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Frage 1 Bericht
The following determine the level of consumption EXCEPT
Antwortdetails
The level of consumption generally refers to the amount of goods and services that households are willing and able to purchase. This can be influenced by several factors:
Level of Income: The more income people earn, the more they can spend on goods and services, which directly affects consumption levels. With higher income, households typically increase their consumption.
The Rate of Taxes Paid: Taxes directly impact disposable income, which is the income available after tax deductions. Higher taxes reduce disposable income and may lead to lower consumption, while lower taxes increase disposable income and can potentially boost consumption.
Savings: When households allocate a portion of their income to savings, this reduces the immediate level of consumption. Therefore, high levels of savings can indicate lower levels of consumption.
The Political Climate: Although the political climate can affect the economy in various ways, it is generally not a direct and immediate determinant of consumption levels. The political climate can influence factors like economic stability and government policies, but it is not a direct factor in determining how much households consume.
Based on these explanations, the factor that determines the level of consumption the least is the political climate, because its effects are indirect and less immediate compared to the direct effects of income, taxes, and savings on consumption.
Frage 2 Bericht
Which of the following is a disadvantage of localization of industries?
Antwortdetails
Localization of industries, also known as industrial clustering or agglomeration, refers to the concentration of similar industries or related businesses in a specific geographic area. While there are various advantages associated with localization, such as promoting knowledge spillovers, fostering collaboration, and enhancing economies of scale, it can also have disadvantages.
One of the disadvantages is the creation of structural unemployment. When industries concentrate in a particular region job opportunities may become limited to that specific area. As a result, workers in other regions or industries may face challenges in finding employment, leading to structural unemployment. This can be particularly problematic if the localized industry experiences a decline or faces disruptions, resulting in job losses for a significant portion of the workforce.
Frage 3 Bericht
A major characteristics of a firm operating at a long-run equilibrium position is that
Antwortdetails
In the long-run equilibrium position for a firm, **all costs are variable**. This is because the long-run is a period sufficiently long for firms to adjust all factors of production. They can expand or reduce their capacity, acquire new technology, or even enter and exit industries depending on market conditions.
Unlike in the short-run where some factors (like buildings and machinery) are **fixed** because they cannot be changed immediately, in the long-run, firms have the flexibility to alter all their inputs. This means that firms can choose the optimal scale of operation where the average cost of production is minimized, leading to a position where profits are maximized if the market structure allows.
So, in summary: In the long-run, a firm operates where **all costs are variable**, allowing complete adjustment to maximize efficiency and competitive position in the market.
Frage 4 Bericht
From the diagram below, the equilibrium wage rate is
Antwortdetails
The equilibrium wage rate is achieved when the demand for labour equals the supply of labour in a particular labour market. At this point, there is no excess demand or excess supply of labour, and the market is in balance.
From the diagram above, the equilibrium wage rate is W2.
Frage 5 Bericht
Which of the following is the correct order in the chain of distribution?
Antwortdetails
The correct order in the chain of distribution is: Producer → Wholesaler → Retailer → Consumer.
Let's take a closer look at each stage in this sequence:
Producer: This is the first stage where the initial product is manufactured or created. The producer could be a manufacturer or a farmer, or anyone who creates goods or services to be sold.
Wholesaler: After the producer creates the goods, they typically sell them in large quantities to a wholesaler. The wholesaler buys in bulk and often offers products at a lower price, allowing them to distribute to various retailers.
Retailer: The wholesaler then sells these products to retailers. Retailers have stores or online platforms where consumers can purchase products in smaller quantities. Retailers make these products accessible to the general public.
Consumer: Finally, the consumer is the person or entity that purchases and uses the product. This is the last step in the distribution chain, where the goods reach their intended end-users.
This sequence ensures that goods move efficiently from creation to the hands of consumers through different intermediaries, making the distribution process systematic and effective.
Frage 6 Bericht
An industry engaged in the extraction of raw materials and its conversion into semi-finished goods is called industry.
Antwortdetails
Processing involves transforming raw materials or inputs into more refined or semi-finished products. This can include various stages of production, such as refining, manufacturing, assembly, or other forms of processing.
The processing industry plays a vital role in taking raw materials from their natural state and converting them into products that can be used for further processing or consumed by end-users. This industry typically adds value to the rav materials by applying different processes, technologies, and expertise.
NOTE: Although manufacturing is involved in the production of goods, it does not specifically address the extraction of raw materials. Manufacturing encompasses a broader range of industries involved in producing finished goods from raw materials, components, or parts.
Frage 7 Bericht
Which of the following NOT among the objectives of OPEC?
Antwortdetails
When analyzing the objectives of OPEC (Organization of the Petroleum Exporting Countries), it is important to look at the core goals that this organization typically aligns with:
1. To stabilize the price of oil in the world market: This is indeed one of the primary objectives of OPEC. By coordinating the oil production levels among its members, OPEC strives to maintain oil price stability in the global market.
2. To stabilize the revenue from oil to producing countries: Another key objective of OPEC includes ensuring consistent and fair revenue for its oil-producing member countries. By influencing oil prices and production levels, OPEC helps in maintaining stable revenues for these nations.
3. To make sure that oil flows to all the consuming countries: Ensuring the continuous supply of oil to consuming countries is a goal aligned with OPEC's efforts to balance supply and demand for economic and energy stability worldwide.
4. To establish petroleum refineries in all member states: This is NOT among the objectives of OPEC. OPEC does not focus specifically on establishing petroleum refineries in all its member states. The organization's primary focus is on coordinating and unifying the petroleum policies among its member countries, not on the physical establishment of refineries.
Frage 8 Bericht
The following are problems of development planning in Nigeria EXCEPT
Antwortdetails
Nigeria, like many developing countries, faces several challenges in its development planning. These include issues such as inadequate capital, which limits the ability to fund critical development projects and infrastructure, thus hindering economic growth. Another significant challenge is the inadequate statistical data, which affects the ability to make informed, evidence-based policy decisions. Without reliable data, it's difficult to plan effectively and measure progress.
Poor implementation of economic planning is also a notable problem, as even the best-laid plans cannot yield results if not properly executed. This might be due to bureaucratic inefficiencies, corruption, or lack of capacity.
However, the statement under-population is not a commonly recognized problem in Nigeria. In fact, Nigeria is known for having a large and rapidly growing population, which sometimes poses its own challenges in terms of resource management and service provision. Therefore, the issue of under-population can be seen as an exception to the typical problems of development planning in Nigeria.
Frage 9 Bericht
The willingness of an individual backed up with purchasing power at a given time is
Antwortdetails
The concept you are referring to is effective demand. Let me explain it to you in a straightforward way:
Demand: Generally, demand refers to the desire or willingness of a consumer to purchase goods or services. However, just having the desire is not enough. Demand becomes impactful only when it is supported with the capability to purchase.
Effective demand: This is more than just a simple desire or demand. It represents the situation where an individual not only wants to purchase a product or service but also has the actual purchasing power to do so. This means they have the money or resources to back up their desire at a given time.
Desire: This term simply denotes a wish or want, without any implication of capability to fulfill it. For instance, many people might desire a luxury car, but not everyone can afford it.
Utility: This is a different concept entirely, referring to the satisfaction or benefit a consumer receives from consuming a product or service. It does not necessarily align with the ability to purchase.
In summary, when discussing the willingness to buy something and having the funds ready at that moment, it's referred to as effective demand because it combines the desire with the actual capacity to fulfill that desire.
Frage 10 Bericht
Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds
Antwortdetails
Under perfect competition, a profit-maximizing firm will hire labor up to the point where the marginal revenue product of labor (MRP) is equal to the wage rate. MRP represents the additional revenue generated by adding one more unit of labor.
Since the firm aims to maximize profits, it will continue hiring labor until the MRP is greater than or equal to the wage rate. At this point, the last unit of labor hired contributes more to total revenue than to total cost, resulting in increased profits for the firm.
Frage 11 Bericht
The trade-off between two commodities along the Production Possibility Curve (PPC) shows
Antwortdetails
The Production Possibility Curve (PPC) is a graphical representation that shows the different combinations of two goods or services that an economy can produce, given certain assumptions like fixed resources and technology.
The trade-off between two commodities along the PPC primarily illustrates the opportunity cost principle. This principle refers to the idea that in order to produce more of one good, an economy must produce less of another good. The curve demonstrates this trade-off by showing that resources are limited, and choosing to allocate more resources to produce one commodity means reallocating those resources away from another commodity.
For example, if an economy is at a certain point on its PPC and decides to produce more of Commodity A, it will inevitably end up producing less of Commodity B. This reduction in the production of Commodity B is the opportunity cost of producing more of Commodity A. Hence, every point along the PPC illustrates the trade-off and opportunity cost of choosing different production levels of the two goods.
Frage 12 Bericht
The use of tax and expenditure policy to regulate the economy is known as
Antwortdetails
The use of tax and expenditure policy to regulate the economy is known as fiscal policy.
Fiscal policy refers to the government's use of its spending levels and tax rates to influence a nation's economy. It is primarily the responsibility of the government to adjust its spending and tax rates to either promote economic growth or control inflation. By doing so, the government aims to achieve macroeconomic objectives such as controlling inflation, reducing unemployment, and achieving economic growth.
There are two main types of fiscal policy:
In summary, fiscal policy is crucial because it directly impacts the economy by influencing the level of aggregate demand through changes in government spending and taxation.
Frage 13 Bericht
In income determination theory, acceleration principles shows that
Antwortdetails
In income determination theory, the acceleration principle suggests that investment is the primary driver or cause, whil income is the resulting effect. The acceleration principle states that changes in investment levels lead to amplified or accelerated changes in income.
The acceleration principle posits that changes in investment levels have a multiplier effect on income. When investment increases, it leads to increased production, employment, and income generation.
Frage 14 Bericht
At the equilibrium price,
Antwortdetails
The equilibrium price in economics is a fundamental concept where the market operates most efficiently. To understand it fully, consider the following explanation:
When demand equates supply, it indicates the price at which the quantity of goods consumers are willing to buy (demand) is exactly equal to the quantity of goods producers are willing to sell (supply). This is the point where the market reaches equilibrium. At this price, there is no excess supply or demand, meaning that resources are being used most effectively, and there is no pressure on the price to change.
In contrast:
Thus, at equilibrium price, demand equates supply, ensuring the market operates smoothly without surplus or shortage.
Frage 15 Bericht
MPC + MPS equals
Antwortdetails
The terms MPC and MPS are concepts from economics that describe how households make spending and saving decisions out of their income. Let's break these down for a better understanding:
The sum of MPC and MPS must equal 1 because the additional income can only be spent or saved, meaning there aren’t any other alternatives for allocating this extra income. Therefore, mathematically, we express it as:
MPC + MPS = 1
In a closed economy model, the whole of any extra income is divided into consumption and saving, thereby making 1 the correct answer. So, whenever income changes, whatever portion is not spent (MPC) is saved (MPS), summing it up to one.
Frage 16 Bericht
The revolution of Cassava from ordinary food crop to export crop will lead to
Antwortdetails
The recent revolution of cassava from an ordinary food crop to an export crop is likely to lead to an increase in the price of cassava products.
When cassava transitions from being primarily used as a food crop to an export crop, its demand and value in the international market tend to increase. This increased demand can result in higher prices for cassava products such as cassava flour, starch, or other processed derivatives.
Frage 17 Bericht
The demand for factors of production is said to be
Antwortdetails
In economics, the demand for factors of production is best described as being derived. What this means is that the demand for these factors, like labor, land, and capital, is not for their own sake but because of the demand for the goods and services they can produce.
To put it simply, businesses need these factors of production to create products. If there is a high demand for a particular product, there will naturally be a higher demand for the factors needed to produce that product. Conversely, if there is little to no demand for a product, then the demand for the factors required to produce it will also decrease.
For example, if there is a high demand for cars, a car manufacturing company will need more metal, labor, and machinery, which are the factors of production, to make more cars. Thus, the demand for these factors is based on, or derived from, the demand for the cars themselves.
Frage 18 Bericht
Which of the following will NOT bring about an increase in Labour force?
Antwortdetails
To determine which option will NOT bring about an increase in the labor force, let's examine the impact of each one:
1. **Decrease in death rate:** When the death rate decreases, more people are living longer, which means that they remain available to be a part of the workforce. Thus, this can contribute to an increase in the labor force.
2. **Better medical services:** Improved medical services often lead to healthier individuals who can participate in work for longer durations. Good health can increase the number of individuals who can work and potentially extend their working life, thus leading to an increase in the labor force.
3. **Immigration:** Immigration allows people from other countries to enter and work in a new country. This directly increases the number of people who are available to work in that country, thereby increasing the labor force.
4. **Emigration:** Emigration is when people leave a country to work or live elsewhere. When individuals emigrate, they reduce the number of people available to work in the original country. Thus, **emigration** will NOT bring about an increase in the labor force; instead, it can contribute to a decrease.
In summary, the option that will NOT bring about an increase in the labor force is **Emigration**.
Frage 19 Bericht
Which of these is NOT associated with the problem of internal trade?
Antwortdetails
Market trade unions are not typically associated with the problem of internal trade. Trade unions are typically formed b workers or employees to protect their rights, negotiate better working conditions, and advocate for their interests. While trade unions can have an impact on labor markets and industrial relations, they are not directly linked to the challenges or problems specifically related to internal trade.
Frage 20 Bericht
Stock exchange market deals with
Antwortdetails
The stock exchange market primarily deals with the sales of second-hand securities. In this context, "second-hand securities" refer to financial instruments such as stocks and bonds that have already been issued by a company and are currently being traded among investors. When a company first issues stocks or bonds, it is done in the primary market. Once these securities are purchased and then resold by investors, they are traded in the secondary market, commonly known as the stock exchange.
Here's a simple rundown of how it works:
1. **Initial Offering:** A company looking to raise capital might issue stocks or bonds to investors. This takes place in the primary market through an Initial Public Offering (IPO) or similar mechanisms.
2. **Secondary Trading:** Once issued, these securities can be bought and sold on the stock exchange. Investors trade these securities based on supply and demand, trying to make a profit by buying low and selling high.
Therefore, the stock exchange acts as a platform where buyers and sellers meet to trade these second-hand securities. This buying and selling provide the liquidity required for the market to function efficiently and helps in price discovery of the securities based on market demand.
Frage 21 Bericht
f the population of a school is 600 and 60% are In JSS, how many students are in SSS?
Antwortdetails
To determine how many students are in SSS, we first need to figure out how many students are in JSS. According to the problem, 60% of the school's population is in JSS.
Here's a simple breakdown:
Since the whole school has 600 students, and 360 of those are in JSS, we can find out how many are in SSS by subtracting the JSS students from the total number of students:
600 - 360 = 240
Hence, there are 240 students in SSS.
Frage 22 Bericht
The satisfaction derived from the consumption of a commodity is referred to as
Antwortdetails
The satisfaction derived from the consumption of a commodity is referred to as utility. To explain this concept further, let's break it down:
Utility is an economic term that describes the pleasure, happiness, or satisfaction a consumer gets from consuming goods and services.
Here’s why it is the correct term:
In summary, whenever we talk about the satisfaction from using or consuming goods, we are discussing the concept of utility.
Frage 23 Bericht
Persistent fall In the general price level is known as
Antwortdetails
A persistent fall in the general price level is known as deflation.
To understand this better, let's break it down:
Hence, when we say "persistent fall in the general price level," we are accurately describing deflation.
Frage 24 Bericht
What is the median term in the distribution below; 14, 13 29,15,13,17,12.
Antwortdetails
To find the median of a set of numbers, the first step is to arrange the numbers in ascending order (from smallest to largest).
The given numbers are: 14, 13, 29, 15, 13, 17, 12.
Arrange them in ascending order: 12, 13, 13, 14, 15, 17, 29.
The median is the number that appears in the middle of this ordered list. Since there are 7 numbers in this list, the middle number is the fourth one.
In the ordered sequence 12, 13, 13, 14, 15, 17, 29, the median is 14.
Frage 25 Bericht
In the event of bankruptcy, owners of joint-stock companies lose
Antwortdetails
When a joint-stock company goes bankrupt, the owners or shareholders of the company only lose the capital they invested in that company. This is because joint-stock companies have a feature known as **limited liability**.
Limited liability means that shareholders are only responsible for losses up to the amount of money they invested in purchasing shares of the company. Therefore, in a bankruptcy situation, they **lose only the capital invested**, and their personal or private assets (like cars, houses, or bank accounts) are protected and not at risk. They are not liable beyond their shareholding, hence they do not lose their private properties or any future dividends they were expecting.
This feature of limited liability is very important as it encourages people to invest in joint-stock companies without the fear of losing their personal wealth.
Frage 26 Bericht
The main disadvantages of deflationary policies is
Antwortdetails
Deflationary policies refer to economic strategies aimed at reducing inflation and stabilizing prices. However, these policies can also have several disadvantages that can negatively impact an economy.
One major disadvantage of deflationary policies is unemployment in the country. These policies often involve reducing the money supply or increasing interest rates. When the money supply is reduced, businesses may have less access to credit and may experience decreased consumer spending. This can lead to lower production and, consequently, job cuts, increasing unemployment.
Deflationary policies may also lead to a decrease in investments, as higher interest rates make borrowing more expensive. Companies might delay or reduce their investment plans, creating a ripple effect that dampens economic growth and job creation. As more people are unemployed, there is less consumer spending, which can further exacerbate economic stagnation.
On the other hand, while these policies could potentially lead to an improved standard of living in the long run by stabilizing prices, the immediate term is often marked by challenges. These policies are designed to control costs; however, the path to reaching that stability can be quite turbulent.
In summary, the main disadvantage of deflationary policies is their potential to increase unemployment and dampen economic growth, despite their goal of stabilizing the economy.
Frage 27 Bericht
In the equation Q = a - bp + e; Q and P are ... Variables respectively.
Antwortdetails
In the given equation Q = a - bp + e, we need to understand the roles of the variables Q and P.
In any equation where we are trying to establish a relationship between two variables, one of the variables is usually controlled or changed deliberately, while the other one is observed as it changes in response. In such equations:
In the equation Q = a - bp + e, **Q** is the outcome or result that we observe, and it depends on the value of **P**. Thus, **Q is the dependent variable** because it changes depending on the values of **P**. Conversely, **P** is the one that we can change or manipulate in the context of this equation, so **P is the independent variable**.
Therefore, the correct description for **Q** and **P** is that Q is the **dependent** variable, and P is the **independent** variable.
Frage 28 Bericht
The act of cultivating land and rearing of animal for man's use is
Antwortdetails
The act of cultivating land and rearing of animals for man's use is known as agriculture.
Agriculture is an activity that involves growing crops and raising animals to provide food, fiber, medicinal plants, and other products used to sustain and enhance human life. It is a vital practice that has been developed over thousands of years, allowing civilizations to flourish by ensuring a stable supply of food and resources. This practice not only involves the cultivation of the land for crops but also includes various other activities such as animal husbandry, which is the breeding and care of farm animals.
Let me explain a bit about the other terms you mentioned:
Thus, the most comprehensive term that covers both the cultivation of land and rearing of animals is agriculture.
Frage 29 Bericht
The following will occur when maximum price is fixed below the free market price EXCEPT that
Antwortdetails
When a maximum price is fixed below the free market price, it can lead to several outcomes due to the restrictions placed on how high a price can go. Here's a breakdown of what typically happens:
1. **Encouragement of Black Market:** When the price ceiling is lower than what would naturally occur, some sellers may not be willing to sell at the lower price. This may encourage them to sell illegally at higher prices, leading to the emergence of a **black market**.
2. **Excess Demand:** A lower price means that more people can afford the product. Therefore, demand for the product increases, but because producers are not willing to supply more at that low price (since they make less profit), there isn't enough product to meet demand. This creates **excess demand**. People want more of the product than is available.
3. **Excess Supply:** This situation is not a consequence of setting a maximum price below the free market price. **Excess supply** happens when the price is too high, resulting in goods remaining unsold as consumers are not willing to buy at that price. But since in this scenario, the price is kept low, the opposite happens: a shortage, not a surplus.
4. **Rationing of Commodities:** To manage the excess demand and ensure fair distribution since there's a shortage, the government or sellers may need to introduce **rationing**. This means setting limits on how much each individual can purchase to prevent the faster depletion of available goods.
In summary, the statement about **excess supply** is the one that would not occur when a maximum price is fixed below the free market level. Instead, you'll have excess demand. This discrepancy is because the artificially low price discourages producers from supplying more of the good.
Frage 30 Bericht
When an increase in the price of a commodity lead to a fall In the demand for another, the demand for the two commodities are said to be
Antwortdetails
Competitive demand refers to a situation where two or more goods are seen as substitutes for each other. When the pric of one commodity increases, consumers tend to shift their demand towards the substitute commodity, resulting in a decrease in the demand for the original commodity.
For example, if the price of coffee increases significantly, some consumers may choose to switch to tea as a substitute. A: a result, the demand for coffee decreases while the demand for tea increases.
Frage 31 Bericht
A producer who can only influence the price of his product but canNOT determine the quantity to be sold is referred to
as
Antwortdetails
A producer who can influence the price of a product but cannot determine the quantity to be sold is best described as a monopolist.
Here's an explanation:
In a monopoly, there is only one producer or seller who dominates the entire market for a particular product or service. This producer has the power to influence the price because they are the sole supplier, and there are no close substitutes. However, while they can set the price based on their objectives, the actual quantity sold is determined by the market demand at that specific price.
The other terms are different:
Frage 32 Bericht
Which of the following is NOT a function of marketing boards in Nigeria?
Antwortdetails
In Nigeria, marketing boards were established to regulate and promote agricultural products. Their primary functions include activities like grading farm produce to ensure quality standards and marketing farm produce by finding markets where these products can be sold. They are also responsible for fixing prices for farm produce to stabilize farmers' incomes and protect them from market fluctuations.
However, one activity that marketing boards do not typically perform is the importation of farm produce. Marketing boards are mainly concerned with the domestic production and distribution of local agricultural products, whereas the importation would fall under international trade domains and different regulatory agencies. Thus, the importation of farm produce is not a usual function of marketing boards in Nigeria.
Frage 33 Bericht
The diagram below represent
Antwortdetails
The diagram you are referring to represents the Circular Flow of Income. This is a crucial concept in economics that demonstrates how money moves within an economy between different sectors. Let me explain it further in a simple and clear manner.
The Circular Flow of Income exhibits the interactions and transactions that occur between two major groups in an economy: the households and the firms. It is important to note that:
The flow of economic resources and money can be explained in two key types:
In an expanded model of the circular flow, other components may be included, such as the government, financial sector, and foreign markets, which illustrate additional flows such as taxes, government spending, savings, investments, and exports/imports.
Overall, the Circular Flow of Income provides a fundamental understanding of how economic activity is interconnected and how different sectors interact with one another in a continuous cycle.
Frage 34 Bericht
The following are the objectives of agricultural policies in Nigeria EXCEPT
A. provision of food
B. provision of agricultural raw materials to industrial sectors
C. increasing prices of agricultural Inputs
D. creation of rural employment
Antwortdetails
Nigeria's agricultural policies are fundamentally designed to enhance and support the agricultural sector for the overall benefit of its economy and citizens. Let's analyze the objectives given:
Therefore, the statement that does not align with the typical objectives of agricultural policies in Nigeria is the increasing prices of agricultural Inputs. Instead, policies are often geared towards making inputs more affordable to support agricultural growth.
Frage 35 Bericht
The formular (N + 1)/2 is used to determine the
Antwortdetails
The formula (N + 1)/2 is used to determine the median position in a dataset that is arranged in ascending or descending order. Understanding how to find the median is important because the median is a measure of central tendency that represents the middle value of a dataset. Here's a clear explanation of this concept:
When you have a set of numbers, the median is the number that falls in the middle when the numbers are arranged in either increasing or decreasing order. To find this middle value, you can use the formula (N + 1)/2, where N represents the total number of observations in the dataset.
For example, let's say you have a dataset with an odd number of observations: 3, 5, 7. Here, N is 3, so you apply the formula:
Median position = (3 + 1)/2 = 2
This calculation indicates that the second number in this ordered list is the median, which is 5.
If you have an even number of observations, such as 2, 4, 6, 8, you would calculate the median position as follows:
Median position = (4 + 1)/2 = 2.5
In this case, because 2.5 isn't an integer, the median is the average of the second and third numbers, which are 4 and 6. Therefore, the median is (4 + 6)/2 = 5.
In summary, the formula (N + 1)/2 is used to identify the position of the median in a list of numbers that are ordered, allowing us to understand where the middle point of the data lies.
Frage 36 Bericht
Producers operating in a free market economy are more efficient as a result of
Antwortdetails
In a free market economy, multiple producers are allowed to enter the market and compete with each other. This competition creates incentives for producers to become more efficient in order to gain a competitive advantage. When producers compete, they strive to offer better quality products, lower prices, and improved customer service. To achieve these goals, they need to find ways to reduce costs, increase productivity, and innovate. The pressure of competition encourages producers to constantly improve their efficiency to attract customers and maximize profits
Frage 37 Bericht
When an economy is having a balance of payment surplus the best alternative opened to it is to
Antwortdetails
When an economy is experiencing a balance of payments surplus, it means that the country is exporting more goods, services, and capital than it is importing. Essentially, there is more money flowing into the country than out of it. In such situations, one of the most viable actions to take is to increase its foreign reserves.
Here's why increasing foreign reserves is often the best option:
Promoting imports, while it can help reduce the surplus by encouraging money to flow out of the country, may not always be the best course of action and depends on the country's economic goals and import needs. Borrowing from abroad is generally not necessary when the country has a surplus. Devaluing the currency is certainly not favorable in the context of a surplus as it can create inflationary pressures and reduce purchasing power internationally.
Frage 38 Bericht
Which of the following is NOT a feature of capitalism?
Antwortdetails
In a capitalist economic system, several features define its characteristics. To understand which of the given options is NOT a feature of capitalism, let's examine each one:
Free Enterprise: This is a fundamental aspect of capitalism. It refers to the freedom of businesses to operate competitively for profit with minimal government intervention. Under free enterprise, individuals and businesses have the right to sell goods and services, decide on investments, and set prices.
Private Ownership of Property: Another core feature of capitalism is the ownership of property by individuals or corporations rather than by the government. In this system, individuals have the right to own assets, resources, and production facilities. They can use, rent, or sell property as they see fit.
Competition: Competition is a driving force in capitalism. It encourages businesses to improve their products and services, enhance efficiency, lower prices, and innovate. Healthy competition is believed to lead to better choices and quality for consumers.
Detailed Economic Planning: This is NOT a feature of capitalism. Detailed economic planning is more characteristic of socialist or centrally planned economies where government agencies set production targets, control resources, and address distribution centrally. Capitalism relies more on market forces and price mechanisms to guide economic decisions rather than detailed and centralized planning.
Therefore, detailed economic planning is the correct answer as it is NOT a feature of capitalism.
Frage 39 Bericht
The bank established to finances project aimed at promoting economic and social development within the African continent is
Antwortdetails
The bank that is primarily dedicated to financing projects aimed at promoting economic and social development within the African continent is the African Development Bank (AfDB).
The African Development Bank (AfDB) was established in 1964 with the main objective to reduce poverty, improve living conditions, and promote economic and social development in African countries. It achieves these goals by providing loans and grants for a variety of development projects and programs across the continent. These projects cover various sectors including infrastructure, education, healthcare, agriculture, and energy.
Unlike purely commercial banks, the AfDB is focused on development projects that may not always have immediate financial returns but are crucial for the sustainable growth and development of African nations. The bank works together with member countries and international partners to mobilize resources and expertise needed to tackle the continent's challenges, often adopting innovative financing solutions tailored to the unique needs of the African context.
Frage 40 Bericht
Which of the following is NOT associated with minimum price legislation?
Antwortdetails
Minimum price legislation is a policy where the government sets a lower price limit for certain goods or services, meaning they cannot be sold below this set price. It is often intended to protect producers, ensuring they receive fair compensation and maintaining industry standards.
When a minimum price is set above the equilibrium price, it typically leads to several economic effects:
Excess demand is NOT associated with minimum price legislation. Excess demand occurs when the price is set too low, leading to a situation where the quantity demanded exceeds the quantity supplied. This situation is commonly related to maximum price controls, not minimum price legislation.
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