JAMB UTME - Economics - 2023

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The type of economy that exists in these countries is Mixed economy.

A mixed economy is an economic system that combines elements of both market and planned economies. It includes both private and public sectors, and the government plays a significant role in regulating and defining the structure of the economy.

In the given scenario, the fact that the countries have different levels of public expenditure as a percentage of GDP indicates that the government plays a role in the economy and is involved in spending a portion of the national income.

While the exact percentage of public expenditure varies between the countries, the presence of any public expenditure suggests government intervention and regulation in the economy. This means that these countries have a mixed economy, where both public and private sectors coexist and contribute to economic activities.

The government's involvement can take various forms, such as funding public goods and services, implementing social programs, and regulating industries. The level of government intervention may vary, but the presence of public expenditure indicates that the government has an active role in shaping the economy.

Therefore, based on the information provided, it can be concluded that the countries mentioned in the table have a mixed economy.

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A persistence rise in the prices of inputs, such as raw materials or labor, can lead to **cost push inflation**. Cost push inflation occurs when the increased costs of production for firms are passed on to consumers in the form of higher prices for goods and services. This can happen when the prices of inputs used in production rise over a sustained period. When input costs increase, businesses often have two options: absorb the increased costs and accept lower profit margins, or pass on the higher costs to consumers by raising prices. If firms choose to raise prices, it can lead to a general increase in the overall price level in the economy. Here's a simple example to help illustrate this concept: Let's say there is a town where the main industry is manufacturing shoes. The cost of leather, which is a key input in shoe production, starts to rise due to factors like high demand or scarcity. In response, shoe manufacturers have to pay more for leather, and this increases their production costs. To maintain their profit margins, the manufacturers decide to increase the prices of shoes they sell to retailers. Now, if the retailers decide to pass on the higher costs to the consumers, the prices of shoes will increase. This can create a ripple effect throughout the economy because consumers will have to spend more money on shoes, reducing their purchasing power for other goods and services. As a result, the overall price level in the economy increases, and this is what we call cost push inflation. It is important to note that cost push inflation is different from demand pull inflation. Demand pull inflation occurs when there is an increase in aggregate demand, leading to an excess of demand over supply. In contrast, cost push inflation is driven by increased production costs. Hyperinflation, on the other hand, is an extreme form of inflation characterized by an uncontrollable increase in prices. It is typically caused by factors like rapid money supply growth or loss of confidence in the currency. Stagflation refers to a situation where there is a combination of high inflation and high unemployment, typically accompanied by low economic growth. This can occur when an economy experiences a supply-side shock, such as a significant increase in the prices of key inputs. In summary, a persistence rise in the prices of inputs can lead to cost push inflation, as firms pass on the increased costs to consumers by raising prices.

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When a generalization is made based on observed facts, it is called inductive reasoning. Inductive reasoning involves drawing conclusions from specific instances or examples to come up with a general statement or theory. This means that we observe a pattern or trend from the evidence we have and then make a generalization or inference based on that pattern. Inductive reasoning is different from deductive reasoning, which involves starting with a general statement or theory and then using it to predict or explain specific instances. In inductive reasoning, we start with specific observations and use them to make a broader generalization. It is important to note that while inductive reasoning can often lead to accurate conclusions, it is not always guaranteed to be correct. However, it is a common and useful method used in many fields such as science, sociology, and psychology.

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Investment is an activity of spending resources on creating assets that can generate income over a long period of time. It is flow of expenditures developed to projects producing goods which are intended for immediate consumption.

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Macroeconomics focuses on the units of an economy in an aggregative manner, meaning it looks at the economy as a whole rather than focusing on individual units. This helps us understand how different parts of the economy interact and influence each other.
The correct option is **household, firms, government, corporate sector, and external sector**. Macroeconomics analyzes the behavior and interactions of these units to understand the overall performance of the economy.
1. **Households**: These are the individual consumers who make up the economy. They play a vital role in determining the consumption and saving patterns that influence economic activities.
2. **Firms**: Firms are the businesses that produce goods and services in the economy. Macroeconomics looks at their investment decisions, production levels, and employment to understand the overall economic growth and productivity.
3. **Government**: The government plays a significant role in macroeconomics. It collects taxes, provides public goods and services, regulates the economy, and influences economic policies such as fiscal and monetary measures to stabilize the economy.

4. **External sector**: The external sector represents international trade and the flow of goods, services, and capital across borders. Macroeconomics considers factors like exports, imports, exchange rates, and foreign investment to understand the impact of global interactions on the economy.
By examining these units in an aggregative manner, macroeconomics helps us understand how changes in one sector affect the others and ultimately impact the overall performance of the economy.

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The highest body in the ECOWAS organogram is the Authority of Head of State and Government. This body consists of the presidents and heads of government of the member states in the Economic Community of West African States (ECOWAS).
The Authority of Head of State and Government is responsible for making major decisions and policies for the entire ECOWAS community. They meet regularly to discuss and address regional issues, such as political stability, economic cooperation, and security.
This body holds the highest level of political power in ECOWAS and has the authority to make decisions that affect the entire organization. It plays a crucial role in promoting regional integration and cooperation among member states.
To sum up, the Authority of Head of State and Government is the most important body in the ECOWAS organogram as it consists of the leaders of the member states and is responsible for making key decisions and policies for the organization.

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The demand for a good is price inelastic if the price elasticity is less than one. Price elasticity measures how responsive the quantity demanded of a good is to a change in its price. If the price elasticity is less than one, it means that the quantity demanded is not very responsive to changes in price. In other words, a change in price will have a relatively small impact on the quantity demanded. Even if the price increases or decreases, people will still buy a similar amount of the good. This can happen when the good is a necessity or when there are limited substitutes available. For example, if the price of water increases, people will still need to buy a similar amount because water is essential for survival. Similarly, if the price of a specific medication increases, people with no alternative options will still purchase it regardless of the price. Therefore, when the price elasticity is less than one, we say that the demand for the good is price inelastic.

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The correct term for the number of people who are qualified to work and who offer themselves for employment is the working population.
The working population refers to the subset of the total population that is actively engaged or seeking employment. It includes individuals who are qualified, available, and willing to work. This encompasses both employed individuals and those who are actively looking for work, such as job seekers.
The working population is an important measure for understanding the labor market. It helps policymakers, businesses, and economists in assessing the job market's health and determining factors such as employment rates, labor force participation, and unemployment rates.
Options like "mobility of labor" and "migrant labor" focus on the movement of workers between different locations, which is a related concept but not the same as the total number of qualified individuals available for employment. "Labor turnover" refers to the rate at which workers leave and join a particular company or industry, which is also not synonymous with the working population as a whole.
Therefore, the working population is the term that correctly describes the number of qualified individuals who are available for employment.

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The theory of absolute advantage was propounded by Adam Smith while the theory of comparative advantage was propounded by David Ricardo.

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The government uses various methods to redistribute income in society. Three of these ways are market intervention, transfer earnings, and taxation. Market intervention involves the government stepping in and regulating certain aspects of the economy to ensure fairness and reduce income inequality. For example, the government may set a minimum wage so that workers are guaranteed a certain level of income. Transfer earnings refer to government programs that provide financial assistance to individuals or families who are in need. These programs include welfare, unemployment benefits, and social security. The goal is to provide support to those who may have lower incomes or are facing financial difficulties. Taxation is another method used by the government to redistribute income. Through taxes, the government collects money from individuals and businesses based on their income or profits. This revenue is then used to fund public services such as healthcare, education, infrastructure, and social programs. However, the answer to the question is that the government does not use limited liability as a way to redistribute income. Limited liability is a legal concept that protects individuals from being personally liable for the debts and liabilities of a company. It is not directly related to income redistribution. In summary, the government redistributes income through market intervention, transfer earnings, and taxation. These methods aim to promote fairness and provide support to those in need. However, limited liability is not a method used for income redistribution.

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Mono- product economy ( an economy that produces one product or commodity) is not a characteristics of developing country. The characteristics are: high level of illiteracy, dependence on agriculture, low savings and investment, low standard of living, population explosion, high death rate etc.

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The type of price elasticity of demand for a commodity whose quantity demanded remains unchanged despite changes in the price is **perfectly inelastic**. When the demand for a commodity is perfectly inelastic, it means that the quantity demanded does not respond at all to changes in price. This usually occurs when there are no close substitutes for the commodity, or when the commodity is a necessity that people cannot easily do without. To understand it in a simple way, imagine a situation where the price of a life-saving medication for a critical illness increases significantly. In such a case, even if the price increases, the quantity demanded for the medication will remain the same because the individuals who need it have no other option but to purchase it at any cost. Therefore, the demand for such a medication is perfectly inelastic, as it does not change with variations in price. In summary, when the demand for a commodity is perfectly inelastic, it means that consumers are willing to pay any price for it, and the quantity demanded does not change despite fluctuations in price.

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The type of unemployment that occurs when an individual cannot find a job as a result of obsolete skills is known as Structural unemployment.

Structural unemployment happens when there is a mismatch between the skills that job seekers possess and the skills required for available jobs in the market. In this case, individuals may no longer be qualified for the jobs that are available due to changes in technology, market conditions, or shifts in the economy.

For example, let's say there is a rapid advancement in technology that makes certain job skills obsolete. Workers who had those skills may struggle to find employment because companies are now looking for individuals with more up-to-date skills.

This type of unemployment is different from cyclical unemployment, which is caused by fluctuations in the business cycle, or seasonal unemployment, which occurs due to seasonal variations in demand for certain jobs. Frictional unemployment, on the other hand, refers to the temporary unemployment that occurs when individuals are transitioning between jobs or entering the workforce for the first time.

To sum up, structural unemployment is the type of unemployment that arises when an individual cannot find a job because their skills are no longer in demand.

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Normative economics is a perspective on economics that reflects normative, or ideologically prescriptive judgments toward economic development, investment projects, statements, and scenarios. It expresses ideological judgments about what may results in economic activity if public policy changes are made.

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Investment multiplier (K) is a function of two factors; The MPS and MPC. If MPC is high, K will also be high but if MPC is low, K will also be low. on the other hand, If MPS is high, K will be low and if MPS is low, K will be high ( since there is an inverse relationship between MPS and K).

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Economic profit = Total revenue(Output) - Opportunity cost of input
= 1,000,000 - 750,000
= 250,000

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An indicator of underdevelopment is low per capita income. Per capita income refers to the average income earned by individuals in a country. In underdeveloped countries, the per capita income is generally low, meaning that people have lower incomes on average compared to developed countries.
Low per capita income is a significant indicator of underdevelopment because it directly affects the standard of living of people within a country. With low income, individuals have limited purchasing power, making it difficult for them to afford basic necessities such as food, clothing, and shelter. This can lead to overall poor living conditions and a lack of access to essential services like healthcare and education.
Additionally, low per capita income also implies limited economic opportunities and a weak economy. It suggests that the country's productivity and industrial development are low, leading to low wages and limited job opportunities. This can result in high levels of poverty and unemployment, further hindering the country's development.
In summary, low per capita income is a crucial indicator of underdevelopment because it reflects the overall economic situation of a country and directly impacts the living conditions and opportunities available to its citizens.

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Based on the graph, the consumer is at equilibrium at point k.

Equilibrium is when the quantity demanded by the consumer is equal to the quantity supplied by the market. At equilibrium, there is no shortage or surplus of the goods or services.

Point k on the graph represents the intersection of the demand curve (D) and the supply curve (S). At this point, the quantity demanded (Qd) and the quantity supplied (Qs) are equal.

If the consumer is at any other point on the graph, either to the left or to the right of point k, there would be either a shortage or a surplus of the goods or services. This would mean that the demand and supply are not in balance and the market is not at equilibrium.

Therefore, point k is the correct answer as it represents the position where the consumer is at equilibrium.

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The diagram above represents the production possibility curve.
The production possibility curve shows the different combinations of goods and services that can be produced given the available resources and technology.
On the curve, each point represents a specific combination of goods and services that can be produced. Points on the curve are considered efficient because all available resources are fully utilized. Points inside the curve represent inefficient production because resources are not fully utilized. Points outside the curve represent combinations that are currently unattainable given the available resources and technology.
In summary, the production possibility curve helps us understand the trade-offs and limitations in production based on available resources and technology. It is a visual representation of the production possibilities in an economy.

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Financial intermediaries serve as links between surplus and deficit units in an economy. These intermediaries include banks, credit unions, and other financial institutions. When there is surplus money in the economy, individuals and businesses deposit the excess funds with financial intermediaries. These intermediaries then pool these funds together and make them available to deficit units, such as individuals or businesses in need of loans or financing. Financial intermediaries play a crucial role in the economy by efficiently allocating funds from surplus units to deficit units. They match the needs of borrowers with the resources of savers, helping to facilitate economic growth and development. Tax officers and pension offices, on the other hand, do not serve as direct links between surplus and deficit units. Tax officers collect taxes for the government, while pension offices manage pension funds for retired individuals. Although these entities may indirectly impact the allocation of funds in the economy, their primary roles are different from that of financial intermediaries. Acceptance houses are also not direct links between surplus and deficit units. Acceptance houses provide short-term financing through the purchase of bills of exchange. While they play a role in facilitating trade between businesses, their function is more specific and limited compared to the broader role of financial intermediaries. In summary, financial intermediaries such as banks and credit unions serve as the primary links between surplus and deficit units in an economy. They gather surplus funds from savers and make them available to borrowers, thereby promoting the efficient allocation of resources.

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The loans help to create poverty, as capital that could have been invested instead was channeled into debt repayment.

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If GDP falls, then people demand less money for transactions. As interest rate rise (fall), the demand for money will fall(rise).

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An increase in nominal income without an increase in prices will result in an **increased real income**. Nominal income refers to the amount of money a person earns or receives in a given period, without taking into account changes in prices. On the other hand, real income takes into consideration the effects of inflation by adjusting for changes in prices. When nominal income increases but prices remain constant, it means that the purchasing power of an individual's income has increased. In other words, they can afford to buy more goods and services with the same amount of money. This increase in purchasing power leads to an increase in real income. For example, let's say a person's nominal income is $1,000 per month, and the prices of goods and services they consume also remain constant. If their nominal income increases to $1,200 per month, without any increase in prices, they now have an additional $200 to spend on other things. This additional purchasing power translates to an increase in their real income. It is important to note that an increase in nominal income without an increase in prices does not necessarily lead to an **increased GDP** or a **decreased GNP**. GDP (Gross Domestic Product) measures the total value of goods and services produced within a country's borders, while GNP (Gross National Product) measures the total value of goods and services produced by a country's residents, including those produced abroad. The increase in real income of individuals does not automatically impact the overall production levels captured by GDP or GNP.

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The maximum price is **P4**. To explain why, we need to understand that the prices are listed in ascending order. This means that **P1** is the lowest price and **P4** is the highest price. When we say "maximum price," we are referring to the highest possible price among the given options. In this case, **P4** is the highest price listed. Therefore, the maximum price is **P4**.

Detalhes da Resposta

To calculate the elasticity of demand, we need to compare the changes in price and quantity demanded.
First, let's calculate the percentage change in price:
% change in price = ((new price - old price) / old price) x 100
% change in price = ((6 - 8) / 8) x 100
% change in price = (-2 / 8) x 100
% change in price = -25%
Next, let's calculate the percentage change in quantity demanded:
% change in quantity demanded = ((new quantity demanded - old quantity demanded) / old quantity demanded) x 100
% change in quantity demanded = ((30 - 20) / 20) x 100
% change in quantity demanded = (10 / 20) x 100
% change in quantity demanded = 50%
Now, let's calculate the elasticity of demand:
Elasticity of demand = % change in quantity demanded / % change in price
Elasticity of demand = 50% / -25%
Elasticity of demand = -2
The elasticity of demand is -2.
Explanation:
The negative sign in the elasticity of demand (-2) indicates that the demand for carrots is price elastic. This means that a decrease in price by 1% will lead to a more than proportionate increase in quantity demanded by 2%. In simpler terms, when the price of carrots decreased by 25%, the quantity demanded increased by 50%.
Therefore, the elasticity of demand is -2, which means that the demand for carrots is price elastic.

But since price elasticity is always represented with a positive number, the answer is 2

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The economic problem occurs when there is scarcity relative to demand. Scarcity means that resources are limited, while demand refers to people's desires and needs for goods and services. In simple terms, the economic problem arises when there are not enough resources to satisfy everyone's wants and needs. This is because resources, such as land, labor, and capital, are finite, while people's desires are infinite. For example, imagine a small community with a limited amount of food available. If everyone in the community wants to eat, but there is not enough food for everyone, it creates an economic problem. This scarcity can lead to competition, as individuals and businesses try to obtain the limited resources. The economic problem is not caused by raw materials being imported or people being out of work. These factors can contribute to a country's economic challenges, but they are not the direct cause of the economic problem. Similarly, the absence of buyers for goods is a symptom of the economic problem, rather than the cause. If people cannot afford or do not want to buy goods, it indicates a mismatch between supply and demand. However, this does not explain why the economic problem exists in the first place. In summary, the economic problem occurs when there is scarcity relative to demand, meaning there are not enough resources to fulfill everyone's wants and needs. This scarcity leads to competition and the need for individuals and businesses to make choices regarding resource allocation.

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Cost push inflation occurs when overall prices increase(inflation) due to increases in the cost of wages and raw materials. It can also occur when higher costs of production decrease the aggregate supply in the economy.

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The measure that represents the natural growth rate of a population is the **Birth rate minus the Death rate**, which is the second option. The natural growth rate of a population refers to the rate at which the population increases or decreases due to births and deaths, without taking into account migration. It solely focuses on the difference between the number of births and the number of deaths occurring within a population during a specific period of time. When the birth rate exceeds the death rate, it results in a positive natural growth rate, meaning the population is increasing. On the other hand, if the death rate is higher than the birth rate, it leads to a negative natural growth rate, indicating a decrease in the population. The first option, "Natural increase - Birth rate + Net migration," takes into account both the birth rate and the net migration (the difference between the number of people migrating into and out of a population in a specific period). This measure considers factors beyond just births and deaths, so it does not accurately represent the natural growth rate. The third option, "Birth rate/Death rate," is a ratio of the birth rate to the death rate. It does not give a measure of the natural growth rate itself, but rather shows the relationship between the number of births and the number of deaths. The fourth option, "Birth + Net migration = Death," suggests an equality between the sum of births and net migration and the number of deaths. This equation does not accurately represent the natural growth rate since it assumes that the number of births and net migration should exactly match the number of deaths, which is unlikely in most populations. Therefore, the most appropriate measure for the natural growth rate of a population is the **Birth rate minus the Death rate**.

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The measure that is presently used in Nigeria to measure inflation is the Consumer Price Index (CPI). The CPI is a commonly used indicator worldwide to track changes in the cost of living over time.
The Consumer Price Index (CPI) measures the average price changes of a basket of goods and services typically purchased by households in a specific country or region. It reflects the price movements of essential items such as food, housing, transportation, healthcare, education, and many other goods and services that people consume regularly.
The CPI is calculated by collecting price data for various items in the basket and assigning them weights based on their relative importance in household spending. The prices are then compared to a base period, which is usually a specific year. The percentage change in the CPI from the base period indicates the rate of inflation or deflation.
In Nigeria, the CPI is used to monitor and analyze changes in the cost of goods and services, allowing policymakers and economists to assess the impact on consumers' purchasing power and make informed decisions. It helps in determining the effectiveness of government policies, evaluating the performance of the economy, and adjusting wages and prices.
By tracking the CPI, the government can identify if there is an increase in the general level of prices, indicating inflation, or a decrease, indicating deflation. This information helps in formulating monetary and fiscal policies to control inflation rates and maintain price stability.
Overall, the Consumer Price Index (CPI) is the measure currently used in Nigeria to gauge inflation and is crucial in understanding how the cost of living changes over time, impacting the economy and the daily lives of individuals and businesses.

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The law of supply states that, other things being constant, as price increases, the quantity supplied also increases. Basically, when the price of a good or service goes up, suppliers have an incentive to produce and sell more of that item. This is because they can earn more profit by selling at the higher price. So, as the price rises, suppliers are motivated to increase their production and offer more of the product to the market. On the other hand, when the price of a good or service decreases, suppliers have less motivation to produce and sell it. This is because they can earn less profit or even incur losses at the lower price. As a result, they will reduce the quantity supplied. In summary, the law of supply tells us that there is a direct relationship between price and quantity supplied. When the price increases, suppliers respond by increasing the quantity they are willing to supply to the market. Conversely, when the price decreases, the quantity supplied decreases.

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Velocity of money is the total amount of money in circulation in an economy. It is calculated as Velocity of money = GDP/Money Supply

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The fundamental problem of Economics is Scarcity. Scarcity explains the basic economic problem that the world has limited or scarce resources to meet seemingly unlimited wants, and this reality forces people to make decisions about how to allocate resources in the most efficient way.

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A perfect market is a theoretical concept that represents an idealized scenario where certain conditions are met. In this market, there is an equilibrium between supply and demand, and no single buyer or seller has the power to influence prices. In order for a perfect market to exist, there are several conditions that need to be met. These conditions include: - **Lack of homogeneity of goods**: In a perfect market, goods are assumed to be identical and indistinguishable from one another. This means that there are no variations in quality, features, or brand identity. Buyers are indifferent to which seller they purchase from since the goods are the same. - **Perfect knowledge**: Another crucial condition is that all buyers and sellers in the market have access to complete and accurate information. This means they know the current market prices, availability of goods, and all relevant factors influencing the buying and selling decisions. No hidden or asymmetric information exists that could give an advantage to any market participant. - **Large buyers and sellers**: A perfect market assumes that there are a significant number of buyers and sellers in the market. This ensures that no single buyer or seller has enough market power to influence prices or control the market conditions. Each participant is a price taker, meaning they accept the prevailing market price and cannot change it on their own. - **Portability of goods**: The final condition for a perfect market is the ease with which goods can be transported from one place to another. This means that there are no significant barriers to trade, such as transportation costs, tariffs, or restrictions. Goods can freely move between buyers and sellers, allowing for efficient market operations. Now, looking at the given options, we need to identify the one that does NOT describe a condition necessary for the existence of a perfect market. And that would be **"lack of homogeneity of goods"**. In a perfect market, goods are assumed to be identical and indistinguishable. This means that there are no variations in quality or features. Homogeneity is a vital characteristic of a perfect market, so the lack of it would hinder the existence of a perfect market. In summary, the conditions required for a perfect market are: perfect knowledge, large buyers and sellers, and portability of goods. While homogeneity of goods is a necessary condition for a perfect market, it is not described in the options as a condition necessary for the existence of a perfect market.

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A quota on imports is a restriction imposed by a government on the quantity of goods that can be imported into a country. It is typically done to protect domestic industries and promote economic growth.

Out of the given options, a government imposing a quota on imports would not be done to decrease tax revenue. In fact, the purpose of implementing import quotas is quite the opposite – to increase tax revenue by protecting domestic industries and promoting their growth.

Let's understand this further:

1. To support strategic industry: One of the main reasons governments impose import quotas is to protect and support domestic industries that are considered strategically important for the country's economy. By limiting imports, the government aims to give domestic industries an advantage by reducing competition from foreign firms.

2. To prevent dumping: Dumping refers to the practice of selling goods in another country at prices lower than their production costs or market value. This undermines domestic industries and poses a threat to their survival. By imposing import quotas, the government can control the influx of dumped products and protect domestic industries from unfair competition.

3. To decrease tax revenue: This option is incorrect because imposing import quotas does not aim to decrease tax revenue. When imports are restricted, domestic industries have less competition, which allows them to charge higher prices. As a result, the government can collect more tax revenue from these higher-priced goods, thus increasing its overall revenue.

4. Employment opportunity: Another reason governments may impose import quotas is to create employment opportunities. By limiting imports, domestic industries can expand their production and hire more workers to meet the local demand. This helps in reducing unemployment and improving the overall economic conditions of the country.

In conclusion, the correct answer is that a government would not impose a quota on imports to decrease tax revenue. Import quotas are intended to protect strategic industries, prevent dumping, and create employment opportunities, while also increasing tax revenue.

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A fall in the profit margin of producers in an economy will likely result in an increase in unemployment.
When the profit margin of producers decreases, it means that they are earning less profit from their business activities. As a result, they may struggle to cover their costs, sustain their operations, or expand their businesses. To manage their financial situation, producers may need to cut costs, reduce production, or even close down their business altogether.
Reduced production and business closures lead to a decrease in job opportunities and an increase in unemployment. When businesses are not making enough profit, they may need to lay off workers or reduce their workforce in order to cut costs. This means that fewer people will have jobs, resulting in higher unemployment rates.
Additionally, a fall in profit margins can also deter new businesses from entering the market or existing businesses from expanding. This further limits job creation and can exacerbate the unemployment problem.
In summary, a fall in the profit margin of producers in an economy leads to reduced production, business closures, job cuts, and a decrease in job opportunities. Therefore, the most likely resultant effect of such a decline in profit margin is an increase in unemployment.

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If commodities X and Y are substitutes, the cross elasticity of demand between them will be positive.
Cross elasticity of demand measures how the quantity demanded of one commodity changes in response to a change in the price of another commodity. When two commodities are substitutes, they serve similar purposes and are considered as alternatives to each other. For example, if the price of commodity X increases, some consumers may switch to commodity Y as a substitute, causing an increase in the quantity demanded of commodity Y.
The positive cross elasticity of demand reflects this relationship. It means that an increase in the price of commodity X will lead to an increase in the demand for commodity Y, and vice versa. On the other hand, if the cross elasticity of demand were negative, it would indicate that the two commodities are complements, meaning that they are used together and a change in the price of one would result in an opposite change in the demand for the other.
Therefore, in the case of substitute commodities, the cross elasticity of demand will be positive.

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A multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable such as investment, consumption, government expediture etc.

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The economies of West African countries primarily depend on primary products.
Primary products refer to raw materials or natural resources that are extracted directly from the earth or sea. These resources typically include agricultural products such as crops, livestock, and fisheries, as well as minerals and natural resources like oil, gas, and minerals.
West African countries, like many developing nations, tend to have economies that are heavily reliant on these primary products. This reliance is due to a combination of factors such as the abundance of natural resources in the region and historical patterns of economic development.
Agriculture plays a significant role in the economies of West African countries, with a large percentage of the population engaged in farming activities. These countries export a variety of agricultural products, including cocoa, coffee, palm oil, cotton, and timber. These exports generate significant revenue and contribute to the overall economic growth of these nations.
Additionally, West Africa is rich in mineral resources such as gold, diamonds, bauxite, and iron ore. The extraction and export of these minerals also contribute to the economic development of these countries.
While some West African countries have started to diversify their economies and develop secondary and tertiary sectors, the primary sector remains a vital component of their economies. However, it is important for these countries to also focus on diversification and value addition to their primary products to reduce their vulnerability to fluctuations in global commodity prices and achieve sustainable growth.

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A tariff is a tax that is imposed on imported goods. It is a financial charge that a government puts on goods that are being brought into the country. The purpose of a tariff is to protect domestic industries and businesses from competition from imported goods. By placing a tax on imported goods, it becomes more expensive for consumers to buy those goods, making them less appealing compared to domestic alternatives. This gives domestic industries a competitive advantage and helps support local businesses and jobs. So, the correct answer is imported goods.

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Economics is often described as a science because it uses scientific methods to explain observed phenomena. Just like other scientific fields, economics relies on gathering data, formulating hypotheses, and conducting experiments to test these hypotheses. However, unlike fields such as physics or chemistry, economics does not rely on laboratory experiments or controlled experiments. Instead, economists analyze real-world data to understand how individuals, businesses, and governments make choices and interact with each other. They use statistical methods to analyze this data and make predictions about how changes in various factors will affect economic outcomes. While it is difficult to accurately predict the behavior of individual human beings, economics aims to make accurate predictions on aggregate behavior, or how groups of people will respond to changes in factors such as prices, taxes, or policies. These predictions are based on the analysis of historical data and the use of economic models, which simplify complex economic interactions. In summary, economics is considered a science because it employs scientific methods to explain observed phenomena, although it does not rely on laboratory experiments or controlled experiments. It uses data analysis, hypothesis testing, and economic models to understand and predict how individuals and groups make economic decisions and interact with each other.