Economics 2019 Jamb Examination

The production possibility frontier (PPF) is concave because of the law of diminishing returns.
This principle states that as more of one good is produced, increasing amounts of the other good must be sacrificed, demonstrating increasing opportunity cost.
This behaviour determines the bowed shape of the PPF.

Isoquants represent different combinations of inputs that yield the same level of output.
Like an indifference curve, each point on an isoquant has equal production efficiency, making output the constant variable across all combinations.

Good government planning helps reduce unemployment through effective policies, infrastructure, and growth strategies.
The other options all contribute directly to unemployment, making this the only one that does not.

Labour is demanded because firms require it to produce goods and services, not for its direct satisfaction.
This indirect demand based on the demand for output is known as derived demand in economics.

Fiscal policy involves taxation and government spending to stabilise the economy.
It influences aggregate demand, employment, and overall economic performance, distinguishing it from monetary policy.

A digressive tax combines features of both progressive and regressive taxation.
At lower income levels, it is progressive, but as income rises, the rate stabilises or declines, resembling a regressive system.

Industrialisation describes the transition from an agrarian or extractive-based economy to one driven by manufacturing and processing.
This shift enhances productivity, technology adoption, and economic diversification.

Low productivity and inefficiency hinder industrial growth rather than support it.
Other listed options directly promote industrialisation through policy support, protection, and workforce development.

In developing economies, the primary sector, which includes agriculture and raw material extraction, typically contributes the most to GDP.
It provides employment and raw materials that support other sectors.

An import licence is an official document permitting the holder to import specified goods.
It regulates trade flows and ensures compliance with national rules, unlike quotas or embargoes, which impose quantity restrictions or bans.