Tuesday 20th June 2017
OBJ & Essay – Economics – 10am – 1pm
Year | Cocoa | Crops palm oil | Cotton | Total(#)
1970 | 100 | 150 | 250 | 500
1971 | 150 | 75 | 225 | 450
1972 | 250 | 200 | 150 | 600
Total = #1550m
1c) Percentage = 150/600 * 100
= ¼ * 100
1d) Degree = palm oil expert in 1971 * 360°
Total expert in 1971
= 75/450 * 360°
3a) Similarities are :
*Both provide long-term loans to their member countries
*Both aim to promote economic development
*Both render technical and financial advice to member states
ii) One difference is;
ADB is meant for African countries only while IBRD is a global bank
3b) Benefits obtained by Nigeria from world bank are:
–Approval of $500 million to improve material and child health in the country in 2015
–Approval of a $200 million credit to support the Nigeria agricultural sector, especially small and medium scale farmers in march, 2017
Trade union is an organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests
i )Trade Unions working for the Progress of the Employees:
The trade unions try to improve the economic conditions of the workers by representing their cases to the employers and try to get adequate bonus to the workers.
ii) Safeguarding the Interests of the Workers:
Most of the industries try to exploit the workers to the maximum. They do not provide any benefits such as increasing their wages, granting sick leaves, giving compensation in case of accidents, etc. The workers are not made permanent even after many years of service and in some cases they are removed from service summarily. The trade unions provide security to the employees in such situations.
iii) Increasing Co-operation and Well-being among Workers:
It is in this context that the trade unions come into the picture and they promote friendliness and unity among the workers. Besides this, the trade unions also discuss the problems, which are common to all the workers. It is a platform where workers come together and know each other. The trade unions also provide some kind of entertainment and relaxation to the workers.
Iv )Establishing Contacts between the Workers and the Employers:
The trade unions play an important role in bringing to the notice of the employers the difficulties and grievances of the employees. They try to arrange face-to-face meetings and thus try to establish contacts between the employees and the employers.
ii ) strike
Money is anything that is generally accepted as a medium of exchange for making payments, settlement of debt or other business obligation prior to the introduction of money, trade by barter was in vogue
Functions of money are:
i)A medium of exchange:With money, the difficulties posed by trade by barter is eradicated
ii)A store of Value:Money is now used in storing wealth unless there is inflation, money stored or saved retain its value for money years
iii) A standard of deferred payment
As a result of its durability, one can buy a commodities now and buy with the money in future.
iv) Money encourages division of labour :With the existence of money people tend to concentrate on certain occupations and respect it production leaving other espects to other people with means of buying the commodities with money they will earn
8) Elasticity of supply is measured as the ratio of proportionate change in the quantity supplied to the proportionate change in price
i )Possibility of Substitution:
The change in supply in response to the change in price depends on the possibility of substitution of a product for others. If the market price of potato rises, resources will be shifted from there cultivation like tomato and employed in the cultivation of potato. The greater the possibility of shifting of resources to the potato cultivation, the greater is the elasticity of supply of potato.
ii )Infrastructural facilities:
The expansion of supply of a commodity also depends on the availability of productive facilities and inputs. The agricultural producer can not increase in response to the rise in price unless there is sufficient flow of fertilizers, irrigation etc. In case of industrial goods the expansion of supply is inhibited by the shortage of power, fuel and the essential raw materials.
iii )Producers response:
The elasticity of supply for a product depends on the producers’ responsiveness to the change in its price. The quantity supplied of a commodity will not change if the producers do not react positively to the increase in prices. Producers do not always increase the quantity supplied of a commodity to a rise in price.
iv )Marginal Cost:
Elasticity of supply of a commodity depends on the marginal cost of production. The elasticity of supply of a commodity would be less if the marginal cost of production goes up. In the short run, diminishing marginal returns operates as some factors are fixed. This gives rise to expansion of marginal cost of production.
7a)A tariff is a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services
i )Infant Industries
ii ) National Defense
iii ) Domestic Employment
Iv ) Aggressive Trade Practices
V ) Environmental Concerns
10a) Production is incomplete without distribution because the main aim of production is to satisfy human wants. When the link between the producers and the consumers is absent, then the aim is defected.
10b) Factors that affect the volume of production are;
I. The quantity and quality of factors of production (I.e land, labor, capital and entrepreneur). For example, amount of capital determines the labor to be hire and raw materials to be bought.
ii. The size of market: This is the extent to which the products are demand.
Iii. The nature of the product: If the goods are durable in nature, more can be produced and stored. Perishable goods have to be produced based on the ones that can be sold at that time since they cannot be stored for a long time.
iv) Availability of raw materials: This will determine the quantity of good to be produced.
v) Government policy: This has to do with the nature of economic policy of the government. The more favorable the government economic policy, the more they volume of goods to be produced and vice versa