Correct Answer: D. machinery than workers

Explanation

(a) Producers → Wholesalers → Retailer → Consumers.

b)(i) Provide warehousing facilities.

(ii) Help to finance production.

(iii) Give credit facility to the producers.

(iv) Breaking the bulk.

(v) Provide information to the producers.

(vi) Repackaging.

(vii) Providing varieties of goods.

(viii) Provide after-sales services.

(c)(i) Large number of middlemen makes distribution complex. Consumers are made to pay high prices because of profit mark-up by numerous middlemen.

(ii) Inadequate capital/credit facilities make distributive trade to be mostly on small scale.

(iii) Poor storage facilities make it difficult for distributors to even-out supply. This usually leads to high product prices at certain periods.

(iv) Hoarding of goods to create artificial scarcity.

(v) Inadequate information about existence of market for products.

(vi) Poor transport network which results in high cost of transportation.

(vii) Difference in weights and measures make product pricing difficult.

Correct Answer: D. average cost

Explanation

Average cost is directly proportional to the total cost of goods and inversely proportional to the number of goods, so average cost decreases when the number of goods increases.

Correct Answer: D. The consumer

Explanation

(a) D = TU\(_4\) = TU\(_3\) + MU\(_4\) = 42 + 12 = 54

E = TU\(_7\) = TU\(_6\) + MU\(_7\) = 75 + 0 = 75

F = MU\(_2\) = \(\frac{TU_2 - TU_1}{2 - 1}\) = \(\frac{29 - 25}{1}\) = 14

G = MU\(_5\) = \(\frac{TU_5 - TU_4}{5 - 4}\) = \(\frac{65 - 54}{1}\) = 11

H = MU\(_6\) = \(\frac{TU_2 - TU_1}{6 - 5}\) = \(\frac{75 - 65}{6 - 5}\) = 10

OR F = MU\(_2\) = TU\(_2\) - TU\(_1\) = 29 - 15 = 14

(b) To draw the demand curve there must be information on both quantities and prices. In equilibrium MU = P, therefore the marginal utility column represents prices.

(c) According to the law, marginal utility falls when quantity consumed increases

In equilibrium MU = P. Therefore, for MU to fail, price must fall to encourage the consumer to consume more. In other words, it is as price falls that quantity demanded increases as shown in the demand curve

Correct Answer: A. Collective ownership of productive resources

Explanation

(c) Indirect tax as percentage (%) of total revenue.

Indirect tax = $420m

Total Revenue - $860m

Therefore % = \(\frac{420}{860}\) x \(\frac{100}{1}\)

= 48.84%

(d) Non-tax revenue includes court fines, road tolls, grants, sales of government assets, licenses, royalties, aids, interest, dividends, rents and profit.

(e) Total revenue is $860 million.

Total expenditure is $1040 million

$860 - $1040 = - $180m

Since the total expenditure exceeds the total revenue, it is a budget deficit.

(c) Indirect tax as percentage (%) of total revenue.

Indirect tax = $420m

Total Revenue - $860m

Therefore % = \(\frac{420}{860}\) x \(\frac{100}{1}\)

= 48.84%

(d) Non-tax revenue includes court fines, road tolls, grants, sales of government assets, licenses, royalties, aids, interest, dividends, rents and profit.

(e) Total revenue is $860 million.

Total expenditure is $1040 million

$860 - $1040 = - $180m

Since the total expenditure exceeds the total revenue, it is a budget deficit.

Explanation

(a) The profit of a firm is the difference between the total revenue and total cost. Profit = TR - TC

(b)(i) Total revenue (TR) is the total amount of income generated from the sale of a firm's products.

TR = Price X Quantity sold or AR X Quantity sold.

(ii) Average revenue (AR) - This is the revenue per unit of product sold. It is also equal to the price of the firm's product.

AR = \(\frac{TR}{Q}\)

(iii) Marginal revenue (MR) - This is the addition to total revenue as an additional unit of the product is sold.

\(\frac{\DeltaTR}{\Delta}\) OR \(\frac{TR_2}{Q_2\) - \(\frac{TR_1}{Q_1\)

(iv) Average fixed cost (AFC) is the total fixed cost divided by the output.

\(\frac{TFC }{Q) = AFC.

It is the fixed cost per unit of output

Correct Answer: B. inelastic

Correct Answer: B. net national product

Explanation

Net National Product is the gross national product minus depreciation i.e NNP = GNP - Depreciation or Capital consumption allowance.