Economics 2012 Jamb Examination

Movement from point M to K along an indifference map indicates that the consumer is moving to a higher indifference curve where satisfaction is greater. This implies that the consumer must spend more on good X while keeping Y constant or reducing it slightly.
The increase in expenditure on X allows the consumer to attain a new equilibrium level on a higher indifference curve, reflecting increased satisfaction.

A minimum wage set above the equilibrium wage level results in excess labour supply since more workers are willing to work at the higher wage, but firms are not willing to hire as many workers.
This leads to unemployment because the imposed wage rate prevents the labour market from clearing naturally.

Contribution of manufacturing sector = 360 - (160 + 90 + 30) = 80$$\text{% Contribution of manufacturing sector}\]\[ = \dfrac{80}{360} \times 100%$$ = 22.22%

The manufacturing sector contributes 360 - (160 + 90 + 30) = 80
The difference in contribution of the oil sector and the manufacturing sector is
160 - 80 = 80 
Given the GDP = ₦60 billion
Then 
The difference in contribution of the oil sector and the manufacturing sector in terms of the GDP = $$ \dfrac{80}{360} \times \text{ ₦60 million} = \text{₦13.33 billion}$$  

Price elasticity of demand (PED) is given by:\[ E_d = \dfrac{\%\,\text{change in quantity demanded}}{\%\,\text{change in price}} \]\[ \%\,\text{change in quantity} = \dfrac{400 - 500}{500} \times 100 \]\[= -20\% \]\[ \%\,\text{change in price} = \dfrac{70 - 50}{50} \times 100 = 40\% \]\[ E_d = \dfrac{-20}{40} = -0.5 \]Elasticity is measured as an absolute value, hence \( E_d = 0.5 \).
This shows demand is inelastic.

A consumer attains equilibrium where the budget line is tangent to an indifference curve, meaning the marginal rate of substitution (MRS) equals the ratio of prices.
From the diagram, this point of tangency occurs at N, indicating consumer equilibrium.

Machinery and equipment are examples of capital, and the reward for the use of capital in production is interest.
Interest serves as compensation for employing capital goods to generate income or output.

Privatisation involves transferring ownership of public enterprises to private individuals or organisations.
This encourages international investment and competition, which enhances global integration and fosters economic growth.

Thomas Malthus proposed that population grows geometrically while food production increases arithmetically.
This imbalance leads to overpopulation, scarcity, and famine unless checked by natural or preventive measures.
Hence, the theory focuses on the relationship between population growth and natural resources.

Initial population = 50
Immigrants = +10
Deaths = -25
Emigrants = -5
Final population = 50 + 10 - 25 - 5 = 30
Therefore, the total population at the end of the year is 30.