Economics 2022 Jamb Examination

The mining sector contributes 60% of the total GDP.
To find the value contributed, multiply the GDP by the percentage:
\( 60\% = 0.60 \)\[ 0.60 \times 540 = 324 \]This shows that the mining sector accounts for \$324 of the GDP. Therefore, option C is correct.

A capitalist economy encourages private ownership and competition. While this promotes efficiency, it also leads to unequal distribution of income because wealth is concentrated among those who own productive assets.
As a result, economic inequality becomes more pronounced since individuals with fewer resources cannot compete at the same level. This makes option D correct.

A rightward shift of the supply curve means supply increases at every price level. Government subsidies reduce production costs and allow firms to produce more goods.
This makes it easier for producers to supply higher quantities, shifting the supply curve to the right. Increased taxes would reduce supply, while price increases cause movements along the curve, not shifts. Therefore, option B is correct.

Perfectly elastic supply means producers are willing to supply any quantity at a particular price. This is represented by a horizontal line, showing that even the slightest price change would stop supply entirely.
This makes the supply curve horizontal, matching option B.

The pie chart indicates that Education receives one-third of the total budget.
To find the amount allocated:\[ \dfrac{120}{360} \times 7200 = 2400 \]Thus, Education receives \$2,400, making option A correct.

From the pie chart, Health and Agriculture represent specific proportions of the total budget.
The angles show Health = 60° and Agriculture = 80°.
The ratio is therefore:\[ 60 : 80 = 3 : 4 \]This simplified ratio matches option B.

Consumer equilibrium is achieved when the marginal utility derived from the last unit consumed equals the price paid for that unit.
This ensures maximum satisfaction per unit of expenditure. If marginal utility exceeds price, consumption increases; if it is lower, consumption decreases. Therefore, equilibrium occurs when marginal utility equals price. Option B is correct.

Average fixed cost decreases as output increases because total fixed cost is spread over a larger quantity.
This inverse relationship is unique to average fixed cost, since marginal and total costs do not behave this way. Average cost does not always fall with output. Therefore, the correct choice is option C.

When a firm shuts down temporarily, it stops production and avoids variable costs because no inputs are used. However, fixed costs—such as rent or machinery depreciation—must still be paid regardless of output.
Therefore, the firm continues to incur fixed costs. This makes option B correct.

Division of labour depends heavily on technology because specialised tasks require machinery and efficient production methods.
If technology is underdeveloped, tasks cannot be broken down effectively, limiting specialisation. Excess demand or supply does not prevent division of labour. Therefore, option B is correct.