2019 - JAMB Economics Past Questions and Answers - page 7

Tthe transformation of extractive product into finished goods or semi-finished goods is seen as secondary production. 

The increasing a country's stock of real capital is known as capital formation or capital accumulation.

There must be increase in savings and reduction in consumption of consumer goods i.e consumption must be minus from production.

MRP = Marginal Revenue Product
ARP = Average Revenue Product
Therefore, if the wage rate is less than the ARP, the firm will make super normal profit. As a result, new forms will enter the industry and the demand for labour will increase which will push up the wage rate so as to be equal to the ARP.

Labour laws and other forces, the interaction between dd and ss of labour determines the wages in a labour market irrespective of the presence of labour Union.

i.e where dd for labour equals ss of labour.

Attempt to increase price will make the demand for the commodity to fall to zero. The seller or prouder will bear the whole burden of taxation. 

 A debt that is incurred to meet current needs without the security of an enduring asset is seen as Dead weight. 

It is usually incurred by the government 

The sitting of a firm in a particular area is seen as location of industry.

The benefits a firm derive i.e economies of scale is one of the principle in location of industry.

The benefits a firm derives from concentration or localisation of industries in a particular area or the benefits a firm enjoys from increase in its output and decrease in cost as a result of the kind of assistance it derives from other firms is seen as an external economie

80,000 child were given birth in the country in 1976. 

Since the population in the country is 10pm and 8.0 gave birth to live child.

Terms of trade = \(\frac {\text{Index of export prices}} {\text{Index of import prices}}\) x 100

\(\frac {106}{102}\) x 100

= 103.9
≈ 104