JAMB Commerce 2022 Past Questions & Answers

The question asks about an article used as a means of exchange in early West African trade. This directly relates to the historical evolution and functions of money. Cowrie shells were a widely accepted form of currency and medium of exchange in West Africa for centuries, fulfilling a primary function of money.

Common mistake: Students might mistakenly choose modern currencies like cedis, dalasi, or naira if they overlook the phrase 'early days of trade' in the question.

Tertiary production is the sector of the economy that provides services rather than goods. Examples include banking, transportation, education, and healthcare. The question directly asks about the classification of providing services, which is the definition of tertiary production.

Common mistake: Students might mistakenly choose secondary production if they confuse the transformation of raw materials into goods with the provision of intangible services.

Commerce is all about the buying and selling of goods and services. For commerce to grow, people must have money to spend (purchasing power). Low per capita income means that the average person in a country has very little money, so they cannot afford to buy many things. This lack of demand from customers prevents businesses from growing and therefore does not enhance commerce.

Common mistake: Students might mistakenly choose 'high population growth', thinking it automatically means poverty, but a larger population actually creates a bigger market with more potential customers, which can enhance commerce.

The construction industry is primarily involved in building structures and infrastructure. Cement is a fundamental raw material used extensively in construction to make concrete and mortar, which are essential components of any building project. Therefore, a bag of cement is directly linked as a key input or product associated with the construction sector.

Common mistake: Students might incorrectly choose options like 'chair' (D) because it is found in buildings, but it is a product of the furniture industry, not the construction industry itself.

Production in commerce is not just about manufacturing; it also includes creating utility. A retailer's service is considered part of production because it creates place and time utility by making finished goods readily available to consumers. This act of enabling goods to reach their final users is a crucial step in the overall process of satisfying human wants.

Common mistake: Option A, 'creates a link between consumers and producers', is a true function of a retailer, but it doesn't explain why this function is specifically considered 'production' in an economic sense, which is the core of the question.

The question asks for the fundamental resources used to create goods and services. These resources are known as factors of production, which include land, labour, capital, and entrepreneurship. They are the basic inputs required for any economic activity or production process.

Common mistake: Students might mistakenly choose 'producer goods' (B), which are goods used in the production of other goods, but not the primary resources themselves like land or labour.

Public enterprises are businesses owned and controlled by the government on behalf of the public. Their main objective is not to maximize profit but to provide essential services like water, electricity, and transportation to all citizens at affordable prices. This focus on public welfare makes them the correct answer.

Common mistake: Students often mistakenly choose cooperative societies because they also focus on member welfare, but public enterprises are specifically set up by the government to serve all citizens, not just a closed group of members.

A wholesaler cooperative society is a type of business organization where independent retailers or small businesses come together. They pool their resources to buy goods in large quantities directly from manufacturers or primary distributors. This allows them to benefit from bulk discounts and better terms, which they might not achieve individually, and then distribute these goods among their members for resale.

Common mistake: Students might confuse this with a consumer cooperative society (C), which primarily sells goods to its individual consumer members for personal use, rather than to other businesses for resale.

Average stock is a measure used in business to determine the typical amount of inventory held over a period. It is calculated by adding the value of stock at the beginning of the period (opening stock) to the value of stock at the end of the period (closing stock), and then dividing the sum by two. This calculation helps businesses manage their inventory efficiently, which is a key aspect of business management.

Common mistake: Students often choose option B, 'closing stock to opening stock', forgetting to divide by two to get the average, or they might incorrectly include 'purchases' as seen in options A and D.

A mail order firm is a type of retail business that sells goods directly to consumers, often using catalogues and delivering products by post. This method of selling to the final consumer is a core characteristic of retail trade. The question specifically describes this unique retail model.

Common mistake: Students might incorrectly choose 'department store' or 'chain store' if they don't focus on the 'sells by post, using catalogue' aspect, as these are also retail formats but operate differently.