IJMB Economics Paper 1 Questions And Answers 2023

IJMB Economics Paper 1 Questions And Answers 2023

Welcome to Examdubs where we shared with you the IJMB Economics Paper  Questions And Answers 2023.

IJMB ECONOMICS PAPER I

NUMBER ONE

(1) 

A change in quantity demanded refers to a movement along the demand curve caused by a change in the price of a commodity. It occurs when there is a change in the quantity of a product that consumers are willing and able to buy at a specific price level. WHILE a change in demand refers to a shift of the entire demand curve caused by factors other than the price of the commodity. It occurs when there is a change in the quantity of a product that consumers are willing and able to buy at each price level. Factors can cause a change in the demand for fish in Nigeria are:

(i) Income: An increase in income levels of consumers can lead to an increase in the demand for fish as it is considered a normal good. In contrast a decrease in income levels can lead to a decrease in the demand for fish.

(ii) Price of substitutes: If the price of a substitute for fish such as meat or poultry increases it can lead to an increase in the demand for fish as consumers switch to a relatively cheaper alternative.

(iii) Taste and preferences: Changes in consumer preferences and tastes can also influence the demand for fish. For example if there is a growing awareness of the health benefits of fish consumption it can lead to an increase in demand.

(iv) Population: An increase in the population can lead to an increase in the demand for fish as there are more potential consumers. Additionally changes in demographics such as an aging population can also affect demand.

(v) Availability of fish: If there are shortages or restrictions in the supply of fish it can lead to a decrease in demand as consumers might switch to other available food options.

(vi) Advertising and marketing: Effective advertising and marketing campaigns promoting the benefits and value of consuming fish can influence consumer demand.

(vii) Government policies: Government policies such as taxes or subsidies on fish can impact the demand by affecting the price and availability of fish in the market.

IJMB ECONOMICS PAPER I

NUMBER THREE

(3)

(i) Subsistence economic system: A subsistence economic system is a type of economic system in which individuals or communities produce goods and services primarily to meet their own basic needs rather than for exchange or profit. This system is often characterized by self-sufficiency as people rely on their own resources and labor to produce what they need to survive. Subsistence economies are commonly found in rural or underdeveloped regions where access to modern markets and infrastructure is limited.

(ii) Production possibility frontier: The production possibility frontier (PPF) is a graphical representation of the different combinations of two goods or services that an economy can produce given its resources and technology assuming full utilization of resources. The PPF illustrates the concept of trade-offs and opportunity costs as it shows the maximum output of one good that must be sacrificed to produce more of the other good. The PPF is typically depicted as a curve that shows the maximum possible production levels of two goods given the available resources.

(iii) Economic system: An economic system is a set of institutions organizations and mechanisms through which a society determines how resources are allocated goods and services are produced and income is distributed. There are several types of economic systems including market economies command economies mixed economies and traditional economies. The economic system of a country or region heavily influences factors such as the level of economic freedom degree of government intervention and distribution of wealth.

(iv) Equilibrium and what determines the equilibrium point: Equilibrium refers to a state of balance or stability in an economic system where there is no tendency for change or deviation from the established conditions. In economics equilibrium is often used to describe the point at which the demand for a good or service equals its supply resulting in price stability. The equilibrium point is determined by the intersection of the demand and supply curves in a market. Factors that influence the equilibrium point include consumer preferences production costs market competition and changes in external variables such as government policies or economic shocks.

IJMB ECONOMICS PAPER I

NUMBER FIVE

(5)

(i) Skill requirements: Occupations that require higher levels of education training or specialized skills often offer higher wages. For example jobs in fields like medicine engineering or finance typically require advanced degrees or certifications leading to higher earning potential.

(ii) Supply and demand: The wages in a particular occupation can be influenced by the supply of workers available for that job and the demand for their skills. If the supply of qualified workers is low and the demand is high employers may offer higher wages to attract and retain talent.

(iii) Industry and sector differences: Wages can vary across different industries and sectors of the economy. For example jobs in high-profit industries like technology or finance tend to offer higher wages compared to jobs in low-profit sectors like agriculture or retail.

(iv) Occupational hazards and working conditions: Occupations that involve physical risks or demanding working conditions may provide higher wages as compensation for the associated risks. Jobs in sectors like construction mining or healthcare may have higher wages due to the potential dangers or physical demands involved.

(v) Unionization and collective bargaining: In some occupations workers may be represented by labor unions that negotiate wages and benefits on their behalf. Unionized jobs often have higher wages due to the collective bargaining power of workers.

(vi) Location factors: Wages also vary based on geographical factors. Areas with a higher cost of living or in high-demand locations may offer higher wages to compensate for the increased expenses.

IJMB ECONOMICS PAPER I

NUMBER SIX

(6)

Choice arises because of the scarcity of resources. Scarcity refers to the limited availability of resources for unlimited human wants and needs. This scarcity is what necessitates choice as individuals and societies must make decisions about how to allocate their limited resources to satisfy their most pressing needs and wants.

In the face of scarcity, individuals are constantly faced with choices about how to allocate their resources such as time money, and energy. For example, if an individual has a limited amount of money they must choose whether to spend it on groceries clothing, or entertainment. They cannot have it all so they must prioritize their needs and wants based on their limited resources.

Similarly, societies as a whole must make choices about how to allocate their resources. Governments for instance must make decisions about how to distribute limited funds to provide public goods and services such as healthcare education and infrastructure. They must prioritize these resources based on the needs and wants of the population.

The existence of scarcity and the need for choice have significant implications for economic systems and concepts such as opportunity cost and comparative advantage. Opportunity cost refers to the value of the next best alternative that is forgone when making a choice. When resources are scarce individuals and societies must weigh the benefits and costs of different options and consider the opportunity cost of choosing one option over another.

Furthermore, scarcity also drives the concept of comparative advantage which states that individuals firms, and countries should specialize in the production of goods and services in which they have a lower opportunity cost. Specialization and trade can lead to more efficient resource allocation and increased production which can help alleviate the effects of scarcity.

Overall choice arises as a result of scarcity of resources. The limited availability of resources forces individuals and societies to make decisions about how to allocate their resources efficiently to satisfy their needs and wants. Without scarcity, there would be no need for choice as all wants and needs could be fulfilled without constraints.

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