ECONS OBJ:
1-10: CCBCACDABA
11-20: BCCCDBBCBD
21-30: ACABACCDDD
31-40: CBCBAADCDA
41-50: ABACBBCACD
.....
( 2.)
(a) D = s
(ai) 10-2p = 4p-8.
10+8=4p+2p.
18=6p.
P=18/6 =#3.
(aii)
Equilibrium quantity =QD = 10-2p.
QD = 10-2(3).
QD = 10-6 = 4KG
(2b)
Qs=4p-8
=4*4-8
=16-8
=8kg
(2c)
Qd=10-2p
=10-2*2
10-4=6kg
(2d)
draw a graph of demand against supply.
demand on the y axis with prices of $2,3,4,5
against supply on the x axis with demand of
2,4,6,8,12.
plot your graph and get the equilibrium point
yourself.
(3a) Market Economy is an Economic system
where the means of production and
distribution are majorly controlled by the
private sectors with out government
interference. The price of goods and services
are determined by the interaction of the
market forces (demand and; supply).
(3b) i- no government interference
ii- the means of production and distribution
are majorly controlled by the private sectors
iii- price of goods and services are determined
by the market forces.
(iv) it improves consumer's right to choice that
is sovereignty of the consumer.
(3c) i- it may lead to market failure ii-
unrivalry competition may result to wastage of
resources
(4a)
-crop production
-livestock farming
-forestry
-fish farming
-animal husbandry
(4b)
-land tenure system: it discourages farmers
from acquiring land for large scale farming
-inadequate finance or credit facilities:farmers
do not acess to loan facilities from bank
-poor transportation services: bad roads makes
distribution of goods to market very difficult
and leads to wastage
-natural disasters: this may occur and will
reduce agricultural productivity e.g flood, etc
-inadequate farm input:farm inputs are not
easily available and expensive for poor farmers
to afford e.g fertilezers.
(6a)Tax may be defined as a compulsory levy
imposed by the government or its agency on
individuals and firms or on goods and services.
While subsidy is the amount government paid
on behalf of the citizens to make the price of a
particular good to be affordable.
(6b) (i)Government can use taxation to raise
revenue.Through this money required for the
provision of essential services are made
available.
(ii)To re-distribute income:Government use
taxation to narrow the gap between the rich
and the poor by introducing progressive
taxation.
(iii)To control inflation:Taxation can be used ar
anti-inflation by the government.This is done by
increasing direct tax without increasing its
expendicture
(iv)To prevent dumping:Through the imposition
of import duties on foreign goods to prevent
dumping
(v)Employment generation:Government can
manipulate taxation to achieve the desired
employment level.
(11a) Difference between Central bank and
Commercial Bank
i. Central Bank does not accept deposit from
public while commercial Banks accept Deposits
from the public
ii. Central bank formulates and executes
monetary policies while commercial banks do
not formulate monetary policies.
(11b)
i. open market operation:it is the purchase or
sale of government securities in the open
market to expand or restrict the volume of
money in circulation
ii. Cash Ratio:The commercial banks are
mandated by the government to keep special
proportion ,e.g 25% of their total deposit with
central bank in order to control the volume of
credit.
iii. Bank Rate:This is the minimum rate of
interest charged by the central bank for
discounting bill of exchange
iv. Special Directives:The central bank can
issue directives or specific instructions to the
commercial banks and other financial
institution to restrict their lending or credit
policy to which loaning should follow.
v. Moral Suasion: The central bank can make
an appeal to the commercial banks to
restrict
or expand the level of credit to the public.
(10)
a. Indigenisation Policy: This is the transfer of
ownership and control of business enterprises
from foreigners to indigenes.It is designed to
ensure greater participation of indigenes in the
ownership, control and management of the
business to reduce foriegn domination.
b. Localization of Industries: This is the
concentration of firms producing similar product in
an area. It is establishment of many related
industries which produce similar goods in a
particular location e.g Industrial estate Agbara
Lagos state
c. National Budget is the financial statement of the
total estimated revenue and the proposed
expenditure of a government within a given period
of time Usually one year, it can be balanced,
surplus, or deficit budget
d. Economies of scale is define as the growth of a
firm as a result of expansion of the volume of
productive capacity resulting in the increase in
output and a decrease in its cost of production per
unit of output. E.g internal and extenal
economies, internal and external diseconomies
e. National debt is refer to the debt a country owes
to its citizens or other countries or organisations
such as the International Monetary Fund (IMF) and
the World bank.
(No 5)
Explaination of a 'Change In
Demand':
It is a term used in economics
to describe that there has
been a change, or
shift in, a market's total
demand.
This is represented
graphically in a
price vs. quantity plane, and is
a result of more/less entrants
into the
market, and the changing of
consumer preferences. The
shift can
either be parallel or non
parallel.
A parallel shift in demand
means that there is no change
in the elasticity
of demand for the given
market, but a non parallel shift
means there
has been a change in
elasticity
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