Correct Answer: D. Statutory corporations

Explanation

(a) Es = \(\frac{% change in quantity supplied}{% change in price}\)

% change in quantity = \(\frac{\Delta q}{q}\) x 100

= \(\frac{150 -100}{100}\) x 100

= \(\frac{50}{100}\) x 100

= 50%

% change in price = \(\frac{\Delta P}{P}\) x 100

= \(\frac{40-30}{30}\) x 100

= \(\frac{10}{30}\) x 100

= 33.3%

Es = \(\frac{50%}{33.3%}\) = 1.5

(b) The supply of rice is elastic. The coefficient of price elasticity of supply is greater than 1

(c) Factors that can cause an increase in the supplyof rice:

(i) Improvement in technology

(ii) Favourable weather condition

(iii) Increase in the number of producers or importers of rice.

(iv) Reduction in taxation which stimulates production or Importation of rice.

(v) Fall in the prices of of other commodities

(vi) Increase in subsidies

(vii) Reduction in the price of inputs

Correct Answer: B. a variable cost

Correct Answer: B. mortgage banks

Explanation

This question is a little bit tricky to answer because out of the 4 options provided only one is not a participant in the (Nigeria) money market and that is the mortgage banks because mortgage loans are usually not in short term of say 13months which makes it not fit into the money market characterised by short term loans. The central bank, Money deposit bank and insurance companies are all participant of the money market because they offer short term loans.

Correct Answer: B. shift in the demand curve

Explanation

A normal good is a good that experiences an increase in its demand due to a rise in consumers' income. In other words, if there's an increase in wages, demand for normal goods increases while conversely, a wage decline leads to a reduction in demand. From the above option, B is correct. A shift in the demand curve happens when other determinants of demand apart from price cause demand to change

Correct Answer: D. oligopsony

Explanation

An oligopsony is a market situation where there are a few buyers and a small number of sellers. It is the opposite of oligopoly

Correct Answer: D. net income from abroad

Correct Answer: C. Scarcity of resources

Explanation

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Correct Answer: C. pensions

Explanation

Examples of transfer payments include welfare, financial aid, social security, and government making subsidies for certain businesses.

Correct Answer: B. law of diminishing returns

Explanation

Law of diminishing returns also known as law of variable proportion is used to determine. The shape of the PPF.