Economics 2021 Jamb Examination

Industrial location is primarily driven by access to raw materials, especially for heavy industries such as iron and steel production.
Ajaokuta was specifically chosen because of its proximity to iron ore deposits and other essential minerals used in steelmaking.
This reduces transport costs, ensures regular supply and enhances efficiency, making nearness to raw materials the most crucial factor.

Per capita income provides the average income per individual and is widely used to compare living standards across nations.
It accounts for the size of a country’s population relative to its income, making comparisons more meaningful than total GDP or GNP figures.
This makes PCI the most reliable indicator for assessing relative welfare levels internationally.

PHCN is a government-owned organisation established to provide electricity services to the public.
Such organisations, funded and managed by the state to provide essential services, are classified as public corporations.
They operate with public interest as the primary goal rather than profit maximisation.

A surplus in the balance of payments means a country is receiving more foreign currency than it is spending.
This results in an accumulation of foreign exchange reserves because international receipts exceed payments.
Hence, the national foreign reserves increase as the surplus is recorded.

Economics fundamentally addresses how individuals and societies make choices when resources are limited.
The field examines human behaviour in allocating scarce resources among competing needs, which represents the core definition accepted by economists.
Other options describe branches or aspects of economics but not its full meaning.

In periods of inflation, the general price level rises continuously, causing the purchasing power of money to fall.
When money loses value rapidly, it becomes unreliable for storing wealth over time.
This makes inflation the condition under which money performs poorly as a store of value.

Cheques represent instructions to banks to make payments, but they are not recognised as legal tender.
This means no one is legally obliged to accept them for settling debts, even though they facilitate transactions.
Legal tender status is one of the defining attributes of money, hence cheques do not qualify as money.

The extent to which tasks can be subdivided depends on the availability of enough workers to handle specialised roles.
A small labour force restricts the number of specialised tasks that can be assigned, limiting the degree of division of labour.
Thus, the size of the labour force is the key limiting factor.

An inferior good is one whose demand decreases as consumer income rises, but it may also exhibit unusual demand behaviour relative to price changes.
If price falls and buyers still do not increase quantity demanded, it indicates the commodity is undesirable or considered inferior by consumers.
This contradicts normal demand behaviour and aligns with the nature of inferior goods.

Economics is built on the reality that resources are limited while human wants are unlimited.
This imbalance forces individuals and societies to make choices on how to allocate scarce resources effectively.
Therefore, economic problems exist whenever scarcity and choice occur together.