2017 - JAMB Economics Past Questions and Answers - page 2

Money market can be defined as a market for short term loan. The market consists of institution or individuals who either have money to lend or wish to borrow on a short term basis. The central bank is the sole authority in the banking industry and act as banker to the government and the commercial banks

The Malthusian population theory highlights the relationship between population and means of

subsistence. The main features of Malthusian theory about population are;

i. That population was growing at a geometric progressions such as 2,4,6,8,16,32, etc, while

food production or supply was growing at an arithmetical progression such as 1,2,3,4,5,

etc.

ii. That there is a tendency for all living things to grow beyond the food available to them

iii. That unless population increase is matched with means of subsistence, negative and

positive checks will come into force.

iv. That the checks can be war, diseases, epidemics and famine.

v. That population is essentially limited by the means of subsistence.

There are quite a number of aims of ECOWAS however, one of the major aim of ECOWAS treaty was for the establishment of a common market with the aim of liberalising trade within the region

Gross domestic product (GDP) refers to the total money value of all the goods and services

produced in a country within a given time period but excluding net income from abroad. In

calculating GDP, emphasis is on earnings from citizens and foreign investment within the country.

Earnings of citizens and their investment abroad are excluded from GDP

This is because, according to the concept of equilibrium, if supply increases while demand remains constant, there will be an excess of supply over demand. This will bring about a decrease in the equilibrium price of the commodity and an increase in the equilibrium quantity. This gave rise to the fifth law of demand and supply which states that: “an increase in the supply of a commodity will cause the equilibrium price to fall and the quantity demanded to increase, while a decrease in supply will cause the equilibrium price to rise but the quantity demanded will fall”.

Arithmetic mean, x̄= ∑fx

                                        n<br />

where:

x̄= Arithmetic mean

∑ = sum of

X = series of figures in a given data

f = nunmber of times a particular number occurs (frequency)

n = number of figures or element

From the question:

Since, x̄= ∑fx

                  N<br />

Then, x̄= ∑fx

                 N<br />

=(\frac{340}{20})

= 17

A mono-economy is an economy relying on one major export or natural resources to bring most

of the currency into the country.

Nigeria is dependent on crude oil. Before now, agriculture and mining were the primary drivers of

Nigeria’s economy but these has been abandoned since the 70’s as a result of the discovery of oil.

Nigeria is now a mono-economic country that is, now relies solely on crude oil as her major source

of revenue.

In this case, 4 workers produce 60kg of output therefore, the Average product of labour for the 3rd unit is 15kg. Given by:

Average product = (\frac{\text{Total product}}{\text{Variable product}})

= (\frac{60}{3})

= 15kg

Stocks and shares are securities purchase by individuals, which is evidence of contributing part of the total capital used in running an existing industry. Stocks and shares are instruments used in capital market.

To get equilibrium price and quantity:

i) Get function solved for Qs and Qd (quantity supplied) and Qd (quantity demanded)

ii) Set Qs equal to Qd

iii) Solve for P (equilibrium price)

iv) Plug your P back into your Qs and Qd function to get the quantity.

when, Qd = 10 − 2p and Qs = 5 + 3p

if Qd = Qs then,

10 − 2p = 5 + 3p

solving for p: 10 − 5 = 3p + 2p

5 = 5p

p = 1 (given in the equation)

Equilibrium Quantity will be gotten by plugging P into Qd and Qs respectively;

Qd = 10 − 2p Qs = 5 + 2p

 = 10 − 2(1)                                                               = 5 + 3(1)<br />

= 10 − 2                                                                      = 5 + 3<br />

= 8