(a) Differentiate between subsistence farming and commercial farming.
(b) State four features of subsistence farming.
(c) Outlines two positive and two negative effects of mining on the economy of West African countries
(a) Distinguish between competitive demand and joint demand.
(b) Using diagrams, explain how the following factors will affect the equilibrium price and quantity of commodity R in the market
i. an increase in the price of the Complement of commodity R:
ii. an increase in the price of a substitute of commodity R
iii. imposition of an indirect tax on commodity
a. What is money?
b. Explain the following concepts:
i. value of money:
ii. demand for money,
(c) ldentify any four determinants of transaction demand for money
(a) Define tariff.
(b) State the following laws:
i. The law of absolute cost advantage:
ii. The law of comparative cost advantage.
(c) Outline any four assumptions behind the law of comparative cost advantage
(a) Distinguish between the following pairs of terms:
i. capital expenditure and recurrent expenditure:
ii. fiscal policy and monetary policy.
b. Explain four reasons why the government of a country imposes taxes.
(a) Define consumer goods.
(b) Explain the following forms of capital with an example each:
i. fixed capital
ii. social capital
iii. circulating capital
(c) Outline three reasons for the low level of savings in a country
The figure represents the production possibility curve of a nation, Use it to answer the questions that follow
(a) What is the opportunity cost of:
i. producing 30 units of cocoa;
ii. increasing textile production from 30 to 40 bales?
(b) interpret the following points as found in the graph:
i. point Y
ii. point G
iii. point X
(c) List three conditions that can enable the nation to produce at point X.
(d) State two basic economic concepts illustrated in the diagram above.
(e) i. Define production possibility curve
ii. What does the slope of the production possibility curve Indicate?
The table below shows the workers engaged by an agricultural firm over a period of time. Study it and answer the questions that follow;
| Number of workers | Total product | Marginal product | Average product |
| 0 | 0 | 0 | 0 |
| 1 | 20 | 20 | 20 |
| 2 | 50 | 30 | z |
| 3 | 70 | 20 | 23.3 |
| 4 | 80 | y | 20 |
| 5 | 80 | 0 | 16 |
| 6 | x | -9.8 | 11.7 |
(a) Calculate the values of X, Y, and Z.
(b) At what level of employment of labour does the firm experience:
i. increasing returns
ii. decreasing returns
ii. negative returns
(c) State the law of diminishing returns
(d) i. On a graph sheet, draw the total product and marginal product curves.
ii. State any two relationships between the two curves in (d)(i) above
The exploitation of mineral resources constitutes which form of production?
- A. Primary production
- B. Secondary production
- C. Tertiary production
- D. Services production
Free trade is one in which
- A. each member operates its own barriers against non-members
- B. factors of production are mobile
- C. members adopt a common external tariff against non- members
- D. members adopt common fiscal and economic policies
In order to discourage the importation of manufactured goods, a country should adopt
- A. import promotion strategy
- B. export led strategy
- C. liberal foreign exchange
- D. import substitution strategy
The foremost objective of the International Bank of Reconstruction and Development (IBRD) is to
- A. help promote private and public investments
- B. assist members achieve a balance of payments stability
- C. grant long term loans for infrastructure
- D. maintain stabilily of foreign exchange
The principle of comparative advantage encourages a country to
- A. produce only consumer goods
- B. engage in trade if it can produce a commodity at a lower cost
- C. specializes in the production of all goods
- D. try as much as possible to be self-sufficient
Dumping is selling goods in a foreign market at a price
- A. below what is sold at the home market
- B. above what is sold at the home market.
- C. equal to what is sold at the home market
- D. equal to the cost of producing the goods
A country is allowed to import just 50,000 tonnes of rice annually. This describes
- A. devaluation
- B. tariff
- C. embargo
- D. quota
A country should embark on development planning to ensure that
- A. it becomes popular among the comity of nations
- B. it also does what others are doing
- C. its scarce productive resources are efficiently utilized
- D. the nation is able to contribute its own quota to international organizations.
Expenditure on food takes a large proportion of the incomes of people in
- A. industrialized countries
- B. advanced countries
- C. developing countries
- D. capitalist countries
Mr. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earning of S5,000.00 and $7,000.00 respectively. The system of taxation employed is
- A. specific tax
- B. proportional tax
- C. regressive tax
- D. progressive tax
During inflation, the appropriate fiscal measure to adopt is to
- A. increase indirect taxes
- B. increase direct taxes
- C. reduce personal income tax
- D. increase government expenditure
Tools of monetary policy do not include
- A. open market operations
- B. reserve requirement
- C. bank rate
- D. tax and public expenditure
The central bank Can reduce the ability of commercial banks to give out loans by
- A. raising the bank rates
- B. reducing special deposits
- C. reducing the liquidity ratio
- D. issuing more currency