2023 - JAMB Economics Past Questions and Answers - page 3

To calculate the elasticity of demand, you can use the formula:

\[ \text{Elasticity of Demand} = \frac{\% \text{ change in quantity demanded}}{\% \text{ change in price}} \]

The percent change in quantity demanded is calculated as:

\[ \text{\% change in quantity demanded} = \frac{\text{New Quantity Demanded} - \text{Old Quantity Demanded}}{\text{Old Quantity Demanded}} \times 100 \]

And the percent change in price is calculated as:

\[ \text{\% change in price} = \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \times 100 \]

Given the information:

- Old Quantity Demanded = 20 kilograms
- New Quantity Demanded = 30 kilograms
- Old Price = ₦8.00 per kilogram
- New Price = ₦6.00 per kilogram

Let's plug these values into the formula:

\[ \text{\% change in quantity demanded} = \frac{30 - 20}{20} \times 100 = 50\% \]

\[ \text{\% change in price} = \frac{6 - 8}{8} \times 100 = -25\% \]

Now, substitute these values into the elasticity of demand formula:

\[ \text{Elasticity of Demand} = \frac{50\%}{-25\%} = -2 \]

Therefore, the correct option is 2 since the price elasticity of demand is always positive.

Real Cost is typically associated with the alternative commodities forgone, which is the essence of opportunity cost.

It represents the value of the next best alternative that must be sacrificed when a choice is made.  

Cost of goods and services, on the other hand, refers more to the actual monetary or resource expenses involved in producing a good or service, not considering the trade-off with alternative uses.

The production possibility curve (PPC), also known as the production possibility frontier, boundary, or transformation curve, illustrates the maximum output combinations of two goods or services that an economy can achieve given its resources and technology.

It represents the trade-offs between producing different goods, showcasing the concept of opportunity cost. Points on or inside the curve are attainable, while points outside the curve are unattainable with the existing resources.

The PPC helps to visualize the efficiency and limitations of an economy's production possibilities.

The demand for money will fall if real interest rates rise. The demand for money is influenced by several factors, including expectations of future inflation or deflation.

When real interest rates rise, the opportunity cost of holding money increases because individuals could earn higher returns by investing in interest-bearing assets. As a result, people tend to hold less money, and the demand for money falls. 

Part-time workers who desire full-time employment are considered underemployed, and they do contribute to the unemployment statistics.

In economic terms, underemployment refers to a situation where individuals are working part-time but would prefer to work full-time or are working in jobs that are below their skill level.

These individuals are part of the broader measure of unemployment and underemployment, contributing to the assessment of labour market conditions.

The natural growth rate of the population is measured by subtracting the death rate from the birth rate. Therefore, Birth rate - Death rate is the correct choice for measuring the natural growth rate of the population. This calculation gives the net change in the population due to natural factors, excluding migration.

The type of unemployment that occurs when an individual cannot find a job due to obsolete or mismatched skills with the current demands of the job market is called structural unemployment.

Structural unemployment is often a result of technological changes, shifts in the economy, or changes in consumer preferences that render certain skills obsolete or less in demand.

The fundamental problem of economics is the scarcity of productive resources relative to society's unlimited wants.

This scarcity necessitates the need for individuals and societies to make choices about how to allocate resources efficiently to satisfy their needs and wants. 

To calculate the total product, you multiply the number of units produced per person by the number of people.

Total Product = Average Product per person * Number of People

Given that the average product per person is 30 tonnes and the number of people is 40, you can calculate the total product:

\[Total Product = 30 \, \text{tonnes/person} \times 40 \, \text{people} = 1200 \, \text{tonnes}\]

Therefore, the correct option is:

1,200 tonnes