2024 - JAMB Economics Past Questions and Answers - page 2

Agriculture encompasses the cultivation of land for crops and the rearing of animals.* Agriculture: This includes farming activities like crop production and livestock management.* Forestry: This involves the management of forests.* Mono culture: This is the practice of growing a single crop.* Horticulture: This focuses on the cultivation of garden plants.

The level of consumption is influenced by several factors, including:* Level of income: Higher income generally leads to higher consumption.* The rate of taxes paid: Taxes reduce disposable income, thereby affecting consumption levels.* Savings: Savings represent a portion of income not spent on consumption.The political climate, while it can impact the economy in general, does not directly determine the level of consumption. It can influence consumer confidence, which in turn impacts consumption, but it is not a direct determinant like income or taxes.

Economics problems arise in all societies because of scarcity. Scarcity means that resources are limited relative to the wants and needs of the people. This fundamental problem necessitates choices about how to allocate resources efficiently.

The International Monetary Fund (IMF) performs several key functions related to international finance. Here's a breakdown:* Providing financial aid: The IMF lends money to member countries facing balance of payments problems.* Promoting international monetary cooperation: The IMF facilitates discussions and agreements among member countries to promote a stable international monetary system.* Exchange rate stabilization: The IMF works to stabilize exchange rates by providing financial assistance and offering policy advice.* Assisting member countries in printing and issuing their currency: The IMF does not assist member countries in printing and issuing their currency. This is the responsibility of each country's central bank.

The consumer is in equilibrium when the marginal utility of a good equals its price. This is because the consumer is maximizing their satisfaction (utility) given their budget constraint.* Marginal Utility (MU): The additional satisfaction a consumer gets from consuming one more unit of a good.* Price (P): The monetary cost of one unit of the good.* Consumer Equilibrium: The point where the consumer has allocated their budget to maximize their total utility. This occurs when the MU of the good equals its price (MU = P). At this point, the consumer has no incentive to change their consumption pattern.

• Emigration is the act of leaving one's country to settle permanently in another; this would lead to a decrease in the labour force of the country the person is leaving.* Decrease in death rate leads to a larger population, which in turn, increases the labor force.* Better medical services increase life expectancy and reduce mortality rates, contributing to a larger labour force.* Immigration is the arrival of people into a country from another country, which also increases the labour force.

In a perfectly competitive market, a firm maximizes profit where marginal cost (MC) equals marginal revenue (MR). This is because:* Marginal Cost (MC): The additional cost of producing one more unit.* Marginal Revenue (MR): The additional revenue from selling one more unit.* Profit Maximization: The firm continues to produce as long as the revenue from selling an additional unit (MR) exceeds the cost of producing it (MC). Profit is maximized when MC = MR.

The stock exchange market deals with the buying and selling of existing securities (stocks and bonds). These securities are often referred to as "second-hand" because they are not newly issued.* A. Sales of second-hand securities: This is the core function of a stock exchange.* B. Sales of foreign exchange: This is the function of the foreign exchange market.* C. Exchange of stock fish for stock: This is not related to financial markets.* D. Exchange of treasury bills: While treasury bills can be traded, they are a subset of securities traded on the stock exchange, but the market deals with more than just treasury bills.

The formula (N + 1)/2 is used to determine the position of the median in a data set.

An injection adds funds to the circular flow of income. Injections are additions to the circular flow, such as investments, government spending, and exports. Withdrawals (or leakages) remove funds from the circular flow. The expenditure approach is a method of calculating GDP and doesn't directly add funds to the circular flow.