Correct Answer: B. sell its own currency

Explanation

If the naira can be valued to the point where it can compete with other foreign currencies in the foreign exchange market, the value will be high in the international market.

Explanation

(a)(i) Demand is elastic if a change in the price of a commodity results in a more than proportionate change in quantity demanded. On the other hand, demand is inelastic if a change in the price of a commodity results in a less than proportionate change in quantity demanded.

(ii) Income elasticity of demand refers to the degree of responsiveness of quantity demanded of a commodity to a change in the income of the consumer.

Cross elasticity of demand on the other hand is the degree of responsiveness of quantity demanded of one commodity to a change in the price of another commodity.

(b)(i) If the demand is elastic, an increase in price will result in a more than proportionate fall in quantity demanded. By this, the producer’s revenue will fall.

As shown in the diagram below, quantity demanded falls from 0Q1 to 0Q2 after the price increased from 0P1 to 0P2 .

TR before the price increase is area of rectangle 0P1MQ1. TR after the price increase is the area of rectangle 0P2NQ2. Clearly, 0Q1MP1 > 0Q2NP2.i.e. TR1 > TR2

TR before the price increase was the area of rectangle OP1TQ1.TR after the price increase is the area of rectangle 0P2SQ2.

Clearly 0P1TQ1<0P2SQ2.i.e. TR1 < TR2.

Correct Answer: C. Bank deposit

Correct Answer: D. High Level of Unemployment

Explanation

The following are some indicators of economic growth: GDP. Gross Domestic Product, or GDP, is the total market value of all goods and services produced by a country in a specific time period, typically a year. This includes earnings from foreign investments. Money Supply. Money supply is a representation of the total amount of money a country has in circulation. M2 is slightly more specific. CPI. Consumer Price Index, or CPI, measures changes in consumer prices, or the retail prices paid for about 80,000 specific goods and services (called the market basket) by urban consumers for a specific month. PPI. Called the Wholesale Price Index until 1978, the Producer Price Index, or PPI, measures and tracks the changes over time of the average selling price of domestically-produced goods and services. CCI Consumer Confidence Index (CCI), or what is sometimes referred to as the Consumer Confidence Survey, measures how consumers feel about the current and future economic conditions. Employment Current Employment Statistics, or CES, provide data on national employment, unemployment, and wages and earnings across all non-agricultural industries, including civilian government workers.

Correct Answer: A. Capitalist economy

Correct Answer: B. deals with purchase and sales of securities

Correct Answer: C. more public goods are provided

Correct Answer: C. rural-urban migration

Correct Answer: A. the price system

Explanation

In a free market economy, the price mechanism regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services.

Correct Answer: D. demand-pull inflation