Economics 2025 Jamb Examination

The United Nations Conference on Trade and Development (UNCTAD) was specifically established to address the needs of developing countries in the global market. Its primary focus is to help these nations integrate into the world economy by improving their terms of trade and expanding their commodity exports. While the WTO handles general global trade rules, UNCTAD acts more as an advocate for the economic interests of the 'Global South'.

Privatization is the process of transferring a business, industry, or service from public ownership (government control) to private ownership (individuals or private companies). This is often done to increase efficiency, reduce the financial burden on the government, and encourage competition. It is the exact opposite of nationalization, which is when the government takes over a private industry.

Net Domestic Product (NDP) represents the net value of goods and services produced within a country's borders. It is calculated by taking the Gross Domestic Product (GDP) and subtracting the 'depreciation' (also called Capital Consumption Allowance). Depreciation accounts for the wear and tear on a country's physical capital (machinery, buildings, etc.) over the year. Essentially, NDP shows how much a country has truly produced after accounting for the cost of maintaining its existing assets.

Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets or to different groups of consumers. For this to work, the seller must have some market power (monopoly), be able to segment the market (e.g., student discounts vs. adult prices), and prevent 'arbitrage' (buyers in the low-price group reselling to the high-price group).

Small and Medium Enterprises (SMEs) in West Africa often face significant hurdles, particularly regarding funding and high operational costs. To ensure their survival and growth, government intervention is often necessary. This assistance typically includes the provision of low-interest loans, grants, and 'tax holidays' (temporary exemptions from taxes). These measures help small firms maintain cash flow, reinvest in their business, and eventually compete with larger, more established corporations.

Before the discovery and commercial exploitation of crude oil in the late 1950s, Nigeria's economy was almost entirely dependent on the agricultural sector. The country was a world leader in the export of commodities such as cocoa, groundnuts, palm oil, and rubber. These agricultural exports provided the bulk of the nation's foreign exchange earnings and government revenue. The shift to a petroleum-based economy (mono-culture) occurred much later, significantly reducing the relative contribution of agriculture to Nigeria's trade balance.

The primary function of an insurance company is risk transformation and management, not deposit-taking. While insurance companies collect 'premiums' to cover risks and sometimes provide long-term loans or encourage savings through life policies, they do not accept 'deposits' (like savings or current accounts) from the general public for the purpose of safe-keeping and withdrawal. Accepting deposits is the defining function of commercial and merchant banks, which are regulated differently from insurance firms.

Direct taxes, such as Personal Income Tax (PAYE) or Corporate Tax, are levied directly on the income or wealth of individuals and firms. A major drawback is the possibility of tax evasion, where taxpayers deliberately misreport or hide their income to reduce their tax liability. This is more difficult with indirect taxes (like VAT), which are built into the price of goods. While being 'progressive' is actually considered an advantage for social equity, the tendency for people to find loopholes or hide income makes direct taxation challenging for the government to collect fully.

In economics, each of the four factors of production has a specific reward. The reward for Labour is wages/salaries; the reward for Capital is interest; and the reward for Entrepreneurship is profit. Land, which includes all natural resources provided by nature, earns 'rent'. This is the payment made to the owner of the land for its use in a productive process, whether for farming, building a factory, or extracting minerals.

For any object to function effectively as a medium of exchange, it must possess certain qualities known as the 'characteristics of money'. It must be generally 'acceptable' to everyone; 'durable' so it doesn't rot or break; 'homogeneous' (all units must be identical); and 'portable' (easy to carry around). Other qualities include divisibility (can be broken into smaller units) and relative scarcity. These attributes ensure that money can serve its roles as a store of value and a unit of account.