2018 - JAMB Economics Past Questions and Answers - page 2

Here's the breakdown: * **Perfectly Inelastic Supply:** This means the quantity supplied does not change regardless of price. The supply curve is a vertical line. * **Rightward Shift in Demand:** This indicates an increase in demand; at any given price, consumers now want to buy more. * **Intersection:** The point where the demand and supply curves meet determines the equilibrium price and quantity. * **Effect:** With a perfectly inelastic supply, an increase in demand will only drive up the price. The quantity supplied remains the same because the supply is fixed.

In a developing economy, productivity is often measured by the output-labor ratio. This indicates the efficiency with which labor is used in production. * **A. output - labour ratio:** This measures output per unit of labor, indicating how much is produced by each worker. * **B. capital - output ratio:** This ratio is important, but it focuses on capital's efficiency. * **C. output growth rate:** While output growth is related to productivity, it's not a direct measure of how efficiently resources are being used. * **D. Output per capital:** This is another important ratio but does not measure overall productivity.

The scale of preference is constructed because of the fundamental economic problem of scarcity. Here's why: * **Scarcity:** Resources are limited, while wants are unlimited. This means we can't have everything we desire. * **Need for Choice:** Because of scarcity, we are forced to make choices about which wants to satisfy first. The scale of preference helps us prioritize our wants. * **Other options:** While scarcity of resources (D) is related to the answer, it is not as complete as the need for choice. The need to satisfy wants (B) is a consequence of scarcity and is not what necessitates the scale. Non-availability of factors of production (C) is related to the supply side, but not the demand side where the scale of preference is most relevant.

Privatization in Nigeria involves transferring ownership of government-owned businesses to private individuals or entities. This shift moves the economy towards a system where private individuals and firms make decisions about production, consumption, and investment, which is a key characteristic of a market economy.

Here's how to determine the answer: 1. **Identify the relevant data:** We need to find the marginal product of the second man. Marginal product is the change in total product resulting from employing one more unit of labor (in this case, a man). 2. **Calculate the change:** * When 1 man is employed, the total product is 440. * When 0 men are employed, the total product is 200. * Marginal Product of the 1st man = 440-200=240 3. **Calculate the change:** * When 2 men are employed, the total product is 540. * When 1