2022 - JAMB Economics Past Questions and Answers - page 3

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.

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

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.

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.

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.

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.

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.

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

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.

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.