2017 - JAMB Economics Past Questions and Answers - page 4

Production possibilities curve demonstrates that:
• There is a limit to what the society/individual can achieve, given the existing institutions, technology and resources.
• Every choice the society/individual makes has an opportunity cost – to get more of one good, we need to give up some of another good – every choice has a tradeoff.

PPF also illustrates the concept of efficiency. The combination of goods depicted on the curve are attainable only if all the resources are fully employed, with the most efficient means of production possible. All of the points on the frontier are said to be productively efficient, because they are fully utilizing the economic resources that they have

The Economic Community of West African States (ECOWAS) is a regional organization of 15 West African countries established on 28 May 1975. Its main goal is the promotion of the economic integration among its members. Indeed, ECOWAS is one the five regional pillars of the African Economic Community (AEC). ECOWAS has three official languages: English, French, and Portuguese. Members producing the same or identical goods can form cartel or monopolies and obtain better bargaining or deals from other countries outside its membership

Equilibrium price is the price where the demand for a product or a service is equal to the supply of the product or service. At equilibrium, both consumers and producers are satisfied, thereby keeping the price of the product or the service stable.

There is a decrease in the quantity supplied if the quantity of the commodity supplied decrease as a result of a decrease in price.

From the graph, a decrease in the price of the commodity from P1 to P2 brought about a corresponding decrease in the quantity supplied from 100 to 50 units.

The goods bought and sold in a perfect market must be homogeneous. That is, they must be identical. They must be of same size, shape, weight, colour etc. The goods must be the same in the eye of the customer.

Cost push inflation occurs when increase in cost of production are passed on to consumers in the form of high price for the goods and services on sale. The price of goods are pushed up by rising costs.

A cooperative society as a voluntary business organization in which a group of individual with common interest pool their resources together to promote the economic welfare of the members in production, distribution and consumption of goods and services.

This is because the average product (AP) is found by dividing total product by the input of labour. For example, a company that produce 100kg of product with 10 workers has an average product of 10.

For a detailed explanation, taken a company A for example. If company A employs only one worker and with one worker, total production is 20kg each hour. This gives an average product of 20kg. Now if company A employs two workers and the total production is 50kg, the average product for the two workers give 25kg. Also when company A employs three workers and the total hourly production increase to 90kg, these means 30kg is the average product for the three workers and so on.
In this case, 3 workers produce 150kg of output therefore, the Average product of labour for the 3rd unit is 50kg. Given by:
Average product= \(\frac{Text{Total product}}{Text{Variable product}}\)

This question is a little bit tricky to answer because out of the 4 options provided only one is not a
participant in the (Nigeria) money market and that is the mortgage banks because mortgage loans
are usually not in short term of say 13months which makes it not fit into the money market
characterised by short term loans. The central bank, Money deposit bank and insurance companies
are all participant of the money market because they offer short term loans.

Rubber is a coagulated, elastic latex. Plants that produce elastic latexes are largely neotropical. Commercial rubber is produced from latex of Hevea brasiliensis.