JAMB UTME - Economics - 2023

Which of the following Age group belongs to active Labour force?

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The age group that belongs to the active labor force is the **18 - 64 years** category. This age range is generally considered to be the working-age population, as it encompasses individuals who are old enough to work and have not yet reached the age of retirement. People in this age group are typically in their prime working years, where they have the physical ability and the necessary skills and knowledge to actively participate in the labor market. They are often seeking employment, working in various industries or sectors, and contributing to the economic growth and development of their country. It is important to note that the specific age range considered as the working-age population may vary slightly across different countries or regions. However, in most cases, it generally falls within the **18 - 64 years** age bracket. On the other hand, the other age groups mentioned in the options are not typically considered as part of the active labor force: - The **0 - 17 years** age group consists of individuals who are below the legal working age and are typically attending school or dependent on others for their livelihood. - The **15 - 25 years** age group partially overlaps with the working-age population, but it includes individuals who may still be in school or pursuing higher education. While some individuals within this age range may be actively seeking employment or working part-time, they are generally not considered as the core active labor force. - The **65 years and above** age group represents individuals who have reached the retirement age or are eligible for retirement benefits. While some individuals in this age range may continue to work, either out of choice or due to financial circumstances, they are not considered as the primary active labor force. In summary, the **18 - 64 years** age group is the one that belongs to the active labor force, consisting of individuals who are in their prime working years and actively participating in the labor market.

The demand for money will fall if

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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).

Calculate the equilibrium level of national income (Y) where Y = C + I + G; C = 100 + 0.75Y; I = 50; G = 200

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To calculate the equilibrium level of national income (Y), we start with the equation Y = C + I + G. In this equation, C represents consumption spending, I represents investment spending, and G represents government spending. Now, let's substitute the given values into the equation: C = 100 + 0.75Y I = 50 G = 200 Substituting these values, we get: Y = (100 + 0.75Y) + 50 + 200 To solve for Y, we need to simplify the equation: Y = 100 + 0.75Y + 50 + 200 Combining like terms, we have: Y = 350 + 0.75Y Next, we can solve for Y by isolating it on one side of the equation. To do this, we can subtract 0.75Y from both sides: Y - 0.75Y = 350 Simplifying further, we have: 0.25Y = 350 Finally, we can solve for Y by dividing both sides of the equation by 0.25: Y = 350 / 0.25 Calculating this, we find: Y = 1400 So, the equilibrium level of national income (Y) is 1400.

Money could be defined as

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Money can be defined as a medium of exchange that is universally accepted for buying goods and services. It enables people to easily trade with one another, without the need for bartering or trading directly with goods. In simpler terms, money is like a common language that everyone understands and uses to exchange things they want or need.

Money also serves as a settlement of debt because it allows individuals, businesses, and even governments to repay what they owe. When someone borrows money or takes a loan, they can later use money to pay back the lender. Similarly, if someone owes money to another person, they can use money to settle that debt.

Additionally, money is a medium of payment. It is used to complete transactions and make payments for goods and services. Whether you are buying groceries, paying for a movie ticket, or purchasing a new gadget, money is the common method of payment.

To summarize, money is a medium of exchange, settlement of debt, and medium of payment. It simplifies trade, enables the repayment of debts, and facilitates transactions in our daily lives.

The "velocity" of money is

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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

Suppose the public expenditure as a percentage of GDP of four countries is shown in the table below

Which type of economy exists in these countries?

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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.

The diagram above represent

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The dotted line in the graph above represent the upturn and downturn of the econonmy. Therefore, the diagram is cyclical unemployment.

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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**.

Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?

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An example of expansionary monetary policy by the Central Bank of Nigeria is "buying Treasury securities from commercial banks." Expansionary monetary policy is a type of policy implemented by the central bank to stimulate economic growth and increase the supply of money in the economy. This policy is typically used during times of economic downturn or recession to encourage spending and investment. When the Central Bank of Nigeria buys Treasury securities from commercial banks, it injects money into the economy. This increases the amount of money available in the banking system, making it easier for banks to lend to businesses and individuals. By increasing the money supply, the central bank aims to lower interest rates, which in turn encourages borrowing and spending. Lower interest rates mean that businesses and individuals can access credit more easily, leading to increased investment, consumer spending, and economic growth. This expansionary policy can help support economic activity, boost employment, and stimulate overall economic recovery.

The part of income after tax that is not consumed is defined as

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The part of income after tax that is not consumed is defined as saving. Saving refers to the portion of income that is not spent on immediate consumption and is instead put aside for future use.
When we receive our income, we typically have various expenses to cover, such as bills, groceries, and entertainment. After deducting these expenses and taxes, we are left with a certain amount of money. If we choose not to spend this remaining amount and instead keep it for later, we are saving that money.
Saving is important because it allows us to build up financial security and prepare for unexpected expenses or future goals. It can also be used for long-term investments, such as buying a house or planning for retirement.
In summary, saving is the part of our income that we choose to set aside rather than using it immediately for consumption.

A persistence rise in the prices of inputs will lead to

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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.

From the graph above, the consumer is at equilibrium at point

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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 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.

Which of the following is NOT one of the characteristics of developing countries?

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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.

The diagram above represent

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The diagram above represent a monopolist diagram.

If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn

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

The rate of output per worker (or group of workers) per unit time is called

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The correct answer is labour productivity.
Labour productivity refers to the rate at which output is produced by a worker or a group of workers in a given amount of time. It measures how efficiently and effectively workers are using their skills, time, and resources to produce goods or services.
To understand this concept, let's imagine a scenario where we have two workers producing bicycles. Worker A is able to produce 5 complete bicycles in one hour, while Worker B can only produce 3 complete bicycles in the same amount of time.
In this case, Worker A has a higher labour productivity because they are able to produce more output (bicycles) per unit of time (one hour) compared to Worker B.
Labour productivity is an essential measure for companies and economies because it directly impacts their profitability and competitiveness. Higher labour productivity means that more goods or services can be produced using the same amount of resources or in less time. This leads to lower costs per unit and can result in higher profits or the ability to lower prices for customers.
In summary, labour productivity is a measure of how efficiently workers are producing goods or services and is calculated by dividing the total output by the number of workers or the amount of time it took to produce that output.

Economic problem occurs when

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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.

The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is

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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.

If commodities X and Y are substitute, their cross elasticity of demand will be

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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.

The theory of ............... was propounded by ..................

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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.

The principle that specified that the amount, when and how to pay tax should be made known to tax payer is known as

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The principle that specifies that the amount, when, and how to pay tax should be made known to the taxpayer is known as the Principle of Certainty. This principle ensures that taxpayers have a clear understanding of their tax obligations, which includes knowing the amount of tax they owe, the deadline for payment, and the method of payment.
The Principle of Certainty is important because it promotes transparency and accountability in the tax system. By providing clear and specific information to taxpayers, it enables them to accurately calculate and plan for their tax obligations. This helps to avoid confusion or misunderstandings between the taxpayer and the tax authorities.
Furthermore, the Principle of Certainty also ensures fairness and consistency in the tax system. By clearly stating the rules and requirements, it ensures that all taxpayers are treated equally and that there is no ambiguity or room for arbitrary decisions in the tax assessment process.
Overall, the Principle of Certainty provides a solid foundation for the relationship between taxpayers and tax authorities. It establishes clear expectations, promotes compliance, and adds credibility to the tax system.

.............is presently used in Nigeria to measure inflation

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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.

One major problem facing West African countries is

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One of the major problem of West African state is the relation of West African states with the colonial masters.

The maximum price is

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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**.

Indicator of underdevelopment is

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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.

In a two by two model of international trade, it is assumed that

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In a two by two model of international trade, it is assumed that **both countries could gain from trade at the same time, but the volume of the gains depends on terms of trade**. This means that both countries can benefit from engaging in trade with each other. Trade allows both countries to specialize in producing and exporting the goods in which they have a comparative advantage, while importing goods that they are less efficient at producing. This leads to increased efficiency and overall economic gains for both countries. However, the volume of the gains from trade depends on the terms of trade between the two countries. The terms of trade refer to the ratio at which the countries exchange their goods. If one country has a higher bargaining power or can produce goods at a lower cost, they may negotiate more favorable terms of trade, leading to a larger volume of gains for that country. On the other hand, if the terms of trade are less favorable, the volume of gains for both countries may be smaller. In summary, while both countries can benefit from trade, the extent of the gains will vary depending on the terms of trade negotiated between them.

..................... is the highest body in ECOWAS organogram

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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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- Monetary policy is implemented by reducing the interest rates in the economy in order to increase the supply of money to enhance growth.

- The fiscal policy is implemented by the reduction of taxes and increasing government spending in order to boost demand.

- Policymakers may choose to implement a stabilization policy to close the recessionary gap and increase real GDP.

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The marginal propensity to consume (MPC) is a measure of how much of an increase in income is typically spent on consumption. It is represented by the symbol c or ΔC/ΔY. To explain it simply, the MPC tells us the proportion of additional income that is used for consumption rather than saving or other purposes. For example, if the MPC is 0.8, it means that for every additional unit of income, 0.8 units are typically spent on consumption. The MPC can also be understood as the slope of the consumption function. The consumption function is a mathematical relationship between income and consumption. The MPC represents how much consumption changes for a given change in income. In the equation C = C + cYd, the coefficient c represents the MPC. This equation shows that consumption (C) is determined by autonomous consumption (C) plus the product of the MPC (c) and disposable income (Yd). In summary, the MPC is a measure of how much additional income is typically used for consumption. It can be represented as ΔC/ΔY, the slope of the consumption function, or the coefficient c in the consumption equation.

When a kilogram of carrot is #8.00, 20 kilograms are demanded and when the price decreased to #6.000 per kilogram, 30 kilograms are demanded. The elasticity of demand equals to

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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

Multiplier can be described as

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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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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.

Business cycle is associated with

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Business cycle are intervals of expansion followed by recession in economic activity. It is characterized by general upswings and downturns in a span of macroeconomics variable.

An increase in money income with constant price results in

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When there is an increase in money income but the prices of goods and services remain the same, it will result in an outward shift in the budget line. To understand this, let's imagine a simple scenario where a person has a fixed amount of money to spend on different goods and services. This fixed amount of money represents their income. Now, if their income increases but the prices of goods and services they want to buy stay the same, they will have more money to spend. This means they can afford to buy more of each item. As a result, the budget line, which shows the different combinations of goods and services that can be bought with a given income, will shift outward. This indicates that they can now afford to buy a greater quantity of goods and services than before. Therefore, the correct answer is an "outward shift in the budget line" when there is an increase in money income with constant prices.

Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?

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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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An example of a free good is water in the ocean.

A free good is a good that is available in unlimited supply and does not require any payment or exchange to obtain it.

In the case of water in the ocean, it is freely available and accessible to anyone. It is not owned by anyone and does not require any payment to access or use it. Therefore, it can be considered a free good.

On the other hand, free education, dinner you did not pay for, and your rented apartment are not examples of free goods.

Free education typically refers to education that is provided without direct payment by the student. While it may be free for the student, someone is still paying for it, such as the government or private institutions.

A dinner that you did not pay for may seem free to you, but someone, such as a friend or a host, is still paying for it. The cost of that dinner is borne by someone else, even if it is not you.

Similarly, a rented apartment is not a free good because it involves a transaction where you pay for the use of the apartment. You enter into a contractual agreement with the landlord and pay rent in exchange for living in the apartment.

Institutions serving as links between surplus and deficit units can be identified as

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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.

Part-time workers who desire full-time employment are:

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Part-time workers who desire full-time employment are classified as underemployed and contribute to the unemployment statistic.
Underemployment refers to a situation where individuals are working fewer hours than they would like or in jobs that do not utilize their skills and qualifications fully. In this case, part-time workers who desire full-time employment are considered underemployed because they are not able to secure the desired amount of work hours.
These underemployed workers contribute to the unemployment statistic because they are actively seeking additional work hours to meet their employment needs. They are considered part of the labor force because they are willing and available to work more hours, but they have not been able to find full-time employment.
It is important to note that not all underemployed workers contribute to the unemployment statistic. Some may choose to work part-time for personal reasons, such as family responsibilities or pursuing education. These individuals, although underemployed, are not actively seeking additional work hours and therefore do not contribute to the unemployment statistic.
However, in the case of individuals who are part-time workers and desire full-time employment, their underemployment status reflects the inadequacy of available job opportunities. They increase the count of unemployed individuals because they are willing and actively searching for additional work.
It is worth mentioning that cyclical unemployment is a different type of unemployment. It occurs when there is a downturn in the economy, causing a decrease in overall demand for goods and services, and subsequently, a decrease in the demand for labor. Cyclical unemployment is not directly related to the part-time workers' desire for full-time employment.

The law of supply states that, other things being constant, as price increases

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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.