Explanation

(a)(i) Scale of Preference is a tool for the arrangement of wants in order of priority.

(ii) It also enables individuals, firms and government to make rational choices in the list of wants.

(iii) It facilitates optimum allocation of resources.

(iv) It enables economic agents to maximize their satisfaction.

(b) Opportunity cost is the real cost. It is the alternative forgone. e.g. if a car is purchased instead of erecting a building, the opportunity cost is the building forgone.

(c)(i) The opportunity cost is the pair of shoe, which is the forgone alternative

(ii) The opportunity cost is the maize that could have realized 25,000.00

Correct Answer: C. 46

Explanation

a) Labour force = (30 + 37 + 19 + 12.2 + 16.1 + 10.8 + 15.6 + 19 + 10.3) million = 170 million

b) (i) Primary sector = \(\frac {16.1 + 10.8 + 15.6 \times {100}} {170 \text {million}}\) = \(\frac {42.5} {170} \times {100}\) = 25%

(ii) Secondary sector = \(\frac {30 + 19 + 19 \times {100}} {170 \text {million}}\) = \(\frac {68} {170} \times {100}\) = 40%

(iii) Tertiary sector = \(\frac {37 + 12.2 + 10.3 \times {100}} {170 \text {million}}\) = \(\frac {59.5} {170} \times {100}\) = 35%

c) Mining : Shoe production = 16.1 : 30 or \(\frac {16.1} {30}\)

d) \(\frac{\text { Workers in warehousing X 100}}{\text {size of entire labour force}} = \frac {12.2 million \times 100}{170 million}\) = 7.17% or 7.2%

e)i. It is an advanced / developed / industrialized economy.

ii. Majority of the labor force ( which makes up 75%) is engaged in the secondary and tertiary sectors (that is 40% and 35% respectively).

Correct Answer: A) Industry is the group of firms producing related products

Explanation

In Economics, a firm is a business organization that produces goods or services to sell in the market. An industry, on the other hand, is a group of firms that produce similar or related products. The main difference between a firm and an industry is that a firm is a single business entity, while an industry is a group of firms.

Now, let's look at the given options for the main difference between a firm and an industry. Option A states that an industry is the group of firms producing related products, and this is correct. This means that there are several firms producing similar or related products within an industry. For example, the automobile industry comprises several firms that produce cars and other related products.

Option B states that an industry is the group of firms in the manufacturing sector. This is not entirely accurate because there are industries that are not in the manufacturing sector. For instance, the service industry includes firms that provide services such as banking, insurance, and telecommunications.

Option C states that an industry is the group of firms in different sectors of the economy. This is also inaccurate because an industry is a group of firms in the same sector of the economy, not different sectors.

Option D states that an industry is the group of firms with a single pressure group. This is not correct because the pressure group is not a defining characteristic of an industry.

Therefore, the correct answer is Option A, which states that an industry is the group of firms producing related products.

Correct Answer: B. marginal cost

Correct Answer: B. interaction of the force of demand and supply

Correct Answer: B. A decrease in supply.

Explanation

A leftward or an inward shift in the supply curve means a decrease in supply. When the supply curve shifts to the left, it causes prices to rise and the quantity to decrease

Correct Answer: A. The Central Bank of Nigeria

Correct Answer: D. inadequate means of transportation

Explanation

(a) Small scale production involves small capital outlay and therefore results in low level of output. On the other hand, large scale production involves a large scale capital outlay and therefore results in high level of output.

(b)Some of the internal economies of large scale production are :

(i) technical economies: a large firm has the advantage in the use of factor inputs which results in lower cost per unit of output.

(ii)financial economies: a large scale producer can borrow money from financial institutions at lower interest rate because it can offer better collateral security.

(iii)marketing economies: a large firm can buy inputs in bulk and possibly at discounts. It can also pay less on transportation and advertisement which result in lower operating cost.

(iv)managerial economies: when output is increasing, managerial cost increases at a slower rate. Number of managerial staff may increase with output. OR As output increases, specialists can be employed to take charge of the various processes e.g. marketing.

(v) risk-bearing economies: a large firm is able to bear losses arising from its operations as it can provide insurance coverage. OR It can also diversify its product and its market.

(vi)welfare economies: a large firm can provide better conditions of service which may enhance the level of productivity and also attract highly qualified manpower.

(vii) research economies: a large firm can invest huge amount on research and thereby experience technical progress.