JAMB UTME - Economics - 2019
Question 1 Report
The money market equilibrium is defined as_________
Answer Details
The money market equilibrium is defined as when the demand and supply of money are equal. In other words, the amount of money people want to hold (demand) is equal to the amount of money available (supply). Think of the money market as a marketplace where people buy and sell money. Just like any other market, when there is high demand for a product, its price (in this case, the interest rate) will increase. When there is low demand, the price (interest rate) will decrease. In the money market, the interest rate is a measure of the cost of borrowing money. If there is a high demand for money, people are willing to pay a higher interest rate to borrow it. This results in an increase in the interest rate. On the other hand, if there is low demand for money, people are not willing to pay a high interest rate, and the interest rate decreases. When the demand and supply of money are equal, the interest rate will be at the level where the quantity of money that people want to hold is equal to the amount of money available. This is the money market equilibrium.
Question 2 Report
One of these is not a way by which government encourage industrialization?
Answer Details
Low productivity and inefficiency is not a way by which government encourages industrialization. In fact, it is the opposite. Encouraging industrialization means creating a favorable environment for businesses to grow and increase productivity. Low productivity and inefficiency hinder the growth of industries, making it difficult for the government to encourage industrialization. On the other hand, protection of infant industries, establishment of Nigeria Enterprises Promotion Decree, and establishment of higher institutions are ways by which the government can encourage industrialization. Protection of infant industries involves offering support and protection to new and growing businesses to help them establish and grow. The establishment of Nigeria Enterprises Promotion Decree provides support and incentives for local businesses to grow and expand. The establishment of higher institutions provides a well-educated workforce, which is essential for industrial growth and development.
Question 3 Report
The release of a liquid petroleum hydrocarbon into the environment is_______
Answer Details
An oil spill is the release of a liquid petroleum hydrocarbon into the environment. This can occur in a variety of ways, such as from an oil tanker that leaks or a pipeline that ruptures. The oil can contaminate the water and harm wildlife, as well as damage the natural environment and disrupt human activities such as fishing and tourism. It is important to take measures to prevent and clean up oil spills to minimize their impact on the environment and local communities.
Question 4 Report
An economy system that uses what is regarded as the "Market mechanism" is called_______
Answer Details
Capitalism is an economic system that uses the market mechanism. In a capitalist economy, individuals and businesses own and operate the means of production, and the prices of goods and services are determined by supply and demand in the marketplace. In simple terms, this means that people are free to produce and sell whatever they want, and consumers are free to buy whatever they want, at prices that are determined by the market. This creates an economy that is driven by competition and innovation, and is often associated with growth and prosperity. It is important to note that capitalism can take on different forms, ranging from a more laissez-faire approach with minimal government intervention, to a more regulated form with a larger role for the government in managing the economy.
Question 6 Report
A method of analysis that draws conclusions from data rather than general Principles already known is________
Answer Details
Inductive reasoning is a method of analysis that draws conclusions from data rather than general principles already known. In simple terms, inductive reasoning takes specific observations or pieces of evidence and uses them to form a general conclusion or pattern. For example, if you observe that every time it rains, the streets get wet, you can use inductive reasoning to conclude that rain causes the streets to get wet. In contrast, deductive reasoning starts with a general principle or premise and uses it to reach a specific conclusion. For example, if you know that all birds have feathers and you observe a creature with feathers, you can use deductive reasoning to conclude that it's a bird. Inductive reasoning is often used in scientific research, where data is collected and analyzed to form hypotheses or theories that can then be tested through further experimentation.
Question 7 Report
Given two substitute goods (X and Y) with demand and supply function;
Qd = 7p - 12
Qs = 4p + 9
Find the magnitude of excess demand when p = ₦18
Answer Details
Question 8 Report
Most of the National debts is "dead weight" in the sense that is____
Answer Details
Most of the national debt is "dead weight" in the sense that it is not covered by any real asset. This means that the debt is not backed up by any tangible property or valuable resource. Instead, it is simply a financial obligation that the government owes to its creditors, who have loaned the government money. The government must pay back this debt with interest, which can add up over time and become a burden on the economy. This type of debt is sometimes referred to as "dead weight" because it does not contribute to the growth or development of the economy, but instead represents a financial obligation that must be met.
Question 9 Report
If wage rate is less than the average revenue product, the firms would be earning________
Answer Details
If the wage rate is less than the average revenue product (ARP), the firms would be earning a profit. The ARP is the amount of revenue generated by one unit of labor and is typically greater than the wage rate. If the firm is paying its workers less than the amount of revenue they generate, the firm will have extra revenue left over, which is a profit. So, in this situation, the firm would either be earning a normal profit or a super normal profit, depending on the size of the gap between the wage rate and the ARP. A normal profit is the minimum level of profit necessary for a firm to stay in business, while a super normal profit is a profit that is higher than the normal profit.
Question 10 Report
An Instrument used by the central bank to fix commercial and merchant banks total credit to domestic economy is________
Answer Details
Question 11 Report
Whatever form an economic system may take, choice is essential for members of the community because resources are__________
Answer Details
Scarce. This means that there is not enough of a certain resource to meet the demand or needs of everyone in the community. As a result, choices have to be made about how to allocate these limited resources among different individuals, groups, or uses. When resources are scarce, it is important to make decisions about their use in the most efficient and effective way possible.
Question 12 Report
Let the quantity demanded in units of a particular commodity be represented as Qd = 80 - 2P, find the quantity demanded when P = ₦3.
Answer Details
The quantity demanded (Qd) of a commodity is related to its price (P) through the equation Qd = 80 - 2P. So, if we know the price of the commodity, we can use this equation to find the quantity demanded. In this case, the price is given as ₦3. So, we can plug in this value of price into the equation to find the quantity demanded: Qd = 80 - 2P Qd = 80 - 2 * 3 Qd = 80 - 6 Qd = 74 Therefore, the quantity demanded when the price is ₦3 is 74 units.
Question 13 Report
One of these is not a problem of agriculture___________
Answer Details
"Provision of employment" is not a problem of agriculture. It is actually a benefit of agriculture. Agriculture provides job opportunities for people, from farmers to food processing workers. The other three options listed are actual problems faced by the agriculture industry: - Lack of preservation and storage facilities can lead to food waste and loss of income for farmers. - Land tenure system refers to the rules and regulations governing who can use and own land. In many countries, the land tenure system is not favorable for small farmers and can limit their ability to produce food. - Poor transportation systems can make it difficult for farmers to get their products to market and for consumers to access fresh food.
Question 14 Report
The demand for labour is a________
Answer Details
The demand for labor is a "derived demand". This means that the demand for labor is not a direct demand for labor itself, but rather it is derived from the demand for goods and services that labor can produce. In other words, businesses hire workers because they need them to produce the goods and services that they sell. For example, if a business sells pizzas, it will need workers to make the pizzas, deliver the pizzas, and serve the customers. The demand for labor in this case is derived from the demand for pizzas. If the demand for pizzas increases, the demand for labor to produce and deliver the pizzas will also increase. Therefore, the demand for labor is closely tied to the demand for the goods and services that labor produces, and it is derived from that demand.
Question 16 Report
The most reliable and acceptable index of economic growth is the__________
Answer Details
Question 17 Report
An economic condition in which much reduced economic activity co-exists with inflation is referred to as__________
Answer Details
Question 18 Report
Whether a monopolist is able to increase his revenue by restricting his output depends on the shape of the_________
Answer Details
The shape of the demand curve determines whether a monopolist is able to increase their revenue by restricting output. A monopolist is the only seller in the market and has some control over the price of the good or service they provide. If the demand for their product is high, they can increase the price, and if they restrict the quantity of the product they supply, the price will go up even more. The demand curve shows the relationship between the price of a good and the quantity of it that consumers are willing and able to buy. If the demand curve is downward sloping, it means that as the price of the good increases, the quantity demanded decreases. This is because consumers will switch to cheaper alternatives when the price of the good goes up. So, if the monopolist restricts their output, the price will go up and they will make more profit as long as the demand curve remains downward sloping. However, if the demand curve becomes perfectly inelastic, meaning that the quantity demanded does not change with the price, then the monopolist will not be able to increase their revenue by restricting output. Therefore, in simple terms, the shape of the demand curve determines whether a monopolist can increase their revenue by restricting output.
Question 19 Report
A demand which gives rise to the reverse of the law of demand is__________
Question 20 Report
If AC and MC are represented on a graph, the MC curve will cut the AC curve_______
Answer Details
The MC (marginal cost) curve will cut the AC (average cost) curve at the minimum point on the AC curve. This is because the minimum point on the AC curve represents the lowest average cost of production, and the MC curve intersecting the AC curve at this point indicates that the marginal cost of producing one more unit is equal to the average cost. In other words, at the minimum point on the AC curve, any further increase in production would lead to an increase in the average cost.
Question 21 Report
The business risks of a public corporation are borne ultimately________
Answer Details
Question 23 Report
When of the following matters may account for changes in supply?
I - technological advances in an industry
II - changes in labour costs
III - changes in source of supply
IV - changes in levels of taxation
Answer Details
All of the options listed - I, II, III, and IV - can contribute to changes in supply. Technological advances in an industry can increase the efficiency of production and lower costs, leading to an increase in supply. Changes in labor costs, such as an increase in wages, can make production more expensive, leading to a decrease in supply. Changes in the source of supply, such as a new supplier entering the market or a current supplier becoming unavailable, can also impact supply. Finally, changes in levels of taxation, such as an increase in taxes on production, can make production more expensive and lead to a decrease in supply. Therefore, all four options can impact changes in supply.
Question 25 Report
Assume that, for a certain country in a given year, the index of import prices stands at 102, the index of export prices stands at 106. The terms of trade are (to the nearest whole number)
Answer Details
Question 26 Report
If two commodities are unrelated, a change in the price of one will____________
Answer Details
If two commodities are unrelated, a change in the price of one will have no effect on the quantity demanded of the other. This is because unrelated commodities are not substitutes for each other, so a change in the price of one will not affect the demand for the other. For example, if the price of apples increases, it will not affect the demand for bananas, since apples and bananas are not substitutes for each other. Similarly, if the price of bananas decreases, it will not affect the demand for apples. This is because the demand for each commodity is determined by its own factors, such as income, tastes, and preferences, and not by the price of other unrelated commodities.
Question 27 Report
The basic and essential economic problems in a community are related to choice and________
Answer Details
The basic and essential economic problems in a community are related to choice and scarcity. Scarcity refers to the limited availability of resources in any given community. These resources can include natural resources, such as land, water, and minerals, as well as human-made resources, such as factories, machines, and tools. Because these resources are limited, there is never enough of them to satisfy everyone's wants and needs. This scarcity means that individuals, businesses, and governments must make choices about how to allocate these resources in the most efficient way possible. This requires making trade-offs and decisions about what goods and services to produce, how to produce them, and who should receive them. , Freedom, and Politics, are not directly related to the basic and essential economic problems of choice and scarcity. Social class, may be related to economic problems, but is not a fundamental concept in economics.
Question 28 Report
When a member's currency is declared "scarce", it is the duty of the IMF to______
Answer Details
Question 30 Report
Consider the diagram below which shows a demand curve (d).
Total expenditure on a commodity is represented by the area TUVW. Consumer's surplus is represented by__________
Answer Details
Consumer's surplus is represented by the area above the demand curve and below the market price. In the diagram, this would be the area represented by VWX. Consumer's surplus measures the difference between the amount that consumers are willing to pay for a good and the amount they actually pay. In the diagram, consumers are willing to pay more for the good up to the market price, represented by the height of the demand curve. The area VWX represents the amount by which they are benefiting from the market, as they are paying less than they would be willing to pay. So, the answer to the question is the area VWX represents consumer's surplus.
Question 31 Report
Let capital formation = CF, Production = P, C = consumption. Then CF =_______
Answer Details
Capital formation (CF) is equal to P minus C, where P is production and C is consumption. Capital formation refers to the process of creating new capital goods, such as factories, machines, and infrastructure, which are used to produce goods and services. This process requires investment in new capital goods and is therefore reflected as a reduction in consumption. So, CF = P - C, where P is the total amount of goods and services produced and C is the amount consumed by households, businesses, and government. This equation shows that the amount of new capital being formed is equal to the difference between what is produced and what is consumed. In simpler terms, capital formation is the amount of investment made in the economy to increase its productive capacity and support future economic growth.
Question 32 Report
The use of government income and expenditure instrument to regulate the economy is termed______
Answer Details
The use of government income and expenditure instrument to regulate the economy is called fiscal policy. Fiscal policy is a tool used by the government to influence the economy by changing the level and composition of government spending and taxation. The main aim of fiscal policy is to achieve macroeconomic objectives, such as controlling inflation, promoting economic growth and stability, and reducing unemployment. When the government increases its spending and/or reduces taxes, it injects more money into the economy, which can increase consumer spending and business investment. This can help to stimulate economic growth, create jobs, and increase aggregate demand. On the other hand, when the government reduces its spending and/or increases taxes, it takes money out of the economy, which can help to cool down an overheating economy and reduce inflation. In summary, fiscal policy involves using government income (taxation) and expenditure (spending) to influence the economy and achieve macroeconomic objectives.
Question 34 Report
The shape of the production possibility frontier is determined by the_________
Answer Details
Question 35 Report
Adam Smith's Theory of value stated that the value of a commodity depended on________
Answer Details
Adam Smith's theory of value stated that the value of a commodity depends on the amount of labour expended on its production. Smith believed that in a market economy, the value of a good or service is determined by the amount of work required to produce it. According to his theory, the more time and effort that goes into making a product, the more valuable it becomes. This idea is known as the "labour theory of value." In simple terms, the value of a product is determined by the effort and time put into making it. The more effort and time required, the more valuable the product is considered to be. This theory is considered to be one of the foundations of classical economics and is still widely studied and discussed today.
Question 36 Report
In the case of highly or close complementary goods, the indifference curve is_______
Answer Details
Question 37 Report
Which of the following matters may account for changes in demand?
I - changes in consumer preferences
II - changes in real income
III - changes in distribution of incomes
IV - changes in levels of taxation
Answer Details
Changes in demand can be influenced by various factors. Among them, changes in consumer preferences, real income, distribution of incomes, and levels of taxation can all affect the quantity of a good or service that consumers are willing and able to buy at a given price. I. Changes in consumer preferences refer to shifts in the tastes and preferences of consumers. For example, if people start to prefer healthier food options, the demand for fruits and vegetables may increase while the demand for processed foods may decrease. II. Changes in real income can also impact demand. If people's real income increases, they may be able to afford more goods and services, which can lead to an increase in demand for those products. Conversely, if real income decreases, consumers may cut back on their spending, leading to a decrease in demand. III. Changes in the distribution of incomes can also affect demand. If the distribution of incomes becomes more unequal, with some people becoming much richer and others becoming much poorer, this can impact the demand for certain products. For example, if the rich become richer, they may be more willing to purchase luxury goods, leading to an increase in demand for those products. On the other hand, if the poor become poorer, they may not be able to afford certain goods, leading to a decrease in demand. IV. Changes in levels of taxation can impact demand by affecting the disposable income of consumers. If taxes increase, consumers may have less disposable income, leading to a decrease in demand for certain goods and services. Conversely, if taxes decrease, consumers may have more disposable income, leading to an increase in demand for certain products. Therefore, the answer is: I, II, III, IV, since all four factors can account for changes in demand.
Question 38 Report
The last link in the channel of distribution is____________
Answer Details
The last link in the channel of distribution is the Consumer. The channel of distribution refers to the path that a product takes from the producer to the final customer. The producer creates the product, and it is then sold to a wholesaler, who sells it to a retailer, and finally, the retailer sells it to the consumer. The consumer is the end user of the product and is the last link in the chain of distribution. In other words, the consumer is the person who ultimately buys the product and uses it for their own purposes. The channel of distribution is important because it helps to ensure that the product reaches the end user in a timely and efficient manner.
Question 39 Report
The term "Money at call and short notice" in a bank's assets represents the bank's loans to______
Answer Details
The term "Money at call and short notice" in a bank's assets represents the bank's loans to the money markets. Money at call and short notice refers to loans that the bank has made to other financial institutions or borrowers that can be quickly repaid upon request or on short notice, typically within 24 hours or less. These loans are typically used to finance short-term funding needs, such as meeting daily operational expenses or managing cash flows. The money markets are where short-term borrowing and lending takes place, typically for a period of less than a year. This includes activities such as interbank lending, commercial paper, and repurchase agreements. By providing loans to the money markets, banks are able to earn interest income while also helping to facilitate the flow of funds between borrowers and lenders. In summary, "Money at call and short notice" represents the bank's loans to the money markets, which are a key part of the financial system for short-term borrowing and lending.
Question 40 Report
The method obtained by adding all the reward of factors of production in national income is________
Answer Details
The method of adding up all the rewards of the factors of production in national income is known as the "income approach." The income approach calculates national income by summing up all the income received by individuals and firms in the economy. This includes wages, salaries, interest, rent, and profits earned by the factors of production, such as labor, capital, and land. The idea behind this approach is that the total income generated in an economy is equal to the total amount spent on consumption and investment, and this spending creates the demand for goods and services produced in the economy. This method provides a comprehensive picture of the total income generated in the economy and is useful in understanding the distribution of income among different groups in the economy and the sources of economic growth.
