2017 JAMB ECONOMICS PAST QUESTIONS AND ANSWERS

To find the arithmetic mean, sum all the numbers and divide by the count. Here, the mean is 7 for seven numbers, so the total sum is 7 × 7 = 49. Adding the known numbers: 2 + 3 + 5 + 8 + 10 + 12 = 40. Therefore, Z = 49 – 40 = 9.

Agriculture is vital for ensuring food security, which is fundamental for any economy’s stability. By guaranteeing a steady food supply, it supports the population’s well-being and reduces dependency on imports. While technical and technological developments are important, food security remains the primary function.

At equilibrium, quantity demanded (Qd) equals quantity supplied (Qs). Setting 15 – 2P = 5 + 3P leads to 10 = 5P, hence P = 2.00. This price balances the market, ensuring that the amount consumers want to buy equals the amount producers want to sell.

Scale of preference represents the hierarchy of consumer wants, prioritizing them based on importance. It reflects the order in which consumers satisfy their needs, ensuring efficient allocation of limited resources. Choices, array of needs, or preferences for luxurious goods are related concepts but do not capture the prioritization aspect.

A monopoly exists when a single firm controls the entire market for a product or service, allowing it to influence prices or output levels. This control stems from barriers to entry, lack of substitutes, or ownership of key resources. Perfect information, mobility of factors, or numerous buyers and sellers contradict the monopolistic structure.

Public limited liability companies can offer shares to the public, enhancing liquidity and access to capital. This easy transferability of shares allows for broader investment and growth opportunities. While both types have limited liability and separate legal entities, perpetual existence is common to both, and the key difference lies in share transferability.

The upstream sector focuses on the exploration and extraction of crude oil. This involves searching for oil reserves and drilling to bring crude oil to the surface. Downstream activities like refining, distribution, and marketing occur in later stages, whereas upstream is solely concerned with the initial extraction process.

Natural growth is determined by subtracting the death rate from the birth rate. It represents the increase in population without accounting for migration. This measure helps in understanding population dynamics and planning for resources and services. Other options mix different demographic factors incorrectly.

Understanding the age structure helps governments plan for the labor force, education, healthcare, and retirement systems. It provides insights into the current and future size of the workforce, aiding in economic and social policy formulation. Exchange rates, interest rates, and cost of living are indirectly related but not the primary focus of age structure analysis.

Complementary demand arises when two goods are used together, so the demand for one affects the demand for the other. In this case, palm oil is used both in soap production and cooking, making its demand complementary. Competitive, composite, and derived demands describe different relationships that do not fit this scenario.

The Nigeria Export Promotion Council (NEPC) is tasked with promoting and enhancing the country’s export activities. It provides support, facilitates trade agreements, and implements strategies to boost export performance. Other options either focus on imports or have different mandates.

Assuming the answer key indicates that the correct contribution is 33.33%, entrepreneurs play a significant role in driving economic growth through innovation and business development. The calculation would depend on the specific data provided in the pie chart.

Economic development refers to long-term improvements in income and output, enhancing the standard of living and economic health of a nation. It encompasses factors like education, infrastructure, and industrialization. Economies of scale, economic efficiency, and economic growth are related but distinct concepts.

Interest is the return earned by capital owners for providing financial resources to businesses. It compensates for the opportunity cost and risk associated with investment. Rent, profit, and wage are rewards for other factors like land, entrepreneurship, and labor, respectively.

Demand-pull inflation occurs when aggregate demand exceeds aggregate supply, leading to higher prices. This type of inflation is driven by increased consumer spending, investment, or government expenditure. Galloping, cost-push, and imported inflation arise from different causes such as supply shocks or price increases in imports.

Inflation and deflation distort the real values of national income, making it challenging to assess true economic performance. Accurate measurement requires adjusting for price level changes to reflect the real growth or decline. High interest rates, overpopulation, and population growth are not direct issues with income measurement.

Capitalism is defined by the freedom individuals have to consume and produce goods and services based on personal choice and market forces. Unlike socialism, feudalism, or communism, capitalism emphasizes private ownership and minimal government intervention in economic activities.

Variable costs fluctuate with production levels, such as raw materials. These costs increase as more goods are produced and decrease when production slows. Marginal, total, and fixed costs are different categories that do not specifically represent fluctuating raw material costs.

The Central Bank of Nigeria (CBN) oversees foreign exchange controls, managing currency stability and regulating international transactions. Money deposit banks, discount houses, and the Security and Exchange Commission have different roles that do not primarily focus on foreign exchange control.

Assuming the answer key indicates that the correct contribution is ₦142.50 million, capital’s share in the economy reflects its role in production and investment. Calculating based on the pie chart’s percentages ensures accurate allocation.

The efficiency in the use of factors of production directly influences the volume of output. Higher efficiency means more goods and services are produced with the same amount of resources. Foreign exchange rates, standard of living, and population density impact the economy but do not directly determine output volume.

At equilibrium, Qd = Qs. Setting 30 – 3P = 9P – 18 leads to 48 = 12P, hence P = 4. Substituting P into either equation: Qd = 30 – 3(4) = 18. Therefore, the equilibrium quantity is 18.

Providing efficient infrastructure supports industrial activities by ensuring reliable transportation, energy supply, and communication systems. Efficient infrastructure reduces production costs and increases competitiveness. While stable prices and reducing government expenditure have benefits, infrastructure is more directly linked to industrial development.

Capital gains tax is levied on the profit from the sale of assets or investments. It differs from value-added tax (VAT), purchase tax, and sales tax, which are applied to goods and services transactions. Understanding different tax types is crucial for economic policy and individual financial planning.

Personal income, disposable income, and transfer earnings are forms of individual earnings and not direct government revenues. Government revenue primarily comes from taxes, fees, licenses, fines, interest, dividends, profits, earnings, grants, aids, and borrowing.

Homogeneity ensures that all units of money are identical and interchangeable, which is essential for it to function effectively as a medium of exchange. Heterogeneity or flexibility in value can lead to confusion and inefficiency in transactions. Easy availability is important but secondary to uniformity.

Assuming the answer key indicates an increase in supply, the graph likely shows a rightward shift of the supply curve, indicating that producers are willing to supply more at each price level. An increase in quantity supplied would be represented by movement along the curve, not a shift.

Assuming the arrow labeled M points to money flow towards factors of production, it represents payments made to these factors, such as wages, rent, and interest. This is essential for understanding the circular flow of income in an economy.

The price of the commodity directly affects the quantity supplied, as higher prices incentivize producers to supply more, and lower prices discourage production. Factors like substitute prices, consumer tastes, and technology influence supply but do not directly change the quantity supplied for a given price.

To calculate the elasticity of demand, use the formula: (% Change in Quantity Demanded) / (% Change in Price). From the table, when price decreases from ₦6 to ₦5, quantity demanded increases from 20 to 16.

Money deposit banks play a crucial role in economic development by providing credit facilities. These loans support businesses, stimulate investment, and drive economic growth. While they may act as bankers to the government or issue currency notes, their primary developmental function is credit provision.

Monopolies can exploit consumers by setting higher prices and limiting output, leading to inefficiency and reduced consumer welfare. This lack of competition often results in higher prices and lower quality products. Merging of producers and non-government ownership are characteristics of monopolies, not arguments against them.

International trade allows countries to specialize based on their resource endowments, leveraging comparative advantage to enhance efficiency and economic welfare. Differences in economic resources drive trade, enabling countries to obtain goods they cannot efficiently produce themselves. Profit motives or population structures are secondary factors.

To determine X in the utility table, analyze the pattern of total and marginal utilities. Assuming marginal utility decreases as consumption increases, X corresponds to the total utility after consuming 4 units, which based on the answer key is 32.

The table likely shows a decline in marginal utility with each additional unit consumed, indicating diminishing marginal utility. This concept explains why consumers derive less satisfaction from each additional unit of a good. Diminishing returns to scale or excess demand are unrelated concepts.

A census provides essential data for economic planning, allowing governments to allocate resources efficiently, plan infrastructure, and develop policies based on accurate population and demographic information. While it can indirectly support other areas, its primary role is in planning and policy formulation.

Internal economies of scale refer to cost reductions a firm experiences as it increases production, such as bulk purchasing, specialized labor, and efficient technology use. These savings are achieved internally without external factors. Diseconomies of scale involve increased costs with size, and external economies relate to industry-wide benefits.

Limiting exports to match the currency value of imports helps balance the payments by ensuring that the value of exports does not exceed that of imports, thereby reducing deficits. Overvaluing currency or reducing domestic prices are alternative strategies but not directly related to matching export and import values.

The International Bank for Reconstruction and Development (IBRD) focuses on financing infrastructure and development projects in member nations, facilitating economic growth and stability. It does not directly improve trading, finance private businesses, or solve balance of payments issues, which are roles of other institutions.