2018 - JAMB Economics Past Questions and Answers - page 5

Devaluation is the reduction in the official value of a currency in relation to other currencies.

For a grouped data, we use cumulative frequency:

  Median=[(N+1)/2]th

  For member of odd number items. (ie. N is odd)

  Median=([N/2[N/2+1]th)/2

  Solution:

X	8	10	12	16	18	20	24
F	2	1	4	3	3	1	6
Cumulative Frequency	2	3	7	10	13	14	20

Opportunity cost is defined as the expression of cost in terms of alternative forgone. It is the satisfaction of one’s want at the expense of another want.

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply

The reward for labour is wages. 'Capital' - investment in man-made aids to production including buildings, factories, computers. The reward for capital is interest. 'Enterprise - the risk-taking role of business owners undertaken in the pursuit of profit.

The diagram represents a production function, which illustrates the relationship between inputs (e.g., labor, capital) and output. Diminishing returns set in at the point where adding more of a variable input (while holding other inputs constant) leads to a decrease in the marginal product of that input. This means that the increase in output for each additional unit of input starts to decline. * **Point S:** This is the point where the slope of the production function begins to decrease. This signifies that as more input is added, the increase in output becomes smaller. Therefore, diminishing returns set in at point S.

Multilateral trade is a type of international trade in which a country trades with many other countries. This ensures international division of labour. It is the type of trade in which many countries exchange their goods and services

  Total budget = $7,200

  Expenditure on education = x/$7200 × 3600 = 1200

  3600x = 1200 × $7200

  x = 1200 × $7200/3600

  x = $2,400

  Hence, budget allocated to education = $2,400

Capitalism or free market economy may be defined as the type of economic system in which the means of production are owned and controlled by private individuals that is; it is characterized by private ownership of the means of production. In this case, the private individuals play a greater role than the government in taking decisions on what to produce, how to produce, for whom to produce and the distribution of what has been produced.