JAMB UTME - Economics - 2024

If government in a fiscal year has its revenue receipts less than the expenditure, such country is having

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When a government has its revenue receipts less than the expenditure in a fiscal year, the country is experiencing a deficit budget. Here's a simple explanation:

Revenue receipts are the funds government receives, mainly from taxes and other sources like fees, interests, etc.

Expenditure refers to the total amount of money the government spends on various needs like infrastructure, education, defense, welfare programs, and salaries.

If the money received (revenue receipts) is less than the money spent (expenditure), it indicates that the government is spending more than it is earning. This excess expenditure generates a gap which is known as a deficit.

To address this deficit, governments might need to borrow money or reduce spending to balance their finances in the future. Hence, when expenditure surpasses revenue, it results in a deficit budget.

Which of the following is NOT an objective of Economic planning?

Answer Details

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

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

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

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

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

One of the function of united nation conference on trade and development (UNTAD) is to

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

If the standard deviation of a set of numbers is 3.6, what is the variance?

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The **variance** of a set of numbers is a measure of how much the numbers in the set differ from the mean (average) of the set. It is calculated as the average of the squared differences from the mean.

The **standard deviation** is simply the square root of the variance. It gives a measure of how spread out the numbers in the set are, using the same units as the original numbers.

Given that the standard deviation of a set of numbers is **3.6**, you can find the variance by squaring the standard deviation. This is because the variance is the square of the standard deviation.

So you calculate the variance as follows:

Variance = (Standard Deviation)² = **3.6** x **3.6** = **12.96**

So the **variance** is **12.96**.

In income determination theory, acceleration principles shows that

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

A producer who can only influence the price of his product but canNOT determine the quantity to be sold is referred to
as

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

Here's an explanation:

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

The other terms are different:

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

The bank established to finances project aimed at promoting economic and social development within the African continent is

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The bank that is primarily dedicated to financing projects aimed at promoting economic and social development within the African continent is the African Development Bank (AfDB).

The African Development Bank (AfDB) was established in 1964 with the main objective to reduce poverty, improve living conditions, and promote economic and social development in African countries. It achieves these goals by providing loans and grants for a variety of development projects and programs across the continent. These projects cover various sectors including infrastructure, education, healthcare, agriculture, and energy.

Unlike purely commercial banks, the AfDB is focused on development projects that may not always have immediate financial returns but are crucial for the sustainable growth and development of African nations. The bank works together with member countries and international partners to mobilize resources and expertise needed to tackle the continent's challenges, often adopting innovative financing solutions tailored to the unique needs of the African context.

From the diagram below, moving from point A to B and from B to c is due to

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Opportunity cost is a key concept in economics that refers to the value of the next best alternative forgone when making a choice. It plays a significant role in determining the downward shift in the production possibilities curve (PPC).
The PPC represents the different combinations of two goods or services that an economy can produce given its limited resources and technology. It illustrates the trade-offs that occur when resources are allocated between the production o different goods.
When there is a downward shift or inward shift in the PPC, it indicates a decrease in the economy's productive capacity. This shift can be influenced by several factors, including changes in resource availability, technology, or the efficiency of resource allocation. However, opportunity cost can help explain how these factors lead to a downward shift.

The trade-off between two commodities along the Production Possibility Curve (PPC) shows

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The Production Possibility Curve (PPC) is a graphical representation that shows the different combinations of two goods or services that an economy can produce, given certain assumptions like fixed resources and technology.

The trade-off between two commodities along the PPC primarily illustrates the opportunity cost principle. This principle refers to the idea that in order to produce more of one good, an economy must produce less of another good. The curve demonstrates this trade-off by showing that resources are limited, and choosing to allocate more resources to produce one commodity means reallocating those resources away from another commodity.

For example, if an economy is at a certain point on its PPC and decides to produce more of Commodity A, it will inevitably end up producing less of Commodity B. This reduction in the production of Commodity B is the opportunity cost of producing more of Commodity A. Hence, every point along the PPC illustrates the trade-off and opportunity cost of choosing different production levels of the two goods.

If the marginal utility of commodity is equal to its price, then

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

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

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

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

f the population of a school is 600 and 60% are In JSS, how many students are in SSS?

Answer Details

To determine how many students are in SSS, we first need to figure out how many students are in JSS. According to the problem, 60% of the school's population is in JSS.

Here's a simple breakdown:

• The total population of the school is 600.
• 60% of 600 is calculated by multiplying 600 by 0.60. Mathematically, this is:
• 600 x 0.60 = 360. So, there are 360 students in JSS.

Since the whole school has 600 students, and 360 of those are in JSS, we can find out how many are in SSS by subtracting the JSS students from the total number of students:

600 - 360 = 240

Hence, there are 240 students in SSS.

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

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The Production Possibility Curve (PPC), also known as the Production Possibility Frontier, is a graphical representation that illustrates the concept of scarcity, trade-offs, and opportunity cost. It shows the different combinations of two goods or services that an economy can produce given its finite resources and technology.

The factors typically highlighted by a PPC are as follows:

• Scarcity of resources: This is emphasized as it limits the production possibilities for an economy, thereby creating the necessity to allocate resources efficiently.
• Unemployment of labour: Although the PPC assumes full employment of resources, any point inside the curve indicates that resources, including labor, are not being fully employed.
• Inefficiency in the use of resources: This is indicated by points inside the PPC curve, which shows that resources are not being used optimally.

However, a point that is not emphasized within a PPC is:

• Economic development: The PPC does not directly illustrate concepts such as economic growth or development. While economic growth can shift the PPC outward, the curve itself does not explain the aspects of long-term growth, improvement in living standards, or the underlying factors of economic development like technology advancements, better education, and institutional changes.

Thus, the concept that is not highlighted in a PPC is economic development.

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

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

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

At the equilibrium price,

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

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

In contrast:

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

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

Which of the following is NOT associated with minimum price legislation?

Answer Details

Minimum price legislation is a policy where the government sets a lower price limit for certain goods or services, meaning they cannot be sold below this set price. It is often intended to protect producers, ensuring they receive fair compensation and maintaining industry standards.

When a minimum price is set above the equilibrium price, it typically leads to several economic effects:

• Wastages of resources: This can occur because at the artificially high price, producers might overproduce as they want to profit from the higher price, leading to excess production that isn't effectively utilized or sold.
• Excess supply: This means that the quantity supplied exceeds the quantity demanded because the price is higher than what consumers are willing to pay. Thus, the market experiences surplus products.
• Unemployment: In some cases, particularly in labor markets, setting a minimum price (like minimum wage) can result in employers reducing hiring or cutting jobs because of higher wage costs, leading to unemployment.

Excess demand is NOT associated with minimum price legislation. Excess demand occurs when the price is set too low, leading to a situation where the quantity demanded exceeds the quantity supplied. This situation is commonly related to maximum price controls, not minimum price legislation.

Economic problem arises as a result of

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The **economic problem** arises due to the fundamental concept of **scarcity**. In simple terms, scarcity means that the resources available to us are **limited**, while our desires and needs are **unlimited**. This situation forces us to make decisions about how best to allocate our resources efficiently.

Because of scarcity, every choice we make involves a **trade-off**. For instance, if you choose to spend your time studying economics instead of mathematics, you sacrifice the benefits you would have gained from studying mathematics. The concept associated with this scenario is called **opportunity cost**, which is essentially the value of the next best alternative forgone when making a decision.

Furthermore, scarcity leads to the necessity of **choice**. Individuals, businesses, and governments must decide what to produce, how to produce, and for whom to produce. These choices are influenced by the limited resources and the alternatives available.

While **money cost** is often considered in decisions, it is not the root cause of the economic problem. It is a **monetary representation of value** and is used as a tool to navigate scarcity and opportunity cost.

In essence, the **economic problem exists** because we have to make choices about how to use our scarce resources most effectively, and every choice involves an opportunity cost. This continual need to prioritize options is at the very heart of economics.

If the price of commodity X rises and consumers shift to commodity Y, then commodities X and Y are

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If the price of commodity X increases and consumers start purchasing commodity Y instead, then commodities X and Y are considered substitutes. Substitutes are goods that can be used in place of one another; when the price of one goes up, consumers naturally shift their demand to the other because it serves a similar function or purpose.
Consider an example: if the price of coffee goes up, people might start drinking tea instead if tea serves as a similar alternative for their morning beverage needs. In this scenario, coffee and tea are substitutes. Therefore, the relationship between these goods is defined by consumers' ability to consider one in place of the other based on price.
In summary, when consumers replace their consumption of one good with another due to price change, the goods in question are substitutes.

What is the median term in the distribution below; 14, 13 29,15,13,17,12.

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To find the median of a set of numbers, the first step is to arrange the numbers in ascending order (from smallest to largest).

The given numbers are: 14, 13, 29, 15, 13, 17, 12.

Arrange them in ascending order: 12, 13, 13, 14, 15, 17, 29.

The median is the number that appears in the middle of this ordered list. Since there are 7 numbers in this list, the middle number is the fourth one.

In the ordered sequence 12, 13, 13, 14, 15, 17, 29, the median is 14.

The middle value of an array figure arranged in descending order is referred to as the

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The middle value of an array of figures arranged in descending order is referred to as the median.

To understand this concept, imagine you have a collection of numbers, and you want to find the one that sits right in the middle when all numbers are lined up from the largest to the smallest (or even from smallest to largest, as the median remains the same).

• If there is an odd number of values in your dataset, the median is the number that is directly in the middle. For example, in the dataset {9, 7, 5}, the median is 7, as it is the middle number.


• If there is an even number of values, the median is calculated by taking the average of the two middle numbers. For instance, in the dataset {10, 8, 6, 4}, the two middle numbers are 8 and 6, and their average is (8 + 6) / 2 = 7. Therefore, 7 is the median.

The median is very useful as a measure of central tendency because it is not affected by extremely large or small values in the dataset, which could skew other measurements like the mean. Thus, it provides a better representation of a typical value within the dataset, especially when dealing with outliers.

Persistent fall In the general price level is known as

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

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

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


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

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

Which of the following is NOT included in-measuring the National income through the income approach?

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When measuring national income using the **Income Approach**, the focus is on summing up all the **incomes earned** by individuals and businesses in an economy for providing goods and services. This typically includes wages, profits, rents, and interest received. Let's examine each option:

• **Profit earned by NITEL plc**: This is included because it is part of the profits earned by businesses.
• **Profit earned by Nigerian Bottling Company plc**: This is included for the same reason as above; it is business profit, which is a component of national income.
• **Income earned by a bricklayer**: This is included because it's a wage or salary, which is a fundamental part of national income.
• **Allowance given to an aged mother by a civil servant**: This is **NOT included** in measuring national income through the income approach. The reason is that these are private transfer payments or personal transfers, not payments made for labor, production of goods, or capital services.

A market situation with few sellers and many buyers is called

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The market situation you are referring to is called an oligopoly.

To put it simply, an oligopoly is a market structure where there are only a few sellers, or producers, who dominate the market, while there are many buyers. This creates a situation where the few sellers have significant control over the prices and market dynamics.

This structure is different from a perfect competition, where there are many sellers and buyers, with no single seller having significant market power. It is also different from a duopoly, which specifically refers to exactly two sellers.

The presence of a small number of sellers in an oligopoly leads to competitive strategies where the actions of one seller can influence the actions of others. This often results in strategic collaboration or competition, which affects prices and product offerings.

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

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

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

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

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

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

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

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

A firm's average cost decreases in the long-run because of

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In the long run, a firm's average cost decreases primarily because of increasing returns to scale. This occurs when a firm's output increases by a proportion greater than the increase in inputs. In simpler terms, when a company gets bigger, it becomes more efficient at production. Consider the following reasons:

• **Economies of Scale**: As production scales up, certain costs such as fixed costs are spread over a larger number of goods, thus reducing the cost per unit.
• **Specialization and Division of Labor**: Larger firms often permit more specialization among workers and use more advanced technology, leading to increased productivity.
• **Bulk Purchasing**: Bigger firms can buy raw materials in large quantities at a discounted rate, which reduces the cost of production per unit.

Other options, like **diminishing average returns** or **decreasing marginal returns**, generally pertain to situations in the short run or under different conditions and would not directly explain a decrease in average costs in the long run. Additionally, while **decreasing average fixed cost** could reduce cost in the short run, in the long run, all costs are variable and focus instead shifts to how efficiently inputs are converted to outputs.

The act of cultivating land and rearing of animal for man's use is

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The act of cultivating land and rearing of animals for man's use is known as agriculture.

Agriculture is an activity that involves growing crops and raising animals to provide food, fiber, medicinal plants, and other products used to sustain and enhance human life. It is a vital practice that has been developed over thousands of years, allowing civilizations to flourish by ensuring a stable supply of food and resources. This practice not only involves the cultivation of the land for crops but also includes various other activities such as animal husbandry, which is the breeding and care of farm animals.

Let me explain a bit about the other terms you mentioned:

• Forestry refers to the management and conservation of forests and woodlands. It involves the planting, maintaining, and caring for trees and forests. While it might also involve the cultivation of certain types of land, its primary focus is on trees rather than a wide range of crops or livestock.
• Mono culture is a term used to describe the cultivation of a single crop in a given area, year after year. This is a method within agriculture but does not encompass the full scope of agriculture, which includes diversity in crop and animal production.
• Horticulture is a branch of agriculture that focuses on the cultivation of plants, fruits, vegetables, flowers, and ornamental plants. It deals mainly with garden crops rather than large-scale agricultural crops and usually doesn't focus on animal rearing.

Thus, the most comprehensive term that covers both the cultivation of land and rearing of animals is agriculture.

In the equation Q = a - bp + e; Q and P are ... Variables respectively.

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In the given equation Q = a - bp + e, we need to understand the roles of the variables Q and P.

In any equation where we are trying to establish a relationship between two variables, one of the variables is usually controlled or changed deliberately, while the other one is observed as it changes in response. In such equations:

• The **independent variable** is the one that you control or change to see how it affects another variable. It is like the **cause** or **input**.
• The **dependent variable** is the one that changes as a result of the changes in the independent variable. It is like the **effect** or **output**.

In the equation Q = a - bp + e, **Q** is the outcome or result that we observe, and it depends on the value of **P**. Thus, **Q is the dependent variable** because it changes depending on the values of **P**. Conversely, **P** is the one that we can change or manipulate in the context of this equation, so **P is the independent variable**.

Therefore, the correct description for **Q** and **P** is that Q is the **dependent** variable, and P is the **independent** variable.

The following are problems of development planning in Nigeria EXCEPT

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Nigeria, like many developing countries, faces several challenges in its development planning. These include issues such as inadequate capital, which limits the ability to fund critical development projects and infrastructure, thus hindering economic growth. Another significant challenge is the inadequate statistical data, which affects the ability to make informed, evidence-based policy decisions. Without reliable data, it's difficult to plan effectively and measure progress.

Poor implementation of economic planning is also a notable problem, as even the best-laid plans cannot yield results if not properly executed. This might be due to bureaucratic inefficiencies, corruption, or lack of capacity.

However, the statement under-population is not a commonly recognized problem in Nigeria. In fact, Nigeria is known for having a large and rapidly growing population, which sometimes poses its own challenges in terms of resource management and service provision. Therefore, the issue of under-population can be seen as an exception to the typical problems of development planning in Nigeria.

The largest component of national income in developing countries consist of

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In developing countries, the largest component of national income typically consists of wages and salaries. This means that the income earned by individuals from their employment or labor work forms a significant part of the national income. Several reasons contribute to this:

• Labor-Intensive Economy: Developing countries often have labor-intensive sectors such as agriculture, manufacturing, and services, which employ a large number of people. These sectors need a substantial workforce, leading to the major share of national income coming from wages and salaries.
• Lower Levels of Capital: Capital refers to tools, equipment, and machinery used in production. Developing countries may have lower levels of capital investment, focusing more on labor to boost production, which again increases the share of wages and salaries in national income.
• Demographics: Developing countries often have younger populations with a high dependency on labor for earning income. This means most people derive their livelihood through working jobs rather than owning businesses or properties, leading to wages and salaries dominating national income.

In contrast, components like rent and profit tend to form a smaller component of national income in developing economies. While these components are important, they are usually not as predominant as wages and salaries due to the lesser commercialization and capital-intensive industries compared to developed countries.

An economy in which decision of what to produce is taken partly by private individuals and state is referred to as Economy.

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An economy in which decisions about what to produce are taken partly by private individuals and partly by the state is referred to as a Mixed Economy.

In a Mixed Economy, there is a combination of both private sector and public sector involvement. This structure allows private individuals to own businesses and make decisions about what to produce based on market demands and profitability. At the same time, the government also plays a significant role in economic decision-making, often by regulating certain industries or directly providing goods and services. The balance between these two forces aims to combine the benefits of both market dynamism and government oversight.

Here's a brief explanation of other economic systems to provide contrast:

• Communist Economy: In a communist economy, the state owns and controls all means of production. Private ownership is minimal or nonexistent, and the government makes all decisions about what to produce and how to distribute resources.


• Socialist Economy: A socialist economy also involves significant government control, but there can be some level of private ownership. The government typically focuses on wealth distribution and providing basic services, aiming for social welfare and equality.


• Capitalist Economy: In a capitalist economy, private individuals and corporations own and manage all businesses. Decisions about production and distribution are made based on market forces and competition, with minimal government intervention.

In summary, a Mixed Economy represents a blend that includes elements of both market-driven and government-directed decisions, which sets it apart from other economic types.

Holding money to take care of contingencies is

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

Let me explain this further in a simple way:

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

Which of the following NOT among the objectives of OPEC?

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When analyzing the objectives of OPEC (Organization of the Petroleum Exporting Countries), it is important to look at the core goals that this organization typically aligns with:

1. To stabilize the price of oil in the world market: This is indeed one of the primary objectives of OPEC. By coordinating the oil production levels among its members, OPEC strives to maintain oil price stability in the global market.

2. To stabilize the revenue from oil to producing countries: Another key objective of OPEC includes ensuring consistent and fair revenue for its oil-producing member countries. By influencing oil prices and production levels, OPEC helps in maintaining stable revenues for these nations.

3. To make sure that oil flows to all the consuming countries: Ensuring the continuous supply of oil to consuming countries is a goal aligned with OPEC's efforts to balance supply and demand for economic and energy stability worldwide.

4. To establish petroleum refineries in all member states: This is NOT among the objectives of OPEC. OPEC does not focus specifically on establishing petroleum refineries in all its member states. The organization's primary focus is on coordinating and unifying the petroleum policies among its member countries, not on the physical establishment of refineries.

An industry engaged in the extraction of raw materials and its conversion into semi-finished goods is called industry.

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Processing involves transforming raw materials or inputs into more refined or semi-finished products. This can include various stages of production, such as refining, manufacturing, assembly, or other forms of processing.
The processing industry plays a vital role in taking raw materials from their natural state and converting them into products that can be used for further processing or consumed by end-users. This industry typically adds value to the rav materials by applying different processes, technologies, and expertise.
NOTE: Although manufacturing is involved in the production of goods, it does not specifically address the extraction of raw materials. Manufacturing encompasses a broader range of industries involved in producing finished goods from raw materials, components, or parts.

When an increase in the price of a commodity lead to a fall In the demand for another, the demand for the two commodities are said to be

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Competitive demand refers to a situation where two or more goods are seen as substitutes for each other. When the pric of one commodity increases, consumers tend to shift their demand towards the substitute commodity, resulting in a decrease in the demand for the original commodity.
For example, if the price of coffee increases significantly, some consumers may choose to switch to tea as a substitute. A: a result, the demand for coffee decreases while the demand for tea increases.

Stock exchange market deals with

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The stock exchange market primarily deals with the sales of second-hand securities. In this context, "second-hand securities" refer to financial instruments such as stocks and bonds that have already been issued by a company and are currently being traded among investors. When a company first issues stocks or bonds, it is done in the primary market. Once these securities are purchased and then resold by investors, they are traded in the secondary market, commonly known as the stock exchange.

Here's a simple rundown of how it works:

1. **Initial Offering:** A company looking to raise capital might issue stocks or bonds to investors. This takes place in the primary market through an Initial Public Offering (IPO) or similar mechanisms.

2. **Secondary Trading:** Once issued, these securities can be bought and sold on the stock exchange. Investors trade these securities based on supply and demand, trying to make a profit by buying low and selling high.

Therefore, the stock exchange acts as a platform where buyers and sellers meet to trade these second-hand securities. This buying and selling provide the liquidity required for the market to function efficiently and helps in price discovery of the securities based on market demand.

The following will occur when maximum price is fixed below the free market price EXCEPT that

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When a maximum price is fixed below the free market price, it can lead to several outcomes due to the restrictions placed on how high a price can go. Here's a breakdown of what typically happens:


1. **Encouragement of Black Market:** When the price ceiling is lower than what would naturally occur, some sellers may not be willing to sell at the lower price. This may encourage them to sell illegally at higher prices, leading to the emergence of a **black market**.


2. **Excess Demand:** A lower price means that more people can afford the product. Therefore, demand for the product increases, but because producers are not willing to supply more at that low price (since they make less profit), there isn't enough product to meet demand. This creates **excess demand**. People want more of the product than is available.


3. **Excess Supply:** This situation is not a consequence of setting a maximum price below the free market price. **Excess supply** happens when the price is too high, resulting in goods remaining unsold as consumers are not willing to buy at that price. But since in this scenario, the price is kept low, the opposite happens: a shortage, not a surplus.


4. **Rationing of Commodities:** To manage the excess demand and ensure fair distribution since there's a shortage, the government or sellers may need to introduce **rationing**. This means setting limits on how much each individual can purchase to prevent the faster depletion of available goods.


In summary, the statement about **excess supply** is the one that would not occur when a maximum price is fixed below the free market level. Instead, you'll have excess demand. This discrepancy is because the artificially low price discourages producers from supplying more of the good.

Which of the following is NOT a major role of OPEC in production, and marketing of petroleum?

Answer Details

Refining of petroleum products in member countries is NOT a major role of OPEC in the production and marketing of petroleum.

Let me explain why:

• Stabilizing oil prices by putting a production ceiling: OPEC primarily works by coordinating and unifying the petroleum policies of its member countries. By setting production levels, it aims to stabilize the oil market to avoid excessive fluctuations in oil prices.
• Raising the revenue of member countries from oil through price increase: OPEC seeks to ensure that member countries receive fair and stable incomes from their petroleum resources. This often involves strategies to influence global oil prices.
• Ensuring efficient and regular supply of oil to the market: OPEC works to provide a reliable supply of oil to the global market, preventing shortages and ensuring that the supply meets demand.
• Refining of petroleum products in member countries: This is not a primary function of OPEC. While refining can occur within member countries, OPEC's core activities focus on the regulation of crude oil production and market stability rather than refining processes.

In summary, the main roles of OPEC include balancing oil production and prices and ensuring a steady supply, but they do not majorly focus on the refining of petroleum products.

An industry operating in a perfect competitive market situation will maximum profit when

Answer Details

In a perfectly competitive market, an industry or firm will maximize its profit when its Marginal Cost (MC) equals Marginal Revenue (MR). This is a fundamental principle of microeconomics that ensures the firm's resources are being used most efficiently.

Here's why:

• Marginal Cost (MC) is the additional cost incurred from producing one more unit of a good or service.
• Marginal Revenue (MR) is the additional revenue generated from selling one more unit of a good or service.

If MC = MR, the cost of producing an additional unit is exactly equal to the revenue it generates, meaning any increase or decrease in production would not improve profitability. At this point, the firm is efficiently allocating its resources.

If MC < MR; it means that the cost of producing an extra unit is less than the revenue it brings. The firm can increase its profit by producing and selling more units.

Conversely, if MC > MR; the cost of producing an extra unit exceeds the revenue it brings, and the firm should reduce production to avoid losses.

Therefore, to achieve maximum profit, a firm in a perfectly competitive market should continue adjusting its output until the cost of the last unit produced is exactly equal to the revenue it produces, which occurs at MC = MR.

The willingness of an individual backed up with purchasing power at a given time is

Answer Details

The concept you are referring to is effective demand. Let me explain it to you in a straightforward way:

Demand: Generally, demand refers to the desire or willingness of a consumer to purchase goods or services. However, just having the desire is not enough. Demand becomes impactful only when it is supported with the capability to purchase.

Effective demand: This is more than just a simple desire or demand. It represents the situation where an individual not only wants to purchase a product or service but also has the actual purchasing power to do so. This means they have the money or resources to back up their desire at a given time.

Desire: This term simply denotes a wish or want, without any implication of capability to fulfill it. For instance, many people might desire a luxury car, but not everyone can afford it.

Utility: This is a different concept entirely, referring to the satisfaction or benefit a consumer receives from consuming a product or service. It does not necessarily align with the ability to purchase.

In summary, when discussing the willingness to buy something and having the funds ready at that moment, it's referred to as effective demand because it combines the desire with the actual capacity to fulfill that desire.

The following are type of business organization EXCEPT

Answer Details

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

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

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

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

Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds

Answer Details

Under perfect competition, a profit-maximizing firm will hire labor up to the point where the marginal revenue product of labor (MRP) is equal to the wage rate. MRP represents the additional revenue generated by adding one more unit of labor.
Since the firm aims to maximize profits, it will continue hiring labor until the MRP is greater than or equal to the wage rate. At this point, the last unit of labor hired contributes more to total revenue than to total cost, resulting in increased profits for the firm.