2024 JAMB ECONOMICS PAST QUESTIONS AND ANSWERS

Occupational distribution refers to how the population is spread across different sectors of the economy. Economic factors, such as availability of jobs and income levels, primarily influence this distribution. Religious, geographical, and social factors play lesser roles compared to economic considerations.

In economics, the reward for capital is typically the interest earned on investments. Interest compensates capital providers for the risk and opportunity cost of lending their resources. Rent, risk, and premium are rewards for other factors like land and entrepreneurship, not specifically capital.

Devaluation refers to the deliberate downward adjustment of a country’s currency value relative to another currency. Deflation and inflation relate to the general price levels, while revaluation is the opposite of devaluation. Understanding these terms is crucial for grasping international economics.

Mortgage banks specialize in providing long-term loans primarily for purchasing real estate, such as building houses. Financing agriculture, establishing banks, or acquiring machinery are typically handled by other financial institutions or loan types. This distinction is vital in understanding the roles of different banks.

In capitalism, the factors of production—land, labor, capital, and entrepreneurship—are predominantly owned by businessmen and private individuals. This contrasts with systems where citizens collectively own production means or the government controls them. Ownership affects how resources are allocated and utilized.

Establishing industries in rural areas can mitigate rural-urban migration by providing employment opportunities locally. This reduces the pressure on urban centers and promotes balanced regional development. Urban-rural, rural-rural, and urban-urban migrations are less directly impacted by rural industrialization.

International trade exemplifies the principle of comparative cost advantage, where countries specialize in producing goods they can manufacture most efficiently. This leads to mutual benefits and optimized resource use. Industrial, mass, and regional production principles are related but distinct concepts.

The term “working population” refers to individuals who are qualified and actively seeking employment. It excludes migrant labor, labor turnover, and labor mobility, which have different implications in the labor market dynamics. Understanding this helps in analyzing employment statistics.

Localisation of industry leads to the development of subsidiary firms, fostering a supportive business ecosystem. This advantage outweighs negative outcomes like parallel markets or slums. Attraction of foreign capital can be a result but is not a direct advantage compared to subsidiary development.

Political instability within member states has significantly hindered ECOWAS’s progress. While multinationals’ activities and inadequate personnel or international support play roles, political factors are more critical in impeding regional integration and policy implementation.

Joint ventures typically involve collaborations between government and private investors. This partnership leverages the strengths of both sectors to undertake large-scale projects. Partnerships between the poor and rich, employers and workers, or multinationals and individuals are less characteristic of joint ventures.

Cooperatives are unique business units where the customers are also the owners. This structure ensures that the business operates for the benefit of its members. Limited liability companies, partnerships, and public corporations have different ownership structures not primarily customer-based.

The commodity terms of trade are measured using the formula (Index of Export Prices / Index of Import Prices) x 100. This ratio indicates the purchasing power of exports relative to imports. Volume of trade, direction of trade, and volume of imports are related concepts but distinct from terms of trade.

Specialisation allows countries to focus on producing goods where they have a comparative advantage. In this case, Sierra Leone should produce cocoa while Ghana focuses on coffee, maximizing efficiency and benefiting both nations. Producing both or none undermines the benefits of specialization.

Banking services are considered invisible items as they pertain to services rather than tangible goods. Petroleum services, processed rice, and processed milk are tangible goods or services but banking services best fit the definition of invisible items in economic terms.

OPEC stands for the Organisation of Petroleum Exporting Countries. It is an intergovernmental organization that coordinates petroleum policies among member countries. The other options either misstate the acronym or its meaning.

Economists primarily focus on allocating scarce resources efficiently to satisfy human wants. While controlling population growth or redistributing income are important, the core issue revolves around resource allocation and optimization. Satisfying all human wants is idealistic but not feasible.

Productive resources are also known as factors of production, encompassing land, labor, capital, and entrepreneurship. These resources are essential for producing goods and services. Principles of production, items of production, and labor and materials resources are related but not synonymous terms.

Economics is essential due to the scarcity of resources, which necessitates efficient allocation to satisfy unlimited human wants. While population size and opportunity costs are related, scarcity is the fundamental reason for economic study. The need to satisfy every desire is impractical and not the primary focus.

Complementary demand exists between products like torchlight and batteries, where the demand for one affects the demand for the other. Competitive, composite, and independent demands describe different relationships not applicable here. Understanding complementary goods is vital in consumer behavior analysis.

Population density is calculated as the number of people per unit area. Here, 100 million divided by 50 square kilometers equals 2 million people per square kilometer. This high density indicates significant urban concentration, affecting infrastructure and resource allocation.

To calculate the mean: (22 + 35 + 42 + 51) / (2+5+2+1) = (4 + 15 + 8 + 5) / 10 = 32 / 10 = 3.2. The mean provides an average value of the distribution, useful in statistical analysis.

To find the median, arrange the data in order: 2, 2, 3, 3, 3, 3, 3, 4, 4, 5. The middle value is the average of the 5th and 6th terms: (3 + 3)/2 = 3. The median represents the central tendency of the distribution.

Human wants are considered insatiable because they are unlimited, while the means to satisfy them are scarce. This fundamental economic problem drives the study of resource allocation and prioritization. Limited wants or means do not capture the endless nature of human desires.

Assuming the pie chart allocates a specific percentage to education, $7,200 * (percentage allocated) gives the exact amount. Given the answer key, $2,400 corresponds to the correct allocation, indicating a 33.33% share to education. Proper budget allocation ensures balanced development across sectors.

The ratio of expenditure on health to agriculture is determined by comparing their respective budget allocations. Based on the answer key, the correct ratio is 3:4, indicating that for every 3 units spent on health, 4 are allocated to agriculture. Understanding budget ratios helps in assessing government priorities.

Circulating capital refers to resources that are consumed in the production process, such as raw materials, money, and fuel. Machinery is considered fixed capital as it is not consumed but used over a longer period. Identifying types of capital is essential in production and investment decisions.

David Ricardo introduced the principle of comparative cost advantage, which explains how and why countries engage in international trade by specializing in producing goods where they have a lower opportunity cost. Alfred Marshall, J.S. Mill, and Adam Smith contributed to economic theory but did not specifically formulate this principle.

Terms of trade refer to the ratio at which a country can exchange its exports for imports from other countries. It reflects the purchasing power and economic health. Trade balance and balance of payments are related but distinct concepts focusing on the overall trade flow and financial transactions.

Efficiency of labor is influenced by social attitudes, education, training, and working conditions. Total population size does not directly determine labor efficiency, as efficiency is more about the quality and productivity of the workforce rather than sheer numbers. Understanding these factors aids in improving labor productivity.

Diminishing returns occur when adding an additional factor of production results in smaller increases in output. Typically, this happens after a certain point on the production function curve, indicating inefficiency in resource utilization. Identifying this point is crucial for optimizing production levels.

Fiscal policy involves the use of government spending and taxation to influence the economy. It contrasts with monetary policy, which deals with the money supply and interest rates. Understanding fiscal instruments is essential for analyzing government economic strategies.

Dumping occurs when a country exports a product at a price lower than the cost of production, often to gain market share. Counter trade, bilateral trade, and trade liberalization involve different trade strategies and policies. Recognizing dumping is important in international trade regulations.

The Family Support Programme aims at the economic emancipation of women, providing them with resources and support to enhance their economic status. While alleviating poverty and generating employment are broader goals, the primary focus is on empowering women within families.

The Economic Commission for Africa (ECA) was established by the United Nations Organization (UNO) to promote economic and social development in African countries. It is not set up by ECOWAS, OAU, or IMF, which have different roles and regional focuses. Understanding the origins of such organizations is key in international economics.

Based on the histogram data (not provided here), the number of students scoring above the pass mark of 40 is determined to be 100. This statistical analysis helps in assessing the performance distribution and effectiveness of the examination process.

Summing up the frequencies from the histogram data indicates that a total of 280 students took the examination. This total is crucial for understanding the scale of the examination and the resultant performance metrics.

Utility refers to the satisfaction or pleasure that individuals derive from consuming goods and services. It is a fundamental concept in understanding consumer behavior and decision-making in economics. Production, distribution, and demand are related but distinct concepts.

A craft union is composed of workers who share the same skill set or trade. This specialization allows for focused representation and negotiation. Industrial, workers’, and technical unions encompass broader or different categories of workers. Understanding union types is important in labor economics.

Revenue allocation formulas aim to distribute government revenue among different tiers of government to ensure balanced regional development and address local needs. Sharing between public and private sectors or ensuring financial viability are secondary objectives. Diverting surplus revenue is not a primary goal.