Economics 2020 Jamb Examination

General acceptance means that money must be widely recognised and accepted as a medium of exchange by all members of the economy.
This attribute is essential because without universal acceptance, money cannot effectively serve its primary function in facilitating transactions.
Other attributes such as homogeneity, scarcity, and divisibility are important, but they are secondary to the fundamental requirement that people must be willing to accept money in exchange for goods and services.

Tax avoidance refers to the lawful arrangement of one’s financial affairs in order to minimise tax liability.
It differs from tax evasion, which is illegal and involves deliberate concealment or misrepresentation of income.
Relief and exemption reduce tax burdens but do not describe the active strategy of restructuring financial activities to pay less tax. Avoidance therefore fits the definition of using legal means to reduce tax obligations.

The Economic Commission for Africa (ECA) is one of the regional commissions established by the United Nations Organisation (UNO) to promote economic and social development in African countries.
It is not an initiative of ECOWAS or OAU, and the IMF does not establish regional economic commissions. The ECA is therefore directly linked to the UN system.

Foreign exchange control refers to the regulation of the purchase and sale of foreign currency, which the central bank uses to influence monetary conditions and stabilise the economy.
Selective credit control is used to influence lending, but foreign exchange control is a more comprehensive and direct technique frequently associated with monetary authority functions in Nigeria.
Budget deficits relate to fiscal policy, not monetary policy, and monitoring prices alone does not constitute a control tool.

A wasting asset is a natural resource that diminishes with continuous extraction and cannot be replaced once exhausted.
Crude petroleum falls into this category because it is a non-renewable natural resource whose reserves decline as it is exploited.
It is not a lasting asset, nor is it synthetic or costless, making the wasting-asset classification the most accurate.

When many intermediaries are involved in a distribution chain, the movement of goods from producers to consumers becomes slower and less efficient.
This can result in shortages or apparent scarcity because goods take longer to reach final markets, especially for perishable items.
Retail prices may rise and producer earnings may fall, but scarcity is the most direct and significant effect of an excessively long distribution chain.

The 1962–1968 National Development Plan faced criticism because it did not adequately integrate insights and shortcomings identified from earlier planning efforts.
This reduced its practical effectiveness and limited the ability to correct structural deficiencies in the economy.
Although other issues existed, the failure to apply lessons from previous plans was the most central and widely accepted criticism.

Utility is an economic concept that describes the satisfaction or pleasure a consumer derives from consuming goods and services.
It arises only at the point of consumption, not production or distribution, and is closely tied to consumer behaviour and preferences.
Demand expresses willingness to buy but does not itself generate satisfaction.

Economic growth refers to an increase in a country’s output of goods and services, typically measured through indicators such as GDP.
It describes expansion in quantity but does not capture structural changes or improvements in welfare, which are features of economic development.
Growth is therefore strictly about expansion rather than qualitative transformation.