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Frage 1 Bericht
The demand for a good is price inelastic if
Antwortdetails
The demand for a good is price inelastic if the price elasticity is less than one. Price elasticity measures how responsive the quantity demanded of a good is to a change in its price. If the price elasticity is less than one, it means that the quantity demanded is not very responsive to changes in price. In other words, a change in price will have a relatively small impact on the quantity demanded. Even if the price increases or decreases, people will still buy a similar amount of the good. This can happen when the good is a necessity or when there are limited substitutes available. For example, if the price of water increases, people will still need to buy a similar amount because water is essential for survival. Similarly, if the price of a specific medication increases, people with no alternative options will still purchase it regardless of the price. Therefore, when the price elasticity is less than one, we say that the demand for the good is price inelastic.
Frage 2 Bericht
The part of income after tax that is not consumed is defined as
Antwortdetails
The part of income after tax that is not consumed is defined as saving. Saving refers to the portion of income that is not spent on immediate consumption and is instead put aside for future use.
When we receive our income, we typically have various expenses to cover, such as bills, groceries, and entertainment. After deducting these expenses and taxes, we are left with a certain amount of money. If we choose not to spend this remaining amount and instead keep it for later, we are saving that money.
Saving is important because it allows us to build up financial security and prepare for unexpected expenses or future goals. It can also be used for long-term investments, such as buying a house or planning for retirement.
In summary, saving is the part of our income that we choose to set aside rather than using it immediately for consumption.
Frage 3 Bericht
Antwortdetails
The measure that represents the natural growth rate of a population is the **Birth rate minus the Death rate**, which is the second option. The natural growth rate of a population refers to the rate at which the population increases or decreases due to births and deaths, without taking into account migration. It solely focuses on the difference between the number of births and the number of deaths occurring within a population during a specific period of time. When the birth rate exceeds the death rate, it results in a positive natural growth rate, meaning the population is increasing. On the other hand, if the death rate is higher than the birth rate, it leads to a negative natural growth rate, indicating a decrease in the population. The first option, "Natural increase - Birth rate + Net migration," takes into account both the birth rate and the net migration (the difference between the number of people migrating into and out of a population in a specific period). This measure considers factors beyond just births and deaths, so it does not accurately represent the natural growth rate. The third option, "Birth rate/Death rate," is a ratio of the birth rate to the death rate. It does not give a measure of the natural growth rate itself, but rather shows the relationship between the number of births and the number of deaths. The fourth option, "Birth + Net migration = Death," suggests an equality between the sum of births and net migration and the number of deaths. This equation does not accurately represent the natural growth rate since it assumes that the number of births and net migration should exactly match the number of deaths, which is unlikely in most populations. Therefore, the most appropriate measure for the natural growth rate of a population is the **Birth rate minus the Death rate**.
Frage 4 Bericht
40 men were employed in a farm, and they produced an average of 30 tonnes of cassava per person. Calculate the total product.
Antwortdetails
To calculate the total product of cassava, we need to multiply the average production per person by the number of people.
In this scenario, we know that there were 40 men employed in the farm, and each person produced an average of 30 tonnes of cassava.
So, to find the total product, we need to multiply 40 by 30.
40 x 30 = 1200
Therefore, the total product of cassava is 1,200 tonnes.
Frage 5 Bericht
Economic problem occurs when
Antwortdetails
The economic problem occurs when there is scarcity relative to demand. Scarcity means that resources are limited, while demand refers to people's desires and needs for goods and services. In simple terms, the economic problem arises when there are not enough resources to satisfy everyone's wants and needs. This is because resources, such as land, labor, and capital, are finite, while people's desires are infinite. For example, imagine a small community with a limited amount of food available. If everyone in the community wants to eat, but there is not enough food for everyone, it creates an economic problem. This scarcity can lead to competition, as individuals and businesses try to obtain the limited resources. The economic problem is not caused by raw materials being imported or people being out of work. These factors can contribute to a country's economic challenges, but they are not the direct cause of the economic problem. Similarly, the absence of buyers for goods is a symptom of the economic problem, rather than the cause. If people cannot afford or do not want to buy goods, it indicates a mismatch between supply and demand. However, this does not explain why the economic problem exists in the first place. In summary, the economic problem occurs when there is scarcity relative to demand, meaning there are not enough resources to fulfill everyone's wants and needs. This scarcity leads to competition and the need for individuals and businesses to make choices regarding resource allocation.
Frage 6 Bericht
The maximum price is
Antwortdetails
The maximum price is **P4**. To explain why, we need to understand that the prices are listed in ascending order. This means that **P1** is the lowest price and **P4** is the highest price. When we say "maximum price," we are referring to the highest possible price among the given options. In this case, **P4** is the highest price listed. Therefore, the maximum price is **P4**.
Frage 7 Bericht
Government uses all of the following ways to redistribute income, except
Antwortdetails
The government uses various methods to redistribute income in society. Three of these ways are market intervention, transfer earnings, and taxation. Market intervention involves the government stepping in and regulating certain aspects of the economy to ensure fairness and reduce income inequality. For example, the government may set a minimum wage so that workers are guaranteed a certain level of income. Transfer earnings refer to government programs that provide financial assistance to individuals or families who are in need. These programs include welfare, unemployment benefits, and social security. The goal is to provide support to those who may have lower incomes or are facing financial difficulties. Taxation is another method used by the government to redistribute income. Through taxes, the government collects money from individuals and businesses based on their income or profits. This revenue is then used to fund public services such as healthcare, education, infrastructure, and social programs. However, the answer to the question is that the government does not use limited liability as a way to redistribute income. Limited liability is a legal concept that protects individuals from being personally liable for the debts and liabilities of a company. It is not directly related to income redistribution. In summary, the government redistributes income through market intervention, transfer earnings, and taxation. These methods aim to promote fairness and provide support to those in need. However, limited liability is not a method used for income redistribution.
Frage 8 Bericht
From the graph below, Point "E" shows--------------
Antwortdetails
Point 'E" inside the graph indicates it is technologically inefficient" , Underemployed" or wide spread unemployent" or resources are not fully utilized or production inefficient"
Frage 9 Bericht
The demand for money will fall if
Antwortdetails
If GDP falls, then people demand less money for transactions. As interest rate rise (fall), the demand for money will fall(rise).
Frage 10 Bericht
Institutions serving as links between surplus and deficit units can be identified as
Antwortdetails
Financial intermediaries serve as links between surplus and deficit units in an economy. These intermediaries include banks, credit unions, and other financial institutions. When there is surplus money in the economy, individuals and businesses deposit the excess funds with financial intermediaries. These intermediaries then pool these funds together and make them available to deficit units, such as individuals or businesses in need of loans or financing. Financial intermediaries play a crucial role in the economy by efficiently allocating funds from surplus units to deficit units. They match the needs of borrowers with the resources of savers, helping to facilitate economic growth and development. Tax officers and pension offices, on the other hand, do not serve as direct links between surplus and deficit units. Tax officers collect taxes for the government, while pension offices manage pension funds for retired individuals. Although these entities may indirectly impact the allocation of funds in the economy, their primary roles are different from that of financial intermediaries. Acceptance houses are also not direct links between surplus and deficit units. Acceptance houses provide short-term financing through the purchase of bills of exchange. While they play a role in facilitating trade between businesses, their function is more specific and limited compared to the broader role of financial intermediaries. In summary, financial intermediaries such as banks and credit unions serve as the primary links between surplus and deficit units in an economy. They gather surplus funds from savers and make them available to borrowers, thereby promoting the efficient allocation of resources.
Frage 11 Bericht
What is the lowest price the monopolist can charge
Antwortdetails
The monopolist can charge P2 price and still make profit as long as he covers his AVC. Any price below price P2, the monopoly will run at loss or shut down.
Frage 12 Bericht
The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is
Antwortdetails
The type of unemployment that occurs when an individual cannot find a job as a result of obsolete skills is known as Structural unemployment.
Structural unemployment happens when there is a mismatch between the skills that job seekers possess and the skills required for available jobs in the market. In this case, individuals may no longer be qualified for the jobs that are available due to changes in technology, market conditions, or shifts in the economy.
For example, let's say there is a rapid advancement in technology that makes certain job skills obsolete. Workers who had those skills may struggle to find employment because companies are now looking for individuals with more up-to-date skills.
This type of unemployment is different from cyclical unemployment, which is caused by fluctuations in the business cycle, or seasonal unemployment, which occurs due to seasonal variations in demand for certain jobs. Frictional unemployment, on the other hand, refers to the temporary unemployment that occurs when individuals are transitioning between jobs or entering the workforce for the first time.
To sum up, structural unemployment is the type of unemployment that arises when an individual cannot find a job because their skills are no longer in demand.
Frage 13 Bericht
An increase in total production (real GDP) causes the demand for money to ______and the interest rate to _________
Antwortdetails
An increase in the real GDP will increase the demand for money and also the interest rate will also increase.
Frage 14 Bericht
Macroeconomics focuses on the following units in an aggregative manner
Antwortdetails
Macroeconomics focuses on the units of an economy in an aggregative manner, meaning it looks at the economy as a whole rather than focusing on individual units. This helps us understand how different parts of the economy interact and influence each other.
The correct option is **household, firms, government, corporate sector, and external sector**. Macroeconomics analyzes the behavior and interactions of these units to understand the overall performance of the economy.
1. **Households**: These are the individual consumers who make up the economy. They play a vital role in determining the consumption and saving patterns that influence economic activities.
2. **Firms**: Firms are the businesses that produce goods and services in the economy. Macroeconomics looks at their investment decisions, production levels, and employment to understand the overall economic growth and productivity.
3. **Government**: The government plays a significant role in macroeconomics. It collects taxes, provides public goods and services, regulates the economy, and influences economic policies such as fiscal and monetary measures to stabilize the economy.
4. **External sector**: The external sector represents international trade and the flow of goods, services, and capital across borders. Macroeconomics considers factors like exports, imports, exchange rates, and foreign investment to understand the impact of global interactions on the economy.
By examining these units in an aggregative manner, macroeconomics helps us understand how changes in one sector affect the others and ultimately impact the overall performance of the economy.
Frage 15 Bericht
Suppose the public expenditure as a percentage of GDP of four countries is shown in the table below
A | 40% |
B | 50% |
C | 33% |
D | 36% |
Which type of economy exists in these countries?
Antwortdetails
The type of economy that exists in these countries is Mixed economy.
A mixed economy is an economic system that combines elements of both market and planned economies. It includes both private and public sectors, and the government plays a significant role in regulating and defining the structure of the economy.
In the given scenario, the fact that the countries have different levels of public expenditure as a percentage of GDP indicates that the government plays a role in the economy and is involved in spending a portion of the national income.
While the exact percentage of public expenditure varies between the countries, the presence of any public expenditure suggests government intervention and regulation in the economy. This means that these countries have a mixed economy, where both public and private sectors coexist and contribute to economic activities.
The government's involvement can take various forms, such as funding public goods and services, implementing social programs, and regulating industries. The level of government intervention may vary, but the presence of public expenditure indicates that the government has an active role in shaping the economy.
Therefore, based on the information provided, it can be concluded that the countries mentioned in the table have a mixed economy.
Frage 16 Bericht
Given the table demonstrating the law of diminishing marginal utility below, what is the value of X?
No. of oranges Consumed |
Total Utility | Average Utility | Marginal Utility |
1 | 9 | 9 | - |
2 | 16 | 8 | x |
3 | 24 | 8 | 6 |
4 | 30 | 7.5 | 4 |
5 | 34 | 6.8 | y |
6 | 36 | 6 | 2 |
7 | 36 | 5.1 | 0 |
Antwortdetails
The Marginal Utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. It can be calculated by subtracting the total utility of the previous consumption from the total utility of the current consumption. In this case, the total utility of consuming 2 oranges is 16 and the total utility of consuming 1 orange is 9. Therefore, the marginal utility (X) of the second orange is 16 - 9 = 7.
Frage 17 Bericht
A major factor contributing to productivity is
Antwortdetails
Labour is by far the most common of the factors used in measuring productivity. One reason for this is, of course, the relatively large share of labour costs in the value of most products.
Frage 18 Bericht
The quantity of commodity a consumer is willing and able to buy at a particular time is called
Antwortdetails
The quantity of a commodity that a consumer is willing and able to buy at a particular time is called demand.
Demand refers to the consumer's desire or willingness to purchase a specific product or service at a given price and at a given time. It represents the customer's intent to buy and the amount they are willing to buy at various price levels.
It is important to note that demand is not just about the desire for a particular item, but also the consumer's ability to pay for it. For example, someone may wish or desire to buy a luxury car, but if they do not have the financial means to afford it, their demand for that car is limited.
In summary, demand is the quantity of a commodity that a consumer is both willing and able to buy at a given time, reflecting their desire for the product and their ability to pay for it.
Frage 19 Bericht
Which of the following will cause an increase in cost of production?
Antwortdetails
Cost push inflation occurs when overall prices increase(inflation) due to increases in the cost of wages and raw materials. It can also occur when higher costs of production decrease the aggregate supply in the economy.
Frage 20 Bericht
Agriculture accounts for about 60% of the
Antwortdetails
Agriculture accounts for about 60% of the active labour force in West Africa. This is because a large portion of the population in West Africa is engaged in farming and other agricultural activities for their livelihood. The other options are incorrect as agriculture does not account for 60% of the arable land, service sector activities, or the commodity market in West Africa.
Frage 21 Bericht
Overpopulation is caused by
Antwortdetails
The causes of overpopulation are: falling mortality rate, underutilized contraception, lack of female education etc.
Frage 22 Bericht
Which of the following would not be a reason for a government to impose a quota on imports?
Antwortdetails
A quota on imports is a restriction imposed by a government on the quantity of goods that can be imported into a country. It is typically done to protect domestic industries and promote economic growth.
Out of the given options, a government imposing a quota on imports would not be done to decrease tax revenue. In fact, the purpose of implementing import quotas is quite the opposite – to increase tax revenue by protecting domestic industries and promoting their growth.
Let's understand this further:
1. To support strategic industry: One of the main reasons governments impose import quotas is to protect and support domestic industries that are considered strategically important for the country's economy. By limiting imports, the government aims to give domestic industries an advantage by reducing competition from foreign firms.
2. To prevent dumping: Dumping refers to the practice of selling goods in another country at prices lower than their production costs or market value. This undermines domestic industries and poses a threat to their survival. By imposing import quotas, the government can control the influx of dumped products and protect domestic industries from unfair competition.
3. To decrease tax revenue: This option is incorrect because imposing import quotas does not aim to decrease tax revenue. When imports are restricted, domestic industries have less competition, which allows them to charge higher prices. As a result, the government can collect more tax revenue from these higher-priced goods, thus increasing its overall revenue.
4. Employment opportunity: Another reason governments may impose import quotas is to create employment opportunities. By limiting imports, domestic industries can expand their production and hire more workers to meet the local demand. This helps in reducing unemployment and improving the overall economic conditions of the country.
In conclusion, the correct answer is that a government would not impose a quota on imports to decrease tax revenue. Import quotas are intended to protect strategic industries, prevent dumping, and create employment opportunities, while also increasing tax revenue.
Frage 23 Bericht
Money could be defined as
Antwortdetails
Money can be defined as a medium of exchange that is universally accepted for buying goods and services. It enables people to easily trade with one another, without the need for bartering or trading directly with goods. In simpler terms, money is like a common language that everyone understands and uses to exchange things they want or need.
Money also serves as a settlement of debt because it allows individuals, businesses, and even governments to repay what they owe. When someone borrows money or takes a loan, they can later use money to pay back the lender. Similarly, if someone owes money to another person, they can use money to settle that debt.
Additionally, money is a medium of payment. It is used to complete transactions and make payments for goods and services. Whether you are buying groceries, paying for a movie ticket, or purchasing a new gadget, money is the common method of payment.
To summarize, money is a medium of exchange, settlement of debt, and medium of payment. It simplifies trade, enables the repayment of debts, and facilitates transactions in our daily lives.
Frage 24 Bericht
A ............ in the price of the domestic currency in terms of a foreign currency is referred to as .............
Antwortdetails
Currency depreciation is a fall in the value of a currency in a floating exchange rate system. Therefore, a decrease in the price of the domestic currency in terms of a foreign currency is referred to as depreciation.
Frage 25 Bericht
A persistence rise in the prices of inputs will lead to
Antwortdetails
A persistence rise in the prices of inputs, such as raw materials or labor, can lead to **cost push inflation**. Cost push inflation occurs when the increased costs of production for firms are passed on to consumers in the form of higher prices for goods and services. This can happen when the prices of inputs used in production rise over a sustained period. When input costs increase, businesses often have two options: absorb the increased costs and accept lower profit margins, or pass on the higher costs to consumers by raising prices. If firms choose to raise prices, it can lead to a general increase in the overall price level in the economy. Here's a simple example to help illustrate this concept: Let's say there is a town where the main industry is manufacturing shoes. The cost of leather, which is a key input in shoe production, starts to rise due to factors like high demand or scarcity. In response, shoe manufacturers have to pay more for leather, and this increases their production costs. To maintain their profit margins, the manufacturers decide to increase the prices of shoes they sell to retailers. Now, if the retailers decide to pass on the higher costs to the consumers, the prices of shoes will increase. This can create a ripple effect throughout the economy because consumers will have to spend more money on shoes, reducing their purchasing power for other goods and services. As a result, the overall price level in the economy increases, and this is what we call cost push inflation. It is important to note that cost push inflation is different from demand pull inflation. Demand pull inflation occurs when there is an increase in aggregate demand, leading to an excess of demand over supply. In contrast, cost push inflation is driven by increased production costs. Hyperinflation, on the other hand, is an extreme form of inflation characterized by an uncontrollable increase in prices. It is typically caused by factors like rapid money supply growth or loss of confidence in the currency. Stagflation refers to a situation where there is a combination of high inflation and high unemployment, typically accompanied by low economic growth. This can occur when an economy experiences a supply-side shock, such as a significant increase in the prices of key inputs. In summary, a persistence rise in the prices of inputs can lead to cost push inflation, as firms pass on the increased costs to consumers by raising prices.
Frage 26 Bericht
Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
Antwortdetails
A fall in the profit margin of producers in an economy will likely result in an increase in unemployment.
When the profit margin of producers decreases, it means that they are earning less profit from their business activities. As a result, they may struggle to cover their costs, sustain their operations, or expand their businesses. To manage their financial situation, producers may need to cut costs, reduce production, or even close down their business altogether.
Reduced production and business closures lead to a decrease in job opportunities and an increase in unemployment. When businesses are not making enough profit, they may need to lay off workers or reduce their workforce in order to cut costs. This means that fewer people will have jobs, resulting in higher unemployment rates.
Additionally, a fall in profit margins can also deter new businesses from entering the market or existing businesses from expanding. This further limits job creation and can exacerbate the unemployment problem.
In summary, a fall in the profit margin of producers in an economy leads to reduced production, business closures, job cuts, and a decrease in job opportunities. Therefore, the most likely resultant effect of such a decline in profit margin is an increase in unemployment.
Frage 27 Bericht
Real cost is
Antwortdetails
Real cost is the cost of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative uses.
Frage 28 Bericht
The type of price elasticity of demand for a commodity whose quantity demanded remain unchanged despite changes in the price is
Antwortdetails
The type of price elasticity of demand for a commodity whose quantity demanded remains unchanged despite changes in the price is **perfectly inelastic**. When the demand for a commodity is perfectly inelastic, it means that the quantity demanded does not respond at all to changes in price. This usually occurs when there are no close substitutes for the commodity, or when the commodity is a necessity that people cannot easily do without. To understand it in a simple way, imagine a situation where the price of a life-saving medication for a critical illness increases significantly. In such a case, even if the price increases, the quantity demanded for the medication will remain the same because the individuals who need it have no other option but to purchase it at any cost. Therefore, the demand for such a medication is perfectly inelastic, as it does not change with variations in price. In summary, when the demand for a commodity is perfectly inelastic, it means that consumers are willing to pay any price for it, and the quantity demanded does not change despite fluctuations in price.
Frage 29 Bericht
The short run can be defined as the period of time during which
Antwortdetails
The short run can be defined as the period of time during which at least one of the firm's inputs is fixed. In other words, it is a time frame in which the firm cannot easily or quickly adjust all of its inputs. This means that some resources, such as the size of a factory or the number of employees, cannot be changed in the short run.
During the short run, firms can only adjust their production levels by varying the amount of variable inputs, such as raw materials or utilities. The fixed input, which remains constant in this period, imposes limitations on the firm's ability to increase or decrease its output. This constraint on adjusting all inputs is what distinguishes the short run from the long run, where all inputs can be varied.
It is important to note that the length of the short run can vary depending on the industry and the specific circumstances of the firm. For some businesses, the short run may be a few months, while for others it could be several years. However, what remains consistent is that during the short run, the firm is restricted in its ability to modify certain inputs, which can impact its production and overall performance.
Frage 30 Bericht
If a business' total economic cost of producing 10,000 units of a product is N750,000 and this output is sold to consumers for N1,000,000, then the firm would earn
Antwortdetails
Economic profit = Total revenue(Output) - Opportunity cost of input
= 1,000,000 - 750,000
= 250,000
Frage 31 Bericht
If commodities X and Y are substitute, their cross elasticity of demand will be
Antwortdetails
If commodities X and Y are substitutes, the cross elasticity of demand between them will be positive.
Cross elasticity of demand measures how the quantity demanded of one commodity changes in response to a change in the price of another commodity. When two commodities are substitutes, they serve similar purposes and are considered as alternatives to each other. For example, if the price of commodity X increases, some consumers may switch to commodity Y as a substitute, causing an increase in the quantity demanded of commodity Y.
The positive cross elasticity of demand reflects this relationship. It means that an increase in the price of commodity X will lead to an increase in the demand for commodity Y, and vice versa. On the other hand, if the cross elasticity of demand were negative, it would indicate that the two commodities are complements, meaning that they are used together and a change in the price of one would result in an opposite change in the demand for the other.
Therefore, in the case of substitute commodities, the cross elasticity of demand will be positive.
Frage 32 Bericht
.............is presently used in Nigeria to measure inflation
Antwortdetails
The measure that is presently used in Nigeria to measure inflation is the Consumer Price Index (CPI). The CPI is a commonly used indicator worldwide to track changes in the cost of living over time.
The Consumer Price Index (CPI) measures the average price changes of a basket of goods and services typically purchased by households in a specific country or region. It reflects the price movements of essential items such as food, housing, transportation, healthcare, education, and many other goods and services that people consume regularly.
The CPI is calculated by collecting price data for various items in the basket and assigning them weights based on their relative importance in household spending. The prices are then compared to a base period, which is usually a specific year. The percentage change in the CPI from the base period indicates the rate of inflation or deflation.
In Nigeria, the CPI is used to monitor and analyze changes in the cost of goods and services, allowing policymakers and economists to assess the impact on consumers' purchasing power and make informed decisions. It helps in determining the effectiveness of government policies, evaluating the performance of the economy, and adjusting wages and prices.
By tracking the CPI, the government can identify if there is an increase in the general level of prices, indicating inflation, or a decrease, indicating deflation. This information helps in formulating monetary and fiscal policies to control inflation rates and maintain price stability.
Overall, the Consumer Price Index (CPI) is the measure currently used in Nigeria to gauge inflation and is crucial in understanding how the cost of living changes over time, impacting the economy and the daily lives of individuals and businesses.
Frage 33 Bericht
Which of the following is an example of expansionary monetary policy by the Central Bank of Nigeria?
Antwortdetails
An example of expansionary monetary policy by the Central Bank of Nigeria is "buying Treasury securities from commercial banks." Expansionary monetary policy is a type of policy implemented by the central bank to stimulate economic growth and increase the supply of money in the economy. This policy is typically used during times of economic downturn or recession to encourage spending and investment. When the Central Bank of Nigeria buys Treasury securities from commercial banks, it injects money into the economy. This increases the amount of money available in the banking system, making it easier for banks to lend to businesses and individuals. By increasing the money supply, the central bank aims to lower interest rates, which in turn encourages borrowing and spending. Lower interest rates mean that businesses and individuals can access credit more easily, leading to increased investment, consumer spending, and economic growth. This expansionary policy can help support economic activity, boost employment, and stimulate overall economic recovery.
Frage 34 Bericht
An industry is
Antwortdetails
An industry is a group of firms producing similar products and under separate administration or management.
Frage 35 Bericht
Which of the following shows why individual demand curve for a good usually slopes downward from left to right?
Antwortdetails
A normal demand curve slopes downward from left to right indicating at higher price, less quantity will be demanded and vice versa.
Frage 36 Bericht
One major criticism of foreign aid to developing countries is that it
Antwortdetails
The loans help to create poverty, as capital that could have been invested instead was channeled into debt repayment.
Frage 37 Bericht
The following are economic agents in any economy EXCEPT
Antwortdetails
Economic agents are entities that make economic decisions. They include households, firms, and the government. The Central Bank, while an important institution, is not considered an economic agent as it does not make decisions about what, how, and for whom to produce. It is responsible for monetary policy and regulating the financial system.
Frage 38 Bericht
The term 'investment' in macroeconomics means
Antwortdetails
Investment is an activity of spending resources on creating assets that can generate income over a long period of time. It is flow of expenditures developed to projects producing goods which are intended for immediate consumption.
Frage 39 Bericht
Business cycle is associated with
Antwortdetails
Business cycle are intervals of expansion followed by recession in economic activity. It is characterized by general upswings and downturns in a span of macroeconomics variable.
Frage 40 Bericht
Antwortdetails
- Monetary policy is implemented by reducing the interest rates in the economy in order to increase the supply of money to enhance growth.
- The fiscal policy is implemented by the reduction of taxes and increasing government spending in order to boost demand.
- Policymakers may choose to implement a stabilization policy to close the recessionary gap and increase real GDP.
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