An upward movement along the same supply curve result in_____________

an increase in quantity supplied

a decrease In quantity supplied

Human wants are insatiable because wants are____________

Unlimited while means are scarce.

Unlimited and means are also unlimited

Limited and means are also limited

Unlimited while means are scarce.

The population density of a town made up of 50 square kilometer land area and 100 million people is________

2 million people per square kilometer 

50,000 people per square kilometer

2 million people per square kilometer 

0.5 million people per square kilometer

20 million people per square kilometer

Which of the following is an advantage of localization of industry?

Development of subsidiary firms

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

Volume of trade between countries

direction of international trade

The basic economic problems of society include___________

what to produce, how and for whom

scarcity, for whom to produce and where

what to produce, how and for whom

The mean is the best measure of central tendency because it__________

is a balancing point in an observation

can be calculated from incomplete data

is a balancing point in an observation

is a midpoint value in an array of data

is not affected by extreme values in a data

The study of Economics becomes necessary because of the______________

Large population size of the world

Opportunity cost of goods and services

Need to satisfy every desire of man

JAMB UTME - Economics - 2018 | Green Bridge CBT

Question 1 Report

Commercial bank reserves at the Central Bank____________

advancing trade, prospects Correct answer

controlling credit and money supply

reducing bank frauds

discouraging banking operations

Answer Details

Read lesson note on Banking (JAMB)

Banking

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Question 2 Report

A major determinant of the demand for a luxury good is____________?

the price of other goods

Correct answer

the price of the good

tastes and fashion

the income of consumers

Answer Details

Read lesson note on Factors Of Production And Their Theories (JAMB)

Read lesson note on The Theory Of Demand (JAMB)

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Factors Of Production And Their Theories

The Theory Of Demand

Demand

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Question 3 Report

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

N110 Correct answer

N120

N220

N330

Answer Details

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

660/6 = 110

Read lesson note on The Theory Of Production (JAMB)

The Theory Of Production

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Question 4 Report

In a developing economy, productivity is measured by the____________

output - labour ratio

capital - output ratio

output growth rate Correct answer

Output per capital

Answer Details

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The Theory Of Supply

The Theory Of Production

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Question 5 Report

Given that Y = C + 1, where C = 50 + 0.75 and 1 = N45m, what is the equilibrium level of income?

N20m

N380m Correct answer

N200m

N180m

Answer Details

Y = C + I
Y = 50 + 0.75 + 45
Y - 0.75 = 50 + 45
Y (1 - 0.75) = 95
0.25y = 95
Y = 95/0.25
Y = 380

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Theory Of Price Determination

The Theory Of Demand

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Question 6 Report

The formation of cartels or monopolies in other to obtain better bargaining or deals from other countries is characteristic of which of the following?

International monetary Fund

Countries with comparative advantage

Countries with superlative advantage

Countries producing same or identical goods

Correct answer

Answer Details

The formation of cartels or monopolies in order to obtain better bargaining or deals from other countries is characteristic of countries producing the same or identical goods. When multiple countries produce the same or very similar goods, they may face competition from each other in the global marketplace. This competition can lead to lower prices and lower profits for all the countries involved. To avoid this, these countries may form a cartel or monopoly by agreeing to work together to limit production or fix prices. By doing so, they can increase their bargaining power and negotiate better deals with other countries or buyers. For example, the Organization of the Petroleum Exporting Countries (OPEC) is a cartel made up of oil-producing countries that work together to regulate the supply and price of oil in the global market. By working together, they can maintain higher prices for their oil and negotiate better deals with buyers. Overall, the formation of cartels or monopolies can be a way for countries producing similar goods to gain more control over the market and secure better economic outcomes for themselves.

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International Trade

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Question 7 Report

The Economic Commission for Africa was set up by the_________

UNO Correct answer

ECOWAS

OAU

IMF

Answer Details

The Economic Commission for Africa (ECA) was set up by the United Nations (UN) in 1958. The ECA is one of the UN's five regional commissions and it was established to promote economic and social development in Africa. The ECA's primary objective is to provide research and policy analysis, as well as technical assistance, to African governments, with the goal of supporting their efforts to achieve sustainable and inclusive economic growth. The ECA also works to promote regional integration and cooperation among African countries, as well as to foster partnerships with other regions of the world. Therefore, the correct answer is the UNO.

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International Economic Organizations

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Question 8 Report

The minimum number of share holders for joint stock companies is_______________

2 Correct answer

Answer Details

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Business Organizations

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Question 9 Report

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

only the quantity will increase

The prices will remain constant

the equilibrium price and quantity will increase Correct answer

only the price will increase

Answer Details

Read lesson note on The Theory Of Demand (JAMB)

Read lesson note on Economics As A Science (JAMB)

The Theory Of Demand

Economics As A Science

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Question 10 Report

The reward for capital is___________

Interest Correct answer

Rent

Risk

Premium

Answer Details

The reward for capital refers to the return or compensation that an investor receives for providing their money as an investment in a business or project. This reward can take various forms, but some common ones are interest, rent, and dividends. Interest is a reward for lending money, and it is usually expressed as a percentage of the amount borrowed. For example, if you lend $1,000 to a company that promises to pay you 5% interest, you will receive $50 in interest payments each year. Rent is another form of reward for capital, and it is often associated with real estate. If you own a property and rent it out to tenants, you receive a regular income stream in the form of rent payments. This income can be a reward for the capital you have invested in the property. Risk is also a consideration when it comes to the reward for capital. Investments with higher risks may have the potential for higher returns, but they also have a greater chance of losing money. Therefore, investors who take on greater risk may expect a higher reward for their capital. Premium refers to an additional payment made to investors above and beyond their expected return. This may be offered to incentivize investment or to reward investors who are willing to take on greater risk or tie up their capital for a longer period of time. In summary, the reward for capital can take many forms, but it generally refers to the return that investors receive for putting their money to work in a business or investment. The specific form of the reward will depend on the type of investment and the risks involved.

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Factors Of Production And Their Theories

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Question 11 Report

Which of the following is not a direct tax?

capital gains tax

purchase tax Correct answer

personal income tax

capital tax

Answer Details

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Public Finance

Financial Institutions

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Question 12 Report

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

82.0

91.8

67.2 Correct answer

4.1

Answer Details

The variance of a given data is the square of the standard deviation. Therefore, if the standard deviation of a given data is 8.2, the variance can be calculated as follows: Variance = Standard deviation^2 Variance = 8.2^2 Variance = 67.24 So, the variance of a given data with a standard deviation of 8.2 is 67.24.

Read lesson note on Methods And Tools Of Economic Analysis (JAMB)

Methods And Tools Of Economic Analysis

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Question 13 Report

Import duty and tariffs is an instrument used for international trade restriction and so is __________?

Preferential duties Correct answer

Preferential treatment

Entreport

Trade license

Answer Details

In other to encourage or discourage the importation of certain goods from certain countries discriminate duties are charged on these goods.

Read lesson note on International Trade (JAMB)

International Trade

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Question 14 Report

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

a decrease in profit by 43% Correct answer

an increase in profit by 43%

a net loss

a net gain

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

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Theory Of Price Determination

The Theory Of Demand

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Question 15 Report

The main concern of economists is to________

Control the growth of population

Redistribute income between the rich and poor

Satisfy all human wants

Allocate scarce resources to satisfy human wants

Correct answer

Answer Details

Economics seeks to study the relationship between ends and means. Ends are unlimited while the means are limited. Scarcity means resources are limited in relation to the ends. Economics therefore seek is concerned with allocating limited resources among the competing and unlimited wants.

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International Trade

Business Organizations

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Question 16 Report

In an open economy, the GNP is measured as_____________?

C + 1 + G(X-M) Correct answer

C + 1 + G

C + 1 + G + X

C + 1 + G + M

Answer Details

In an open economy, GNP (Gross National Product) is measured as: C + I + G + (X - M), where: - C represents private consumption expenditures by individuals and households. - I represents gross investment by businesses, such as spending on capital goods like machinery, buildings, and equipment. - G represents government spending on goods and services. - X represents exports, which are goods and services produced domestically and sold to foreign countries. - M represents imports, which are goods and services produced in foreign countries and purchased domestically. The formula above takes into account both domestic and foreign economic activities. The net difference between exports (X) and imports (M) is included to determine the impact of international trade on the economy. Therefore, by using the formula C + I + G + (X - M) to measure GNP in an open economy, we can get a better understanding of the overall economic activity, including the impact of international trade on the economy.

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National Income

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Question 17 Report

The need to construct a scale of preference is necessitated by____________

scarcity and the need for choice Correct answer

The needs to satisfy wants

Non - availability of factors of production

Scarcity of resources

Answer Details

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.

Read lesson note on The Theory Of Demand (JAMB)

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The Theory Of Demand

Economics As A Science

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Question 18 Report

The current stage of the economy is depicted in curve I. The movement of curve I to II suggests___________

an Improvement in capital goods technology but not In consumer goods technology

a movement from unemployment to full employment

Correct answer

that the output for the society has declined

a gain in consumer goods technique and not in capital goods technique

Answer Details

Read lesson note on The Theory Of Production (JAMB)

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The Theory Of Production

Theory Of Costs

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Question 19 Report

Factors affecting size of Labour Force include the following EXCEPT?

Level of technology Correct answer

Retirement age

Government policies

Trade Union activities

Answer Details

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.

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Population And Labour Market

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Question 20 Report

X	2	3	4	5
F	2	5	2	1

What is the median of the distribution?

3 Correct answer

Answer Details

When a group data is involved, cumulative frequency is used. The formula will be: Median=[(N+1)/2]th

For member of odd number items. That is, where N is odd

Median=([N/2]th + [N/2 + 1]th)/2

For member of odd number items. That is, where N is odd

Solution:

From the table, there are 20 members as indicated by the cumulative frequency. Since the members are odd (10) the median age will be ([N/2]th + [N/2 + 1]th)/2

Median=([10/2]th + [10/2 + 1]th)/2

=(5th + 6th)/2

The 5th member is 3 and the 6th member is on 3

Median=(3 + 3)/2

=6/2

Median = 3

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Economic Development And Planning

Basic Tools Of Economic Analysis

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Question 21 Report

From the table, how many people scored above 6?

24 Correct answer

Answer Details

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

=24

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Agriculture

Population And Labour Market

Population

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Question 22 Report

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

Social attitude to work

Education and training

Total population Correct answer

Working conditions of workers

Answer Details

Efficiency of labour may be defined as the ability of labour to increase output without increasing the quantity of labour. Increase in efficiency is usually expressed in terms of increase in output of labour within a shorter period of time without any fall in the quality of goods and services produced. Factors which affect efficiency of labour include Education and training, attitude to work, working conditions of workers. However, total population is not a factor that affects efficiency of workers.

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Agriculture

Theory Of Consumer Behaviour

Population And Labour Market

The Theory Of Price Determination

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Question 23 Report

A capital market differs from the money market in that in the former _____?

The percentage of interest charged is more

Loan sought is long term Correct answer

Loan repayment is guaranteed

Loan sought is short-term

Answer Details

A capital market differs from the money market in that in the former, the loans sought are long term, whereas in the money market, the loans sought are short term. A capital market refers to the financial market where companies and governments can raise long-term funds by issuing and selling securities such as stocks, bonds, and other financial instruments. Investors who buy these securities are essentially lending money to the issuing entity for a longer duration, with the expectation of receiving interest payments and eventual repayment of the principal amount. The securities traded in the capital market have longer maturities, typically longer than a year. On the other hand, the money market is a financial market where short-term financial instruments such as treasury bills, commercial paper, and certificates of deposit are traded. The loans in the money market are typically for a duration of less than a year, with the purpose of meeting short-term funding needs. The interest rates on these loans are generally lower than in the capital market, given their short-term nature. In summary, while both markets deal with financial instruments, the primary difference between them is the duration of the loans sought, with the capital market focusing on long-term funding needs and the money market on short-term funding needs.

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Theory Of Consumer Behaviour

Theory Of Price Determination

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Question 24 Report

From the graph above the consumer will attain equilibrium at point_______________

K Correct answer

Answer Details

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The Theory Of Production

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Question 25 Report

By utility we mean____________

beneficial

power of satisfying a want Correct answer

advantageous

consumable

Answer Details

Read lesson note on Theory Of Price Determination (WAEC)

Read lesson note on The Theory Of Demand (JAMB)

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Read lesson note on Demand (WAEC)

Theory Of Price Determination

The Theory Of Demand

Supply

Demand

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Question 26 Report

In the history of economics the concept of division of labour is usually associated With______________-

Karl Marx

Adam Smith Correct answer

David Ricardo

J.M Keynes

Answer Details

The concept of division of labor is usually associated with Adam Smith, a Scottish economist who lived in the 18th century. Smith is known as the father of modern economics and his book "The Wealth of Nations" is considered a landmark in the history of economic thought. Division of labor is the process of breaking down the production of goods or services into smaller tasks, with each worker specializing in a particular task. Smith argued that this specialization allows workers to become more efficient and productive, as they become more skilled at their specific task over time. He famously used the example of a pin factory to illustrate the benefits of division of labor, showing how the productivity of the workers could be increased by breaking down the process of pin-making into smaller, specialized tasks. Smith believed that the division of labor not only increased productivity, but also led to economic growth and prosperity. By allowing each worker to focus on their specific task, and by encouraging trade and exchange between different workers and regions, the economy as a whole could become more efficient and produce more goods and services. This, in turn, would lead to greater wealth and prosperity for society as a whole. Overall, Smith's ideas about the division of labor had a profound impact on the development of modern economics and are still widely studied and discussed today.

Read lesson note on Economics As A Science (JAMB)

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Economics As A Science

Types And Basic Features Of Economic Systems

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Question 27 Report

Which of the following is an invisible item?

Petroleum services

Processed rice

Processed milk

Banking services

Correct answer

Answer Details

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.

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Banking

Money And Inflation

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Question 28 Report

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

cost economies

economies of scale

internal economies

external economies Correct answer

Answer Details

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.

Read lesson note on Theory Of Consumer Behaviour (WAEC)

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Theory Of Consumer Behaviour

Theory Of Production

Market Structures

Market Structure

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Question 29 Report

The type of business finance that entitles the holder to a fixed rate of dividend is______________--

bank load

debenture

preferred stock Correct answer

semi-fixed

Answer Details

The type of business finance that entitles the holder to a fixed rate of dividend is called "preferred stock." Preferred stock is a type of investment in a company that gives shareholders a higher priority claim on dividends compared to common stockholders. This means that if the company distributes profits as dividends, the holders of preferred stock will receive their dividend payments first, before common stockholders. In addition to priority dividend payments, preferred stockholders may also have other advantages over common stockholders, such as the ability to vote on certain matters, and a greater degree of safety in the event of bankruptcy or liquidation. The key feature of preferred stock is that it provides a fixed rate of dividend, which is agreed upon at the time of issuance. This means that the company is obligated to pay a certain amount of dividend to preferred stockholders, regardless of how the company performs financially. This can make preferred stock a relatively stable investment option, especially for investors who are seeking a regular income stream.

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Business Organizations

Theory Of Costs

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Question 30 Report

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

Rural-urban migration Correct answer

Rural-rural migration

Urban-rural migration

Seasonal migration

Answer Details

The major form of migration that tends to create problems in developing countries is rural-urban migration. This refers to the movement of people from rural areas to urban areas in search of better economic opportunities and a higher standard of living. There are several reasons why rural-urban migration occurs. In rural areas, there may be limited job opportunities, low wages, and a lack of access to basic services such as healthcare, education, and clean water. In contrast, urban areas offer more job opportunities, higher wages, and better access to services. However, rural-urban migration can create several problems. Firstly, it can lead to overcrowding and strain on urban infrastructure, such as housing, transportation, and public services. This can result in poor living conditions for migrants and contribute to the spread of diseases. Secondly, rural-urban migration can lead to social problems such as crime, poverty, and inequality. Migrants may face discrimination and difficulty integrating into urban communities, which can exacerbate social tensions. Finally, rural-urban migration can have negative impacts on rural areas, as it can result in a loss of skilled workers and a decline in agricultural productivity. This can have serious consequences for food security and rural development. Overall, while rural-urban migration can provide benefits for migrants in terms of economic opportunities and access to services, it can also create significant challenges for both urban and rural areas.

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Population

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Question 31 Report

Which of the following business organization is allowed to raise capital by sales of shares to more than twenty people?

Partnership

Sole proprietorship

Public limited liability company Correct answer

Private limited liability company

Answer Details

The business organization that is allowed to raise capital by sales of shares to more than twenty people is a Public limited liability company (PLC). A Public limited liability company is a type of business organization that is owned by shareholders who own shares of the company. These shares can be bought and sold by the general public, allowing the company to raise capital by selling shares to more than twenty people. In contrast, a Private limited liability company (Ltd) is a type of business organization that is owned by a small group of shareholders who are often family members or close friends. Private limited liability companies are not allowed to sell shares to the general public and are limited to selling shares to a maximum of 20 people. Partnerships and Sole proprietorships are not allowed to issue shares at all, as they are not considered separate legal entities from their owners. Instead, they raise capital by borrowing money from banks, investors or using their own funds.

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Business Organizations

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Question 32 Report

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

Joint demand Correct answer

cross-elasticity of demand

elasticity of supply

competitive demand

Answer Details

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The Theory Of Demand

Demand

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Question 33 Report

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?

2:3

3:4 Correct answer

4:3

5:4

Answer Details

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

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Public Finance

The Theory Of Demand

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Question 34 Report

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

Sales promotion

Term of trade

Export promotion Correct answer

International trade

Answer Details

The policy by which the government encourages producers of export goods to produce and export more in order to earn more foreign exchange is called export promotion. This policy is aimed at increasing the volume and value of a country's exports, thereby increasing its foreign exchange earnings. Export promotion can take many forms, including providing financial incentives, such as subsidies and tax breaks, to producers of export goods. It can also involve providing training and support to help exporters improve their competitiveness, as well as promoting a country's exports through trade shows and other marketing initiatives. The goal of export promotion is to help a country's businesses increase their exports, create jobs, and boost the economy.

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International Trade

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Question 35 Report

The ultimate objectives of economics is to_________?

decide under what circumstances that government should intervene in the economy

Organize production at the lowest cost

Make the best use of scarce resources Correct answer

make efforts to understands how the economy works

Answer Details

The ultimate objective of economics is to make the best use of scarce resources. This means that economics seeks to understand how people, businesses, and societies allocate limited resources such as land, labor, capital, and technology in order to satisfy unlimited wants and needs. The goal is to ensure that resources are used in the most efficient and effective way possible, so that people can enjoy a higher standard of living and greater economic prosperity.

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Economics As A Science

Economic Systems

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Question 36 Report

As a factor of production, the reward for land is?

Profit

Interest

Rent Correct answer

Wage

Answer Details

The reward for land as a factor of production is rent. Rent is the payment made by a tenant or user of land to the owner of the land in exchange for the right to use the land. Land, as a factor of production, refers to the natural resources such as water, air, forests, minerals, and other resources that are used in the production process. Unlike labor and capital, land is considered to have a fixed supply, which means that its availability is limited. Therefore, the price of land is determined by the demand for it, which is influenced by factors such as location, natural resources, and economic activity. In summary, the reward for land is rent, which is the payment made by a tenant or user of land to the owner of the land in exchange for the right to use the land.

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Factors Of Production And Their Theories

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Question 37 Report

The establishment of industries in rural areas will help to reduce____________-

Urban-Rural migration

Rural-Urban migration Correct answer

Rural-Rural migration

Urban-Urban migration

Answer Details

The establishment of industries in rural areas will help to reduce Urban-Rural migration. Urban-Rural migration refers to the movement of people from urban (city) areas to rural (countryside) areas in search of better living conditions, employment opportunities, and a lower cost of living. This migration often leads to overcrowding, strain on urban resources, and an increase in poverty in both urban and rural areas. When industries are established in rural areas, it creates employment opportunities for people living in those areas. This leads to an improvement in the standard of living of the local population, as they can find employment opportunities near their homes and do not need to move to urban areas. As a result, people are less likely to migrate from rural areas to urban areas in search of better opportunities, which helps to reduce Urban-Rural migration. In addition, the establishment of industries in rural areas also leads to an increase in economic activity in those areas, which stimulates local economies and creates new business opportunities. This, in turn, can lead to a reduction in poverty, an improvement in infrastructure and services, and an overall improvement in the quality of life for people living in rural areas.

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Distributive Trade

Industry And Industrialization

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Question 38 Report

The diagram below represents a production function. At which of the points does diminishing returns set in __________

T Correct answer

Answer Details

Diminishing returns set in at point T in the production function. In a production function, adding more units of input (such as labor or capital) typically leads to an increase in output at a certain rate. However, as the amount of input increases beyond a certain point, the rate of output increase begins to decline. This is known as the law of diminishing returns. In the diagram, points R and S represent the increasing phase of the production function where output increases at an increasing rate as more input is added. However, at point T, the rate of increase in output begins to slow down, indicating that the law of diminishing returns has set in. Beyond point T, adding more input will result in smaller increases in output, and may even cause a decrease in output if the input becomes too excessive, as shown by point V. Therefore, point T is where diminishing returns set in, indicating the optimal level of input for maximum output.

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The Theory Of Production

Theory Of Production

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Question 39 Report

In a capitalist economy, factors of production are owned and controlled by the _____?

Citizen

Business Men Correct answer

Government

Foreigners

Answer Details

Capitalism or free market economy may be defined as the type of economic system in which the means of production are owned and controlled by private individuals that is; it is characterized by private ownership of the means of production. In this case, the private individuals play a greater role than the government in taking decisions on what to produce, how to produce, for whom to produce and the distribution of what has been produced.

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Factors Of Production And Their Theories

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Question 40 Report

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

Deflation

Inflation

Devaluation Correct answer

Revaluation

Answer Details

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.

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