JAMB UTME - Economics - 2023
Pergunta 1 Relatório
Agriculture accounts for about 60% of the
Detalhes da Resposta
Agriculture accounts for about 60% of the active labour force in West Africa. This is because a large portion of the population in West Africa is engaged in farming and other agricultural activities for their livelihood. The other options are incorrect as agriculture does not account for 60% of the arable land, service sector activities, or the commodity market in West Africa.
Pergunta 2 Relatório
Calculate the equilibrium level of national income (Y) where Y = C + I + G; C = 100 + 0.75Y; I = 50; G = 200
Detalhes da Resposta
To calculate the equilibrium level of national income (Y), we start with the equation Y = C + I + G. In this equation, C represents consumption spending, I represents investment spending, and G represents government spending. Now, let's substitute the given values into the equation: C = 100 + 0.75Y I = 50 G = 200 Substituting these values, we get: Y = (100 + 0.75Y) + 50 + 200 To solve for Y, we need to simplify the equation: Y = 100 + 0.75Y + 50 + 200 Combining like terms, we have: Y = 350 + 0.75Y Next, we can solve for Y by isolating it on one side of the equation. To do this, we can subtract 0.75Y from both sides: Y - 0.75Y = 350 Simplifying further, we have: 0.25Y = 350 Finally, we can solve for Y by dividing both sides of the equation by 0.25: Y = 350 / 0.25 Calculating this, we find: Y = 1400 So, the equilibrium level of national income (Y) is 1400.
Pergunta 3 Relatório
Part-time workers who desire full-time employment are:
Detalhes da Resposta
Part-time workers who desire full-time employment are classified as underemployed and contribute to the unemployment statistic.
Underemployment refers to a situation where individuals are working fewer hours than they would like or in jobs that do not utilize their skills and qualifications fully. In this case, part-time workers who desire full-time employment are considered underemployed because they are not able to secure the desired amount of work hours.
These underemployed workers contribute to the unemployment statistic because they are actively seeking additional work hours to meet their employment needs. They are considered part of the labor force because they are willing and available to work more hours, but they have not been able to find full-time employment.
It is important to note that not all underemployed workers contribute to the unemployment statistic. Some may choose to work part-time for personal reasons, such as family responsibilities or pursuing education. These individuals, although underemployed, are not actively seeking additional work hours and therefore do not contribute to the unemployment statistic.
However, in the case of individuals who are part-time workers and desire full-time employment, their underemployment status reflects the inadequacy of available job opportunities. They increase the count of unemployed individuals because they are willing and actively searching for additional work.
It is worth mentioning that cyclical unemployment is a different type of unemployment. It occurs when there is a downturn in the economy, causing a decrease in overall demand for goods and services, and subsequently, a decrease in the demand for labor. Cyclical unemployment is not directly related to the part-time workers' desire for full-time employment.
Pergunta 4 Relatório
Economics is often described as a science because it
Detalhes da Resposta
Economics is often described as a science because it uses scientific methods to explain observed phenomena. Just like other scientific fields, economics relies on gathering data, formulating hypotheses, and conducting experiments to test these hypotheses. However, unlike fields such as physics or chemistry, economics does not rely on laboratory experiments or controlled experiments. Instead, economists analyze real-world data to understand how individuals, businesses, and governments make choices and interact with each other. They use statistical methods to analyze this data and make predictions about how changes in various factors will affect economic outcomes. While it is difficult to accurately predict the behavior of individual human beings, economics aims to make accurate predictions on aggregate behavior, or how groups of people will respond to changes in factors such as prices, taxes, or policies. These predictions are based on the analysis of historical data and the use of economic models, which simplify complex economic interactions. In summary, economics is considered a science because it employs scientific methods to explain observed phenomena, although it does not rely on laboratory experiments or controlled experiments. It uses data analysis, hypothesis testing, and economic models to understand and predict how individuals and groups make economic decisions and interact with each other.
Pergunta 5 Relatório
Business cycle is associated with
Detalhes da Resposta
Business cycle are intervals of expansion followed by recession in economic activity. It is characterized by general upswings and downturns in a span of macroeconomics variable.
Pergunta 6 Relatório
A major factor contributing to productivity is
Detalhes da Resposta
Labour is by far the most common of the factors used in measuring productivity. One reason for this is, of course, the relatively large share of labour costs in the value of most products.
Pergunta 7 Relatório
The law of supply states that, other things being constant, as price increases
Detalhes da Resposta
The law of supply states that, other things being constant, as price increases, the quantity supplied also increases. Basically, when the price of a good or service goes up, suppliers have an incentive to produce and sell more of that item. This is because they can earn more profit by selling at the higher price. So, as the price rises, suppliers are motivated to increase their production and offer more of the product to the market. On the other hand, when the price of a good or service decreases, suppliers have less motivation to produce and sell it. This is because they can earn less profit or even incur losses at the lower price. As a result, they will reduce the quantity supplied. In summary, the law of supply tells us that there is a direct relationship between price and quantity supplied. When the price increases, suppliers respond by increasing the quantity they are willing to supply to the market. Conversely, when the price decreases, the quantity supplied decreases.
Pergunta 8 Relatório
A tariff is a tax imposed on
Detalhes da Resposta
A tariff is a tax that is imposed on imported goods. It is a financial charge that a government puts on goods that are being brought into the country. The purpose of a tariff is to protect domestic industries and businesses from competition from imported goods. By placing a tax on imported goods, it becomes more expensive for consumers to buy those goods, making them less appealing compared to domestic alternatives. This gives domestic industries a competitive advantage and helps support local businesses and jobs. So, the correct answer is imported goods.
Pergunta 9 Relatório
The demand for money will fall if
Detalhes da Resposta
If GDP falls, then people demand less money for transactions. As interest rate rise (fall), the demand for money will fall(rise).
Pergunta 10 Relatório
The marginal propensity to consume is
Detalhes da Resposta
The marginal propensity to consume (MPC) is a measure of how much of an increase in income is typically spent on consumption. It is represented by the symbol c or ΔC/ΔY. To explain it simply, the MPC tells us the proportion of additional income that is used for consumption rather than saving or other purposes. For example, if the MPC is 0.8, it means that for every additional unit of income, 0.8 units are typically spent on consumption. The MPC can also be understood as the slope of the consumption function. The consumption function is a mathematical relationship between income and consumption. The MPC represents how much consumption changes for a given change in income. In the equation C = C + cYd, the coefficient c represents the MPC. This equation shows that consumption (C) is determined by autonomous consumption (C) plus the product of the MPC (c) and disposable income (Yd). In summary, the MPC is a measure of how much additional income is typically used for consumption. It can be represented as ΔC/ΔY, the slope of the consumption function, or the coefficient c in the consumption equation.
Pergunta 11 Relatório
The diagram above represent
Detalhes da Resposta
The diagram above represent a monopolist diagram.
Pergunta 12 Relatório
Which of the following Age group belongs to active Labour force?
Detalhes da Resposta
The age group that belongs to the active labor force is the **18 - 64 years** category. This age range is generally considered to be the working-age population, as it encompasses individuals who are old enough to work and have not yet reached the age of retirement. People in this age group are typically in their prime working years, where they have the physical ability and the necessary skills and knowledge to actively participate in the labor market. They are often seeking employment, working in various industries or sectors, and contributing to the economic growth and development of their country. It is important to note that the specific age range considered as the working-age population may vary slightly across different countries or regions. However, in most cases, it generally falls within the **18 - 64 years** age bracket. On the other hand, the other age groups mentioned in the options are not typically considered as part of the active labor force: - The **0 - 17 years** age group consists of individuals who are below the legal working age and are typically attending school or dependent on others for their livelihood. - The **15 - 25 years** age group partially overlaps with the working-age population, but it includes individuals who may still be in school or pursuing higher education. While some individuals within this age range may be actively seeking employment or working part-time, they are generally not considered as the core active labor force. - The **65 years and above** age group represents individuals who have reached the retirement age or are eligible for retirement benefits. While some individuals in this age range may continue to work, either out of choice or due to financial circumstances, they are not considered as the primary active labor force. In summary, the **18 - 64 years** age group is the one that belongs to the active labor force, consisting of individuals who are in their prime working years and actively participating in the labor market.
Pergunta 13 Relatório
.............is presently used in Nigeria to measure inflation
Detalhes da Resposta
The measure that is presently used in Nigeria to measure inflation is the Consumer Price Index (CPI). The CPI is a commonly used indicator worldwide to track changes in the cost of living over time.
The Consumer Price Index (CPI) measures the average price changes of a basket of goods and services typically purchased by households in a specific country or region. It reflects the price movements of essential items such as food, housing, transportation, healthcare, education, and many other goods and services that people consume regularly.
The CPI is calculated by collecting price data for various items in the basket and assigning them weights based on their relative importance in household spending. The prices are then compared to a base period, which is usually a specific year. The percentage change in the CPI from the base period indicates the rate of inflation or deflation.
In Nigeria, the CPI is used to monitor and analyze changes in the cost of goods and services, allowing policymakers and economists to assess the impact on consumers' purchasing power and make informed decisions. It helps in determining the effectiveness of government policies, evaluating the performance of the economy, and adjusting wages and prices.
By tracking the CPI, the government can identify if there is an increase in the general level of prices, indicating inflation, or a decrease, indicating deflation. This information helps in formulating monetary and fiscal policies to control inflation rates and maintain price stability.
Overall, the Consumer Price Index (CPI) is the measure currently used in Nigeria to gauge inflation and is crucial in understanding how the cost of living changes over time, impacting the economy and the daily lives of individuals and businesses.
Pergunta 14 Relatório
An increase in nominal income without increase in price will result to
Detalhes da Resposta
An increase in nominal income without an increase in prices will result in an **increased real income**. Nominal income refers to the amount of money a person earns or receives in a given period, without taking into account changes in prices. On the other hand, real income takes into consideration the effects of inflation by adjusting for changes in prices. When nominal income increases but prices remain constant, it means that the purchasing power of an individual's income has increased. In other words, they can afford to buy more goods and services with the same amount of money. This increase in purchasing power leads to an increase in real income. For example, let's say a person's nominal income is $1,000 per month, and the prices of goods and services they consume also remain constant. If their nominal income increases to $1,200 per month, without any increase in prices, they now have an additional $200 to spend on other things. This additional purchasing power translates to an increase in their real income. It is important to note that an increase in nominal income without an increase in prices does not necessarily lead to an **increased GDP** or a **decreased GNP**. GDP (Gross Domestic Product) measures the total value of goods and services produced within a country's borders, while GNP (Gross National Product) measures the total value of goods and services produced by a country's residents, including those produced abroad. The increase in real income of individuals does not automatically impact the overall production levels captured by GDP or GNP.
Pergunta 15 Relatório
Macroeconomics focuses on the following units in an aggregative manner
Detalhes da Resposta
Macroeconomics focuses on the units of an economy in an aggregative manner, meaning it looks at the economy as a whole rather than focusing on individual units. This helps us understand how different parts of the economy interact and influence each other.
The correct option is **household, firms, government, corporate sector, and external sector**. Macroeconomics analyzes the behavior and interactions of these units to understand the overall performance of the economy.
1. **Households**: These are the individual consumers who make up the economy. They play a vital role in determining the consumption and saving patterns that influence economic activities.
2. **Firms**: Firms are the businesses that produce goods and services in the economy. Macroeconomics looks at their investment decisions, production levels, and employment to understand the overall economic growth and productivity.
3. **Government**: The government plays a significant role in macroeconomics. It collects taxes, provides public goods and services, regulates the economy, and influences economic policies such as fiscal and monetary measures to stabilize the economy.
4. **External sector**: The external sector represents international trade and the flow of goods, services, and capital across borders. Macroeconomics considers factors like exports, imports, exchange rates, and foreign investment to understand the impact of global interactions on the economy.
By examining these units in an aggregative manner, macroeconomics helps us understand how changes in one sector affect the others and ultimately impact the overall performance of the economy.
Pergunta 16 Relatório
Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
Detalhes da Resposta
A fall in the profit margin of producers in an economy will likely result in an increase in unemployment.
When the profit margin of producers decreases, it means that they are earning less profit from their business activities. As a result, they may struggle to cover their costs, sustain their operations, or expand their businesses. To manage their financial situation, producers may need to cut costs, reduce production, or even close down their business altogether.
Reduced production and business closures lead to a decrease in job opportunities and an increase in unemployment. When businesses are not making enough profit, they may need to lay off workers or reduce their workforce in order to cut costs. This means that fewer people will have jobs, resulting in higher unemployment rates.
Additionally, a fall in profit margins can also deter new businesses from entering the market or existing businesses from expanding. This further limits job creation and can exacerbate the unemployment problem.
In summary, a fall in the profit margin of producers in an economy leads to reduced production, business closures, job cuts, and a decrease in job opportunities. Therefore, the most likely resultant effect of such a decline in profit margin is an increase in unemployment.
Pergunta 17 Relatório
The quantity of commodity a consumer is willing and able to buy at a particular time is called
Detalhes da Resposta
The quantity of a commodity that a consumer is willing and able to buy at a particular time is called demand.
Demand refers to the consumer's desire or willingness to purchase a specific product or service at a given price and at a given time. It represents the customer's intent to buy and the amount they are willing to buy at various price levels.
It is important to note that demand is not just about the desire for a particular item, but also the consumer's ability to pay for it. For example, someone may wish or desire to buy a luxury car, but if they do not have the financial means to afford it, their demand for that car is limited.
In summary, demand is the quantity of a commodity that a consumer is both willing and able to buy at a given time, reflecting their desire for the product and their ability to pay for it.
Pergunta 18 Relatório
From the graph below, Point "E" shows--------------
Detalhes da Resposta
Point 'E" inside the graph indicates it is technologically inefficient" , Underemployed" or wide spread unemployent" or resources are not fully utilized or production inefficient"
Pergunta 19 Relatório
The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is
Detalhes da Resposta
The type of price elasticity of demand for a commodity whose quantity demanded remains unchanged despite changes in the price is **perfectly inelastic**. When the demand for a commodity is perfectly inelastic, it means that the quantity demanded does not respond at all to changes in price. This usually occurs when there are no close substitutes for the commodity, or when the commodity is a necessity that people cannot easily do without. To understand it in a simple way, imagine a situation where the price of a life-saving medication for a critical illness increases significantly. In such a case, even if the price increases, the quantity demanded for the medication will remain the same because the individuals who need it have no other option but to purchase it at any cost. Therefore, the demand for such a medication is perfectly inelastic, as it does not change with variations in price. In summary, when the demand for a commodity is perfectly inelastic, it means that consumers are willing to pay any price for it, and the quantity demanded does not change despite fluctuations in price.
Pergunta 20 Relatório
Suppose the public expenditure as a percentage of GDP of four countries is shown in the table below
| A | 40% |
| B | 50% |
| C | 33% |
| D | 36% |
Which type of economy exists in these countries?
Detalhes da Resposta
The type of economy that exists in these countries is Mixed economy.
A mixed economy is an economic system that combines elements of both market and planned economies. It includes both private and public sectors, and the government plays a significant role in regulating and defining the structure of the economy.
In the given scenario, the fact that the countries have different levels of public expenditure as a percentage of GDP indicates that the government plays a role in the economy and is involved in spending a portion of the national income.
While the exact percentage of public expenditure varies between the countries, the presence of any public expenditure suggests government intervention and regulation in the economy. This means that these countries have a mixed economy, where both public and private sectors coexist and contribute to economic activities.
The government's involvement can take various forms, such as funding public goods and services, implementing social programs, and regulating industries. The level of government intervention may vary, but the presence of public expenditure indicates that the government has an active role in shaping the economy.
Therefore, based on the information provided, it can be concluded that the countries mentioned in the table have a mixed economy.
Pergunta 21 Relatório
If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
Detalhes da Resposta
Q = 14, P = 4
Qd = 30 - 4p
∆q/∆p = - 4
Ed = ΔqΔp×pq
= - 4 x 4/14
= Ed = -1.14
since price elasticity is positive, then Ed = 1.14
Pergunta 22 Relatório
Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?
Detalhes da Resposta
An example of expansionary monetary policy by the Central Bank of Nigeria is "buying Treasury securities from commercial banks." Expansionary monetary policy is a type of policy implemented by the central bank to stimulate economic growth and increase the supply of money in the economy. This policy is typically used during times of economic downturn or recession to encourage spending and investment. When the Central Bank of Nigeria buys Treasury securities from commercial banks, it injects money into the economy. This increases the amount of money available in the banking system, making it easier for banks to lend to businesses and individuals. By increasing the money supply, the central bank aims to lower interest rates, which in turn encourages borrowing and spending. Lower interest rates mean that businesses and individuals can access credit more easily, leading to increased investment, consumer spending, and economic growth. This expansionary policy can help support economic activity, boost employment, and stimulate overall economic recovery.
Pergunta 23 Relatório
Money could be defined as
Detalhes da Resposta
Money can be defined as a medium of exchange that is universally accepted for buying goods and services. It enables people to easily trade with one another, without the need for bartering or trading directly with goods. In simpler terms, money is like a common language that everyone understands and uses to exchange things they want or need.
Money also serves as a settlement of debt because it allows individuals, businesses, and even governments to repay what they owe. When someone borrows money or takes a loan, they can later use money to pay back the lender. Similarly, if someone owes money to another person, they can use money to settle that debt.
Additionally, money is a medium of payment. It is used to complete transactions and make payments for goods and services. Whether you are buying groceries, paying for a movie ticket, or purchasing a new gadget, money is the common method of payment.
To summarize, money is a medium of exchange, settlement of debt, and medium of payment. It simplifies trade, enables the repayment of debts, and facilitates transactions in our daily lives.
Pergunta 24 Relatório
The fundamental problem of economics is
Detalhes da Resposta
The fundamental problem of Economics is Scarcity. Scarcity explains the basic economic problem that the world has limited or scarce resources to meet seemingly unlimited wants, and this reality forces people to make decisions about how to allocate resources in the most efficient way.
Pergunta 25 Relatório
Economists refer to private goods as
Detalhes da Resposta
Private goods are referred to as rivalrous and excludable by economists. Let me explain what this means in a simple and comprehensive way.
When a good is rivalrous, it means that one person's use or consumption of the good diminishes its availability for others. For example, if you eat an orange, there is now one less orange for someone else to consume. The consumption of the orange by one person reduces the availability of the orange for others.
On the other hand, when a good is excludable, it means that it is possible to prevent someone from using or consuming that good if they do not pay for it. For instance, if you go to a movie theater and buy a ticket, you are allowed entry to watch the movie. However, if you do not buy a ticket, you will be excluded from watching the movie.
Private goods possess both of these characteristics. They are rivalrous because one person's use or consumption of the good reduces its availability for others. For example, if you buy a car, only you can use it at any given time, and someone else cannot simultaneously use it. Private goods are also excludable because it is possible to prevent others from using or consuming the good if they do not pay for it. For instance, if you purchase a book, you have exclusive access to read it unless you choose to share it with someone.
In summary, private goods are referred to as rivalrous and excludable because their consumption diminishes their availability for others, and it is possible to exclude others from using or consuming them if they do not pay for them.
Pergunta 26 Relatório
Which of the following is NOT one of the characteristics of developing countries?
Detalhes da Resposta
Mono- product economy ( an economy that produces one product or commodity) is not a characteristics of developing country. The characteristics are: high level of illiteracy, dependence on agriculture, low savings and investment, low standard of living, population explosion, high death rate etc.
Pergunta 27 Relatório
From the graph above, the consumer is at equilibrium at point
Detalhes da Resposta
Based on the graph, the consumer is at equilibrium at point k.
Equilibrium is when the quantity demanded by the consumer is equal to the quantity supplied by the market. At equilibrium, there is no shortage or surplus of the goods or services.
Point k on the graph represents the intersection of the demand curve (D) and the supply curve (S). At this point, the quantity demanded (Qd) and the quantity supplied (Qs) are equal.
If the consumer is at any other point on the graph, either to the left or to the right of point k, there would be either a shortage or a surplus of the goods or services. This would mean that the demand and supply are not in balance and the market is not at equilibrium.
Therefore, point k is the correct answer as it represents the position where the consumer is at equilibrium.
Pergunta 28 Relatório
..................... is the highest body in ECOWAS organogram
Detalhes da Resposta
The highest body in the ECOWAS organogram is the Authority of Head of State and Government. This body consists of the presidents and heads of government of the member states in the Economic Community of West African States (ECOWAS).
The Authority of Head of State and Government is responsible for making major decisions and policies for the entire ECOWAS community. They meet regularly to discuss and address regional issues, such as political stability, economic cooperation, and security.
This body holds the highest level of political power in ECOWAS and has the authority to make decisions that affect the entire organization. It plays a crucial role in promoting regional integration and cooperation among member states.
To sum up, the Authority of Head of State and Government is the most important body in the ECOWAS organogram as it consists of the leaders of the member states and is responsible for making key decisions and policies for the organization.
Pergunta 29 Relatório
The rate of output per worker (or group of workers) per unit time is called
Detalhes da Resposta
The correct answer is labour productivity.
Labour productivity refers to the rate at which output is produced by a worker or a group of workers in a given amount of time. It measures how efficiently and effectively workers are using their skills, time, and resources to produce goods or services.
To understand this concept, let's imagine a scenario where we have two workers producing bicycles. Worker A is able to produce 5 complete bicycles in one hour, while Worker B can only produce 3 complete bicycles in the same amount of time.
In this case, Worker A has a higher labour productivity because they are able to produce more output (bicycles) per unit of time (one hour) compared to Worker B.
Labour productivity is an essential measure for companies and economies because it directly impacts their profitability and competitiveness. Higher labour productivity means that more goods or services can be produced using the same amount of resources or in less time. This leads to lower costs per unit and can result in higher profits or the ability to lower prices for customers.
In summary, labour productivity is a measure of how efficiently workers are producing goods or services and is calculated by dividing the total output by the number of workers or the amount of time it took to produce that output.
Pergunta 30 Relatório
In a two by two model of international trade, it is assumed that
Detalhes da Resposta
In a two by two model of international trade, it is assumed that **both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade**. This means that both countries can benefit from engaging in trade with each other. Trade allows both countries to specialize in producing and exporting the goods in which they have a comparative advantage, while importing goods that they are less efficient at producing. This leads to increased efficiency and overall economic gains for both countries. However, the volume of the gains from trade depends on the terms of trade between the two countries. The terms of trade refer to the ratio at which the countries exchange their goods. If one country has a higher bargaining power or can produce goods at a lower cost, they may negotiate more favorable terms of trade, leading to a larger volume of gains for that country. On the other hand, if the terms of trade are less favorable, the volume of gains for both countries may be smaller. In summary, while both countries can benefit from trade, the extent of the gains will vary depending on the terms of trade negotiated between them.
Pergunta 31 Relatório
Indicator of underdevelopment is
Detalhes da Resposta
An indicator of underdevelopment is low per capita income. Per capita income refers to the average income earned by individuals in a country. In underdeveloped countries, the per capita income is generally low, meaning that people have lower incomes on average compared to developed countries.
Low per capita income is a significant indicator of underdevelopment because it directly affects the standard of living of people within a country. With low income, individuals have limited purchasing power, making it difficult for them to afford basic necessities such as food, clothing, and shelter. This can lead to overall poor living conditions and a lack of access to essential services like healthcare and education.
Additionally, low per capita income also implies limited economic opportunities and a weak economy. It suggests that the country's productivity and industrial development are low, leading to low wages and limited job opportunities. This can result in high levels of poverty and unemployment, further hindering the country's development.
In summary, low per capita income is a crucial indicator of underdevelopment because it reflects the overall economic situation of a country and directly impacts the living conditions and opportunities available to its citizens.
Pergunta 32 Relatório
Institutions serving as links between surplus and deficit units can be identified as
Detalhes da Resposta
Financial intermediaries serve as links between surplus and deficit units in an economy. These intermediaries include banks, credit unions, and other financial institutions. When there is surplus money in the economy, individuals and businesses deposit the excess funds with financial intermediaries. These intermediaries then pool these funds together and make them available to deficit units, such as individuals or businesses in need of loans or financing. Financial intermediaries play a crucial role in the economy by efficiently allocating funds from surplus units to deficit units. They match the needs of borrowers with the resources of savers, helping to facilitate economic growth and development. Tax officers and pension offices, on the other hand, do not serve as direct links between surplus and deficit units. Tax officers collect taxes for the government, while pension offices manage pension funds for retired individuals. Although these entities may indirectly impact the allocation of funds in the economy, their primary roles are different from that of financial intermediaries. Acceptance houses are also not direct links between surplus and deficit units. Acceptance houses provide short-term financing through the purchase of bills of exchange. While they play a role in facilitating trade between businesses, their function is more specific and limited compared to the broader role of financial intermediaries. In summary, financial intermediaries such as banks and credit unions serve as the primary links between surplus and deficit units in an economy. They gather surplus funds from savers and make them available to borrowers, thereby promoting the efficient allocation of resources.
Pergunta 33 Relatório
When a generalization is made based on observed facts, it is
Detalhes da Resposta
When a generalization is made based on observed facts, it is called inductive reasoning. Inductive reasoning involves drawing conclusions from specific instances or examples to come up with a general statement or theory. This means that we observe a pattern or trend from the evidence we have and then make a generalization or inference based on that pattern. Inductive reasoning is different from deductive reasoning, which involves starting with a general statement or theory and then using it to predict or explain specific instances. In inductive reasoning, we start with specific observations and use them to make a broader generalization. It is important to note that while inductive reasoning can often lead to accurate conclusions, it is not always guaranteed to be correct. However, it is a common and useful method used in many fields such as science, sociology, and psychology.
Pergunta 34 Relatório
The development of an economic hypothesis through intuition, insight, or logic is associated with
Detalhes da Resposta
Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios. It expresses ideological judgments about what may results in economic activity if public policy changes are made.
Pergunta 35 Relatório
If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn
Detalhes da Resposta
Economic profit = Total revenue(Output) - Opportunity cost of input
= 1,000,000 - 750,000
= 250,000
Pergunta 36 Relatório
The following are economic agents in any economy EXCEPT
Detalhes da Resposta
Economic agents are entities that make economic decisions. They include households, firms, and the government. The Central Bank, while an important institution, is not considered an economic agent as it does not make decisions about what, how, and for whom to produce. It is responsible for monetary policy and regulating the financial system.
Pergunta 37 Relatório
When a kilogram of carrot is #8.00, 20 kilograms are demanded and when the price decreased to #6.000 per kilogram, 30 kilograms are demanded. The elasticity of demand equals to
Detalhes da Resposta
To calculate the elasticity of demand, we need to compare the changes in price and quantity demanded.
First, let's calculate the percentage change in price:
% change in price = ((new price - old price) / old price) x 100
% change in price = ((6 - 8) / 8) x 100
% change in price = (-2 / 8) x 100
% change in price = -25%
Next, let's calculate the percentage change in quantity demanded:
% change in quantity demanded = ((new quantity demanded - old quantity demanded) / old quantity demanded) x 100
% change in quantity demanded = ((30 - 20) / 20) x 100
% change in quantity demanded = (10 / 20) x 100
% change in quantity demanded = 50%
Now, let's calculate the elasticity of demand:
Elasticity of demand = % change in quantity demanded / % change in price
Elasticity of demand = 50% / -25%
Elasticity of demand = -2
The elasticity of demand is -2.
Explanation:
The negative sign in the elasticity of demand (-2) indicates that the demand for carrots is price elastic. This means that a decrease in price by 1% will lead to a more than proportionate increase in quantity demanded by 2%. In simpler terms, when the price of carrots decreased by 25%, the quantity demanded increased by 50%.
Therefore, the elasticity of demand is -2, which means that the demand for carrots is price elastic.
But since price elasticity is always represented with a positive number, the answer is 2
Pergunta 38 Relatório
An industry is
Detalhes da Resposta
An industry is a group of firms producing similar products and under separate administration or management.
Pergunta 39 Relatório
------------- is NOT the cause of balance of payments (BOP) deficits in Nigeria
Detalhes da Resposta
The causes of balance of payment deficit are: low level of agriculture, low level of technological development, inadequacies in export promotion strategy, political instability, poor social and economic infrastructure, servicing of huge external debts, existence of import dependent industries etc.
Pergunta 40 Relatório
An increase in money income with constant price results in
Detalhes da Resposta
When there is an increase in money income but the prices of goods and services remain the same, it will result in an outward shift in the budget line. To understand this, let's imagine a simple scenario where a person has a fixed amount of money to spend on different goods and services. This fixed amount of money represents their income. Now, if their income increases but the prices of goods and services they want to buy stay the same, they will have more money to spend. This means they can afford to buy more of each item. As a result, the budget line, which shows the different combinations of goods and services that can be bought with a given income, will shift outward. This indicates that they can now afford to buy a greater quantity of goods and services than before. Therefore, the correct answer is an "outward shift in the budget line" when there is an increase in money income with constant prices.
