JAMB UTME - Economics - 2022

Which of the following factors is not a reason for farmers' unstable incomes?

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The increase in the demand for a commodity may lead to a decrease in the demand for another if both are

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The increase in the demand for a commodity may lead to a decrease in the demand for another if both are in competitive demand. When two goods are in competitive demand, they are seen as substitutes for each other, meaning that they can be used for the same purpose. For example, coffee and tea can be seen as substitutes for each other, since both are beverages that can be used to satisfy the same desire for a hot drink. So, if the demand for coffee increases, people may buy more coffee and less tea, because they see coffee as a substitute for tea. Similarly, if the demand for tea increases, people may buy more tea and less coffee, because they see tea as a substitute for coffee. On the other hand, if two goods are in complementary demand, they are often used together. For example, if the demand for cars increases, the demand for gasoline will also increase, since cars require gasoline to run. Similarly, if the demand for smartphones increases, the demand for phone cases may also increase, since people may want to protect their phones. In composite demand, a good has multiple uses, so an increase in demand for one use may not necessarily lead to a decrease in demand for another use. And in the case of goods of the same quality, an increase in demand for one good does not necessarily affect the demand for the other good, since they are not substitutes or complements.

If workers at the school canteen cannot sell during the holidays, this is example of

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If workers at the school canteen cannot sell during the holidays, this is an example of seasonal unemployment. This means that the workers are temporarily out of work due to changes in demand for their labor, in this case because the school is not in session. Seasonal unemployment is a common occurrence in industries that are heavily influenced by the time of year, such as agriculture, tourism, and retail. While the workers may have other employment options, they are currently without work due to the seasonality of the school canteen.

A firm that closes down will still incur

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Even if a firm closes down, it will still incur some fixed costs. Fixed costs are expenses that must be paid regardless of the level of production or whether the business is operating or not. These costs include things like rent, insurance, salaries of employees on long-term contracts, and equipment leases. Variable costs, on the other hand, are expenses that vary depending on the level of production or business activity. For example, the cost of materials or labor directly related to producing goods or services. If the firm closes down, it will not incur variable costs because it will not be producing any goods or services. Total cost is the sum of fixed and variable costs, so if the firm is not producing anything, the total cost will be equal to the fixed cost. Marginal cost is the cost of producing one additional unit of a good or service. If the firm is closed down, there is no production, so there is no marginal cost.

Cooperative societies are formed mainly to

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Cooperative societies are primarily formed to promote and maintain the welfare of their members. This means that the members of a cooperative society come together to work towards achieving common goals that benefit everyone in the society. Cooperative societies are usually formed by a group of individuals who share a common interest, such as farming, housing, or credit. By working together, members can access resources that they may not have been able to on their own, such as bulk purchasing of materials, access to credit, or sharing of knowledge and skills. In a cooperative society, the focus is not on maximizing profits for individual members, but rather on achieving benefits that are shared by the entire group. By working together, members can create a sustainable and mutually beneficial organization that can help to address the needs of the community. Therefore, the main purpose of cooperative societies is to promote the welfare of members by providing a platform for collective action and collaboration.

If the government imposes a minimum price on a commodity

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If the government imposes a minimum price on a commodity, it means that sellers cannot sell the commodity for a price lower than the minimum price set by the government. This is done to ensure that the producers of the commodity are getting a fair price for their goods. When a minimum price is set, it may result in excess supply (market surplus) of the commodity, as producers may be incentivized to produce more of the commodity at the higher price. However, the surplus can be reduced if the government buys the excess supply or if producers reduce their production. In the short-run, the market may be cleared, which means that all of the available supply of the commodity is sold at the minimum price set by the government. However, in the long-run, excess demand may occur as the minimum price may discourage buyers from purchasing the commodity. Therefore, government regulation may still be needed to ensure that the market operates efficiently, even with the minimum price in place.

If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under condition of

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The production process described in the question, where the marginal physical product of the variable factor increases as more units of it are added to a fixed factor, is referred to as increasing returns to the variable factor. In this case, the variable factor is becoming increasingly productive as more units of it are added, which results in an increase in the marginal physical product. Increasing returns to scale, on the other hand, refer to the situation where an increase in all factors of production leads to a more than proportionate increase in output. Constant returns to the variable factor occur when increasing the variable factor by a certain percentage leads to a proportional increase in output. Finally, external economies of scale refer to the cost advantages that a firm experiences as a result of factors outside of its control, such as the growth of an industry or the development of infrastructure.

The type of unemployment found among workers who leave their jobs in search of other jobs is termed

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The type of unemployment found among workers who leave their jobs in search of other jobs is called frictional unemployment. This occurs when individuals are between jobs and are actively searching for new employment opportunities. Frictional unemployment is typically short-term and is a natural part of the job search process. It can occur due to various reasons such as workers seeking better job opportunities, moving to a new location, or recently graduating from school. Although frictional unemployment may be a temporary situation for individuals, it can have an impact on the economy if the time taken to find a new job is prolonged. However, it is generally seen as a less problematic form of unemployment than other types, such as structural or cyclical unemployment, which can have more severe and long-lasting effects on the economy.

The distinction between capital and recurrent expenditure lies in the

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A firm's average cost decreases in the long-run because of

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A firm's average cost can decrease in the long-run due to increasing returns to scale. This means that as the firm increases its production, it experiences a decrease in its average cost. This can be due to various factors such as specialization, economies of scale, and better utilization of resources. For example, a firm that produces 100 units of a product might have an average cost of $10 per unit. However, if it increases its production to 200 units, it might be able to reduce its average cost to $8 per unit. This could be due to the fact that the firm can take advantage of bulk discounts on raw materials, use more efficient production methods, and spread its fixed costs over a larger number of units. Therefore, when a firm experiences increasing returns to scale, it can reduce its average cost in the long-run, which can lead to higher profits and a competitive advantage in the market.

The mining sector of an economy contributes 60% to the Gross Domestic Product(GDP). If the GDP is $540, what is the contribution of the mining sector?

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If the mining sector contributes 60% to the Gross Domestic Product (GDP), then its contribution can be calculated by multiplying the GDP by 60% (or 0.60, which is the decimal equivalent of 60%).

So, the contribution of the mining sector to the GDP is:

Contribution of mining sector = GDP x 60%

= $540 x 0.60

= $324

Therefore, the contribution of the mining sector to the GDP is $324. 

In a pie chart, the population of a city is represented by 45. If the country has a population of 10 million people, then the city's population is?

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To solve this problem, we need to first understand what a pie chart is and how it works. A pie chart is a circular graph that is divided into sectors, with each sector representing a proportion of the whole. The size of each sector is proportional to the quantity it represents, so we can use it to determine the percentage or fraction of the whole that each quantity represents.

In this case, the city's population is represented by 45 degrees of the pie chart. If we assume that the pie chart represents the entire country's population, which is 10 million people, then the fraction of the country's population represented by the city is:

45 degrees / 360 degrees = 1/8

This means that the city's population is 1/8 of the entire country's population. To find out the actual population of the city, we can multiply the fraction by the total population:

(1/8) x 10 million = 1.25 million

Therefore, the correct answer is 1.25 million.

The curve labelled x is the

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The supply curve of a locally-produced good may shift to the right if

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The International Bank for Reconstruction and Development(IBRD) performs the following functions except-------

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The International Bank for Reconstruction and Development (IBRD) is a specialized agency of the United Nations that provides loans, technical assistance, and other services to developing countries. Out of the options provided, the IBRD does not reduce tariffs among its members. Its main focus is on granting long-term loans to member countries for development projects, providing technical expertise to help those countries implement those projects successfully, and developing human resources in those countries. Tariff reduction is not one of its main functions.

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

Use it to answer this question.

If the budget of the country was $7,200, how much is allocated to Education?

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Based on the pie chart, the Education sector is represented by 1/3 of the total budget allocation. To find out how much is allocated to Education, we can calculate 1/3 of the total budget: 1/3 x $7,200 = $2,400 Therefore, the answer is $2,400.00.

If inflation is anticipated, people may

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If inflation is anticipated, people may choose to spend less money. This is because inflation reduces the purchasing power of money, meaning that the same amount of money can buy fewer goods and services. In response, people may decide to be more frugal with their spending, save more money, or look for ways to reduce their expenses. By spending less, they can try to maintain their purchasing power and avoid the negative effects of inflation.

The demand for labour is an example of

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The demand for labor is an example of "derived demand." Derived demand refers to the demand for a factor of production or a good that arises as a result of the demand for another good or service. In the case of labor, it is not demanded for its own sake but rather because it is needed to produce goods and services that consumers demand. The demand for labor is therefore derived from the demand for the goods and services that labor helps to produce.

The demand for labour is an example of

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The demand for labour is an example of derived demand. Derived demand refers to the demand for a good or service that arises from the demand for another good or service. In the case of labour, the demand for it is derived from the demand for the goods and services that labour produces. For example, a factory may demand more labour to increase production of a particular product to meet customer demand. The demand for labour is not a direct demand, but rather a demand that is derived from the demand for the final product.

Palm oil and palm kernel are in

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Palm oil and palm kernel are in joint supply. Joint supply refers to a situation in which two or more products are produced together as a result of a single production process. In the case of palm oil and palm kernel, both products are obtained from the same fruit of the oil palm tree. When the fruit is processed, it produces two distinct products: palm oil and palm kernel. Palm oil is obtained from the fleshy outer part of the fruit, while palm kernel is obtained from the inner seed or kernel. Since both products are obtained from the same production process, the quantity of one product that is produced is directly related to the quantity of the other product that is produced. As a result of being in joint supply, the prices of palm oil and palm kernel are interdependent. If the demand for one product increases, this will increase the supply of the other product, which can lower its price. For example, if the demand for palm oil increases, more oil palm fruit will be processed, leading to an increase in the supply of palm kernel and a potential decrease in its price. To summarize, palm oil and palm kernel are in joint supply because they are both obtained from the same production process and the quantity of one product produced is directly related to the quantity of the other product produced. The prices of both products are interdependent, and a change in demand for one product can affect the supply and price of the other product.

In manufacturing, division of labour may be hindered by

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The stock exchange is an example of the

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The stock exchange is an example of a capital market. A capital market is a market where individuals and institutions trade financial securities, such as stocks and bonds, with the goal of raising capital. In other words, the capital market is where businesses can go to raise money by selling ownership in the company (stocks) or borrowing money (bonds) from investors. The stock exchange is a specific type of capital market where publicly-traded companies can sell ownership in the form of stocks to the public. Investors can buy and sell these stocks on the exchange, and the value of the stocks can rise or fall based on various factors, such as the company's financial performance, overall market conditions, and investor sentiment. Overall, the stock exchange and other capital markets play an important role in facilitating the flow of capital and resources throughout the economy, helping businesses raise funds to invest in growth and development, and providing investors with opportunities to earn a return on their investment.

The use of the bank rate, cash ratio and open market operations constitute

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The use of the bank rate, cash ratio, and open market operations are tools used in monetary policy. Monetary policy is a set of actions taken by a country's central bank to manage the supply of money and credit in the economy to achieve specific economic goals, such as controlling inflation, stabilizing prices, and promoting economic growth. The bank rate is the interest rate at which commercial banks can borrow money from the central bank. When the central bank increases the bank rate, it becomes more expensive for commercial banks to borrow money, which reduces the amount of money in circulation in the economy. Conversely, when the central bank lowers the bank rate, it becomes cheaper for commercial banks to borrow money, which increases the amount of money in circulation in the economy. The cash ratio is the percentage of deposits that commercial banks are required to hold in reserve with the central bank. When the central bank increases the cash ratio, it reduces the amount of money that commercial banks have available to lend, which reduces the amount of money in circulation in the economy. Conversely, when the central bank lowers the cash ratio, it increases the amount of money that commercial banks have available to lend, which increases the amount of money in circulation in the economy. Open market operations refer to the buying and selling of government securities by the central bank in the open market. When the central bank buys government securities, it injects money into the economy, which increases the amount of money in circulation. Conversely, when the central bank sells government securities, it withdraws money from the economy, which reduces the amount of money in circulation. So, the use of bank rate, cash ratio, and open market operations are all tools used in monetary policy to manage the amount of money in circulation in the economy, with the aim of achieving specific economic goals.

A major disadvantage of a capitalist economy is that it

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The major disadvantage of a capitalist economy is that it worsens income inequality among the citizens. In a capitalist system, the means of production and distribution of goods and services are privately owned and operated for profit, leading to a concentration of wealth and power in the hands of a small group of people who own the most productive resources. This results in a situation where the rich get richer, while the poor get poorer, and there is a growing gap between the incomes and living standards of the wealthy and the less well-off members of society. This can create social unrest and political instability, as well as limit opportunities for social mobility and economic growth.

An electrical engineer who is teaching physics in a secondary school is said to be

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If at 10K per kg, 1000kg of yam were purchased, the resultant point elasticity of demand is

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In perfectly elastic supply, the supply curve

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In perfectly elastic supply, the supply curve is a horizontal line. This means that the quantity of a good that a supplier is willing to sell is not affected by changes in the price of the good. The supplier will sell any quantity of the good at the market price, no matter how high or low it is. In other words, the supply is perfectly responsive to changes in the price, so the supply curve is flat.

The sufficient condition for a firm to be in equilibrium is that the

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A situation in which all inputs are doubled and output also doubles is known as

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The situation in which all inputs are doubled and the output also doubles is known as "constant returns to scale." This means that if a firm increases all of its inputs by a certain proportion, the output will also increase by the same proportion. In other words, the production function exhibits constant returns to scale if increasing all inputs by a constant factor results in an output increase by the same constant factor.

The production cost that varies inversely with output is the

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In a country with large population of full-time house wives, national income

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Nation engage in external trade because of difference in

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Nations engage in external trade because of the differences in comparative cost, also known as comparative advantage. Comparative advantage is the ability of a country to produce goods or services at a lower opportunity cost than another country. Opportunity cost is the cost of one choice in terms of the best alternative that must be given up. In other words, it's the cost of producing one product in terms of the number of other products that could have been produced instead. For example, let's say that Country A can produce both cars and computers, but it can only produce one of them at a time. If Country A devotes all its resources to producing cars, it can produce 100,000 cars per year. If it devotes all its resources to producing computers, it can produce 50,000 computers per year. Meanwhile, Country B can produce 60,000 cars per year or 30,000 computers per year. In this case, Country A has a comparative advantage in producing cars because it has a lower opportunity cost of producing cars compared to computers. As a result, Country A can produce cars at a lower cost and sell them to Country B, which can in turn produce computers at a lower cost and sell them to Country A. This allows both countries to benefit from trade and improve their overall welfare. In summary, nations engage in external trade because of the differences in comparative cost, which allow countries to specialize in producing goods and services that they can produce more efficiently and trade with other countries for goods and services that they cannot produce efficiently. This creates mutual benefits for all countries involved.

Demand-pull inflation is likely to be caused by

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Demand-pull inflation occurs when the overall demand for goods and services in an economy exceeds the supply of those goods and services, leading to an increase in the general price level. This increase in demand may be caused by a number of factors, such as an increase in consumer confidence, an increase in government spending, or an increase in exports. Out of the given options, an increasingly large budget deficit is the most likely cause of demand-pull inflation. When the government spends more money than it collects in taxes, it may finance the deficit by borrowing from the central bank, other banks or the public. This increases the overall amount of money in circulation in the economy, which in turn leads to an increase in demand for goods and services. This increased demand can then lead to higher prices for those goods and services, resulting in demand-pull inflation. An increase in the cost of factor inputs, such as labor or raw materials, may also contribute to inflation, but this is known as cost-push inflation, which occurs when the cost of producing goods and services increases, leading to higher prices. An increase in the income tax rate and an increase in the bank lending rate can reduce the overall demand for goods and services and lead to a decrease in inflation.

Gross National Product (GNP) less the provision for the wear and tear of assets is the

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The term "Gross National Product (GNP) less the provision for the wear and tear of assets" refers to the Net National Product (NNP). The Net National Product (NNP) is a measure of the total economic output of a country, which takes into account the depreciation or wear and tear of the country's capital assets. Capital assets are things like buildings, machinery, and other long-term investments that contribute to a country's economic output. When we subtract the depreciation from the Gross National Product (GNP), which is the total value of goods and services produced by a country's residents, we arrive at the Net National Product (NNP). The reason we need to subtract depreciation from the GNP is that capital assets, such as buildings and machinery, wear out over time and lose value. If we didn't account for this loss of value, we would overestimate the country's economic output. For example, suppose the GNP of a country is $1 trillion, and the depreciation or wear and tear on its capital assets is $100 billion. In that case, the NNP of the country would be $900 billion ($1 trillion - $100 billion). In summary, the Net National Product (NNP) is the Gross National Product (GNP) minus the provision for the wear and tear of assets or depreciation. It gives us a more accurate measure of a country's economic output by accounting for the loss of value in capital assets over time.

The ordinary partner in a partnership

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The ordinary partner in a partnership typically has unlimited liability in case of business failure. This means that they can be held personally liable for any debts or obligations of the business that are not satisfied by the assets of the partnership. This is a major disadvantage of a partnership, as it exposes the personal assets of the partners to the risk of loss in the event of business failure. While the extent of the involvement of the ordinary partner in the management of the business may vary, they are typically expected to take an active part in the management and decision-making of the partnership. As such, they cannot be said to take no active part in the management of the business. Furthermore, as a general rule, partners are jointly and severally liable for the actions of the partnership, which means that they can be sued personally on matters relating to the business. Limited liability, on the other hand, is a characteristic of some types of business entities such as limited liability companies (LLCs) and corporations.

A possible factor which limits the extent of growth of a firm is the

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One possible factor that limits the extent of growth of a firm is the unwillingness to share ownership and control. When a firm is controlled by a single owner or a small group of owners who are not willing to share ownership or decision-making power, it can limit the firm's ability to raise capital, make strategic partnerships, or expand into new markets. In contrast, allowing outside investors or partners to have a stake in the company can provide the firm with access to more resources, expertise, and new opportunities for growth.

An important factor hindering the rapid development of the industrial sector in Nigeria.

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To compare the standard of living among nations, the most widely used economic indicator is the

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To compare the standard of living among nations, the most widely used economic indicator is the real per capita income. This is a measure of the average income per person in a given country, adjusted for inflation to reflect the purchasing power of that income. It is calculated by dividing the real gross domestic product (GDP) of a country by its population, which gives a sense of the economic output per person. While per capita nominal income and real gross national income are also used as economic indicators, they do not take into account inflation or differences in the cost of living across countries, which can make them less useful for comparing living standards. Real domestic output is not as widely used as real per capita income as it does not take into account the size of the population, which is an important factor in determining the standard of living.

A baker bought flour and other ingredients for S250.00, spent S52.00 on distribution, sold the bread for S320.00. The value added by the baker.

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The value added by the baker is $90.00. To calculate the value added by the baker, we need to subtract the cost of goods sold (COGS) from the revenue. The COGS in this case includes the cost of flour and other ingredients, which is not given, but we know that the baker spent a total of $250.00 on these items. We also need to include the cost of distribution, which is $52.00. So the total COGS is $250.00 + $52.00 = $302.00. The revenue from selling the bread is $320.00. Therefore, the value added by the baker is $320.00 - $302.00 = $18.00. In other words, the baker added $18.00 of value to the raw materials and distribution costs to produce and sell the bread. This value added represents the baker's contribution to the economy and is a measure of the wealth created by the baker's business.

Under flexible exchange rates, a deficit could be corrected by

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Under flexible exchange rates, a deficit could be corrected by the appreciation of other currencies. Flexible exchange rates are determined by market forces of supply and demand, without any government intervention. This means that the value of a country's currency can fluctuate based on changes in economic conditions and market expectations. In the case of a deficit, the demand for a country's currency will decrease, causing its value to fall relative to other currencies. This depreciation can make the country's exports cheaper and more competitive, while making imports more expensive, which can help correct the deficit. On the other hand, the appreciation of other currencies can make a country's exports more expensive and reduce demand for them, which can worsen the deficit.