Economics 2016 Jamb Examination

Elasticity of supply is computed as the percentage change in quantity supplied divided by the percentage change in price.
The percentage change in price is:\[\dfrac{15 - 13.5}{15} = 0.1 = 10\%\]The percentage change in quantity supplied is 20\%.
Thus, elasticity becomes:\[E_s = \dfrac{20\%}{10\%} = 0.5\]An elasticity less than 1 implies inelastic supply, which aligns with the calculated value of 0.50.

Government revenue refers to income generated by the state from various economic and administrative activities.
Taxes, licences, interest from investments, grants and borrowing are recognised revenue sources.
Personal income, disposable income and transfer earnings relate to individuals and households, not government revenue streams.

A public limited liability company is a business whose shares can be bought by the general public.
Ownership is therefore in the hands of private individuals, institutions and other private entities that purchase shares.
This distinguishes it from government-owned corporations.

Demand-pull inflation occurs when aggregate demand exceeds aggregate supply.
This excess demand causes upward pressure on prices as consumers compete for limited goods.
It contrasts with cost-push inflation, which originates from rising production costs.

Perishable goods cannot be stored for long periods, which limits producers’ ability to adjust supply when prices change.
This makes their supply highly unresponsive in the short run.
In extreme cases, quantity supplied remains essentially fixed, giving zero elasticity.

An indifference curve represents combinations of two goods that yield the same level of satisfaction to a consumer.
Each point on the curve reflects equal utility, making it suitable for illustrating consumer preferences and choices.

Consumer income significantly influences the responsiveness of quantity demanded to changes in price.
Higher income levels tend to reduce sensitivity to price changes, while lower incomes increase sensitivity.
This makes income a major determinant of demand elasticity.

Comparative advantage refers to producing a good at a lower opportunity cost than another country.
This does not necessarily imply producing a larger quantity but producing more efficiently or cheaply.
Therefore, Nigeria produces cocoa at a lower cost relative to Ghana.

Agricultural marketing boards help coordinate the sale, pricing and distribution of farm produce.
They improve market organisation, stabilise prices and ensure farmers receive fair compensation.
This enhances marketing efficiency across the agricultural sector.

Economics examines how scarce resources can be allocated to satisfy unlimited human wants.
Scarcity forces individuals and societies to make choices, making the study of economics essential for understanding resource allocation.