JAMB Economics Past Questions & Answers - Page 182

906.

The mean is the best measure of central tendency because it

A.

Is not affected by extreme values in a data

B.

Is a midpoint value in an array of data

C.

Is a balancing point in an observation

D.

Can be calculated from incomplete data

Correct answer is A

The mean is an important measure because it incorporates the score from every subject in the research study. It includes all the data in a set to arrive at an answer.

907.

The standard deviation of a set of data is

A.

Always measured from the mode

B.

The most representative of averages

C.

Always measured from the median

D.

A measure of dispersion

Correct answer is D

The standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

908.

The downturn in the prices of shares on stock markets is a highlight of

A.

Efficient allocation of resources

B.

The invisible hand

C.

The regulatory nature of the market

D.

Consumer rationality

Correct answer is C

What is a regulated market? A regulated market is one that is supervised or controlled to some extent by the government or established public body. Most financial trading exchanges such as stock markets are regulated.

The federal government regulates much of the stock market's activity to protect investors and ensure the fair exchange of corporate ownership on the open markets.

909.

Economics is the study of human behaviour as it relates to the

A.

Efficient allocation of resources

B.

Production of goods

C.

Operation of companies

D.

Generation of income

Correct answer is A

Economics as the study of human behaviour has to do with efficiently allocating scarce resources to satisfy human wants. These human wants are unlimited, hence humans would rationally allocate resources to wants that will give them the highest level of satisfaction.

910.

When workers have a union, the supply of labour is said to be

A.

Monopolistic

B.

Oligopolistic

C.

Monopsonistic

D.

Competitive

Correct answer is A

The word 'Monopolistic' relates to a person or business that has exclusive possession or control of the supply of or trade in a commodity or service. When workers have a union, the supply of labour is said to be monopolistic. By forming the union, the rights and interest of workers under the union are protected, and they would normally use it to influence and control the supply of labour.

If a trade union enters the labour market and becomes the monopoly supplier of labour supply it can force the market to pay a wage at, or nearer to, the market rate, and employ more workers.