Economics 2022 Jamb Examination

External trade occurs because countries cannot efficiently produce all goods and services they need.
Comparative cost advantage explains that each nation should specialise in producing goods it can produce relatively more efficiently and trade for others.
This difference in comparative cost encourages nations to exchange goods to maximise overall economic welfare.

Economic growth results from an increase in a country's productive capacity.
Capital goods and modern technology enhance productivity and stimulate growth.
However, massive importation of consumer goods only increases consumption without expanding production capacity, so it does not contribute to real economic growth.

A shift from D0 to D2 indicates an increase in demand.
For a normal good, demand rises when the price of a substitute rises because consumers switch to relatively cheaper alternatives.
The other options either reduce demand or affect supply, not the demand curve.

When demand is price inelastic, consumers respond weakly to price increases.
This means that even with higher taxes, quantity demanded falls only slightly, allowing total revenue to rise.
If demand were elastic, an increase in price would lead to a large fall in quantity demanded and potentially reduce revenue.

An increase in the bank rate makes borrowing more expensive for commercial banks.
This higher cost is passed on to customers, leading to reduced borrowing and subsequently reduced spending.
It does not increase the money supply; rather, it contracts it.

The total circle is 360°.
The underaged pupils occupy 60°.
Thus, the matured students occupy: \[360° - 60° = 300°\]Population represented by 300°: \[ \dfrac{300}{360} \times 1200 = 1000 \]Hence, the matured students are 1,000.

The diagram shows a vertical demand curve.
A vertical demand curve means quantity demanded does not change regardless of price changes.
This describes perfectly inelastic demand, where consumers must purchase the same amount even if price rises or falls.

The curve shown rises initially at an increasing rate, then at a decreasing rate before reaching a maximum.
This shape is characteristic of a total product curve, which reflects the law of diminishing marginal returns.
Other curves such as marginal product or revenue curves do not exhibit this smooth rising pattern.

The line labelled M is horizontal, meaning the cost does not change with output.
cost that remains constant regardless of the level of production is fixed cost.
Variable cost would increase with output, and total cost would slope upward, not remain constant.

The IBRD focuses on long-term loans, development assistance, and technical expertise to member countries.
Tariff reduction is a function associated with trade organisations such as the World Trade Organization (WTO), not the IBRD.
The IBRD supports human development but does not deal with trade tariff policies.