Economics 2025 Jamb Examination

Token money is currency whose face value is greater than its intrinsic value. For example, the material used to produce a coin or note is worth much less than the value printed on it.

The income approach includes incomes earned from productive activities such as wages, rent, interest, and profit. Retirement benefits are transfer payments and are excluded because they are not payments for current productive services.

A sole proprietorship is owned and managed by one person, allowing quick decision-making without disagreements that may arise in partnerships or companies.

UNCTAD was established to promote the interests of developing countries in international trade and development. It focuses on improving terms of trade and helping developing nations integrate into the global economy.

The Central Bank is called the banker's bank because it holds reserves for commercial banks, provides clearing services, regulates their activities, and acts as lender of last resort.

A Balance of Payments (BOP) deficit occurs when the total amount of money leaving a country (outflow) for imports of goods, services, and capital transfers exceeds the total amount of money entering the country (inflow) from exports and investments. While option A only looks at 'invisible' goods (services), a full BOP deficit considers the sum of both visible trade and invisible trade. Therefore, when total payments for all imports exceed total receipts from all exports, the country must dip into its foreign reserves or borrow to cover the gap.

The population growth rate is determined by two main factors: natural increase and net migration. Natural increase is the difference between the birth rate and the death rate. Net migration is the difference between people moving into the country (immigrants) and people leaving the country (emigrants). To find the total growth, you combine these: (Births - Deaths) + (Immigrants - Emigrants). This provides a complete picture of how the total number of people in a region changes over time.

Joint-stock companies are characterized by 'limited liability.' This legal protection means that the shareholders (owners) are only responsible for the company's debts up to the amount they have invested in purchasing shares. If the company goes bankrupt, the creditors cannot seize the shareholders' personal homes, cars, or bank accounts to settle the company's bills. The most a shareholder can lose is the value of the capital they used to buy the shares.

While many factors affect economic planning, political instability is a primary reason for the failure of long-term development plans in West Africa. Frequent changes in government, coups, or civil unrest often lead to the abandonment of previous projects and policies. New administrations often start their own initiatives rather than continuing the work of their predecessors, resulting in wasted resources and a failure to meet the original long-term economic targets.

Capital-intensive production is a process that requires a high level of investment in fixed assets, such as sophisticated machinery, automated systems, and advanced technology, compared to the amount of manual labour used. In agriculture, this means using tractors, combine harvesters, and automated irrigation rather than large groups of manual farmworkers. This is common in developed economies where labour is expensive but capital (technology) is readily available to increase efficiency.