2024 - JAMB Economics Past Questions and Answers - page 4

The expenditure approach to calculating national income sums up all spending in an economy. The formula is:

Where:

Y = National Income
C = Consumption (spending by households)
I = Investment (spending by businesses)
G = Government expenditure
X = Exports
M = Imports

Therefore, option B is correct.

A monopolist is a producer who has control over the price of a product but does not control the quantity sold. In a monopoly, the producer is the sole seller of a product with no close substitutes, so they can set the price; however, the quantity sold is determined by consumer demand.

The question refers to a diagram that is not provided. However, based on the options, the most likely relationship shown is the inverse relationship between wage rate and unemployment.

A higher wage rate can lead to higher unemployment because firms may reduce labor demand, while a lower wage rate may reduce unemployment.

The income approach sums all incomes earned in an economy: wages, salaries, rent, interest, and profits.

A. Profit earned by NITEL plc – included.
B. Profit earned by Nigerian Bottling Company – included.
C. Income earned by a bricklayer – included.
D. Allowance given to an aged mother by a civil servant – not included because it is a transfer payment, not income earned from production.

The price of a good affects the quantity demanded, not the demand curve itself.

Factors that shift demand include changes in income, government policy, and population.

Therefore, the price of the good or service is not a factor that causes a change in demand.

The equilibrium wage rate is the wage where labor supply and labor demand intersect. Without the diagram, the typical equilibrium wage label is W2. Therefore, W2 is the equilibrium wage.

Fiscal policy refers to the use of government taxation and expenditure to influence economic activity.

A downward sloping demand curve shows an inverse relationship between price and quantity demanded.

As price decreases, quantity demanded increases.

Therefore, the correct interpretation is that price must be lowered to sell more.

OPEC’s major roles include stabilizing oil prices, setting production ceilings, raising members' revenue, and ensuring regular oil supply.

However, OPEC does not refine petroleum products within member countries. Refining is handled locally by countries or companies.

In the equation Q = a - bp + e:

P is the independent variable, and Q is the dependent variable because Q depends on P.