2023 - JAMB Economics Past Questions and Answers - page 1

1

 

One major problem facing West African countries is

A

Relations with Colonial Masters

B

Joint Military operations in Member States

C

Political integration

D

Financial crunch of Member States

correct option: a

West African countries face a big challenge with their old colonial rulers. The way these nations were controlled in the past still affects them today in terms of politics, money, and society.

Trying to move forward and make their own decisions is tough because of the history with their colonial masters.

This challenge shows up in different parts of their countries, affecting how they develop and relate to the rest of the world.

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2

 

The development of an economic hypothesis through intuition, insight, or logic is associated with

A

Deduction

B

Policy economics

C

Normative economics

D

Induction

correct option: c

In macroeconomics, the term 'investment' refers to the total amount of capital goods in a country. Capital goods are assets used in the production of goods and services, such as machinery, factories, and infrastructure. It does not specifically refer to immediate consumption or profits, nor is it solely about the total amount of money invested in bonds and stocks.

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3

 

The term 'investment' in macroeconomics means

A

Profit

B

Total amount of money invested in bonds and stocks

C

The total amount of capital goods in the country

D

The production of goods for immediate consumption

correct option: c

In macroeconomics, the term 'investment' refers to the total amount of capital goods in a country. Capital goods are assets used in the production of goods and services, such as machinery, factories, and infrastructure.

It does not specifically refer to immediate consumption or profits, nor is it solely about the total amount of money invested in bonds and stocks.

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4

If the supply curve of labour market is given as S = 4L + 8. What is L when s = 20?

A
2
B
4
C
5
D
3
correct option: d

To find the value of L when S = 20, you substitute S = 20 into the equation S = 4L + 8:

\[20 = 4L + 8\]

Subtract 8 from both sides:

\[12 = 4L\]

Divide both sides by 4:

\[L = 3\]

Therefore, the correct answer is 3.

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5

 

------------- is NOT the cause of balance of payments (BOP) deficits in Nigeria

A

Poor performance of non-oil sector

B

Export promotion

C

No import substitution strategies

D

High servicing of debt

correct option: b

Export promotion is NOT the cause of balance of payments (BOP) deficits in Nigeria. The poor performance of the non-oil sector, lack of import substitution strategies, and high servicing of debt are factors that can contribute to BOP deficits.

Export promotion, on the other hand, is aimed at increasing a country's exports, which would typically have a positive impact on the balance of payments by bringing in more foreign exchange.

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6

 

The short run can be defined as the period of time during which

A

All inputs are fixed

B

At least one of the firm\'s input is fixed

C

At least two inputs are fixed

D

All inputs are variable

correct option: b

The short run can be defined as the period of time during which at least one of the firm's inputs is fixed. In the short run, some inputs are fixed, while others are variable. Option B correctly captures this characteristic, as it acknowledges the presence of at least one fixed input during this time period.

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7

 

In a two by two model of international trade, it is assumed that

A

both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade

B

both countries could gain from trade at the same time, but term of trade is inconsequential for the distribution of the gains

C

neither country could ever gain from trade since term of trade is depends on the distribution of the gains from trade

D

both countries could gain from trade at the same time, and the volume of the gains does not depend on terms of trade

correct option: a

In a two by two model of international trade, it is assumed that both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade. This means that trade can be beneficial for both countries, but the distribution of those gains is influenced by the terms of trade, which refers to the relative prices of the goods traded between the two countries. Option B correctly captures this assumption.

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8

The diagram above represents ___

A

structural unemployment

B

cyclical unemployment

C

volunatary unempployment

D

frictional unemployment

correct option: b

Cyclical unemployment happens when people lose their jobs due to changes in the economy, like recessions or economic downturns.

During tough times, businesses may cut back on production and hiring, leading to fewer job opportunities. This type of unemployment is temporary and linked to the ups and downs of the overall economy.

When things improve and economic conditions get better, businesses start hiring again, and people find jobs.

So, cyclical unemployment is like a roller coaster ride, going up and down with the economy's highs and lows.

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9

 

One major criticism of foreign aid to developing countries is that it

A

Gives too much power and control to world bank

B

Encourages growth in government bureaucracy

C

Is capital using rather than capital saving

D

Provides incentives for capital flight

correct option: c

One major criticism of foreign aid to developing countries is that it is capital using rather than capital saving. This criticism suggests that instead of fostering economic development and self-sustainability, foreign aid may be absorbed by the recipient country's consumption and may not contribute significantly to long-term capital formation or growth.

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10

 

If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?

A

1.14

B

7.1

C

14.1

D

1.7

correct option: a

Given \( Q_d = 30 - 4P \) and the initial values \( Q_d = 14 \) and \( P = 4 \), we can find \( \Delta Q_d \) and \( \Delta P \):

\[ \Delta Q_d = Q_d(\text{final}) - Q_d(\text{initial}) = (30 - 4 \times 5) - (30 - 4 \times 4) = 10 - 14 = -4 \]

\[ \Delta P = P(\text{final}) - P(\text{initial}) = 5 - 4 = 1 \]

Now, calculate \( \%\Delta Q_d \) and \( \%\Delta P \):

\[ \% \Delta Q_d = \frac{\Delta Q_d}{Q_d(\text{initial})} \times 100 = \frac{-4}{14} \times 100 \]

\[ \% \Delta P = \frac{\Delta P}{P(\text{initial})} \times 100 = \frac{1}{4} \times 100 \]

Now substitute these into the formula for price elasticity of demand (Ed):

\[ Ed = \frac{\%\Delta Q_d}{\%\Delta P} \]

Q = 14, P = 4

Qd = 30 - 4p

∆q/∆p = - 4

Ed = \(\frac{∆q}{∆p}\times\frac{p}{q}\)

= - 4 x 4/14

= Ed = -1.14

Note: The result is negative since demand is typically inversely related to price, but when stating the result, the negative sign is often dropped. So, if the result is -1.14, you can state it as approximately 1.14.

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