2024 - JAMB Economics Past Questions and Answers - page 3

Deflation is defined as a persistent fall in the general price level of goods and services in an economy.

The question describes the transformation of raw materials into semi-finished goods.

• Processing: This industry transforms raw materials into intermediate or semi-finished products.
• Mining: Involves the extraction of raw materials.
• Manufacturing: Transforms raw or semi-finished goods into finished products.
• Conversion: Too broad and not specific to this industry type.

A profit-maximizing firm hires labour up to the point where the marginal revenue product (MRP) of labour equals the wage rate.

The MRP represents the additional revenue generated by one more unit of labour. The firm will keep hiring as long as the addition to total revenue (TR) equals the addition to total cost (TC).

Economic planning aims to improve the economy and citizens’ well-being. Objectives include:

• Equitable allocation of resources
• Achieving economic growth
• Creating employment

Widening the income gap is not an objective; it is contrary to the goals of economic planning.

In the long run, a firm can adjust all inputs and costs because all factors are variable.

• Option A: Average variable cost is not fixed in the long run.
• Option B (Correct): All costs can be varied in the long run.
• Option C: Only variable costs changing describes the short run.
• Option D: Fixed costs can indeed change in the long run.

The United Nations Conference on Trade and Development (UNCTAD) assists developing countries in integrating into the global economy. Its functions include:

• Promoting trade and investment opportunities
• Providing a forum for intergovernmental discussions
• Conducting research and analysis
• Providing technical assistance

Thus, increasing the share of less developed countries in world trade is a key function.

The correct order in the chain of distribution is:

• Producer → manufactures goods
• Wholesaler → buys in bulk
• Retailer → sells to consumers
• Consumer → final user

At equilibrium price, the quantity demanded equals the quantity supplied. This is the point where the demand and supply curves intersect, clearing the market.

The correct answer is mixed because in a mixed economy, decisions are made by both private individuals and the government.

Step-by-step solution:

1. JSS students: 600 × 60% = 360
2. SSS students: 600 − 360 = 240