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

Development of subsidiary firms

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

Countries producing same or identical goods

Countries with comparative advantage

Countries with superlative advantage

Countries producing same or identical goods

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

Utility is the satisfaction derived from____________

Production

Distribution

Consumption

Demand

Answer Details

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

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The Theory Of Demand

Economics As A Science

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Question 2 Report

From the table, how many people scored above 6?

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 3 Report

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

Fixed capital

Social Capital

Circulating capital

Liquid capital

Answer Details

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.

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The Theory Of Production

Theory Of Production

Demand

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Question 4 Report

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

N110

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

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The Theory Of Production

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Question 5 Report

X	2	3	4	5
F	2	5	2	1

What is the median of the distribution?

Answer Details

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

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

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

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

Solution:

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

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

=(5th + 6th)/2

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

Median=(3 + 3)/2

=6/2

Median = 3

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Economic Development And Planning

Basic Tools Of Economic Analysis

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Question 6 Report

An economy in which both the public and private sectors contribute to economic growth is a__________?

socialist economy

feudal economy

mixed economy

capitalist economy

Answer Details

The correct answer is a mixed economy. A mixed economy is an economic system that combines elements of both the public (government) and private sectors. In a mixed economy, the government and private businesses work together to create economic growth and promote social welfare. In a mixed economy, the government is responsible for providing essential services such as healthcare, education, and infrastructure. The private sector, on the other hand, is responsible for creating goods and services that meet the demands of the market. This type of economy allows for the benefits of both capitalism (private enterprise) and socialism (public enterprise) to coexist. It allows the government to regulate and control certain aspects of the economy, while still allowing the private sector to operate and innovate freely. Many modern economies around the world are considered mixed economies, including the United States, Canada, and the United Kingdom.

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Question 7 Report

An ad valorem tax is imposed on_____?

Exports

Imports

The Value of a Commodity

Special Commodities

Answer Details

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.

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Economic Systems

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Question 8 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

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 9 Report

Factors affecting size of Labour Force include the following EXCEPT?

Level of technology

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 10 Report

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

Commercial bank

Central bank

Mortgage bank

Merchant bank

Answer Details

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.

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Banking

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Question 11 Report

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

commodity terms of trade

volume of imports

Answer Details

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:

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Methods And Tools Of Economic Analysis

International Trade And Balance Of Payments

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Question 12 Report

Which of the following is not a direct tax?

capital gains tax

purchase tax

personal income tax

capital tax

Answer Details

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Public Finance

Financial Institutions

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Question 13 Report

The savings deposit in a commercial bank is called____________?

near money

call money

capital

fund

Answer Details

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Public Finance

Banking

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Question 14 Report

The Economic Commission for Africa was set up by the_________

UNO

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 15 Report

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

N20m

N380m

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 16 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%

an increase in profit by 43%

a net loss

a net gain

Answer Details

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Theory Of Price Determination

The Theory Of Demand

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Question 17 Report

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

bank load

debenture

preferred stock

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 18 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

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 19 Report

An upward movement along the same supply curve result in_____________

a decrease in price

an increase

an increase in quantity supplied

a decrease In quantity supplied

Answer Details

An upward movement along the same supply curve results in an increase in quantity supplied. This means that as the price of the good increases, suppliers are willing and able to produce and sell more of the good. This is because suppliers are motivated by profit, and as the price of the good goes up, they can earn more profit per unit sold. As a result, they will be willing to produce and sell more units of the good. It is important to note that the supply curve itself does not shift as a result of an upward movement along the curve, only the quantity supplied changes.

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Factors Of Production And Their Theories

The Theory Of Supply

Theory Of Price Determination

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Question 20 Report

By utility we mean____________

beneficial

power of satisfying a want

advantageous

consumable

Answer Details

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Theory Of Price Determination

The Theory Of Demand

Supply

Demand

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Question 21 Report

The full meaning of NAPEP is?

National Poverty Eradication Programme

National Agency for Poverty and Education Program

National Air Pollution and Environmental Purification

None of the above

Answer Details

The full meaning of NAPEP is National Poverty Eradication Programme. It is a government-led initiative aimed at reducing poverty and improving the standard of living for citizens in a given country. The program typically focuses on providing financial and other forms of support to those living in poverty, with the goal of helping them to become self-sufficient and better able to meet their own needs. The specific activities and approaches of NAPEP can vary from country to country, but the overarching goal is always to help people escape the cycle of poverty and build better lives for themselves and their families.

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Question 22 Report

In an open economy, the GNP is measured as_____________?

C + 1 + G(X-M)

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 23 Report

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

Urban-Rural migration

Rural-Urban migration

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 24 Report

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

82.0

91.8

67.2

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.

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Methods And Tools Of Economic Analysis

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Question 25 Report

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

deductive reasoning

positive reasoning

normative reasoning

inductive reasoning

Answer Details

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Economics As A Science

Economic Systems

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Question 26 Report

If the pass mark was 40, how many students passed the examination?

100

120

160

200

Answer Details

Read lesson note on National Income (WAEC)

National Income

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Question 27 Report

The labour force of a country is determined by the___________

geographical distribution of the population

age structure of the population

number of people available for work

sex distribution of the population

Answer Details

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Population And Labour Market

Population

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Question 28 Report

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

Profit

Interest

Rent

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 29 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

that the output for the society has declined

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

Answer Details

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The Theory Of Production

Theory Of Costs

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Question 30 Report

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

Preferential duties

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 31 Report

Commercial bank reserves at the Central Bank____________

advancing trade, prospects

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 32 Report

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

cost economies

economies of scale

internal economies

external economies

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.

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Theory Of Consumer Behaviour

Theory Of Production

Market Structures

Market Structure

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Question 33 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

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 34 Report

Taxes and government expenditures are instruments of____________

Monetary policy

Tax policy

Economic policy

Fiscal policy

Answer Details

Taxes and government expenditures are instruments of fiscal policy. Fiscal policy refers to the government's use of its spending and taxation powers to influence the economy. By adjusting the level of taxes and government spending, the government can influence the level of economic activity and control inflation. For example, if the government wants to stimulate economic growth, it may lower taxes and increase government spending. This increases consumer spending and investment, which can boost economic activity. On the other hand, if the government wants to slow down inflation, it may raise taxes and decrease government spending, which can reduce consumer spending and slow down economic growth. In summary, fiscal policy is a crucial tool used by governments to manage their economies and maintain economic stability.

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Public Finance

Economic Development And Planning

Economic Systems

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Question 35 Report

The reward for capital is___________

Interest

Rent

Risk

Premium

Answer Details

The reward for capital is interest. Capital refers to the money or assets that are used to invest in a business or enterprise. When someone invests their capital into a business, they expect to earn a return on their investment. The return on investment for capital is called interest. Interest is the amount of money paid by the borrower to the lender for the use of their capital. This can be in the form of regular interest payments or a lump sum at the end of the investment period. The interest rate is determined by various factors such as market conditions, inflation, and risk. Therefore, interest is the primary reward for capital.

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The Theory Of Production

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Question 36 Report

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

Only 1

Only 2

Both 1 and 2

Neither 1 nor 2

Answer Details

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.

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Population And Labour Market

Population

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Question 37 Report

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

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

Answer Details

To calculate the population density, we need to divide the total population by the land area. Population density = Total population / Land area In this case, the total population is 100 million and the land area is 50 square kilometers. So, Population density = 100 million / 50 square kilometers Simplifying the above expression, we get: Population density = 2 million people per square kilometer Therefore, the correct option is "2 million people per square kilometer".

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Population And Labour Market

Population

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Question 38 Report

Human wants are insatiable because wants are____________

Limited while means are scarce

Unlimited and means are also unlimited

Limited and means are also limited

Unlimited while means are scarce.

Answer Details

Want may be defined as insatiable desire or need by human beings to own goods or services that give satisfaction. Human wants or needs are many, and are usually described as insatiable because the means of satisfying them are limited or scarce

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Economics As A Science

Economic Systems

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Question 39 Report

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

If the budget of the country was $7,200.00, how much is allocated to education?

$2,400.00

$2,000.00

$1,200.00

$1,000.00

Answer Details

The pie chart shows the budget allocation of a country. The total budget is $7,200.00. To find out how much is allocated to education, we need to look at the portion of the pie chart that represents education. Based on the options given, the amount allocated to education is $2,400.00. This means that out of the total budget of $7,200.00, $2,400.00 is set aside for education.

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Public Finance

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Question 40 Report

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

Finance agriculture

establish banks

acquire machinery

build houses

Answer Details

Mortgage banks give loans to investors on a long-term basis to build houses. When people want to buy a home, they may not have enough money to pay for it all at once. In this case, they can apply for a mortgage loan from a bank. A mortgage is a loan that is used to buy a property and is usually paid back over a period of several years. Mortgage banks specialize in giving out loans for the purpose of purchasing property, such as homes or other buildings. The loan is typically secured by the property being purchased, which means that if the borrower cannot repay the loan, the bank can take possession of the property to recoup its losses. Investors who want to build houses can also get mortgage loans from banks. In this case, the loan is used to finance the construction of the property, and the property serves as collateral for the loan. Overall, the primary purpose of mortgage banks is to give long-term loans to investors who want to buy or build houses. By providing this service, mortgage banks help to stimulate the housing market and make it easier for people to achieve their dreams of homeownership.

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Agriculture

Banking

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