Correct Answer: C. Members of the ECOWAS community can form cartel and create monopolies

Explanation

The Economic Community of West African States (ECOWAS) is a regional organization of 15 West African countries established on 28 May 1975. Its main goal is the promotion of the economic integration among its members. Indeed, ECOWAS is one the five regional pillars of the African Economic Community (AEC). ECOWAS has three official languages: English, French, and Portuguese. Members producing the same or identical goods can form cartel or monopolies and obtain better bargaining or deals from other countries outside its membership

Correct Answer: C. deflation

Correct Answer: A. price level

Explanation

The prevailing price level is one of the major factors that affect the value of money. A rise or decline in prices of goods and services has a direct effect on the value of money

Correct Answer: D. Income of the consumers

Explanation

The Proportion of Consumer’s Income Spent: An important determinant of the elasticity of demand is how much it accounts for in a consumer’s budget. In other words, the proportion of a consumer’s income spent on a particular commodity also influences the elasticity of demand for it. The greater the proportion of income spent on a commodity, the greater will be generally its elasticity of demand, and vice versa.

Correct Answer: C) reduce price when demand is elastic

Explanation

This Economics question is asking which of the following options will benefit a producer who wants to maximize profit. The options are A, B, C, and D. Option A suggests reducing the price when demand is inelastic. Option B suggests increasing the price when demand is elastic. Option C suggests reducing the price when demand is elastic, and this is the correct answer. Option D suggests fixing the price of a commodity based on the price of other producers.

To understand the answer, we need to first define demand elasticity. Demand elasticity is a measure of how much the quantity demanded of a good or service changes in response to a change in its price. When demand is elastic, a small change in price leads to a larger change in the quantity demanded. When demand is inelastic, a change in price leads to a smaller change in the quantity demanded.

A producer who wants to maximize profit can do so by finding the price that will result in the greatest difference between revenue and cost. This price is found at the point where marginal revenue equals marginal cost. Marginal revenue is the additional revenue earned from selling one more unit of a product, while marginal cost is the additional cost incurred from producing one more unit of a product.

Option C, which is reducing the price when demand is elastic, would benefit a producer who wants to maximize profit because it would lead to an increase in the quantity demanded. This increase in quantity demanded would lead to an increase in revenue, which would outweigh the decrease in price. As a result, the producer would earn more profit.

Option A, which is reducing the price when demand is inelastic, may not benefit a producer who wants to maximize profit because the decrease in price would not lead to a significant increase in the quantity demanded. Option B, which is increasing the price when demand is elastic, may not benefit a producer who wants to maximize profit because the increase in price would lead to a decrease in the quantity demanded. Option D, which is fixing the price of a commodity based on the price of other producers, may not benefit a producer who wants to maximize profit because it may not reflect the cost of producing the commodity.

In summary, reducing the price when demand is elastic will benefit a producer who wants to maximize profit. This is because it would lead to an increase in the quantity demanded and an increase in revenue, which would outweigh the decrease in price.

Correct Answer: C. wage increase is granted without an increase in productivity

Explanation

If salaries and wages are increased without a corresponding increase in production, it will lead to inflation. This is so because they will be excess money chasing few the goods that are available in the market.

Correct Answer: B. decision making

Explanation

(a) Gross national income is the money value of all final goods and services produced in an economy in a given period plus net income from abroad.

(b)(i) Personal income is the amount earned by an individual for taking part in the production of goods and services either by him or his property e.g. wages, interest, rent and profit. Disposable income on the other hand is what individuals have to spend after personal income tax has been deducted from their personal income i.e. disposable income equals personal income less personal income tax.

(ii) Nominal income is the value of all goods and services produced expressed in terms of current money income received from their production. Real income on the other hand is nominal income expressed in terms of what it can buy. It is the nominal income deflated by the price level.

(c)(i) It is used for economic planning.

(ii) It is used as a basis for aids and grants from other countries.

(iii) It is useful in the calculation of per capita income.

(iv) It is used for international comparison of standard of living.

(v) It allows for sectoral comparison.

(vi) It allows for inter temporal comparison.

(vii) It influences foreign investments.

(viii) It is used as a basis for contribution to international organizations.

(ix) It is used to measure the level of economic performance i.e. whether the economy is growing or not.

Correct Answer: D. ratio of index of export prices to index of import prices

Correct Answer: A. allocate scarce resources among competing uses