JAMB Economics Past Questions & Answers - Page 76

Limited partnership is one who has agreed to contribute a certain sum to a partnership in business and is prevented by law from taking any active part in the management and administration of the business. He is liable for debts and obligations of the partnership only up to the amount of capital he has contributed. A limited partner has limited liability.

Opportunity cost refers to a benefit that a person could have received, but gave up, to take another course of action. Opportunity cost helps the government in the preparation of budget, since it assists in the effective allocation of scarce resources to certain sector of the economy. It helps in making certain decision e.g. the priority areas that may require immediate attention.

Money market can be defined as a market for short term loan. The market consists of institution
or individuals who either have money to lend or wish to borrow on a short term basis. The central
bank is the sole authority in the banking industry and act as banker to the government and the
commercial banks.
The stock market is an instrument for raising fund for limited liability companies which have
shares of the company to give out in exchange for fund.
Insurance company are financial institution that are concerned with insurance. Insurance company
indemnify the insured against loss which he may suffer in the future upon payment of a premium.

Given C = 10 + 0.6Y when Y = 20
Substitute for the value of Y in the equation to calculate the actual value for C
Therefore, C = 10 + 0.6(20)
C = 10 + 12
C = 22.00

A perfect market may be defined as one in which buyers or sellers cannot influence the price of goods and services. That is, the buyers or sellers are price taker since there exist a common price for commodities throughout the market.