Correct Answer: C. Derived demand

Explanation

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Correct Answer: C. some countries have comparative cost advantage in the production of certain commodities

Explanation

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Correct Answer: A. Risk

Explanation

Production possibilities curve demonstrates that: • There is a limit to what the society/individual can achieve, given the existing institutions, technology and resources. • Every choice the society/individual makes has an opportunity cost – to get more of one good, we need to give up some of another good – every choice has a tradeoff. PPF also illustrates the concept of efficiency. The combination of goods depicted on the curve are attainable only if all the resources are fully employed, with the most efficient means of production possible. All of the points on the frontier are said to be productively efficient, because they are fully utilizing the economic resources that they have

Correct Answer: C. Family planning unit of Nigeria

Explanation

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Explanation

(a) A demand schedule is a table which shows the different quantities of a commodity which consumers are willing to buy at various prices at a particular time.

(b) The law of demand states that at a higher price, less is demanded and at a lower price, more is demanded,other things being equal.

(c)(i)Competitive demand: This applies to commodities which can be used interchangeably. Demand for substitute goods is thus competitive e.g Milo and bournvita, meat and fish, turkey and chicken e.t.c

(ii)Derived demand: This is demand for a commodity which is not needed for direct satisfaction, but rather for the production of other goods e.g the demand for labour and other factors of production.

(iii) Joint or complementary demand: This refers to demand for commodities which are needed to together to satisfy a want. There is joint demand for two commodities when they are such that without one, the other cannot satisfy a want e.g car and petrol, torch and batteries e.t.c.

(iv)Composite demand: This refers to the total or aggregate demand for a commodity which has several uses. The composite demand for cassava for instance comprises the demand for cassava for its various uses e.g making garri, for making industrial starch, for making fufu, e.t.c.

Explanation

Effects of inflation on the economy of a country are:

(i) Inflation discourages savings. Since the real value of the sum saved falls in time of inflation, people will prefer to spend it now rather than later.

(ii) Inflation could have adverse effects on the balance of payments of a country. Imports will become cheaper than exports.

(iii) Inflation badly affects people living on fixed incomes. During inflation borrowers gain and lenders lose.

(iv) During the period of inflation, cost of production increases thereby increasing the prices of goods and services.

(v) The margin of profit to businessmen increases and more goods can be produced. Increase in production increases the level of employment.

(vi) During inflationary period, money completely loses its value and people prefer holding real assets.

Explanation

Functions of Central Bank of Nigeria:

(i) It is the banker to the various commercial and other banks in the country just like commercial banks are bankers to the public.

(ii) It controls, regulates and supervises commercial and other banks.

(iii) It issues the Nigerian currency and protects the Nigerian gold reserve.

(iv) It is an agent and banker to the Nigerian Government.

(v) The central bank is the lender of last resort. Commercial banks seek help from the Central Bank when they are in financial difficulties.

(vi) It controls the size of money in circulation in the Nigerian economy by instruments such as open market operations, the bank rate, special deposits, etc.

(vii) The central bank manages the national debts.

(viii) It maintains external reserve.

(ix) It manages the foreign exchange of the country.

Correct Answer: C. economic rent

Explanation

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Explanation

Hours of work per day = \(\frac{Income}{wage rate}\)

(a)(i) \(\frac{$10}{$10}\) = 1 hour

(ii) \(\frac{$60}{$20}\) = 3 hours

(iii) \(\frac{$10}{$10}\) = 1 hour

income = per day = wage rate x hours worked

(b) (i) $40 x 6 hours = $ 240

$50 x 4 hours = $200

$60 x 2 hours = $120

(c) (i) $40 per hour

(ii) Backward Bending Supply Curve

(iii) As the wage rate increases from $10 to $40 per hour, the worker increases the number of hours worked from 1 hour to 6 hours a day. The supply curve over this stretch is quite normal as the worker substitues worl for leisure in response to higher wage rate offered. When the highest income is attained at the wage of the $40 the supply curve bends backwards towards the price axis as the labour market experiences the income effect. After that point, the worker puts in fewer hours and trades off extra pay for more leisure.

Correct Answer: C. output decisions of firms

Explanation

Capitalism is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market—known as a market economy—rather than through central planning—known as a planned economy or command economy.