2013 JAMB ECONOMICS PAST QUESTIONS AND ANSWERS

Frictional unemployment occurs when workers are temporarily without a job while transitioning between positions.

Real wage growth occurs when productivity increases, enabling workers to earn higher wages without inflation.

The risk associated with a loan plays a significant role in determining the interest rate, as higher risks lead to higher rates.

The Economic Commission for Africa has played a vital role in promoting regional cooperation, infrastructure, and trade development.

Government spending, as part of fiscal policy, directly influences aggregate demand by increasing or decreasing national spending.

Buying its own currency with foreign reserves can help support the naira’s value and prevent depreciation.

Emigration reduces the population, potentially impacting the labor force and overall economic activity.

Improving labor quality requires investments in education, skills development, and technology to enhance productivity.

In partnerships, trust issues and disputes among members can lead to instability and inefficiencies.

In a consumer co-operative society, the members are also the owners, making it a democratic organization.

Deregulation allows for more competitive pricing and distribution, leading to greater efficiency in the sector.

Government involvement in the oil industry is necessary due to the high investment costs and national importance of the resource.

Privatization helps to improve efficiency in public corporations by introducing competition and market-driven management.

The availability of raw materials like clay is essential for the location of a brick industry to reduce production costs.

Over-dependence on agriculture with limited technology and inputs, such as crude implements, hampers agricultural output.

Adding value to agricultural products involves processing raw goods into finished products, enhancing their market value.

Life insurance companies invest in long-term financial instruments, supporting infrastructure development and capital markets.

The goal of development plans in Nigeria is to improve living standards and economic conditions for citizens.

The burden of a tax on land is shared between owners and users, depending on the elasticity of supply and demand.

Expansionary fiscal policies aim to boost economic activity through actions like lowering taxes or increasing government spending.

A reduction in money supply typically leads to higher interest rates as there is less money available for borrowing.

The Central Bank of Nigeria uses the discount rate to control inflation, influencing interest rates and credit availability.

Transactionary demand for money refers to the money held for everyday transactions, like household expenses.

Speculative demand for money is influenced by the interest rate; higher rates reduce demand as people invest more.

Per capita income divides national income by the population, allowing comparisons of the average income across countries.

Total revenue is the amount of money a firm receives from selling its goods or services, which is represented by the area of the rectangle in the graph.

The optimum output is where the firm maximizes its efficiency in terms of production and cost.

An isoquant curve represents combinations of input factors that yield the same level of output. A higher isoquant indicates higher output levels.

Economies of scale occur when increased production leads to lower average costs per unit due to bulk purchasing and efficiencies.

Government can reduce accommodation costs by fixing rents below the equilibrium price, making housing more affordable.

The price mechanism can exacerbate inequality by benefiting producers and consumers with more purchasing power.

A price set below equilibrium creates excess demand, as consumers demand more than producers are willing to supply.

In a monopolistic market, firms often supply goods that are derived from a single source or process.

When supply is elastic, a small reduction in price leads to a significant increase in quantity supplied.

Substituting the price value into the equation will give the quantity supplied.

Changes in supply are often influenced by production costs, availability of factors, and technological advancements.

Indifference curves represent combinations of goods that provide equal satisfaction. Consumers typically prefer combinations higher on the graph.

Utility refers to the satisfaction or pleasure derived from consuming goods and services.

The cardinalist approach assumes that utility can be measured and quantified, allowing comparisons between different bundles of goods.

Price elasticity of demand can be determined by the steepness of the curve. A steep curve indicates inelastic demand.

The price elasticity of demand can be calculated using the percentage change in quantity divided by the percentage change in price.

According to the law of demand, an increase in price typically leads to a decrease in the quantity demanded.

When demand increases and supply remains constant, both equilibrium price and quantity will rise.

The median is the middle value when the data set is arranged in ascending order. In this case, 22 is the median.

The range provides a quick estimate of the spread of data, especially when dealing with open-ended distributions.

The mean and standard deviation are commonly used in economic analysis to describe and analyze data distribution.

Variance is the square of the standard deviation, so the variance is 53^2.

A mixed economy involves both government intervention and private sector participation, ensuring balanced growth.

The type of question paper provided can vary, each type has a specific color code for easy identification.