(1a) cross elasticity=change in qtydd/change in price*100/1.change in qty dd ofx=200-90=110.110/90*100/1=122.22%.change inprice=180000-120000=60000.60000/ elasticity=change in qtydd/change in price*100/1.change in qty dd ofx=200-90=110.110/90*100/1=122.22%.change inprice=180000-120000=60000.60000/120000*100/1=50%.cross elasticity=122.22/50=2.44(elastic)
(7) Derived demand:= this is a situation in which a commodity is wanted not for its immediate satisfaction because of the demand for another commodity.
when two or more commodities are wanted to satisfy one want at the same time.
competive demand:= it is wanted to satisfy a want in place of another similar commodity.
Composite demand: it is when a commodity is wanted to satisfy different wants.
(8) under employment, frictional unemployment,structural unemployment,voluntary unemployment, seasonal unemployment.
Underemployment: potentialities of a worker are not fully utilized., frictional unemployment arises when people leave their present job with the hope of getting a new and better one but fail at that time.
structural unemployment arises as a result of slight changes in the industrial structure of a country.
Voluntary:= this occurs when people refuse to take up any paid employment.
Seasonal unemployment:= caused by seasonal changes that affect some types of work.
(10) Availability of natural resources,level of development, industrial development, working population, economic situation.
Availability of natural resources:= a country with abundant natural resources will experience increase in national income than a country with little or no resources.
level of technology: a higher technological development will improve or increase a national income.
Industrial development: the presence of industries or increased industrial activities can contribute positively to national income.
Working population: a country with high working population is likely to increase national income than a country with a little population.
Economic Situation: when the economic situation is stable, the national income will be stable.
(11a)Economic integration may be defined as a form of international co-operation among nations to foster their economic interest.
(11b)Free trade area: free trade area is the type of integration in which member countries agree to remove all restrictions among them.
Such restrictions are tariffs, quotas, bans, et.c.Common market: also known as economic community is a form community is a form of co-operation in which there is a common internal and eternal tarrif policy Economic
union: this is a type of integration which takes the form of total integration of member countries.
Customs union: custom union is an agreement among nations to eliminate trade barriers such as tariffs,quotas, et.c among them.
(3a) specialization is the act of individual or a firm of a country concentrating its resources and efforts in the production of relatively few commodities
(3b) Advantages: increase in production,time saving, large scale production Increase in production:
specialization leads to increase in production because the various experts along the production process work together to boost greater production.
Time saving: specialization helps to save time by reducing the time wasted in moving from one operation to another.
Large scale production: specialization leads to large scale production as a result of many.
Disadvantages: monotony or repletion, problem of mobility of labour
(i)monotomy or repetition: a worker performs the same job on daily basis, therefore the job becomes monotonous and boring.
(ii) problem of mobility of labour: the worker stays on a single job for a long time and this makes it difficult for him to move to other jobs.
(4)Factors: Capital: the larger, the capital, the bigger the size.
2. Type of production: either the production is primary or secondary, this cab be determine the size of a business uint
. 3. Market size: this determines whether a business unit will be large or small.
4. Number of working population: the number of workers in aa business unit determines the size of it.
(6a) A market economy is an economy which decisions regarding investments, production and distribution are based on supply and demand and the prices of goods and services determines in a free price system
(6b) features of market economy:
(4)less government intervention
(5) choice of production.Supply and demand: the larger the available the available supply of goods or services in relation to demand, determines the market economy Competition: a market economy encourages competition regardless the type of business you operate, you likely face competition.
Profit: business owners in a market economy are usually motivated by how many much money they make.
Less Government intervention: in a market economy, the government does not dictate economic policy as it does in a planned or social economic structure.
Choice of production: business owners decides what to produce in market economy
(5)(i) inadequste labour force: the available labour force is groslly inadequate to manage the abundant resources
(ii) low level of production: level of manpower available production is generally low
(iII) low standard of living: due to inadequate labour force that would have promoted output, the standard of living will eventually fall
(iv) underutilization of infrastructure: pipe borne water, etc are grossly underutilized
(v)high taxation: the working population will be made to pay higher amount of tax to take care of thedependents.
(2)(a) Marginal propensity to consume(MPC)= changes in consumption/change inincome(40,000,000-25,000,000)/(125,000,000-105,000,000)= 15,000,000/20,000,000=0.75
(b) multiplier (k)= 1/(1-MPC)=1/(1-0.75)=1/0.25=4(C) change in y/change in investment expenditure= 1/(1-MPC), Change in income= change in investment/1-(1-0.75)=12,000,000/0.25= #48,000,0000