JAMB Economics Past Questions & Answers - Page 151

752.

In order to add value to Nigeria agricultural produce, there is need to

A.

Cultivate high breed crops

B.

Process them into finished goods

C.

Adopt modern storage methods

D.

Advertise them in European markets

Correct answer is C

Most agricultural produce are perishables and do not last past a few days after it has been harvested. The agricultural sector needs to adopt new and modern methods of produce processing and storage to preserve the quality and nutritional value of the foods.

753.

In which of the diagrams above, is the consumer surplus correctly shaded?

A.

I

B.

II

C.

III

D.

IV

Correct answer is D

No explanation has been provided for this answer.

754.

Life insurance companies contribute to economic development by holding a part of their assets in

A.

Long-term financial instruments

B.

Money market instruments

C.

Cash and near money

D.

Short-term financial instruments

Correct answer is C

Life insurance is a contract in which an insurer (insurance company) in exchange for a premium, guarantees payment to an insured's beneficiaries when the insured dies. This means that, the insurance company would compensate the beneficiary of a deceased person when they die. The premium paid by the insured are considered cash and near money assets.

 

Near money assets are highly liquid assets that can be easily converted to cash.