(a) Describe the output method of measuring the gross domestic product of a country. [6 marks]
(b) How is the net national product at factor cost obtained from gross domestic product? [8 marks]
(c) State two problems associated the output method. [6 marks]
Distinguish between the following:
(a) wants and effective demand; [5 marks]
(b) demand schedule and demand e; [5 marks]
(c) individual demand and market demand, [5 marks]
(d) change in demand and change in quantity demanded. [5 marks]
(a) What is a supply schedule? [2 marks]
(b) Using an example, show how a market supply schedule of a product is obtained from individual supply schedules. [12 marks]
(c) State three examples of exceptional demand. [6 marks]
(a) With the aid of a diagram, explain a minimum price. [5 marks]
(b) State any five measures by which a minimum price for an agricultural produce can be made effective. [15 marks]
(a) Define market in economics. [2 marks]
(b) State any three features of a monopoly. [9 marks]
(c) Outline any ee sources of monopoly power. [9 marks]
(a) Define:
(i) elasticity of demand; [2 marks]
(ii) price elasticity of demand. [2 marks]
(b) State any four determinants price elasticity of demand. [12 marks]
(c) Draw curves illustrating
(i) fairly elastic demand; [2 marks]
(ii) perfectly inelastic demand. [2 marks]
(a) Distinguish between economic activities and an economic system. [5 marks]
(b) Explain the following terms:
(i) production; [5 marks]
(ii) distribution; [5 marks]
(iii) consumption15 marks]
(a) Define money. [2 marks]
(b) State the three motives for holding money. [6 marks]
(c) Mention two determinants each of the motives for holding money. [12 marks
(a) State and explain the law of comparative cost advantage. [12 marks]
(b) Give two limitations of the law as a theory of international trade. [8 marks]
Explain how the following factors will affect the demand for a commodity X:
(a) a decrease in the price of a implement Y; [5 marks]
(b) an increase in consumers’ disposable income; [5 marks]
(c) a decrease in the apply of a substitute P; [5 marks]
(d) an increase in income tax. [5 marks] )
The tables below show the expected revenues and projected expenditures from the budget of a hypothetical country in 1998. Use the information in the tables to answer the questions that follow.
EXPECTED REVENUE
| ITEM | AMOUNT ($ millions) |
| Rents, royalties and profits | 75.00 |
| Company income tax | 150.00 |
| Customs and excise duties | 300.20 |
| Personal income tax | 80.00 |
| Fees specific charges | 60.80 |
| Value added tax | 100.00 |
PROJECTED EXPENDITURE
| ITEM | AMOUNT ($ millions) |
| General administration | 220.10 |
| Maintenance of foreign missions | 50.00 |
| Transfer payments | 65.00 |
| Building of schools and hospitals | 200.00 |
| Road construction | 180.90 |
(a) Calculate the total revenue from
(i) direct taxes [3 marks]
(ii) indirect taxes [3 marks]
(iii) non-tax sources [3 marks]
(b) Determine the total
(i) capital expenditure [3 marks]
(ii) recurrent expenditure [3 marks]
(c) Determine whether the budget is a surplus or deficit. [5 marks]
The diagram below represents the cost and revenue situation of a firm. Use the information in the diagram to
answer the questions that follow.
(a) Why would the firm not produce at (i) Q\(\_1\) (ii) Q\(\_3\) ? [6 marks]
(b) How much profit does the firm make at P\(\_1\)? [4 marks]
(c) If price falls to P\(\_1\)
(i) What quantity would the firm produce? [2 marks]
(ii) What type of profit does the firm make? [2 marks]
(iii) Explain your answer in c(ii). [4 marks]
(d) In which type of market s the firm operating?[2 marks]
Which of the following is not a function of the West African Development Bank?
- A. Promotion of both private and public investments in member states
- B. Financing and executing projects in member states
- C. Promotion of social development of member states
- D. harmonization of oil prices to the advantage of member states
One of the reasons why government may erect a trade barrier is to
- A. control foreign currencies
- B. protect infant industries
- C. promote importation
- D. diverisify the economy
Balance of payments problem can be corrected through
- A. increasing foreign reserves
- B. increasing domestic borrowing
- C. import promotion strategies
- D. export promotion strategies
Which of the following is true about import substitution? it
- A. helps in increasing exportation
- B. is meant to reduce exportation
- C. enables a country to curtail importation
- D. enables a country to improve on importation
When there is improvement in a country’s terms of trade, it means that the country’s
- A. exports are cheaper relative to imports
- B. imports are cheaper relative to exports
- C. volume of imports has declined
- D. volume of exports has declined
Which of the following will not retard economic development in West Africa?
- A. dependence on imports
- B. population control
- C. high level of illiteracy
- D. low level of savings
An excise tax is imposed on goods
- A. smuggled into the country
- B. manufactured locally
- C. imported into the coutry
- D. seized by custom officials
A situation in which the estimated government revenue is less than the proposed expenditure for a given year can be described as
- A. surplus budgeting
- B. supplementary budgeting
- C. balanced budgeting
- D. deficit budgeting
The following are reasons for failure of agricultural policies in West Africa except
- A. vague policy statements
- B. negation of polices
- C. creation of agro-service stations
- D. provision of obsolete implements