2018 - JAMB Economics Past Questions and Answers - page 1

The statement "The privatization of public enterprises will lead to efficient management of resources in the economy" expresses a value judgment about what should happen. It's an opinion about the desirable outcome of privatization.

• Normative reasoning deals with value judgments, opinions, and what ought to be. It involves statements about what is good, bad, right, or wrong.
• Positive reasoning deals with objective and verifiable statements about what is.
• Deductive reasoning involves using general principles to reach specific conclusions.
• Inductive reasoning involves using specific observations to reach general conclusions.

Savings deposits in a commercial bank are considered "near money" because they are highly liquid and can be easily converted into cash.

• Near money refers to assets that are not money but can be quickly converted into cash. Savings deposits fit this description.
• Call money refers to short-term loans that can be demanded back at any time.
• Capital refers to resources used in production.
• Fund is a general term and not specific to savings deposits.

A flow variable is measured over a period of time. Examples include income, expenditure, and investment. Conversely, a stock variable is measured at a specific point in time, such as wealth or the number of people employed.