JAMB UTME - Economics - 1993 | Green Bridge CBT

Question 1 Report

How many units of good X is produced for 8 units of commodity Y?

80 Correct answer

0 (Zero)

Answer Details

Read lesson note on The Theory Of Production (JAMB)

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The Theory Of Production

Theory Of Production

Supply

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Question 2 Report

Which of the following are the major disadvantage of direct system of taxation?i, Disincentive of hard work

Ii,Difficulties in assessment and collection

Iii, imperfection in tax assessment.

i and ii

i and iii

ii and iii Correct answer

i, ii and iii

Answer Details

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Question 3 Report

The working population refers to?

a population where the average age is falling

the population within the '0 -14'age bracket

the economically active segment of the population Correct answer

the dependent population

Answer Details

The working population refers to the economically active segment of the population. These are individuals who are able and willing to work, and are either employed or actively seeking employment. The working population is generally between the ages of 15 and 64 years, and is often divided into various age brackets to assess the labor force participation rate and other labor market indicators.

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Population And Labour Market

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Question 4 Report

Devaluation is effective when?

demand for imports is price inelastic

demand for imports is neutral

production for export is low

demand for exports is price elastic Correct answer

Answer Details

Devaluation is effective when the demand for exports is price elastic. This means that a decrease in the price of the country's currency will lead to a significant increase in the quantity of exports demanded. In this situation, the country's exports become cheaper relative to other countries, making them more attractive to foreign buyers, which can increase export revenue and improve the country's balance of trade. However, devaluation can also lead to an increase in the price of imports, which can cause inflation and negatively impact the domestic economy.

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Theory Of Price Determination

The Theory Of Demand

Economics As A Science

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Question 5 Report

The most popularly adopted industrialization strategy in West Africa is?

import substitution

Correct answer

export promotion

ports development

infant industries protection

Answer Details

The most popularly adopted industrialization strategy in West Africa is import substitution. This strategy aims to produce domestically what would have been imported in order to reduce dependence on foreign goods and increase domestic production. This is achieved by imposing tariffs and other trade barriers on imported goods, making them more expensive than domestic goods, and thereby encouraging local production. The aim is to develop domestic industries that can compete globally by first satisfying local demand.

Read lesson note on Industry And Industrialization (JAMB)

Industry And Industrialization

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Question 6 Report

It is impossible to satisfy all human wants because?

areas of fertile land are very limited

oceans and seas limit land space for farmingresources are not equitably distributed

resources are not equitably distributed

available resources are limited Correct answer

Answer Details

It is impossible to satisfy all human wants because the available resources are limited. Human wants are unlimited and keep increasing, but resources like land, labor, capital, and entrepreneurship that are used to produce goods and services are finite. As a result, people have to make choices about what they want to consume based on their level of income and the availability of resources. This is known as the problem of scarcity, and it means that people cannot have everything they want, leading to the need to make choices and trade-offs.

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Factors Of Production

Economics As A Science

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Question 7 Report

A modern corporation is owned by?

debenture holders

ordinary shareholders Correct answer

preference shareholders

creditors

Answer Details

A modern corporation is owned by ordinary shareholders. These are individuals or institutions that invest their money by purchasing shares in the company. In exchange for their investment, they receive ownership rights, such as the right to vote on major decisions and the right to a share of the company's profits in the form of dividends. While debenture holders and creditors may also provide financing to the corporation, they do not own a share in the company's ownership. Preference shareholders, on the other hand, may have ownership rights that differ from those of ordinary shareholders, such as a guaranteed dividend payout, but they are still considered shareholders.

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Business Organizations

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Question 8 Report

In the diagram, the marginal propensity to consume (MPC) is equal to

RP/TP

TP/RP Correct answer

Rt/RP

RT/TP

Answer Details

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The Theory Of Consumer Behaviour

The Theory Of Demand

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Question 9 Report

The best index for international comparison of standards of living is the?

gross national product

net national income

per capita income Correct answer

gross national income

Answer Details

The best index for international comparison of standards of living is the per capita income. Per capita income refers to the average income earned by each individual in a particular country, which takes into account both the economic growth and population of the country. It is a widely used measure to compare living standards across different countries, as it gives an idea of how much income an average individual has in a particular country. Other measures like gross national product and net national income do not give a clear picture of how the income is distributed among the population, hence, per capita income is considered as a better index for international comparison of standards of living.

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National Income

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Question 10 Report

The sum of N80,000 is deposited in a bank and the cash ratio of the banking system is 10%. calculate the sum of money the bank can create from the deposit?

N 100 000

N 800 000 Correct answer

N 1000 000

N 8000 000

Answer Details

Read lesson note on Public Finance (JAMB)

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Public Finance

Banking

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Question 11 Report

In thediagram above, what is the lowest possible price the monopolist could charge and still break even without there being excess demand?

P₁

P₂ Correct answer

P₃

P₄

Answer Details

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The Theory Of Supply

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Question 12 Report

At equilibrium, one of the distinctive features of monopoly compared with perfect competition is that in the former?`

price is always equal to marginal cost Correct answer

supply is always equal to demand

price is always higher than marginal cost

there are always many buyers and many sellers

Answer Details

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Market Structure

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Question 13 Report

An accurate census is important to a country because it helps?

in solving unemployment problem

to ensure equitable population redistribution relative to natural resources

in deciding on the creation of more local government

in providing a second basis for formulating development policy Correct answer

Answer Details

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Population And Labour Market

Population

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Question 14 Report

Which of the following can be considered as being outside the objectives of public finance?

The allocation of resources to various sectors of the economy

The objective of even distribution of income and wealth

The achievement of economic stability

The deregulation of the economy Correct answer

Answer Details

The deregulation of the economy can be considered as being outside the objectives of public finance. Public finance deals with the role of government in the economy, particularly in the areas of revenue generation, resource allocation, and expenditure management. The allocation of resources to various sectors of the economy, the objective of even distribution of income and wealth, and the achievement of economic stability are all within the objectives of public finance. However, deregulation is a policy that seeks to reduce the role of government in economic activities by removing regulations and restrictions. While it may have some economic benefits, it is not a primary objective of public finance.

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Public Finance

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Question 15 Report

Production is said to be completed when?

goods and services reach the consumers Correct answer

prices of goods and services are determined

goods are sold to the wholesaler

goods are packaged

Answer Details

Production is said to be completed when goods and services are produced and ready for distribution or sale to consumers. This means that the production process, which includes all activities involved in creating a good or service, has been fully executed and the output is ready to enter the market. The completion of production does not necessarily mean that the goods have been sold or the prices have been determined, as these are separate processes that occur after production. Packaging may also be part of the production process, but it is not the sole indicator of completion.

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The Theory Of Production

Theory Of Production

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Question 16 Report

A system in which the means of production is held in trust for the people by government is known as a?

socialist economy Correct answer

capitalist economy

subsistence economy

mixed economy

Answer Details

A system in which the means of production is held in trust for the people by the government is known as a socialist economy. In this system, the government owns and controls major industries and resources such as land, factories, and utilities, and is responsible for distributing wealth and resources to the citizens. The goal is to promote social welfare and reduce economic inequality by ensuring that resources are used for the benefit of the whole society, rather than for the benefit of a few individuals or corporations.

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Economic Systems

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Question 17 Report

If 502.75 million tonnes of grains are consumed annually by a population of 88.5 million people, the per capita grains consumption will be?

6.00 tonnes

5.68 tonnes Correct answer

0.60 ton

0.57 ton

Answer Details

To find the per capita grains consumption, we need to divide the total consumption of grains by the population. Per capita grains consumption = Total grains consumption / Population Plugging in the values given in the question, we get: Per capita grains consumption = 502.75 million tonnes / 88.5 million people Simplifying this expression, we get: Per capita grains consumption = 5.68 tonnes Therefore, the per capita grains consumption is 5.68 tonnes. The answer is: 5.68 tonnes.

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Basic Tools Of Economic Analysis

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Question 18 Report

Since the mid-1980s, the most disturbing development in the industrial sector in Nigeria is?

labour intensity

capital intensity

poor technology

capacity under-utilization Correct answer

Answer Details

The most disturbing development in the industrial sector in Nigeria since the mid-1980s is the issue of capacity under-utilization. This refers to a situation where industries are not operating at their full capacity due to various factors, such as poor infrastructure, inadequate power supply, low demand, lack of access to credit facilities, and poor government policies. As a result, many industries have been forced to shut down or operate below their optimal levels, leading to a decline in industrial output and economic growth.

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Industry And Industrialization

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Question 19 Report

A public liability company is different from a private limited company because i?

is registered with the registrar of companies

is a legal entity

can raise capital of size by way of loans

can sell shares in the stock exchange Correct answer

Answer Details

A public liability company is different from a private limited company because it can sell shares in the stock exchange. This means that the public liability company is publicly traded and its shares can be bought and sold by the general public. In contrast, a private limited company cannot sell shares to the public and is typically owned by a small group of shareholders. The other options mentioned in the question are characteristics that both types of companies share, such as being registered with the registrar of companies, being a legal entity, and being able to raise capital by way of loans.

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Methods And Tools Of Economic Analysis

Business Organizations

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Question 20 Report

Below equilibrium, the gap between aggregate demand and the full employment level of income is called the?

inflationary gap Correct answer

income gap

unemployment gap

deflationary gap

Answer Details

Read lesson note on Economics As A Science (JAMB)

Economics As A Science

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Question 21 Report

a debenture share entitles its holder to?

participate in the annual general meeting of the company

share in the dividends declared

recieve a fixed interest on sums invested Correct answer

have a representative on the Board of Directors

Answer Details

A debenture share entitles its holder to receive a fixed interest on sums invested. A debenture is a type of bond issued by a company that represents a long-term loan to the company. The holder of a debenture receives a fixed interest payment at a predetermined rate and for a specific time period, regardless of the company's financial performance. Unlike a stock, a debenture does not represent ownership in the company, so the holder does not have voting rights or the ability to participate in the annual general meeting of the company.

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Theory Of Price Determination

The Theory Of Demand

Economics As A Science

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Question 22 Report

If labour productivity in the cement industry is increasing as output of cement is expanded, then the amount of labour per unit of output produced must be?

less than zero

decreasing Correct answer

constant

increasing

Answer Details

If labour productivity is increasing as the output of cement is expanded, it means that the industry is producing more cement with the same amount of labor or using less labor to produce the same amount of cement. Therefore, the amount of labor per unit of output produced must be decreasing.

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The Theory Of Production

Theory Of Consumer Behaviour

Theory Of Price Determination

Theory Of Costs

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Question 23 Report

If the price elasticity of demand for a certain commodity is less than unity, then?

an increase in the price of the commodity will raise the total revenue of the producer Correct answer

an increase in price leaves the total revenue unchanged

a decrease in price raises the total revenue of the supplier

a decrease in price leaves the total revenue constant

Answer Details

If the price elasticity of demand for a certain commodity is less than unity, then an increase in the price of the commodity will raise the total revenue of the producer. This means that the percentage increase in the price of the commodity will lead to a proportionately smaller decrease in the quantity demanded. As a result, the total revenue earned by the supplier will increase as the price increases. Conversely, if the price elasticity of demand is greater than unity, then an increase in the price of the commodity will lead to a decrease in total revenue, since the percentage decrease in quantity demanded will be proportionately larger than the percentage increase in price.

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The Theory Of Demand

Demand

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Question 24 Report

Wheat grows best in?

tropical climate

temperate climate Correct answer

equatorial climate

hot desert

Answer Details

Wheat grows best in a temperate climate. A temperate climate is characterized by moderate temperatures and adequate rainfall. These conditions are ideal for the growth of wheat as it requires a moderate temperature range and a sufficient supply of moisture. Wheat is a cool-season crop that grows best in regions with moderate temperatures, ranging from 15-25°C, during the growing season. The temperate climate zones of the world, including North America, Europe, and Asia, are well suited for wheat cultivation. In contrast, tropical climates are too hot and humid for wheat cultivation, while hot deserts are too dry and lack sufficient rainfall for successful wheat growth.

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Agriculture

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Question 25 Report

The money market is a financial market that specializes in the provision of?

short-term loans Correct answer

medium-term loans

long-term loans

venture capital for development projects

Answer Details

The money market is a financial market that specializes in providing short-term loans. These loans typically have a maturity period of less than one year and are used by businesses and governments to meet their short-term financing needs. Examples of short-term instruments traded in the money market include treasury bills, commercial papers, and certificates of deposit. By providing an avenue for borrowers to obtain short-term funding, the money market helps to ensure the smooth functioning of the economy by facilitating the efficient allocation of resources.

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Money And Inflation

Financial Institutions

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Question 26 Report

Using the table calculate the net income

₦58m

₦54m

₦50m

₦46m Correct answer

Answer Details

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National Income

The Theory Of Consumer Behaviour

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Question 27 Report

The international Bank for Reconstruction and Development is important to developing countries because it?

gives loans to member countries for legal proceedings

offers grants and aid for defence

offers loans to member countries for socio-economics activities Correct answer

offers grants and aid to finance luxury projects

Answer Details

The International Bank for Reconstruction and Development (IBRD) is important to developing countries because it offers loans to member countries for socio-economic activities. These loans are given to finance various development projects, such as infrastructure, health, education, and agriculture. The IBRD aims to reduce poverty and promote economic growth in developing countries by providing financial support for development projects. The loans are offered at low-interest rates and on flexible repayment terms, making them an attractive source of financing for developing countries. By providing these loans, the IBRD helps developing countries to achieve their economic and social development goals.

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International Economic Organizations

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Question 28 Report

The GDP of Nigeria will be greater than her GNP if?

the value of goods and services to Nigeria is greater than the value of those from Nigeria

consumption is greater than investment

government expenditures are greater than the foreign aid received

the value of goods and services produced by Nigeria businesses abroad is greater than that of foreign businesses in Nigeria Correct answer

Answer Details

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Methods And Tools Of Economic Analysis

National Income

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Question 29 Report

The joint ventures operating in the Nigerian oil industry are between?

the NNPC and independent marketers

he NNPC and multinational marketers

the NNPC and producer marketers Correct answer

multinational corperations and independent marketers

Answer Details

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Petroleum And The Nigerian Economy

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Question 30 Report

The above diagram showing the maximum possible combination of commodities X and Y produced in Nigeria is called the

Production indicator

Maximum production curve

Production possibility curve

Correct answer

Total output curve

Answer Details

The diagram mentioned in the question is a graph that shows the maximum amount of two goods (commodities X and Y) that can be produced using all the available resources and technology in Nigeria. It indicates the trade-off between the production of the two goods. This graph is called a "Production Possibility Curve (PPC)". It shows the different combinations of the two goods that can be produced when all resources are used efficiently, and it illustrates the concept of opportunity cost.

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The Theory Of Production

Theory Of Production

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Question 31 Report

Comparative advantage implies that a country will specialize in producing the commodity?

with the highest opprotunity cost

for which output per worker is lower than in other countries

with the lowest opportunity cost Correct answer

for which output per worker is the same with those of other countries

Answer Details

Comparative advantage implies that a country will specialize in producing the commodity with the lowest opportunity cost. Opportunity cost is the cost of an alternative that must be forgone in order to pursue a certain action. In the case of trade, countries specialize in producing the good or service for which they have a lower opportunity cost, meaning the cost of producing that good or service is lower compared to other countries. Therefore, a country will produce and export the good or service for which it has a comparative advantage, and import the goods or services for which it has a comparative disadvantage, thereby maximizing its economic welfare.

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International Trade

Economics As A Science

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Question 32 Report

On the basis of the contribution to employment, the most important economic sector in West African is?

industry

agriculture

construction

commerce Correct answer

Answer Details

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Agriculture

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Question 33 Report

Tariff on imports are meant to?

prevent a foreign goods Correct answer

discourage exports

encourage exports

increase the level of external dependency

Answer Details

Tariffs on imports are meant to prevent or restrict foreign goods from entering a country's domestic market. Tariffs are a type of tax that is placed on imported goods, making them more expensive for domestic consumers and less competitive with domestic producers. The purpose of a tariff is often to protect domestic industries from foreign competition and to promote self-sufficiency in key industries. Tariffs can also generate revenue for the government.

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International Trade

International Trade And Balance Of Payments

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Question 34 Report

According to the income approach to national income measurement, the national income of a country is equal to?

the value of all output produced in the country over the relevant period of time at market prices

the value of output at factors cost

the value added to production

C +I + G Correct answer

Answer Details

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National Income

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Question 35 Report

What type of unemployment is revealed by the dotted lines on the graph?

frictional unemployment

Cyclical unemployment Correct answer

Circular unemployment

Underemployment

Answer Details

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Population And Labour Market

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Question 36 Report

Given an output of 3 units, the average revenueis

₦16.00

₦8.00 Correct answer

₦20.00

₦24.00

Answer Details

Read lesson note on The Theory Of Production (JAMB)

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The Theory Of Production

The Theory Of Price Determination

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Question 37 Report

A firm faces diminishing returns when its?

total output diminishes

average output diminishes

marginal output diminishes Correct answer

marginal revenue diminishes

Answer Details

A firm faces diminishing returns when its marginal output diminishes. Diminishing returns occur when the addition of one more unit of an input, such as labor or capital, to the production process leads to a smaller increase in output compared to previous additions of the same input. In other words, as more and more units of the input are added, the marginal output of each additional unit begins to decrease, ultimately leading to a point where total output may begin to decrease as well. This phenomenon is commonly observed in short-run production processes and can be caused by a variety of factors such as limited resources or inefficient production techniques.

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The Theory Of Production

Theory Of Costs

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Question 38 Report

From which of the following does Nigeria derive trade concessions?

IMF

World Bank

ADB

EEC Correct answer

Answer Details

Read lesson note on International Economic Organizations (JAMB)

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International Economic Organizations

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Question 39 Report

One of the most important factors that should be considered in the location of an industry is?

nearness to the financial centre

assured patronage by government functionaries

availabilities of inputs and market Correct answer

availabilities of adequate security

Answer Details

The availability of inputs and market is one of the most important factors that should be considered in the location of an industry. This means that the industry should be located in an area where there is easy access to raw materials needed for production, as well as a ready market to sell the finished products. If inputs are not easily available, the cost of production will increase due to transportation costs, leading to higher prices of the final product. Similarly, without a ready market, the industry will have a hard time selling its products, which could lead to low profits or even losses. Therefore, the location of an industry should be chosen with the availability of inputs and market in mind to ensure the success and profitability of the industry.

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Factors Of Production And Their Theories

International Trade

Industry And Industrialization

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Question 40 Report

Which of the following functions does the wholesaler perform to save the retailer burden of carrying large stocks?`

I Breaking the bulk

Ii Packing the goods in smaller containers

Iii Providing vital information

Iv Grant credit facilities

i and ii Correct answer

i and iv

ii and iii

i, ii, iii and iv

Answer Details

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Business Organizations

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Question 41 Report

Which of the following are the advantages of Nigeria's membership of ECOWAS? i A greater opportunity for trade according to comparative cost advantage.

Ii A large market industries producing under condition of decreasing cost.

Iii Competition for home based monopoly firms

i and ii only Correct answer

i and iii only

ii and iii only

i,ii and iii

Answer Details

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International Trade

Economic Integration

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Question 42 Report

Economic development is distinguishable from economic growth because the former?

is not concerned with growth parameters

affects only the poor people

also includes an efficient distribution of economic growth Correct answer

is an increase in the production of goods and services

Answer Details

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Economic Growth And Development

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Question 43 Report

Determine the marginal revenue ifthe total revenue is ₦80.00

₦16.00

₦12.00 Correct answer

₦14.00

₦18.00

Answer Details

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Theory Of Production

The Theory Of Demand

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Question 44 Report

If profit maximization is assumed to be the objective of a business enterprise, labour must be paid a wage rate equal to the?

marginal revenue of the enterprise

marginal revenue product of labour in the enterprise Correct answer

average revenue of the enterprise

marginal cost of production

Answer Details

Labour must be paid a wage rate equal to the marginal revenue product of labour in the enterprise. This means that the wage rate should be equal to the additional revenue generated by the last unit of labour hired. If the wage rate is lower than the marginal revenue product of labour, the enterprise can increase profits by hiring more labour. On the other hand, if the wage rate is higher than the marginal revenue product of labour, the enterprise can increase profits by reducing the amount of labour employed. Therefore, paying a wage rate equal to the marginal revenue product of labour ensures that the enterprise is able to maximize profits while also compensating labour fairly for their contribution to the production process.

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Theory Of Costs

Theory Of Production

Market Structures

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Question 45 Report

If the equilibrium price of a certain commodity is N120.00 and the government fixed its price at N110.00, the supply will be?

greater than the equilibrium supply

smaller than the equilibrium supply Correct answer

the same as the equilibrium supply

a determinant of the market forces of equilibrium

Answer Details

If the government fixed the price of a commodity below the equilibrium price, i.e., N110.00 < N120.00, then the quantity supplied by producers will be smaller than the equilibrium quantity because the producers will be unwilling to produce and supply the commodity at a price lower than what they would get in the equilibrium. Therefore, the correct option is "smaller than the equilibrium supply".

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Theory Of Price Determination

Supply

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Question 46 Report

In the theory of production and cost, the average total cost of a firm is minimized when the marginal cost curve cuts the average total cost curve at its?

lowest point Correct answer

middle point

maximum point

downward slopping section

Answer Details

In the theory of production and cost, a firm aims to minimize its average total cost to maximize its profits. The average total cost is the total cost per unit of output. When the marginal cost curve cuts the average total cost curve at its lowest point, the firm achieves the lowest possible average cost per unit of output. This point is also known as the point of minimum efficient scale. Therefore, the correct answer is the "lowest point".

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The Theory Of Production

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Question 47 Report

Which of the following programmes in the monetary sector is aimed at enhancing the banking habit of the rural areas?

The deregulation of the banking system

The increase in the number of merchant banks

The community banking scheme Correct answer

The deregulation of interest rate

Answer Details

The program aimed at enhancing the banking habit of the rural areas is the community banking scheme. This is a policy implemented in the monetary sector to bring banking services closer to the grassroots population in rural areas. The community banking scheme involves the establishment of microfinance banks in the rural areas, which provides easy access to financial services such as savings, loans, and other banking services to the rural population. The scheme helps to increase financial inclusion and promote economic development in rural areas. The other options listed are not directly related to enhancing banking habit in rural areas, but rather, they are policies that focus on other aspects of the monetary sector.

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Banking

Financial Institutions

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Question 48 Report

From the diagram above, a shift in the demand curve from D_oD_o to D₁D₁ implies

a rise in the demand for the commodity

Correct answer

a fluctuation in the demand for the commodity

a fall in the demand for the commodity

an equilibrrium in the demand for the commodity

Answer Details

A shift in the demand curve from DoDo to D1D1 indicates a change in the quantity demanded of a commodity at each and every price level. This shift represents an increase or decrease in demand. When the demand curve shifts to the right, it implies that there is an increase in demand for the commodity, and the quantity demanded will be higher at every price level. Conversely, when the demand curve shifts to the left, it implies a decrease in demand for the commodity, and the quantity demanded will be lower at every price level. Therefore, the correct answer is "a rise in the demand for the commodity."

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The Theory Of Demand

Economics As A Science

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Question 49 Report

The main function of the price system is to?

distribute resources equally among competing ends

ensure efficient allocation of resources in the economic system Correct answer

allocate goods and services equally

minimize cheating

Answer Details

The main function of the price system is to ensure efficient allocation of resources in the economic system. Prices act as signals to buyers and sellers about the relative scarcity or abundance of goods and services. When the demand for a product increases, the price goes up, signaling suppliers to produce more to meet the increased demand. When the supply of a product increases, the price goes down, signaling buyers to purchase more of the product. This mechanism ensures that resources are allocated to where they are most needed or valued, and that production is focused on meeting the most urgent needs and wants of consumers. By allocating resources efficiently, the price system helps to maximize social welfare and economic growth.

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Theory Of Price Determination

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Question 50 Report

Which of the following factors is NOT responsible for the rural/urban drift in Nigeria?

The infrastructural facilities in cities

Declining fertility of rural farmlands

Rural electrification programme Correct answer

Higher living standards in urban areas

Answer Details

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Agriculture

Population

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