Correct Answer: D. Gold

Correct Answer: D. dividends

Correct Answer: D. constant returns to scale

Explanation

Countries measure their national incomes for various reasons which include:

(i) It gives an indication of the standard of living of the country through the measure of per capita income.

(ii) It helps the country to determine the growth rate of the economy.

(iii) The national income figure determines the country's contribution to international organisation.

(iv) The per capita income which is obtained from the national income estimate is used to compare the standard of living with other countries

(v) The national income estimate is vital for economic policy and planning.

(vi) Measured through the output approach, it enables the country to know the performance of the various sectors of the economy.

(vii) The national income data gives an idea of the pattern of expenditure of households.

Correct Answer: B. sustained increase in the output of goods and services per head

Correct Answer: A. they are highly subsidize

Correct Answer: A. aggregate supply

Correct Answer: C. consume more of commodity X

Explanation

A rational consumer should consume more of commodity X when the marginal utility from the consumption of commodity X (Mux) is greater than the price commodity X (Px). This is because the consumer is getting more satisfaction from consuming each additional unit of commodity X than they are paying for it. As a result, the consumer should continue to consume more of the commodity until the marginal utility is equal to the price.

Correct Answer: D. similarity of products and production processes

Explanation

a. Location of industry may be defined as the sitting or establishment of a firm or industry in a particular place. An industry may be established either by individuals or government, either for economic or political reasons.

bi. Cement producing industries should be located close to sources of raw materials to reduce cost of transportation. Perishable goods like fruits, palm oil industries, etc should be located near their raw materials.

bii. There should be ready market for the products of any industry to be sited in a place. Fragile goods like glass, bulky goods like cement and other perishable goods should be located near the market. Such industries located or directed towards the market are called market-oriented industries.

biii. Government can encourage the location of industries through certain policies like: direct participation in setting up of industries. Creation of industrial zones in the country, provision of infrastructures like electricity, pipe-borne water, roads and tele-communications.

c.

- It encourages development: the growth of industries leads to an increase in production of goods and services.

- Emergence of subsidiary firms: as major firms concentrate in one area, other subsidiary service firms that assist those major firms in the production of goods usually emerge.

- Generation of employment: the concentration of many industries in an area leads to the creation of many job opportunities.