Economics 2024 Jamb Examination

UNCTAD was established to help developing nations secure better terms in international trade and to promote their participation in the global economy.
It works to reduce trade barriers, improve trade negotiations, and strengthen the trade capacity of developing countries.
Increasing the share of less developed countries in world trade aligns directly with its primary mandate of fostering inclusive and sustainable development through trade.

Wholesalers typically provide financial support by offering credit facilities to both producers and retailers.
This ensures that producers can continue production even when immediate payment is not available, and retailers can stock goods without paying instantly.
This financing role improves distribution efficiency and helps maintain the flow of goods in the market.

Economic problems originate from the fundamental issue of scarcity — resources are limited relative to human wants.
All societies face the challenge of allocating scarce resources to competing needs, regardless of planning quality or leadership.
This scarcity (inadequate supply of resources) makes choice and opportunity cost unavoidable.

A downward sloping demand curve expresses the law of demand, which states that consumers buy more of a good when its price falls.
Therefore, to increase quantity demanded, sellers must reduce price.
This inverse relationship between price and quantity demanded is the foundation of the negative slope of the demand curve.

The African Development Bank (AfDB) was specifically created to promote sustainable economic growth and social progress across African countries.
It provides funding for infrastructure, healthcare, education, and other developmental projects.
This makes it the primary continental institution for development financing.

A monopolist is the sole producer of a product with no close substitutes.
Such a firm can set the price but cannot force consumers to purchase a specific quantity.
The quantity sold is determined by consumer demand at the price the monopolist sets.

Changes in demand are caused by non-price factors such as income, tastes, population, and government policy.
The price of the good itself does not shift the demand curve; instead, it leads to movement along the existing curve.
Therefore, price does not cause a change in demand but only affects quantity demanded.

A price floor sets a minimum price that must be charged for a good or service.
When this minimum price is set above the equilibrium price, producers supply more than consumers are willing to buy.
This mismatch between high supply and lower demand leads to a surplus in the market.

Substitute goods are goods that can replace one another.
When the price of one good increases, consumers switch to its alternative to minimise cost.
The shift from commodity X to commodity Y when X becomes more expensive demonstrates a substitute relationship.

Effective demand occurs when a consumer not only wants a product but also has the financial ability to buy it.
Desire alone does not constitute demand unless supported by purchasing power.
This distinguishes effective demand from mere wants or desires.