2019 - JAMB Economics Past Questions and Answers - page 6
Let the quantity demanded in units of a particular commodity be represented as Qd = 80 - 2P, find the quantity demanded when P = ₦3.
Qd = 80 - 2P
When P = 3
Qd = 80 - 2(3)
Qd = 80 - 6
Qd = 74
The following are measures of location except________
Mean (Arithmetic mean), median, mode, geometric mean and Harmonic mean are known as central tendency or measure of location.
The term M \(^3\) comprises M \(^1\) together with deposits on deposit account held by_______
The money supply consist of M \(^1\) and M \(^3\). M \(^3\) is a measure in money supply. M \(^3\); This is M \(^1\) plus deposits on deposit account held by barks and discount houses.
The second equation of exchange is__________
The second equation of exchange of money is P = \(\frac {M}{KR}\)
Where : P = Price level of consumer goods
K = The proportion of the community's total income held in money
R = The real income
M = The stock of money.
The term "Money at call and short notice" in a bank's assets represents the bank's loans to______
A loan that is made for a very short period for a few days only for duration of a week is known as money at call or at short notice.
Money market is a market for short-term loans.
A contractionary monetary policy is used to control__________
A contractionary monetary policy is used to control inflation, to stabilise the price level exchange rate and achieve equilibrium in the balance of payment and also promote economy development. It is used to balance payment surplus and there is increase in interest rate or cash reserve ratio thereby reducing investment and output.
Consider the following figures which refer to a firm's production department during one week:
Wage bill ₦6,000, Rent, Rates, Depreciation ₦200, raw materials ₦800, Power ₦300.
Total variable costs incurred during the week are
Total variable costs also known as variable cost. TVC is the cost that varies or changes with the level of output.
TVC = 6000 + 800 + 300
TVC = ₦7100
If AC and MC are represented on a graph, the MC curve will cut the AC curve_______
MC cuts the AC curve at the minimum or lowest point at B, also MC is equal to AC at that point.
Consider the diagram below which shows a demand curve (d).
Total expenditure on a commodity is represented by the area TUVW. Consumer's surplus is represented by___________
From the diagram, the consumer budgeted TUX while the market price is TUVW, therefore, consumer surplus is TUX - TUVW which is equal to VWX.
Consumer surplus is the difference between what a consumer budgeted to have a commodity and the actual amount he paid to have the commodity.
Adam Smith's Theory of value stated that the value of a commodity depended on________
The power that goods and services have to exchange other goods and services is known as value.The value of a commodity rely on the satisfaction it can provide and the amount of labour used in production.