Explanation

(a)Objectives of African Development Bank

(i) To finance projects aimed at promoting the socio-economic development of African Countries.

(ii) To aid mobilization of funds from within and outside the content.

(iii) To participate in selecting projects for member nations to ensure their orderly development.

(iv) To undertake activities and provide services aimed at improving the welfare of the African people

(v) To provide technical assistance to African nations in areas of project appraise, finance and execution.

(b)Achievements of the African Development Bank

(i) African Development Bank has granted loans to member nations since its inception. The loans are for the development of agriculture, water supply, rural infra-structure and industry.

(ii) It has helped to mobilize funds from within and out-side the continent.

(iii) It has involved itself in activities that help to improve the welfare of African people, provision of basic amenities and reduction of unemployment.

(iv) It has provided technical assistance to African nations in technical areas.

Correct Answer: A. ratio of the dependent to the working group

Correct Answer: A. pure monopoly

Correct Answer: C) firm

Explanation

This Economics question is asking about the shape of curves in a perfectly competitive market. The options are about the shape of the demand and supply curves.

In a perfectly competitive market, there are many buyers and sellers who are all selling identical products, and there are no barriers to entry or exit. This means that no individual seller or buyer has any control over the market price.

The correct answer to this question is Option C: firm

Explanation

(a) i. Equilibrium output is 50kg and equilibrium price is $20.00.

(ii) Firm's profit = TR-TC

TR = 50kg x $20.00 = $1000.00

TC = 50kg x $12.00 = $600.00

= $1000.00-$600.00

Profit = $400.00

OR

Profit = (AR- AC) x Q

= ($20.00-$12.00) x 50

= $8.00x 50

= $400.00

(iii) Abnormal/economic/supernormal profit: This is because the profit is earned at a point where the price (AR) is greater than AC.

(b) The average revenue function is horizontal because, in perfect competition, AR which is also the price is constant/fixed.

(c) i. When MC is less than ATC, ATC is falling

(ii) When MC is equal to ATC, ATC is at its minimum.

(iii) When MC is greater than ATC, ATC s rising

Correct Answer: D. selling new ordinary shares to the general public

Explanation

TC = AC x Output

a = output 3

TC = AC x output = 6 x 3

TC = 18

b = TC = 6 x 5

TC = 30

c = AC = \(\frac{TC}{output}\) = \(\fracfrac{14}{7}\) = 2

d = AC = \(\frac{20}{4}\) =5

e = \(\frac{48}{4}\) = 8

f = MC at output 2

TC2 -TC = 14 - 8 = 6

g. MC at output 3 = 18 - 14 = 4

h MC at output 4 =20 -18 = 2

i MC at output 5 = 30 - 20 = 10

j. MC at output 6 = 48 - 30 = 18

(a) output 4 units,

( b) output 4 units ,

(c) output 5 units,

(d) output 5 units

(e) maximum output is 6 units

Explanation

(a) Cocoa:117 x72,000= 117 x 200 = 23,400 tonnes

360 1

Rubber:96x72,000= 19,200 tonnes

360 1

Beans:50x72,000= 10,000 tonnes

360 1

Cotton:42x72,000= 8,400 tonnes

360 1

Rice:55x72,000= 11,000 tonnes

360 1.

(b) (I) Quantity by which the export crops is greater than the food crops:

export crops = 23,400 + 19,200 + 8,400 = 51,000

food crops = 10,000 + 11,000 = 21,000

Difference = 51,000 - 21,000 = 30,000 tonnes.

(ii) Cotton contributed the least by 8,400 tonnes

(iii) Cocoa has the highest output.

Correct Answer: B. Government is able to participate and control the operation of the privatized businesses

Explanation

GDP is the total money value of all final goods and services produced within the geographical boundaries of the country during a year. This is calculated at market prices and is known as GDP at market prices. GDP is used to measure the rate of growth in an economy. Exports are included in the GDP while imports are excluded. GDP is calculated as:

GDP = GNP - Net Income from abroad

Where: net income from abroad is the difference between exports and imports i.e. (X M and it is also known as Net factor income from abroad net foreign investment net property income from abroad.

GDP = NDP + Depreciation

GDP = C + I+ G

Where C = Consumption, I = Investment and G = Government expenditure

b.

Output Approach Also known as value added basis. In this method national income is measured in terms of the monetary value of goods and services produced in the country i.e the value of output (Sales) less cost of inputs. It measures national output called gross domestic products in terms of the values added by each of the sectors of the economy.

The outputs can be grouped into certain product categories corresponding to industries or to sectors such as the primary sector, secondary sector and the tertiary sector. When the output approach is used, one problem arises. This is known as the problem of double counting. It arises due to the fact that the industry's output is often the input of another industry. This is why when we add up the values of all sales, the same output is counted again and again as it sold by one firm to another. This problem is avoided by using the concept of value added which is the difference between output value and input at each stage of production.

c.

- No accurate records for expenditure are kept especially in the private sector

- expenditure for the subsistence sector can only be mere approximations are due to lack of records in the sector

- differentiating between final expenditure and intermediate expenditure may be difficult

- it suffers the problem of double counting

- fluctuating exchange rates may pose challenges especially in valuation of exports and imports.