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Ibeere 1 Ìròyìn
Business cycle is associated with
Awọn alaye Idahun
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.
Ibeere 2 Ìròyìn
Suppose the public expenditure as a percentage of GDP of four countries is shown in the table below
| A | 40% |
| B | 50% |
| C | 33% |
| D | 36% |
Which type of economy exists in these countries?
Awọn alaye Idahun
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.
Ibeere 3 Ìròyìn
The fundamental problem of economics is
Awọn alaye Idahun
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.
Ibeere 4 Ìròyìn
The decision to consume more of one product under normal circumstances will apply
Awọn alaye Idahun
The decision to consume more of one product under normal circumstances will **result in less consumption of another product**. When we have a limited amount of resources, we can only allocate them in certain ways. This is true for both individuals and businesses. If we choose to consume more of one product, it means we are using some of our resources to produce more of that product. As a result, we have less resources available to produce or consume other products. Let's take an example to understand this concept better. Suppose you have $10 to spend on food, and you can either choose to buy more fruits or more vegetables. If you decide to buy more fruits, it means you are allocating more of your budget towards fruits. As a result, you will have less money left to buy vegetables. On the other hand, if you decide to buy more vegetables, it means you are allocating more of your budget towards vegetables, and you will have less money left to buy fruits. Similarly, in a market economy, if consumers decide to buy more of one product (like smartphones), the demand for that product increases. This leads to an increase in production and consumption of smartphones. However, the resources used to produce smartphones are limited. Therefore, the production of other products (like laptops or tablets) may decrease because fewer resources are available to produce them. In conclusion, when the decision is made to consume more of one product, it generally means that less of another product will be consumed. This is because resources are limited and need to be allocated among different options.
Ibeere 5 Ìròyìn
The economies of West African Countries depend majorly on
Awọn alaye Idahun
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.
Ibeere 6 Ìròyìn
A ............ in the price of the domestic currency in terms of a foreign currency is referred to as .............
Awọn alaye Idahun
Currency depreciation is a fall in the value of a currency in a floating exchange rate system. Therefore, a decrease in the price of the domestic currency in terms of a foreign currency is referred to as depreciation.
Ibeere 7 Ìròyìn
Indicator of underdevelopment is
Awọn alaye Idahun
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.
Ibeere 8 Ìròyìn
Awọn alaye Idahun
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).
Ibeere 9 Ìròyìn
Real cost is
Awọn alaye Idahun
Real cost is the cost of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative uses.
Ibeere 10 Ìròyìn
Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
Awọn alaye Idahun
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.
Ibeere 11 Ìròyìn
..................... is the highest body in ECOWAS organogram
Awọn alaye Idahun
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.
Ibeere 12 Ìròyìn
If demand function for a product is Qd = 30 - 4P, and the price and quantity of products is 4 and 14 respectively. What is the price elasticity of demand for the product?
Awọn alaye Idahun
Q = 14, P = 4
Qd = 30 - 4p
∆q/∆p = - 4
Ed = ΔqΔp×pq
= - 4 x 4/14
= Ed = -1.14
since price elasticity is positive, then Ed = 1.14
Ibeere 13 Ìròyìn
40 men were employed in a farm, and they produced an average of 30 tonnes of cassava per person. Calculate the total product.
Awọn alaye Idahun
To calculate the total product of cassava, we need to multiply the average production per person by the number of people.
In this scenario, we know that there were 40 men employed in the farm, and each person produced an average of 30 tonnes of cassava.
So, to find the total product, we need to multiply 40 by 30.
40 x 30 = 1200
Therefore, the total product of cassava is 1,200 tonnes.
Ibeere 14 Ìròyìn
From the graph above, the consumer is at equilibrium at point
Awọn alaye Idahun
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.
Ibeere 15 Ìròyìn
Part-time workers who desire full-time employment are:
Awọn alaye Idahun
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.
Ibeere 16 Ìròyìn
The quantity of commodity a consumer is willing and able to buy at a particular time is called
Awọn alaye Idahun
The quantity of a commodity that a consumer is willing and able to buy at a particular time is called demand.
Demand refers to the consumer's desire or willingness to purchase a specific product or service at a given price and at a given time. It represents the customer's intent to buy and the amount they are willing to buy at various price levels.
It is important to note that demand is not just about the desire for a particular item, but also the consumer's ability to pay for it. For example, someone may wish or desire to buy a luxury car, but if they do not have the financial means to afford it, their demand for that car is limited.
In summary, demand is the quantity of a commodity that a consumer is both willing and able to buy at a given time, reflecting their desire for the product and their ability to pay for it.
Ibeere 17 Ìròyìn
The part of income after tax that is not consumed is defined as
Awọn alaye Idahun
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.
Ibeere 18 Ìròyìn
The short run can be defined as the period of time during which
Awọn alaye Idahun
The short run can be defined as the period of time during which at least one of the firm's inputs is fixed. In other words, it is a time frame in which the firm cannot easily or quickly adjust all of its inputs. This means that some resources, such as the size of a factory or the number of employees, cannot be changed in the short run.
During the short run, firms can only adjust their production levels by varying the amount of variable inputs, such as raw materials or utilities. The fixed input, which remains constant in this period, imposes limitations on the firm's ability to increase or decrease its output. This constraint on adjusting all inputs is what distinguishes the short run from the long run, where all inputs can be varied.
It is important to note that the length of the short run can vary depending on the industry and the specific circumstances of the firm. For some businesses, the short run may be a few months, while for others it could be several years. However, what remains consistent is that during the short run, the firm is restricted in its ability to modify certain inputs, which can impact its production and overall performance.
Ibeere 19 Ìròyìn
All of the following describes conditions necessary for existence of a perfect market EXCEPT
Awọn alaye Idahun
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.
Ibeere 20 Ìròyìn
.............is presently used in Nigeria to measure inflation
Awọn alaye Idahun
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.
Ibeere 21 Ìròyìn
The diagram above represent
Awọn alaye Idahun
The dotted line in the graph above represent the upturn and downturn of the econonmy. Therefore, the diagram is cyclical unemployment.
Ibeere 22 Ìròyìn
Institutions serving as links between surplus and deficit units can be identified as
Awọn alaye Idahun
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.
Ibeere 23 Ìròyìn
The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is
Awọn alaye Idahun
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.
Ibeere 24 Ìròyìn
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
Awọn alaye Idahun
Economic profit = Total revenue(Output) - Opportunity cost of input
= 1,000,000 - 750,000
= 250,000
Ibeere 25 Ìròyìn
Which of the following shows why individual demand curve for a good usually slopes downward from left to right?
Awọn alaye Idahun
A normal demand curve slopes downward from left to right indicating at higher price, less quantity will be demanded and vice versa.
Ibeere 26 Ìròyìn
The law of supply states that, other things being constant, as price increases
Awọn alaye Idahun
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.
Ibeere 27 Ìròyìn
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
Awọn alaye Idahun
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
Ibeere 28 Ìròyìn
An increase in total production (real GDP) causes the demand for money to ______and the interest rate to _________
Awọn alaye Idahun
An increase in the real GDP will increase the demand for money and also the interest rate will also increase.
Ibeere 29 Ìròyìn
When a generalization is made based on observed facts, it is
Awọn alaye Idahun
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.
Ibeere 30 Ìròyìn
Macroeconomics focuses on the following units in an aggregative manner
Awọn alaye Idahun
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.
Ibeere 31 Ìròyìn
Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?
Awọn alaye Idahun
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.
Ibeere 32 Ìròyìn
An increase in money income with constant price results in
Awọn alaye Idahun
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.
Ibeere 33 Ìròyìn
Agriculture accounts for about 60% of the
Awọn alaye Idahun
Agriculture accounts for about 60% of the active labour force in West Africa. This is because a large portion of the population in West Africa is engaged in farming and other agricultural activities for their livelihood. The other options are incorrect as agriculture does not account for 60% of the arable land, service sector activities, or the commodity market in West Africa.
Ibeere 34 Ìròyìn
------------- is NOT the cause of balance of payments (BOP) deficits in Nigeria
Awọn alaye Idahun
The causes of balance of payment deficit are: low level of agriculture, low level of technological development, inadequacies in export promotion strategy, political instability, poor social and economic infrastructure, servicing of huge external debts, existence of import dependent industries etc.
Ibeere 35 Ìròyìn
Among all the determinants of economic growth, the most important one is
Awọn alaye Idahun
The Gross Domestic Product is the total monetary or market value of all the goods and services produced within a country. It is used to measure the rate of growth in an economy.
Ibeere 36 Ìròyìn
Overpopulation is caused by
Awọn alaye Idahun
The causes of overpopulation are: falling mortality rate, underutilized contraception, lack of female education etc.
Ibeere 37 Ìròyìn
The diagram above represent
Awọn alaye Idahun
The diagram above represent a monopolist diagram.
Ibeere 38 Ìròyìn
A persistence rise in the prices of inputs will lead to
Awọn alaye Idahun
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.
Ibeere 39 Ìròyìn
One major criticism of foreign aid to developing countries is that it
Awọn alaye Idahun
The loans help to create poverty, as capital that could have been invested instead was channeled into debt repayment.
Ibeere 40 Ìròyìn
Given the table demonstrating the law of diminishing marginal utility below, what is the value of X?
No. of oranges Consumed |
Total Utility | Average Utility | Marginal Utility |
| 1 | 9 | 9 | - |
| 2 | 16 | 8 | x |
| 3 | 24 | 8 | 6 |
| 4 | 30 | 7.5 | 4 |
| 5 | 34 | 6.8 | y |
| 6 | 36 | 6 | 2 |
| 7 | 36 | 5.1 | 0 |
Awọn alaye Idahun
The Marginal Utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. It can be calculated by subtracting the total utility of the previous consumption from the total utility of the current consumption. In this case, the total utility of consuming 2 oranges is 16 and the total utility of consuming 1 orange is 9. Therefore, the marginal utility (X) of the second orange is 16 - 9 = 7.
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