Correct Answer: C. Opportunity cost is least

Correct Answer: B. 5.00

Explanation

The multiplier effect refers to the increase in final income arising from any new injection of spending. The size of the multiplier depends upon household's marginal decisions to spend, called the marginal propensity to consume (mpc), or to save, called the marginal propensity to save (mps). The following general formula to calculate the multiplier uses marginal propensities, as follows: 1 1 - mpc Hence, if consumers spend 0.8 and save 0.2 of every N1 of extra income, the multiplier will be: 1/ 1-0.8 = 1/0.2 = 5

Correct Answer: D. Fixed costs

Correct Answer: B. encouragement of savings, investment and equitable distribution of goods and services

Explanation

The small scale trader is important in West African countries for the following reasons:

(i) Flexibility: hours of operation and granting credit to customers can be tailored to meet the needs of customers/consumers.

(ii) There is lower level of risks.

(iii) Low overhead cost.

(iv) Some supply the needs of larger firms.

(v) Pride of ownership or joy of self-employment.

(vi) Ability to meet the peculiar needs of customers / keep variety of goods from which the customers can choose.

(vii) The small scale trader distributes goods to the very remote areas of the country.

(viii) It serves as training ground for lunching into large - scale production.

(ix)The trader supplies information to the manufacturers through the wholesalers, i.e., serves as link between the consumers and manufacturers/wholesalers.

(x) Small capital required: This ties up with the low level of income and low level of savings in West Africa.

Correct Answer: D) change of Central Bank Governor

Explanation

This question is asking which of the given options is not a measure for controlling inflation by the central bank. Inflation is the general increase in the prices of goods and services over time. It is a major concern for the central bank because of its negative effects on the economy.

Option A is open market operations. This is a monetary policy tool used by the central bank to control the money supply in the economy. It involves the buying and selling of government securities such as treasury bills in the open market. When the central bank buys government securities, it injects money into the economy, thereby increasing the money supply. Conversely, when it sells government securities, it reduces the money supply in the economy. This helps to control inflation by regulating the amount of money in circulation.

Option B is reserve requirements. This is another monetary policy tool used by the central bank to control the money supply. It involves setting a minimum amount of reserves that commercial banks must hold with the central bank. By increasing the reserve requirements, the central bank reduces the amount of money that commercial banks can lend, thereby reducing the money supply in the economy. This helps to control inflation by reducing the amount of money available to consumers to spend on goods and services.

Option C is the sale of treasury bills. This is a tool used by the central bank to borrow money from the public. The central bank issues treasury bills with a promise to pay a fixed amount of interest at a specified time in the future. By selling treasury bills, the central bank reduces the amount of money in circulation, which helps to control inflation.

Option D is the change of Central Bank Governor, and this is the correct answer to the question. Changing the Central Bank Governor is not a measure for controlling inflation by the central bank. The Central Bank Governor is the head of the central bank and is responsible for setting monetary policy. However, changing the governor alone does not directly influence inflation.

In conclusion, the correct answer to this question is option D, which is the change of Central Bank Governor. To learn more about this topic, please read the relevant sections of the recommended textbooks.

Correct Answer: C. N3.75

Correct Answer: C. opportunity cost

Correct Answer: D. external economies of scale

Correct Answer: D. closeness of the substitutes