Economics 2019 Jamb Examination

Agriculture in many developing economies suffers from several constraints such as poor roads, limited storage and preservation facilities, and restrictive land tenure systems.
These factors hinder productivity and reduce farmers’ income. Provision of employment, however, is actually one of the benefits of agriculture rather than a problem.
Agriculture remains a major employer of labour and contributes significantly to rural livelihoods.

Public corporations are owned by the state, and their funding usually comes from public revenue. When losses or risks arise, it is taxpayers who indirectly bear the cost because government finances are raised primarily through taxation.
This means the burden of risks is ultimately transferred to the general public through tax-funded budgets.

Poverty is typically measured by the level of income available per individual in an economy. A low per capita income indicates that the average citizen cannot afford essential goods and services.
It reflects weak economic performance, low productivity, and limited opportunities for improving standard of living.

The sharp rise in oil prices during the boom years significantly increased government revenue from petroleum exports. This shift made oil the dominant source of government income, reducing reliance on agriculture and other sectors.
The oil sector thus became the major driver of national revenue and public expenditure during that period.

A currency becomes "scarce" when international demand for it exceeds its supply. The IMF intervenes to ensure stable international payments by rationing the scarce currency among member nations.
This measure helps to restore balance of payments stability and prevents excessive pressure on the currency.

Scarcity arises because resources are limited while human wants are unlimited. This makes choice unavoidable, as societies must decide what to produce, how to produce and for whom to produce.
The interplay between scarcity and choice forms the basis of all economic decision-making.

Excess demand is calculated as:\[ \text{Excess Demand} = Q_d - Q_s \]Substitute \(p = 18\):\[ Q_d = 7(18) - 12 = 126 - 12 = 114 \]\[ Q_s = 4(18) + 9 = 72 + 9 = 81 \]Thus:\[ \text{Excess Demand} = 114 - 81 = 33 \]The positive value indicates demand is higher than supply at this price.

No economy has unlimited resources; land, labour, capital and entrepreneurial abilities all exist in limited supply.
This scarcity forces individuals and societies to make choices among competing alternatives, establishing the foundation of economic reasoning.

Retailers sell goods in small quantities or units to final consumers. This differentiates them from wholesalers, who deal in large quantities or bulk sales.
Retailers therefore act as the final link between producers and consumers in the distribution chain.

Purchasing power refers to the quantity of goods and services that a unit of money can buy. As the general price level rises, money buys fewer goods, reducing its purchasing power.
Thus, purchasing power is inversely related to the overall price level in an economy.