a. Distinguish between:
i. Growing population and a declining population
ii. overpopulation and underpopulation.
b. Explain any four disadvantages of a rapidly growing population in an economy
a. What is public debt?
b. Outline any three reasons why counties borrow.
c. Highlight any three effects of a huge national debt on the economy of a country.
a. Distinguish between the following pairs of concepts
i. elastic demand and inelastic demand
ii. Income elasticity of demand and cross elasticity of demand.
b. Using diagrams, explain how an increase in price will affect the total revenue of a producer if demand for his product is:
i. price elastic
ii. price inelastic
a. Define a joint venture.
b. identify any three merits of a private company over a partnership.
c. State any three sources of finance to a public enterprise
(a) What is an industry?
(b) Explain the following:
i. division of labor
ii. economies of scale
(c) Outline any four internal economies of scale.
(a) i. Define distribution of goods.
ii. Illustrate the normal chain of distribution of goods.
b. Describe a consumers’ cooperative society.
c. Outline any four roles performed by a consumers’ cooperative society
The extract from a country’s balance of payments account is shown below
| Item | Imports ($ million) | Export ($) |
| Agricultural products | – | 200 |
| Mineral products | – | 300 |
| Consumer goods | 250 | – |
| Capital goods | 400 | – |
| Insurance | 50 | 25 |
| banking | 75 | 30 |
| Transportation | 85 | 25 |
| Loans | 150 | 60 |
Using the table above, calculate the:
(a) balance of trade
(b) invisible trade balance
(c) balance on current account
The diagram above represents the equilibrium position of a firm in a perfectly competitive industry. Study it carefully and answer the questions that follow.
(a) i. At what level of output and prices is the firm in equilibrium?
ii. Calculate the firm’s profit in equilibrium
iii. What type of profits is it?
(b) i. Why is the average revenue (AR) function horizontal?
(c) State any two ways in which marginal cost (MC) and average total cost (ATC) are related.
Natural resources that are renewable are found in the
- A. mining sector
- B. traditional sector
- C. agricultural sector
- D. secondary sector
Exploitation of forest resources becomes a major problem when
- A. communities fight over ownership
- B. they are not renewed
- C. they are neglected
- D. the supply is fixed in the long-run
One measure for financing a country’s balance of payments deficit is through
- A. export diversification
- B. import substitution
- C. short-term borrowing from IMF
- D. internal borrowing from commercial banks
The major achievement of the Economic Community of West African States (ECOWAS) is that it has
- A. made capital more mobile
- B. made possible the use of common currency
- C. increased members' allegiance to former colonial masters
- D. wIdened the market for goods produced
Which of the following institutions is Concerned with expanding developing countries’ commodity trade
- A. World Trade Organization (WTO)
- B. United Nations Conference on Trade and Development (UNCTAD)
- C. Economic Commission for Africa (ECA)
- D. African Development Bank (AfDB)
An improvement in a country’s terms of trade means that the
- A. nation can export more services
- B. nation's receipts on export are equal to payments on imports
- C. value of her imports is lower than her exports
- D. visible exports is less than visible imports
Devaluation of currency may not correct a balance of payments deficit if the demand for export is
- A. perfectly inelastic
- B. perfectly elastic
- C. fairly elastic
- D. unitary elastic
Balance of trade involves the exchange of
- A. goods only
- B. services only
- C. goods and services
- D. goods and capital
In a period of unemployment and falling prices, the government should adopt a
- A. zero-based budget
- B. budget deficit
- C. balanced budget
- D. surplus budget
In most underdeveloped countries, development plans do not achieve their objective due to
- A. poor coordination between local and national governments
- B. exportation of more primary products
- C. lack of educational institutions in those countries
- D. urban-rural migration of citizens
In most developing countries, a large percentage of the labour force is engaged in
- A. trading
- B. mining
- C. agriculture
- D. manufacturing
Insurance Companies are similar to commercial banks in that they
- A. Compensate their customers for losses
- B. act as lender of last resort
- C. help in maintaining monetary stability in a nation
- D. help in mobilizing savings for investment
What happens when the central bank increases the bank rate?
- A. Amount of borrowing increases
- B. Amount of borrowing decreases
- C. Supply of money increases
- D. Commercial banks are not affected