Economics 2004 Jamb Examination
Question 31
The difference between payments and receipts for visible trade is called
Correct Answer: D. balance of trade
The balance of trade is the difference between a country’s exports and imports of visible goods. It reflects the net earnings from international trade in physical products and is a key component of the balance of payments.
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Question 32
One of the cause of the present high rate of inflation in Nigeria is
Correct Answer: B. Increasing factors costs
One major cause of the current high inflation rate in Nigeria is the rising cost of production inputs, such as fuel, transportation, and raw materials—collectively referred to as increasing factor costs. These lead to higher prices for goods and services.
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Question 33
The final stage in the production process of any commodity involves its movement from the
Correct Answer: C. retailer to the consumer
The final stage in the production and distribution process is the movement of the commodity from the retailer to the consumer, marking the point at which the good reaches its end user.
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Question 34
A change in demand for a normal good means
Correct Answer: A. a shift in the demand curve
A change in demand refers to a shift of the entire demand curve, caused by factors other than price, such as changes in income, consumer preferences, or population. This is different from a movement along the curve, which results from a price change.
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Question 35
In the diagram above, ST is the budget line while I.II and III represent indifference curves. A rational consumer will choose to consume at point
Correct Answer: D. L
A rational consumer maximizes utility by reaching the highest indifference curve that touches the budget line. Point L(N) lies on indifference curve I2 and satisfies the budget constraint, making it the optimal consumption point.
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Question 36
In order to increase revenue, the seller of a commodity whose demand is fairly elastic is advised to
Correct Answer: C. reduce price
When demand is fairly elastic, a reduction in price leads to a more than proportionate increase in quantity demanded, thereby increasing total revenue. This is because consumers are responsive to price changes.
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Question 37
In any set of data, the median represent the
Correct Answer: B. mid-position when the values are arranged in ascending or descending order
The median is the value that lies at the middle position in a data set arranged in order (either ascending or descending). It divides the data into two equal halves.
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Question 38
The table below shows the combinations of beans and rice that can be purchased by a consumer.
| Combination | Beans (Unit) | Rice (Unit) |
|---|---|---|
| K | 15 | 19 |
| L | 20 | 17 |
| M | 24 | 16 |
The opportunity cost of moving from K to L is …
Correct Answer: A. 2 units of rice
Moving from K to L:
Rice decreases from 19 to 17 → loss of 2 units
Thus, the opportunity cost of gaining 5 units of beans is 2 units of rice.
So, the opportunity cost of moving from K to L is 2 units of rice.
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Question 39
One of the assumption of ordinary utility in consumer behaviour is that
Correct Answer: C. utility is measurable
An assumption of ordinary (cardinal) utility theory is that utility is measurable in specific units (utils), allowing consumers to assign exact values to their satisfaction from consuming goods.
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Question 40
A large standard deviation is an indication of
Correct Answer: B. a wide spread around the mean
A large standard deviation indicates that the data points are widely spread out around the mean, showing high variability or dispersion in the dataset.
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| Particulars | ₦ |
|---|---|
| Stock at branch 1st January at cost | 400 |
| Goods sent to branch at cost | 8,000 |
| Returns to head office | 340 |
| Cash sales | 9,160 |
| Stock at branch 31st December at cost | 720 |
Adex Ltd. Issues stock to its retail branches at cost price. Using the information above for the Ede branch, calculate the Gross Profit.