Economics OBJ:


1-10: AEDADCEAED
11-20: BEEABDAABC
21-30: CABCDEAEDA
31-40: ECEACBCABE
41-50: EBAEAACBEB
51-60: DDAACCBEBC

\(1a) Given Qd = 32 – 2/3p When P = #6 Qd= 32 – 2/3\(6)
Qd= 32 – 4
Qd= 28 When P = #12
Qd= 32 – 2/3\(12)
Qd= 32 – 8
Qd= 24
When P = #20
Qd= 32 – 2/3\(20)
Qd= 32 – 13.33
Qd= 18.67
When P = #27
Qd= 32 – 2/3\(27)
Qd= 32 – 18
Qd= 14
When P = #32
Qd= 32 – 2/3\(32)
Qd= 32 – 21.33
Qd= 10.67
In a tabular form, we have Under price\(#)
6, 12, 20, 27, 32
Under quantity demanded
28, 24, 18.67, 14, 10.67
\(1b) Draw the Graph
\(1c) Factors that cause change in demand:
\(i) Price
\(ii) Income of the consumer.
\(iii) Population.
\(iv) Invention of new commodities.
\(v) Period of festival.

\(2a) Draw the diagram
\(2b) Importance of graph in Econimics: \(i) Graphs help to show the relationship
between two varieties Eg the
relationship between demand and
supply of labour or any commodity.
\(ii) Economists use graphs for
economic analysis. \(iii) Graphs make it easy to understand
data presented in tables.
\(iv) Changes in variables or quantities
are illustrated with the use of grap


\(3a) Production can be defined as the
transformation of raw materials into
finished goods and the distribution and
the provision of goods and services in
order to satisfy human wants. Production is said to be completed when
the goods and services produced reach the final consumers,
\(3b) Factors that determine the volume
of production in a firm:
\(i) The quantity and quality of factors of
production: Example the amount of
capital determines the labour to be hired
and raw materials to be bought. The
quality and quantity of land available
determine the agricultural product or output and the size of factory to be
built.
\(ii) The size of the market: The size of
markets is the extent the products
produced is in demand. The more
demand the more the production.
\(iii) Availability of raw material: The raw
materials available will determine the
quantity of goods that will be produced.
If the raw materials available are not
enough production will be greatly affected.
\(iv) Attitude of workers: The attitude of workers of a firm to work has a lot
influence on the volume of production.
If workers show negative attitude, it will affect the volume of goods to be
produced.
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\(4a)
Mobility of labour refers to the
movements of labor from one
occupation, work place or geographical
place to another.
\(4b) Causes of mobility of labor are:
\(i) Unfavorable working conditions:
This may force a worker to change from
one industrial set up to another. Lack of
such things as good lavatories, staff
buses, equipped offices, workshops,
etc. may constitute unfavorable working conditions.
\(ii) Marriage: Marriage can cause
woman to move their labour. A working
class lady who is newly married may
have to move away from her place of
work or even change occupation in
order to be in the area where her husband is residing and working.

\(iii) Irregular payment of salaries:
Where workers are not paid their
salaries and as when due they will be
forced to change to other establishments or industries. Industrial
mobility of labor may occur as a result of irregular payments of salaries to
workers.
\(iv) Promotion: A worker can be
promoted from one section of an industry to another or even from one geographical area to another.
\(v) Bad management: Some management is so dictatorial and
tyrannical that workers may not tolerate that and may decide to change to other sections or firms.
==========================
\(5) Consequences of population in Nigeria are:
\(i) Congestion: over population leads to
congestion, this congestion occurs in
areas of traffic like Lagos, housing like
Onitsha, lands and schools.
\(ii) Increase in rent: The amount of
money people pay for house has increased greatly because many people are chasing the few available houses especially in the urban areas. A good example is Lagos where it is difficult and very expensive to get both
residential houses and offices. The
amount also paid for land usage is
exorbitant.
\(iii) High rate of illiteracy: The rate of
illiteracy has increased because not all that are willing to go to school has been given the opportunity and can afford it as a result of too many people in the
country.
\(iv) It causes unemployment: There are too many applicants that are competing for the few available jobs or
employment opportunities recently. The result of this unemployment and also unemployed people in the country
\(v) High rate of crime: Over population has led to increase in such crimes as armed robbery, rape, murder, drug pushing, and arson. As many
unemployed people strive for survival.
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\(6a) Tax may be defined as a compulsory
contribution imposed by a government
authority on goods, services, individuals, corporate bodies, etc
irrespective of the exact amount of services rendered to the tax payer in
return and not imposed as a penalty for any legal offence.
\(6b) Disadvantages of direct Tax:

\(i) They may cause deflation: When the
\(taxes) are high, they reduce the volume of money in circulation than the available goods and services thereby causing deflation.
\(ii) They discourage saving: What may
be left after paying direct taxes, may
not encourage any form of saving.
\(iii) Discouragement of hard work: The
workers may feel that hard work will lead to more income which on the other hand will attract more tax, which they may consider as unprofitable exercise.
\(iv) They may cause disincentive to invest: When company and profit taxes are high, they discourage investment.
=================================

\(7a)
Money may be defined as anything that
is generally acceptable as a medium of
exchange for making payments,
settlement of debts OR other business
obligations. \(7b)
The reasons people hold money are: \(i) Transaction motive: People desire to
hold money for the day-to-day
transactions such as buying of
foodstuffs and other daily family needs.
The amount to be kept for these
purposes is determined by the amount that is received as income and the
extent of one’s needs. \(ii) Precautionary motive: Money is also
held in order to meet up with unforeseen
circumstances or contingencies or
unexpected expenditures such as
sickness, unexpected visitors,
breakdown or damage or ones car. Etc \(iii) Speculative motive: People also
keep money with the hope of using such
money in making quick money. For
instance; money may be held with the
hope of giving it in form of loan if the
rate of interest is high and at a short period of time, buying goods like cars at
lower prices and reselling at higher
prices, purchasing shares at lower
prices and reselling at higher prices
etc. Therefore, it is the demand for
money for investment purposes. ===============================\(8a)
National Budget is also called A
government budget. It is an annual
financial statement presenting the
government’s proposed revenues and
spending for a financial year that is often passed by the legislature,
approved by the chief executive or
president and presented by the Finance
Minister to the nation. \(8b)
Balanced budget is a situation in
financial planning or the budgeting
process where total revenues are equal
to or greater than total expenses. A
budget can be considered balanced in hindsight after a full year’s worth of
revenues and expenses have been
incurred and recorded. \(8c)
Budget surplus is a period when income
or receipts exceed outlays or
expenditures. A budget surplus often
refers to the financial states of
government. They provide enough capital to pay for all domestic
production. \(8d)
Budget deficit is a situation in which
imports of goods, services, investment
income and transfers exceed the
exports of goods, services, investment
income and transfers must borrow from other countries to pay for its imports. In
the short-term, that fuels the country’s
economic growth. ==========================\(12a)
Economic growth may be defined as the
process by which the productive
capacity of an economy increases over
a given period, leading to a rise in the
level of the national income. \(12b)
\(i) Lack of skilled manpower: The
manpower development in developing
countries is unusually very low. This
affect economic development. \(ii) Low level of technology: Majority of
the development nations have low level
of technology, which impedes economic
development. \(iii) Leadership problems: Majority of
the leaders in developing countries do
not direct well the human and natural
resources of such countries and this
leads to low economic development.
\(iv) High level of illiteracy: Majority of the people in developing countries are
illiterates, i.e. they cannot read and
write. This eventually leads to low
economic development. ========== KEEP REFRESH THIS PAGE EVERY
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