2022 - JAMB Economics Past Questions and Answers - page 1

Option D is the correct answer.

The additional cost incurred in producing an additional unit of a good or service is known as the marginal cost.

Option D is the correct answer.

The price mechanism allocates scarce resources by using market prices to signal the relative scarcity of goods and services. When a good is scarce, the price tends to rise, signaling producers to increase supply and consumers to reduce demand. This process helps to ensure that resources are allocated efficiently to their most valuable uses.

Option C is the correct answer.

In a free market economy, the price mechanism is used to ration scarce goods. When a good becomes scarce, its price rises, encouraging consumers to buy less and producers to supply more, which helps allocate the limited resources to their most valued uses.

Option D is the correct answer. 

A scale of preference is a table that displays an individual needs and wants in either chronological order or according to priority.

Option A is the correct answer. 

Inefficient use of resources, widespread unemployment, or resources not being fully employed are indicated by points inside the production possibility curve.

Option C is the correct answer. 

Unlike man-made resources, which are produced by humans, natural resources exist naturally. Natural resources are products of nature and cannot be attributed to human activity.

A capitalist economy, while often efficient in production, is known to exacerbate income inequality. This is because the system allows for private ownership of resources and the accumulation of wealth, which can lead to significant disparities between those who own capital and those who rely on labor.

• Option A: Incorrect. Capitalist economies are typically characterized by high production due to profit motives.
• Option B: Incorrect. Capitalist economies are often less reliant on government intervention, thus requiring fewer officials compared to a centrally planned economy.
• Option C: Incorrect. While consumer satisfaction is considered, it's not a major disadvantage. The profit motive drives producers to cater to consumer needs, but this is not the primary disadvantage.
• Option D: Correct. Income inequality is a significant drawback of capitalist systems.

To calculate the contribution of the mining sector, follow these steps:

1. Convert percentage to decimal: 60% = 60/100 = 0.60
2. Multiply the GDP by the decimal: $540 * 0.60 = $324

Option D is the correct answer. 

Competitive demand, also referred to as substituted demand. There are substitute commodities that have comparable utility and can satisfy similar wants. When the demand for one increases, the desire for the other decreases.

Option B is the correct answer. 

Ostentation goods are expensive items like jewellery, gold watches, etc. The quantity demanded increases as the price rises. As a result, there is a positive relationship between price and quantity demanded.