Econs obj:
1-10: CECABDBBEC
11-20: AACCCEBEAE
21-30: ECACCCBDAE
31-40: DABACBCDAC
41-50: ABBCEBECDE
51-60: EDBEDDBAEE
(1a) cross elasticity=change in qtydd/change in price*100/1.change in qty dd ofx=200-90=110.110/90*100/1=122.22%.change inprice=180000-120000=60000.60000/ elasticity=change in qtydd/change in price*100/1.change in qty dd ofx=200-90=110.110/90*100/1=122.22%.change inprice=180000-120000=60000.60000/120000*100/1=50%.cross elasticity=122.22/50=2.44(elastic)
(7) Derived demand:= this is a situation in which a commodity is wanted not for its immediate satisfaction because of the demand for another commodity.
Joint/com[limentary demand:
when two or more commodities are wanted to satisfy one want at the same time.
competive demand:= it is wanted to satisfy a want in place of another similar commodity.
Composite demand: it is when a commodity is wanted to satisfy different wants.
(8) under employment, frictional unemployment,structural unemployment,voluntary unemployment, seasonal unemployment.
Underemployment: potentialities of a worker are not fully utilized., frictional unemployment arises when people leave their present job with the hope of getting a new and better one but fail at that time.
structural unemployment arises as a result of slight changes in the industrial structure of a country.
Voluntary:= this occurs when people refuse to take up any paid employment.
Seasonal unemployment:= caused by seasonal changes that affect some types of work.
(10) Availability of natural resources,level of development, industrial development, working population, economic situation.
Availability of natural resources:= a country with abundant natural resources will experience increase in national income than a country with little or no resources.
level of technology: a higher technological development will improve or increase a national income.
Industrial development: the presence of industries or increased industrial activities can contribute positively to national income.
Working population: a country with high working population is likely to increase national income than a country with a little population.
Economic Situation: when the economic situation is stable, the national income will be stable.
(11a)Economic integration may be defined as a form of international co-operation among nations to foster their economic interest.
(11b)Free trade area: free trade area is the type of integration in which member countries agree to remove all restrictions among them.
Such restrictions are tariffs, quotas, bans, et.c.Common market: also known as economic community is a form community is a form of co-operation in which there is a common internal and eternal tarrif policy Economic
union: this is a type of integration which takes the form of total integration of member countries.
Customs union: custom union is an agreement among nations to eliminate trade barriers such as tariffs,quotas, et.c among them.
(3a) specialization is the act of individual or a firm of a country concentrating its resources and efforts in the production of relatively few commodities
(3b) Advantages: increase in production,time saving, large scale production Increase in production:
specialization leads to increase in production because the various experts along the production process work together to boost greater production.
Time saving: specialization helps to save time by reducing the time wasted in moving from one operation to another.
Large scale production: specialization leads to large scale production as a result of many.
Disadvantages: monotony or repletion, problem of mobility of labour
(i)monotomy or repetition: a worker performs the same job on daily basis, therefore the job becomes monotonous and boring.
(ii) problem of mobility of labour: the worker stays on a single job for a long time and this makes it difficult for him to move to other jobs.
(4)Factors: Capital: the larger, the capital, the bigger the size.
2. Type of production: either the production is primary or secondary, this cab be determine the size of a business uint
. 3. Market size: this determines whether a business unit will be large or small.
4. Number of working population: the number of workers in aa business unit determines the size of it.
(6a) A market economy is an economy which decisions regarding investments, production and distribution are based on supply and demand and the prices of goods and services determines in a free price system
(6b) features of market economy:
(1)supply&demand
(2) competition
(3)profit
(4)less government intervention
(5) choice of production.Supply and demand: the larger the available the available supply of goods or services in relation to demand, determines the market economy Competition: a market economy encourages competition regardless the type of business you operate, you likely face competition.
Profit: business owners in a market economy are usually motivated by how many much money they make.
Less Government intervention: in a market economy, the government does not dictate economic policy as it does in a planned or social economic structure.
Choice of production: business owners decides what to produce in market economy
(5)(i) inadequste labour force: the available labour force is groslly inadequate to manage the abundant resources
(ii) low level of production: level of manpower available production is generally low
(iII) low standard of living: due to inadequate labour force that would have promoted output, the standard of living will eventually fall
(iv) underutilization of infrastructure: pipe borne water, etc are grossly underutilized
(v)high taxation: the working population will be made to pay higher amount of tax to take care of thedependents.
(2)(a) Marginal propensity to consume(MPC)= changes in consumption/change inincome(40,000,000-25,000,000)/(125,000,000-105,000,000)= 15,000,000/20,000,000=0.75
(b) multiplier (k)= 1/(1-MPC)=1/(1-0.75)=1/0.25=4(C) change in y/change in investment expenditure= 1/(1-MPC), Change in income= change in investment/1-(1-0.75)=12,000,000/0.25= #48,000,0000
