Economics 2021 Jamb Examination

ECOWAS protocols guarantee free movement of citizens of member states for a limited period without the need for a visa.
The permitted stay for short-term entry is ninety days, after which formal residence permits may be required.
This arrangement promotes regional integration and encourages movement for business, tourism and family visits.

The optimum size of a firm is the point at which it enjoys the maximum efficiency possible from its scale of production.
This occurs when the firm produces the highest possible output at the lowest achievable average cost.
It reflects the full exploitation of internal economies of scale, unlike option C which relates to profit maximisation rather than firm size.

The table shows that as more units of a commodity are consumed, total utility rises at a decreasing rate while marginal utility continuously falls.
This pattern demonstrates the law of diminishing marginal utility, which states that the extra satisfaction gained from consuming an additional unit of a good declines as consumption increases.
Although total utility increases initially, the key feature here is the falling marginal utility values.

In an oligopolistic market, a few dominant firms exist, and each firm’s pricing or output decision directly affects the actions of rivals.
This interdependence often leads to strategic behaviour such as price rigidity or collusion.
Other market structures do not exhibit this degree of mutual dependence, particularly perfect competition where firms are price takers.

Full employment does not mean zero unemployment; rather, it means that everyone who is willing, able, and qualified to work can find a job at prevailing wage rates.
This includes allowing for frictional unemployment, which naturally occurs as workers move between jobs.
The emphasis is on availability of jobs for all employable individuals, not on absolute employment of the entire adult population.

A mono-production economy is one that relies heavily on the production of a single dominant commodity for revenue and export earnings.
Such economies are highly vulnerable to price fluctuations in international markets.
They are not defined by cultural heritage, agriculture, or raw material output in general, but by dependence on one major product.

A glut refers to a situation where the supply of a commodity exceeds demand, resulting in an excessive surplus in the market.
In the case of petroleum, an oversupply often leads to falling prices as producers compete to sell the excess output.
It does not indicate higher prices or reduced production, making oversupply the correct interpretation.

Petro-chemical industries rely heavily on crude oil and natural gas as their major raw materials.
Rivers State has abundant oil deposits, which makes it an ideal location for petro-chemical operations due to reduced transportation cost and proximity to input sources.
Coal, palm oil, or soil conditions are not relevant to petro-chemical production.

Retailers serve as the final link in the distribution chain, connecting wholesalers or manufacturers to consumers.
They make goods available in convenient quantities and locations for purchase.
Although they participate in exchange, their primary economic function is distribution.

A sole proprietorship is owned and controlled by one individual, who makes all major business decisions.
This gives the business flexibility and allows quick decision-making without consultation with boards or managers.
It is not supervised by government or a board of directors.