2022 - JAMB Economics Past Questions and Answers - page 3
In manufacturing, division of labour may be hindered by
excessive demand for the product
low level of technology
excess supply of labour
increase in the export of goods
Option B is the correct answer.
Factors such as the size of the market, production method/technology, nature of commodities, non-availability of capital, non-availability of required skilled labour, and low level of technology can all limit the application of division of labour.
The production cost that varies inversely with output is the
total fixed cost
marginal cost
average fixed cost
average cost
Option B is the correct answer.
When the number of goods increases, the average cost of goods decreases because average cost is directly proportional to the total cost of goods and inversely proportional to the number of goods.
A firm that closes down will still incur
variable cost
fixed cost
total cost
marginal cost
Option B is the correct answer.
If a firm shuts down, it will not generate any revenue, and its variable production cost will be zero. This means that the firm's total cost of production is equivalent to its fixed cost. Nevertheless, the firm will still have to bear the fixed cost.
The sufficient condition for a firm to be in equilibrium is that the
firm must show that it is profitable
marginal cost must be equal to average revenue
marginal revenue curve is above the average revenue curve
marginal cost curve cuts the marginal revenue curve from below
Option D is the correct answer.
For a firm to be in equilibrium, it must fulfill the following conditions:
- It should earn maximum profit
- Marginal revenue must be equal to marginal cost
- Marginal cost must intersect marginal revenue from below
Cooperative societies are formed mainly to
assist producers to maximize their profits
encourage thrift and credit among members
promote and maintain the welfare of members
break the monopolies of private companies
Option C is the correct answer.
The purpose of cooperative societies is to benefit their members. It is frequently a voluntarily formed group of people who gather together to cooperate and further their economic interests.
A disadvantage of a jont-stock company is
unlimited liability
limited liability
lack of continuity when a shareholder dies
limited control in management by shareholders
Option D is the correct answer.
Shareholders, who own the business, have limited or no influence on its affairs, while those who are in charge of running the business but do not own it may not do their jobs well.
The middlemen is responsible for
providing research facilities
purchasing raw materials
designing the product
breaking the bulk
Option D is the correct answer.
In a chain of distribution or transactions, the middleman serves as an intermediary, promoting communication between the participants. The middlemen are the wholesalers and retailers who specialise in carrying out tasks related to the acquisition and sale of goods as they move from the manufacturer to the final consumers.
A major function of the retailer is to
grant credit to the wholesaler
break bulk and sell products in small units
reduce cost of distribution
generate demand for products through advertisement
Option B is the correct answer.
A retailer's main duty is to sell products in small quantities to consumers. Additionally, they carry out various marketing activities, including promoting sales, advertising, and displaying goods at the point of purchase.
A positive effect of a rapid population increase is
an excessive budget deficit
a reduction in standard of living
a wider market for goods and services
a higher dependency ratio
Option C is the correct answer.
A large population has three positive effects:
- It boosts the abundance of inexpensive labor.
- It generates a significant market since investors prefer to invest in countries with large populations.
- It encourages innovation among individuals.
Which of the following factors may not affect the efficiency of labour?
Education and training
Provision of welfare service
Race and colour of workforce
Quality of other factor inputs
Option C is the correct answer.
Several factors influence labor efficiency, including:
- Technological advancements
- Competitive wages
- Favorable working conditions
- Job security
- Education and training opportunities
- Promotion