Economics 2023 Jamb Examination

A continuous rise in the prices of production inputs such as raw materials, labour, and capital leads to an increase in the cost of production.
Firms respond by increasing the prices of final goods and services, creating cost push inflation.
This type of inflation originates from the supply side rather than excessive demand.

Point E lies inside the production possibility curve (PPC).
Any point inside the PPC represents underutilisation of resources, meaning the economy is not producing at full capacity.
This condition indicates product inefficiency because more output could be produced with the available resources.

The active labour force includes individuals who are capable and available for work.
Economically active age typically falls within 18 to 64 years, covering the prime working population.
This group participates most actively in productive economic activities.

A high level of public expenditure as a share of GDP shows active government participation in economic activities.
Economies with both government and private sector involvement are classified as mixed economies.
The values (33%–50%) indicate significant government spending, typical of a mixed system.

The diagram shows a concave curve bowed outward from the origin, which is characteristic of a production possibility curve (PPC).
A PPC illustrates the maximum combinations of two goods an economy can produce with given resources and technology.
The outward shape reflects increasing opportunity cost.

Total product is obtained by multiplying the number of workers by the average output per worker.\[ \text{Total Product} = 40 \times 30 = 1200 \text{ tonnes} \]The total output produced is 1,200 tonnes.

Private goods are those that can be exclusively owned and consumed by individuals.
They are rivalrous, meaning one person’s consumption reduces the amount available for others.
They are also excludable, meaning owners can prevent others from using them.

The rate of output per worker over a given period measures labour productivity.
It assesses how efficiently labour inputs are converted into output.
This concept helps compare performance across time, sectors, or economies.

Demand refers to both willingness and ability to purchase a commodity at a given time and price.
It differs from mere desire or wish, which does not require purchasing power.
Supply relates to what producers offer, not consumers.

The supply function is given as:\[ S = 4L + 8 \]Substitute \(S = 20\):\[ 20 = 4L + 8 \]Subtract 8 from both sides:\[ 12 = 4L \]Divide both sides by 4:\[ L = 3 \]The labour supplied is 3.