Economics 2011 Jamb Examination

As the price increases from ₦1 to ₦5, the quantity demanded also increases from 100 kg to 200 kg, showing a direct relationship between price and quantity demanded.
This is contrary to the law of demand, which states that quantity demanded falls as price rises.
Therefore, the graph represents an abnormal demand curve where price and quantity demanded move in the same direction.

When a worker moves from one industry to another, such as from agriculture to manufacturing, it represents a change in location or field of work without necessarily changing social or professional status.
This is known as geographical mobility, which describes movement between different industries or regions for employment purposes.

Trade occurs because countries or individuals specialise in producing goods for which they have a comparative advantage.
This means they can produce certain goods at a lower opportunity cost than others.
By trading, all parties can benefit from greater efficiency and resource allocation.

A wage rate refers to the amount of money paid to a worker for each hour of labour supplied.
It differs from a salary, which is a fixed payment made periodically regardless of hours worked.
Therefore, the payment made per hour for work done is termed the wage rate.

The World Trade Organization (WTO) promotes international trade by reducing trade barriers and ensuring smooth negotiations among member nations.
Its main objective is to minimise obstacles to trade and investment globally, promoting a fair and open trading environment.

Granting subsidies to local industries reduces production costs and increases competitiveness.
This encourages investment, expansion, and technological growth, thereby promoting industrial development in Nigeria.
While infrastructure and government participation also matter, subsidies directly stimulate production and efficiency.

The balance of payments (BOP) records all financial transactions between a country and the rest of the world, including imports, exports, and capital flows.
It provides a complete picture of a nation's economic relationship with other countries, not just trade in goods and services.

Privatization occurs when government-owned enterprises are transferred to private ownership or control.
This aims to increase efficiency, competition, and innovation by involving private investors in previously state-run businesses.

A dual exchange rate system exists when a country maintains two exchange rates simultaneously — one official rate and another determined by market forces.
This system is often used to control capital flows or stabilise domestic currency while still allowing some market flexibility.

The Malthusian theory predicted that population growth would outpace food production, leading to famine and poverty.
However, modern economies have experienced rapid technological progress that has significantly increased food and resource production.
As a result, Malthus's predictions no longer hold true in technologically advanced societies.