JAMB UTME - Economics - 2018

From the diagram shown, the optional point of production is_____________?

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In an open economy, the GNP is measured as_____________?

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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.

From the table, Calculate the mean?

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Mean= ∑fx/∑f

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

  =340/20

  =17.0

By calculation, the mean of the distribution is not 18

Which of the following is not a direct tax?

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Mortgage banks give loans to investors on a long term basics to_____________

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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.

The number of people who are qualified to work and who offer themselves for employment is called____________?

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

The privatization exercise in Nigeria is a move towards a____________

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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.

When a variable is associated with time period, it is_____________

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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?

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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.

An ad valorem tax is imposed on_____?

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

Concentrating industries in one place is advantageous because there are gains in terms of_____________

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External economies of scale are economies of scale which a firm enjoys by virtue of being in an industry or environment where for instance, similar firms are located, as this question asks about. They are still economies of scale though, so technically B could also be correct. This is one of those tricky questions.

Factors affecting size of Labour Force include the following EXCEPT?

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

The factor of production that has the highest degree of mobility is__________?

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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.

Which of the following is an invisible item?

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The invisible item in the list is "Banking services". In economics, visible items are tangible goods that can be physically seen and touched, while invisible items are intangible services that cannot be physically seen or touched. Petroleum services, processed rice, and processed milk are all visible items because they are tangible goods that can be seen, touched, and measured. On the other hand, banking services are intangible and cannot be physically seen or touched. Examples of banking services include providing loans, managing savings accounts, facilitating transactions, and offering financial advice. Therefore, banking services are considered an invisible item because they are intangible and cannot be physically seen or touched.

The formula (index of export prices)/(index of import prices) x 100 is used to measure the____________

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Term of trade refer to the rate at which a country’s exports exchange for its import. It is expressed as a relation between the prices a country receives for its export and the prices it pay for import. Term of trade is usually measured by this mathematical formula:

A country's budget allocation to various sectors of the economy is shown in the pie chart.

What is the ratio of expenditure of health to Agriculture?

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Total budget =$7,200

  Expenditure on Health = x/$7200 × 3600 = 600

  3600x = 600 × $7200

  x = 600×$7200/3600

  x = $1,200

  Therefore, the budget allocated to Health is $1,200

  Expenditure on Agriculture =x /$7200 × 3600 = 800

  3600x = 800 × $7200

  x = 800 × $7200/3600

  x=$1,600

  Therefore, the budget allocated to Agriculture is $1,600

  Ratio of expenditure on Health to Agriculture;

  Ratio=1200:1600

  =3:4

One of the major forms of migration that tends to create problem in all developing countries is that of___________

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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.

The use of income and expenditure instruments or policies to control or regulate the economic activities of a country is known as?

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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.

From the table, how many people scored above 6?

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

  =24

The mean is the best measure of central tendency because it__________

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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.

Utility is the satisfaction derived from____________

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Utility is an economic term introduced by Daniel Bernoulli referring to the total satisfaction received from consuming a good or service.

Consider the following statements:

  1. Climate and availability of water largely determines the pattern of the population distribution.

  2. Density of population helps in getting a better understanding of the spatial distribution of population in relation to land

  Which of the statement(s) given above is/are correct

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Both statements are correct. Climate and availability of water are important factors that can affect where people choose to live. Areas with a favorable climate and a reliable source of water are often more attractive to people, leading to higher population densities in those regions. On the other hand, areas with harsh climates or limited access to water may have lower population densities. Density of population refers to the number of people living in a given area. By understanding the population density in different regions, we can get a better understanding of how densely populated an area is and how the population is distributed over the land. This information is useful in a variety of fields, including urban planning, resource management, and public health.

From the table, the mean of the distribution is___________

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Mean= ∑fx/∑f

  =(4+15+8+5)/(2+5+2+1)

  =32/10

  =3.2

The bank type responsible for the formulation of rules and regulations guiding the banking industry is known as?

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The bank type responsible for the formulation of rules and regulations guiding the banking industry is the Central bank. A central bank is an independent financial institution that oversees the monetary policy and banking system of a country. Its main functions include regulating commercial banks, managing the country's money supply, and controlling inflation. The central bank is also responsible for formulating rules and regulations that guide the banking industry, as well as ensuring compliance with these rules. In many countries, the central bank is the lender of last resort, meaning that it provides emergency loans to commercial banks in times of financial crisis. Examples of central banks include the Federal Reserve in the United States, the European Central Bank in Europe, and the Bank of Japan in Japan.

The policy by which government encourages producers of export goods to produce and export more in order to earn more foreign exchange is called__________

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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.

The effects on the demand for product A caused by a change in the price of product B is Called____________

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The study of Economics becomes necessary because of the______________

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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.

The Economic Community of West African States (ECOWAS) has been slow in achieving its objective because of______________

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

If a demand curve that intersects a perfectly inelastic supply curve shift is rightward, then____________

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If the standard deviation of a given data is 8.2, find its variance_______________

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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.

If the price elasticity of demand for a good is 0.43 an increase in the price of the good will result in____________

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The need to construct a scale of preference is necessitated by____________

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The need to construct a scale of preference is necessitated by scarcity and the need for choice. Resources are limited, but human wants and needs are unlimited. This creates a situation of scarcity, where people must make choices about how to allocate their resources to satisfy their most pressing needs and wants. A scale of preference is a tool that helps individuals to prioritize their wants and needs, so that they can make informed choices about how to allocate their limited resources. For example, imagine you have a limited amount of money to spend on groceries for the week. You have a long list of items you want to buy, but you can't afford to buy them all. By constructing a scale of preference, you can prioritize the items on your list according to how important they are to you. You might decide that buying bread, milk, and vegetables are your top priorities, while buying luxury items like chocolates and wine are lower on your list. This allows you to make the most of your limited resources and satisfy your most pressing needs first. Therefore, the need to construct a scale of preference is necessitated by scarcity and the need for choice, as it helps individuals to allocate their limited resources in a way that best satisfies their wants and needs.

Efficiency of labour in a country is determined by the following except the____________

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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.

The privatization of public enterprises will lead to efficient management of resources in the economy. This statement can best be described as_____________

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Commercial bank reserves at the Central Bank____________

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The form of capital that is required for the day-to-day running of production activities is called?

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Liquid or current capital is the type of capital that is required for the day-to-day running of production activities. They are also changed from one form to another examples are finished goods and money.

From the graph above the consumer will attain equilibrium at point_______________

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If the price per unit  is N2, what is the average revenue when 6 men are employed?

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

660/6 = 110 

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?

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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.

The reduction in the value of a country’s currency in relation to the value of the currencies of other nation is known as____________

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