Correct Answer: B. finance both producers and retailers

Explanation

Wholesalers either take title to the goods they purchase, or they own the goods they purchase. If there is a significant change in the value of the products between the time of the purchase from the producer and the sale to the retailer, the wholesaler will absorb that profit or loss.

Explanation

Economic activities that are likely to improve the effective distribution and marketing of commodities in Nigeria include:

(i) Establishment of more market places in the rural areas

(ii) Encouragement of co-operative societies which assist in distribution

(iii) Establishment of a national supply company

(iv) Construction of roads in the rural areas

(v) Provision of adequate storage facilities so that all goods produced are not taken to the market at once

(vi) Reducing the number of middlemen

(vii) Establishment of various marketing boards to handle distribution of certain agricultural products

(viii) Improving the communication system in order to provide adequate information about the market situations to buyers and sellers.

Correct Answer: A. a decrease in national income

Correct Answer: D. as price falls, quantity demanded increases

Correct Answer: B. cost of production of each of the traded goods

Correct Answer: C. net factor income from abroad

Explanation

(a) An industry is a group of related firms classified according to the type of goods and services produced OR it is a group of fims producing similar commodities or offering similar senvices.

(b) i. Division of labor is the breaking down of a production process into different stages such that each part is handled by a particular individual, unit, or department.

ii. Economies of scale are the internal and external cost-saving benefits that accrue to a firm as it expands in size.

(c) i. Marketing economies: Larger firms can buy inputs in bulk and enjoy discount and also employ an efficient and well organised marketing strategy and also afford to advertise more.

ii. Risk-bearing economies: Larger firms can diversify their products so that they will not suffer undulty if one line of production becomes unprofitable.

iii. Financial economies: larger firms can easily access loans from banks and other financial institutions at lower interest rates because they have collateral and are more credit worthy.

iv. Technical economies: As a firm expands the size, it can aftord advances technology and sophistiIcated plants and machinery, leading to increased output at a lower unit cost.

v. Managerial economies: Larger firms can employ well-qualified and competent personnel to supervise various departments.

vi. Welfare economies: Largerfims can provMde better packages foremploy ees to boost their morale, e.g. subsidised housing, canteen serices, etc.

vii. Research and developmemnt economies: Larger firms have the resources to set up their own research departments or units which promote innovation and inventions.

Correct Answer: D. utility can only be ranked

Correct Answer: D. Borrowers tends to gain

Correct Answer: D. Reduce the supply of money