Correct Answer: B. Leads to a fall in price from OP 1 to OP 2

Explanation

(a) The causes of declining population include following;

(i) A fall or decrease in birth rate, due to .decreasing population, birth control, late marriages.

(ii) A rise or increase in the death rate of the young on through epidemic, natural disasters, poor medical facilities, low standard of living etc; ie. high infant mortality

(iii) Emigration of the youths can also lead to declining population.

(b) Factors affecting the size of the working population are the:

(i) Size of the total population, may affect the size of the Working population.

(ii) School-leaving age, also affect, if it is higher, the number of the total workforce.

(iii) Age of retirement, can affect the size. If it is lower, so many people will retire early.

(iv) Number of sick people of working age can drastically reduce workforce, if they are on the increase.

(v) Number of women who decide to work, due to custom like purdah and education.

(vi) Number of people who decide to study beyond the school leaving age.

(vii) The number of people who retire early will create job vacuum, leading to lean workforce.

(viii) Statutory age of entry also affects he size of the work-ing population. If it is lower, many will qualify to work, but if it is raised, it will reduce the number of those available to work.

(ix) Net migration is capable of impacting on the size, if emigration is more than immigration, it will reduce the workforce in the country.

Explanation

National income can be defined as the sum total of the money value of all the goods and services produced in a country within a specific period of time, usually a year. In other words it is the sum total of all the incomes received by the factors of production within a period of time.

(i) National income statistics assists the government in planning economic development. Successful planning re-quires fairly accurate figures upon which decisions can be based.

(ii) Average per capita income can easily be obtained if the national income is known.

(iii) National income statistics are used to indicate the overall standard of living of the people. The larger the size of income, the higher the standard of living of the people, provided that the income is equitably distributed.

(iv) The data gathered on people's expenditures, incomes and outputs will put investors in a position to know whether it is worth investing their capital in the country or not.

(v) National income estimates are used to compare the living standards of different countries. This is done on the basis of average income per head.

(vi) National income statistics also give vital information about the different sectors of the economy, their rate of growth, their needs for resource allocation.

(vii) National income figure can show at a glance whether or not the country's economy is growing from year to year and at what rate.

(viii) National income statistics will indicate areas of greatest needs in terms of resources allocations and appropriate measures will be taken to correct the imbalance.

Correct Answer: A. savings

Correct Answer: B. competitive demand

Explanation

competitive demand is a market situation where a prospective buyer could choose between two competing products and still receive roughly the same level of satisfaction. The selection of one product which are normally substitutes would lead to the exclusion of the other product. Example if mr X intends to buy detergent, he can either choose to buy omo or sunlight detergent but not the two. Choosing between these two alternatives is what is referred to as competitive demand.

Explanation

(a) Production possibility curve may be defined as a diagram or graph showing the possible combinations of two commodities that can be produced given a particular amount of resources and level of technology in an economy, within a given period of time.

(b)

P - Resources are fully utilized

U - Resources are under utilized

X - Production is not feasible

(c) (i) An increase in the supply of productive resources e.g. factor inputs, money, time etc.

(ii) Technical progress: improvement in technology through research and development.

(iii) When productive resources are reallocated to the production of the capital goods as against consumer goods.

(iv) Introduction of new ideas or methods.

(v) Human capital development through training and retraining.

(d) The production possibility curve has a negative slope because it illustrates that there is opportunity cost involved in the production of more of one of the commodities.

(a) Production possibility curve may be defined as a diagram or graph showing the possible combinations of two commodities that can be produced given a particular amount of resources and level of technology in an economy, within a given period of time.

(b)

P - Resources are fully utilized

U - Resources are under utilized

X - Production is not feasible

(c) (i) An increase in the supply of productive resources e.g. factor inputs, money, time etc.

(ii) Technical progress: improvement in technology through research and development.

(iii) When productive resources are reallocated to the production of the capital goods as against consumer goods.

(iv) Introduction of new ideas or methods.

(v) Human capital development through training and retraining.

(d) The production possibility curve has a negative slope because it illustrates that there is opportunity cost involved in the production of more of one of the commodities.

Correct Answer: D. socialist economy

Explanation

Collectivism is a political-economic theory that advocates for a collective control of resources, especially over production and distribution. It is the opposite of individualism which seeks individual ownership of production factors It is associated with socialism which advocates for collective ownership of resources, rather than by individuals.

Correct Answer: B. U-shaped curve cutting the total cost curve at its lowest point

Correct Answer: D. abnormal demand

Correct Answer: C. frictional unemployment

Explanation

Frictional unemployment arises when a person is in between jobs. It is also a sort of unemployment where job seekers search for jobs while the jobs seek the employees or workers.