Correct Answer: C) Marginal propensity to consume

Explanation

The question is asking about a consumption function that calculates how much people will spend on goods and services based on their income. The function is in the form c = a + bY, where c is the amount spent, a is a constant, Y is the national income, and b is a parameter that we need to identify.

We are given four options to choose from, and we need to select the correct one. Option A is the marginal benefit of consumption, option B is the marginal propensity to purchase, option C is the marginal propensity to consume, and option D is the marginal propensity to save.

The correct answer is option C, the marginal propensity to consume. This parameter represents the proportion of additional income that people will spend on consumption. In other words, it shows how much of a change in income will result in a change in spending.

It is important to note that the marginal propensity to save is the opposite of the marginal propensity to consume. It represents the proportion of additional income that people will save instead of spending.

Understanding these concepts is important for analyzing the impact of changes in income on consumption and saving patterns, which can have significant effects on the overall economy.

Correct Answer: B. guarantee full employment of resources

Correct Answer: B. agricultural production

Correct Answer: B. N4,000 000.00

Correct Answer: B. inadequate supply of farm inputs

Explanation

Farm inputs are the resources that are used in farm production, such as chemicals, equipment, feed, seed, and energy. One of the problems faced by the agricultural sector is the lack of these farm inputs that fast track crop production.

Correct Answer: D. \(\frac{\text{Index of export prices}}{\text{Index of import prices}}\) x 100

Correct Answer: D. double counting

Explanation

In national income, double counting happens when certain items are counted more than once resulting in over-estimation of national product to the extent of the value of intermediate goods included. This is called the problem of double counting which means counting value of the same commodity more than once.

Correct Answer: D. consumer responsiveness to price changes

Correct Answer: C. assits in the creation of utility

Correct Answer: C. the price of the commodity

Explanation

Some of the factors that may cause a change in supply include; changes in the costs of production, improvements in technology, taxes, subsidies, weather conditions, health of livestock, and also by the price of other products. The price of the commodity itself does not affect the change in supply, but rather it affects the change in the quantity supplied.