Correct Answer: D. N2,100

Explanation

Reasons why the use of money has replaced the barter system in modern economic transactions:

(i) Barter makes specialization of labour to be limited because barter system encourages self sufficiency.

(ii) Prob-lem of the determination of the rate of exchange between two commodities

(iii) Problem of coincidence of wants: It is difficult to find one who has what you want and wants what you have.

(iv) Many goods cannot be divided into convenient sizes because of their bulkiness and indivisibility.

(v) Barter makes the question of deferred payment difficult because it is not possible to guarantee that the item paid back will be of identical size, state and quantity as the one borrowed.

(vi) The difficulty of storing wealth or value especially where the form of exchange is perishable e.g. oranges, yams etc.

Explanation

With demand function Qd = 12 - 2p the table is completed as follows:

(a)

Qd = 12 - 2p

when p = 6

Qd = 12 - (2 x 6)

= 12 - 12 = 0

Qd = 12 - 2p

when p = 5

Qd = 12 - (2 x 5)

= 12 - 10 = 2

Qd = 12 - 2p

when p = 4

Qd = 12 - (2 x 4)

= 12 - 8 = 4

Qd = 12 - 2p

when p = 3

Qd = 12 - (2 x 3)

= 12 - 6 = 6

Qd = 12 - 2p

when p = 2

Qd = 12 - (2 x 2)

= 12 - 4 = 8

Qd= 12 - 2p

when p = 1

Qd = 12 - (2 x 1)

= 12 - 2 = 10

(b) The individual's demand curve

(c) 12

(d) Inverse, i.e., the higher the price, the lower the quantity demanded Or the lower the price the higher the quantity demanded.

Correct Answer: C. the NNPC and producer marketers

Correct Answer: B. supply of kerosene will rise

Explanation

If the supply of petrol increases, the supply of kerosene will rise. This is because petrol and kerosene are jointly supplied, meaning that they are produced from the same source. When the supply of petrol increases, it means that there is more crude oil available to be used to produce kerosene. As a result, the supply of kerosene will also increase.

The cost of crude oil production has no bearing on the supply of kerosene. The cost of production will only affect the supply of kerosene if it becomes too expensive to produce kerosene. However, in this case, the supply of kerosene would fall, not rise.

Explanation

(a)Indigenisation policy; is a deliberate effort of the government to enable the indigenes of a country to have more participation in the economy of their own country. It is a way of reducing the power of control of the economy by foreigners in a country.

(b) Localization of industry; is the concentration of different firms of a particular industry producing similar goods and services in a particular area

(c) Economies of scale; are the internal or external advantages firms enjoy as they grow in size. Internal Economies are the advantages firms enjoy from operating on a large scale, e.g. technical, market, financial, managerial, etc. External economies are the advantages a firm enjoys from its location, closeness and association with other firms.

(d) National budget; is an estimated revenue and expenditure of government during a particular period of time, usually one year. A budget could be a surplus, deficit or balanced budget.

Correct Answer: B) Total product begins to fall

Explanation

The law of diminishing returns is a concept in economics that explains what happens when additional resources are added to production. This law states that after a certain point, adding more resources will lead to smaller increases in output. The question is asking when this law begins to operate.

The options are:

- Total product begins to rise

- Total product begins to fall

- Marginal product begins to rise

- Marginal product begins to fall

The correct answer is Option B: Total product begins to fall. This means that when additional resources are added to production, the total output will begin to decrease instead of increasing after a certain point. This is due to the fact that the marginal product of each additional resource starts to decrease.

For example, let's say a factory has 10 workers and produces 100 units of a product per day. If the factory hires 5 additional workers, they may be able to produce 50 more units, making the total output 150. However, if the factory hires another 5 workers, they may only be able to produce 30 more units, making the total output 180. At this point, the law of diminishing returns is starting to take effect because the additional resources are not resulting in the same level of output increases.

It is important to note that this law only applies in the short run and assumes that some factors of production are fixed. In the long run, all factors of production can be adjusted, so the law of diminishing returns may not be as relevant.

To learn more about this, please read the relevant sections of the recommended textbooks.

Correct Answer: B. marginal utility must fall

Correct Answer: A. Cement and steel

Explanation

Intermediate goods are products that are used in the production process to make other goods or further production. Cement and steel from option A above are examples of intermediate goods, as they are used in building and construction

Correct Answer: A. totally by the consumer