the options given, the amount allocated to education is $2,400.00. This means that out of the total budget of $7,200.00, $2,400.00 is set aside for education.
Question 10 Report
| X | 2 | 3 | 4 | 5 |
| F | 2 | 5 | 2 | 1 |
What is the median of the distribution?
Answer Details
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]th + [N/2 + 1]th)/2
For member of odd number items. That is, where N is odd
Solution:
From the table, there are 20 members as indicated by the cumulative frequency. Since the members are odd (10) the median age will be ([N/2]th + [N/2 + 1]th)/2
Median=([10/2]th + [10/2 + 1]th)/2
=(5th + 6th)/2
The 5th member is 3 and the 6th member is on 3
Median=(3 + 3)/2
=6/2
Median = 3
Question 11 Report
Which of the following is an advantage of localization of industry?
Answer Details
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.
Question 12 Report
Import duty and tariffs is an instrument used for international trade restriction and so is __________?
Answer Details
In other to encourage or discourage the importation of certain goods from certain countries discriminate duties are charged on these goods.
Question 13 Report
Efficiency of labour in a country is determined by the following except the____________
Answer Details
Efficiency of labour may be defined as the ability of labour to increase output without increasing the quantity of labour. Increase in efficiency is usually expressed in terms of increase in output of labour within a shorter period of time without any fall in the quality of goods and services produced. Factors which affect efficiency of labour include Education and training, attitude to work, working conditions of workers. However, total population is not a factor that affects efficiency of workers.
Question 14 Report
Calculate the population density of Nigeria, having a total population of 180 million with a total land area of 923,768 sq km?
Answer Details
To calculate the population density of Nigeria, we need to divide the total population of Nigeria by its total land area. So, Population density of Nigeria = Total population of Nigeria / Total land area of Nigeria Plugging in the values, we get: Population density of Nigeria = 180,000,000 / 923,768 sq km Solving this equation, we get: Population density of Nigeria = 195 people per sq km (rounded to the nearest whole number) Therefore, is the correct answer. Nigeria has a population density of approximately 195 people per square kilometer, which means that on average, there are 195 people living in every square kilometer of land in Nigeria. This number is relatively high compared to some other countries, but it is important to note that population density varies widely depending on factors such as geography, climate, and economic development.
Question 15 Report
The privatization exercise in Nigeria is a move towards a____________
Answer Details
The privatization exercise in Nigeria is a move towards a market economy. A market economy is a type of economic system in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand. In a market economy, resources are owned and controlled by individuals and private enterprises, rather than the government. In Nigeria's case, the privatization exercise involves the transfer of ownership and control of state-owned enterprises (SOEs) to private individuals or companies. This shift from state ownership and control to private ownership and control is a characteristic feature of a market economy. By reducing the role of the government in the economy, the privatization exercise in Nigeria is aimed at promoting competition, encouraging innovation, and improving efficiency in the management of these formerly state-owned enterprises.
Question 16 Report
The effects on the demand for product A caused by a change in the price of product B is Called____________
Question 17 Report
If a demand curve that intersects a perfectly inelastic supply curve shift is rightward, then____________
Answer Details
Question 18 Report
Mortgage banks give loans to investors on a long term basics to_____________
Answer Details
Mortgage banks give loans to investors on a long-term basis to build houses. When people want to buy a home, they may not have enough money to pay for it all at once. In this case, they can apply for a mortgage loan from a bank. A mortgage is a loan that is used to buy a property and is usually paid back over a period of several years. Mortgage banks specialize in giving out loans for the purpose of purchasing property, such as homes or other buildings. The loan is typically secured by the property being purchased, which means that if the borrower cannot repay the loan, the bank can take possession of the property to recoup its losses. Investors who want to build houses can also get mortgage loans from banks. In this case, the loan is used to finance the construction of the property, and the property serves as collateral for the loan. Overall, the primary purpose of mortgage banks is to give long-term loans to investors who want to buy or build houses. By providing this service, mortgage banks help to stimulate the housing market and make it easier for people to achieve their dreams of homeownership.
Question 19 Report
From the table, how many people scored above 6?
Answer Details
number of people who scored above 6=5+4+9+6
=24
Question 20 Report
If the standard deviation of a given data is 8.2, find its variance_______________
Answer Details
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.
Question 21 Report
In other to enhance the utility of a particular commodity, it was moved from a place where it has little utility to another area where its utility is higher. This form of utility is referred to as?
Answer Details
The form of utility that refers to the enhancement of a commodity's usefulness by moving it from a place where it has little utility to another area where its utility is higher is called "place utility." For example, a bottle of water may have low utility in a store shelf where there is an abundance of water, but it would have a higher utility in a desert where water is scarce. By moving the water bottle from the store shelf to the desert, the place utility of the water bottle is increased. On the other hand, marginal utility refers to the additional satisfaction or benefit that a person derives from consuming an extra unit of a good or service, while form utility refers to the value added to a commodity by transforming it into a more useful form, such as processing raw materials into finished products. Total utility, on the other hand, refers to the overall level of satisfaction or benefit that a person derives from consuming a particular quantity of a good or service.
Question 22 Report
Given that Y = C + 1, where C = 50 + 0.75 and 1 = N45m, what is the equilibrium level of income?
Answer Details
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
Question 23 Report
The reward for capital is___________
Answer Details
The reward for capital is interest. Capital refers to the money or assets that are used to invest in a business or enterprise. When someone invests their capital into a business, they expect to earn a return on their investment. The return on investment for capital is called interest. Interest is the amount of money paid by the borrower to the lender for the use of their capital. This can be in the form of regular interest payments or a lump sum at the end of the investment period. The interest rate is determined by various factors such as market conditions, inflation, and risk. Therefore, interest is the primary reward for capital.
Question 25 Report
Occupational distribution of information is mainly influenced by___________
Answer Details
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.
Question 26 Report
The establishment of industries in rural areas will help to reduce____________-
Answer Details
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.
Question 27 Report
The money paid per hour for work done is_________
Answer Details
The money paid per hour for work done is called a "wage rate". Wage rate is the amount of money an employee is paid for each hour of work. It's a basic unit of pay that reflects the compensation an employee receives for the time and effort they put into their job. The wage rate can be influenced by various factors, including the employee's experience, qualifications, and the type of work they do. It's important to note that wage rate is different from salary, which is a fixed amount of money paid to an employee for a set period of time, usually annually or monthly. A bonus, on the other hand, is an additional payment made to an employee in recognition of good work or as a reward for achieving a specific goal.
Question 29 Report
In a capitalist economy, factors of production are owned and controlled by the _____?
Answer Details
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.
Question 30 Report
Utility is the satisfaction derived from____________
Answer Details
Utility is an economic term introduced by Daniel Bernoulli referring to the total satisfaction received from consuming a good or service.
Question 31 Report
The current stage of the economy is depicted in curve I. The movement of curve I to II suggests___________
Answer Details
Question 32 Report
One of the major forms of migration that tends to create problem in all developing countries is that of___________
Answer Details
The major form of migration that tends to create problems in developing countries is rural-urban migration. This refers to the movement of people from rural areas to urban areas in search of better economic opportunities and a higher standard of living. There are several reasons why rural-urban migration occurs. In rural areas, there may be limited job opportunities, low wages, and a lack of access to basic services such as healthcare, education, and clean water. In contrast, urban areas offer more job opportunities, higher wages, and better access to services. However, rural-urban migration can create several problems. Firstly, it can lead to overcrowding and strain on urban infrastructure, such as housing, transportation, and public services. This can result in poor living conditions for migrants and contribute to the spread of diseases. Secondly, rural-urban migration can lead to social problems such as crime, poverty, and inequality. Migrants may face discrimination and difficulty integrating into urban communities, which can exacerbate social tensions. Finally, rural-urban migration can have negative impacts on rural areas, as it can result in a loss of skilled workers and a decline in agricultural productivity. This can have serious consequences for food security and rural development. Overall, while rural-urban migration can provide benefits for migrants in terms of economic opportunities and access to services, it can also create significant challenges for both urban and rural areas.
Question 33 Report
Given the table, if the total budget of the country to be 100 million naira, what is the ratio of expenditure on manufacturing to agriculture
Answer Details
Total budget = N100,000,000
Portion of pie chart covered in degree = 360
Expenditure on manufacturing = x/N100,000,000 × 3600 = 360
3600x = 360 × N100,000,000
x = 360×N100,000,000/3600
x=N10,000,000
Therefore, the budget allocated to Manufacturing is N10,000,000
Total budget = N100,000,000
Portion of pie chart covered in degree = 720
Expenditure on Agriculture = x/N100,000,000 × 3600 = 720
3600x = 720 × N100,000,000
x = 720 × N100,000,000/3600
x = N20,000,000
Therefore, the budget allocated to Agriculture is N20,000,000
Ratio of expenditure on Manufacturing to Agriculture;
Ratio = 10,000,000:20,000,000
=1:2
Question 34 Report
The diagram below represents a production function. At which of the points does diminishing returns set in __________
Answer Details
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.
Question 35 Report
The savings deposit in a commercial bank is called____________?
Question 36 Report
The factor of production that has the highest degree of mobility is__________?
Answer Details
The factor of production that has the highest degree of mobility is labor. Labor refers to the human effort used in the production of goods and services. It includes both physical and mental work, such as the work done by factory workers, managers, doctors, and teachers. Unlike other factors of production, such as land and capital, labor is not fixed and can move from one job or industry to another. Labor mobility is the ease with which workers can move between different jobs or locations. It is influenced by factors such as education, skills, training, and the availability of job opportunities. For example, a person with a degree in computer science can easily move from one technology company to another, and a nurse can work in a hospital or a clinic. The mobility of labor is important for the efficient functioning of the economy because it allows workers to move to industries and locations where their skills are in demand, which increases their productivity and wages. It also helps businesses to find the talent they need to grow and innovate, and it enables regions to adapt to changing economic conditions. Therefore, labor mobility is an important aspect of economic growth and development.
Question 37 Report
The study of Economics becomes necessary because of the______________
Answer Details
The study of Economics becomes necessary because of the "scarcity of resources". Economics is the study of how societies use limited resources to satisfy their unlimited wants and needs. Because resources such as land, labor, and capital are limited, and human wants and needs are unlimited, there is always scarcity. Scarcity means that people have to make choices about what goods and services they will produce and consume because they cannot have everything they want. Therefore, the study of economics helps to provide a framework for making decisions about how to allocate scarce resources in the most efficient and effective way possible to maximize benefits to society. In conclusion, the study of economics becomes necessary because of the scarcity of resources, which creates the need to make choices and allocate resources efficiently to satisfy the unlimited wants and needs of society.
Question 38 Report
The population density of a town made up of 50 square kilometer land area and 100 million people is________
Answer Details
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".
Question 39 Report
If the pass mark was 40, how many students passed the examination?
Answer Details
Question 40 Report
The use of income and expenditure instruments or policies to control or regulate the economic activities of a country is known as?
Answer Details
The use of income and expenditure instruments or policies to control or regulate the economic activities of a country is known as Fiscal Policy. Fiscal policy involves the use of government spending and taxation to influence the economy's performance. For example, during a recession, the government may increase its spending to stimulate economic growth and create jobs. Alternatively, during a period of high inflation, the government may reduce its spending and increase taxes to reduce the amount of money in circulation and lower inflation. Fiscal policy can be used to achieve various economic objectives, such as stabilizing the economy, promoting economic growth, and reducing income inequality. It is an essential tool for governments to manage the economy and ensure its stability and growth over the long term.
