Correct Answer: D. security markets

Correct Answer: D. transfer of goods and services from production centre to consumers

Correct Answer: C. consumption

Explanation

Utility in economics refers to the total satisfaction received from consuming a good or service.

Correct Answer: D. N46m

Correct Answer: C. population growth rate and natural resources

Explanation

The Malthusian Theory of Population is the theory of exponential population growth and arithmetic food supply growth.

Explanation

(a) Unemployment can be defined as a situation where those who are capable and willing to work cannot find jobs.

(b) Types of Unemployment are:

(i) Frictional unemployment: It arises when able bodied people are temporarily out of work due to lack of information about existing employment opportunities somewhere else, or time consumed in changing jobs.

(ii) Cyclical unemployment: This is unemployment attributed to the deflationary phase of a business cycle. It is caused by a general decline in the demand for goods and services.

(iii) Structural unemployment:This type of unemployment arises when there is a change in the industrial structures of a country or technological progress whereby some types of labour/services become irrelevant in production process.

(iv) Seasonal unemployment: Demand for some labour services exists only during certain season, e.g. farming during rainy season while demand for labour in road construction exists only during dry season.

(v) Disguised unemployment: This is a situation when manpower or any other factor of production is not efficiently utilized. (vi) Residual unemployment: This refers to the unemployable, e.g. handicaps.

Correct Answer: D. W + P + R + Z

Correct Answer: A. legal reserved ratio

Correct Answer: C. buying and selling of government securities by the central banks

Explanation

(a)A slow but steady rise in the prices of goods and services in general is known as creeping inflation. On the other hand, when the rise in the prices of goods and services in general is persistent and rapid, it is known as hyper-inflation.

(b) Negative effects of inflation:

(i) it discourages savings

(ii) it discourages production and encourages buying and selling

(iii) fixed income earners suffer

(iv) the value of money falls

(v) standard of living falls

(vi) it makes planning difficult e.g. Government proposed expenditure is increased

(vii) it causes balance of payments prob-lems.

(c) Some of the ways in which the government can control inflation are:

(i)government can use contractionary monetary policies to reduce money supply in order to reduce aggregate demand;

(ii) Government can use fiscal policy (tax policy) to reduce household and business incomes in order to reduce aggregate demand.

(iii) Government can reduce its expenditure in order to reduce aggregate demand.

(iv) Government can budget for a surplus and so reduce aggregate demand.

(v) Government can grant subsidies to producers to increase production.

(vi) Government can discourage importation from countries suffer-ing from inflation.

(vii) Government can improve infrastructure to stimulate production.