Correct Answer: C. generation of revenue for government

Correct Answer: D. become experts in all areas of production

Explanation

Division of labour is the separation of tasks in any system so that people can specialize in their various fields of expertise Division of labour leads to specialization where people can concentrate on task they perform better than others.

Correct Answer: D. increase productivity

Correct Answer: A. fully and efficiently utilized

Explanation

(a) Competitive supply is when two or more products are produced using the same resources such that an increase in the production of one leads to a reduction in the supply of the other.

(b) A supply schedule is a table showing the various prices and quantities of a commodity which sellers are willing to offer for sale at a given period.

While a supply curve is a graphical representation of various quantities of a commodity which sellers are willing to offer for sale at various prices.

Price.

(c)(i) An improvement in technology would raise the productivity of inputs and increase production, all things being equal. As production increases, supply would increase. (ii)A rise in input prices would increase the cost of production. All things being equal, production would decrease and supply would decrease.

(iii) A rise in the prices of other commodities would make their production more profitable, all things being equal. As a result, resources would shift into the production of these commodities and decrease the production and supply of the other commodity.

(iv) An increase in government subsidies on production will reduce the cost of production which will lead to an increase in the production and supply of product.

Correct Answer: A. Technology, weather and population

Correct Answer: B. N380m

Explanation

(a) Labour as a factor of production can be defined as the human effort used in production. It attracts usually some form of reward, for example, payment of wages and salaries.

(b) The characteristics of Labour are:

(i) Labour is mobile: Labour is mobile both geographically (from one place to the other) and occupationally (from one job to the other).

(ii) Skillful: Labour becomes skillful through education and training.

(iii) Labour controls and combines all other factors of production to make them more meaningful to the society.

(iv) Labour is perishable: Knowledge can diminish over time as a result of continued unemployment, under-employment, age and death.

(v) Labour can act on its own initiative.

Correct Answer:

Explanation

(a) Direct taxation refers to taxes on incomes and properties of individuals and organizations e.g. personal income tax, profit tax. On the other hand, indirect taxation refers to taxes on goods and services e.g. excise duties, custom duties etc.

(b)(i) In developing countries where incomes are generally low, indirect taxes yield more revenue to the government.

(ii) where unemployment is high, indirect taxes yield more revenue.

(iii) it is cheap and easy to collect, e.g. custom duties.

(iv) it has a wider coverage to collect, e.g. custom duties

(v) it is not easy to evade. Consumers pay as they consume the commodities

(vi) it is not a disincentive to work.

(vii) it used to discourage consumption of harmful goods.

(viii) it used to protect infant industries.

(ix) it used to correct balance of payments deficit.

(x) it used to prevent dumping.

Correct Answer: C. satisfy the domestic consumption of petroleum products