Economics 2017 Jamb Examination

Nigeria depends heavily on crude oil as the primary source of revenue.
This reliance on a single export commodity limits diversification, making the economy mono-product in structure.
The petroleum sector contributes the largest share of foreign exchange earnings, government revenue, and export proceeds.
This level of dependence aligns directly with the description of a mono-economy.

The average product (AP) is calculated as total product (TP) divided by the number of labour units.
For the 4th worker: TP = 60kg and labour = 4.\[\text{AP} = \dfrac{60}{4} = 15\]This shows the productivity per worker when four workers are employed.

Money market instruments are short-term financial assets used for borrowing and lending within one year.
Treasury bills, bills of exchange, and call money funds all operate within the short-term financing environment.
Stocks and shares are long-term capital market instruments, not money market instruments.

Substitute \(P = 1\) into the demand and supply equations.
Demand: \[Q_d = 10 - 2(1) = 8\]Supply: \[Q_s = 5 + 3(1) = 8\]Equilibrium quantity occurs where demand equals supply, which gives 8 units.

The money market deals with short-term borrowing and lending, liquidity management, and short-term finance.
It does not handle long-term financing, which is the role of the capital market.
Therefore, creation of long-term finance does not fall under money market functions.

The Malthusian theory states that population grows geometrically while food production grows arithmetically.
This imbalance creates overpopulation relative to available food supply.
The theory focuses on the risks of food shortages, famine, and population pressure.

ECOWAS was established to promote economic integration and reduce trade barriers among West African countries.
Liberalising trade encourages free movement of goods, services, and persons.
This fosters regional cooperation and collective development.

When supply exceeds demand, there is a surplus in the market.
Producers lower prices to sell off excess stock, making goods cheaper.
This benefits consumers, who now have greater bargaining power and lower purchase costs.

Petrochemical industries depend on crude oil as their primary raw material.
Rivers State hosts major oil wells and refineries, making it an ideal location.
Proximity to raw materials reduces production and transportation costs.

A bowed-out PPC shows that resources are not equally efficient in producing all goods.
As more of one good is produced, increasing amounts of the other must be sacrificed.
This reflects the law of increasing marginal cost, which shapes the curve outward.