Correct Answer: D. engage in restrictive monetary policies

Explanation

Governments can use a contractionary monetary policy to fight inflation by reducing the money supply within an economy through reduced bond prices and increased interest rates.

Correct Answer: C. reduce the disposable income

Correct Answer: B. gross profit

Explanation

(a)Reasons for the domination of agricultural production by small scale farming in my country are as follows:

(i) Use of simple implements. Farmers still use crude implements such as cutlass, hoe, etc. for farming.

(ii) Poor marketing facilities, fluctuation in prices of the commodities and the existence of many middlemen reduce actual income that accrue to farmers.

(iii) Poor transport and communication systems that should link the producing centers to the consuming areas.

(iv) Problem of storage. Only a few agricultural crops can be stored for a long time under the hot climate without perishing.

(v) Poor technical knowledge. The farmers lack modern skills and techniques to raise the standard of farming and agricultural production.

(vi) Land tenure system which results in land fragmentation contribute. to keep agriculture small-scaled.

(vii) Absence of able-bodied youths because of rural-urban drift.

(viii) Climatic factors-low rainfall.

(ix) Illiteracy and ignorance.

(x) Inadequate capital for farmers to expand their farms.

(b)(i) Provision of capital for expansion of farms on a large scale.

(ii) Expansion of market — forging a link between agriculture and manufacturing industries.

(iii) Use of modern equipment e.g. tractors, harvesters, etc.

(iv) Development of transportation / communication facilities and other social infrastructure.

(v) Construction of silos to store extra products during bumper harvests.

(vi) Control of pests and diseases.

(vii) Provision of extension services and dissemination of research findings.

(viii) Review of land tenure system by the government.

(ix) Irrigation schemes to make all year round farming possible to support large scale production.

Correct Answer: A. factory unemployment

Explanation

There are three main types of unemployment: structural, frictional, and cyclical. The first two make up the natural unemployment rate.

Correct Answer: D. unemployment

Explanation

(a) Price elasticity of demand means the degree of responsiveness of demand to little changes in prices of goods and services.

Formula =Percentage change in demandOR

Percentage change in price

dp x p

dq x q

(b)(i) ED=Percentage change in demand OR

Percentage change in price

dp x p

dq x q

When price rises from N10 to N11

Percentage change in demand = 1000 - 150 = 50

\(\frac{50}{1000} \times \frac{100}{1}\) = 5%

Percentage change in price = N11 - N10 = N 1

\(\frac{1}{10} \times \frac{100}{1}\)= 0.5OR

ED = changes in Q X P

change in P Qd

= \((\frac{}{1} \times \frac{10}{1000}\) = 0.5

(ii) Demand is inelastic since elasticity is less than one

(iii) Elasticity of supply =Percentage change in supply

Percentage change in demand

Percentage change in supply = 1000 - 850 = 150

= \(\frac{150}{1000} \times \frac{100}{1}\) = 15%

OR

ED = change in Qs X P = \(\frac{150}{1} \times \frac{10}{1000}\) =1.5

change in P Qs

(iv) Elasticity of supply is elastic because the value is greater than one.

Correct Answer: B. for which demand increases as price increases

Correct Answer: C. privatization

Explanation

Privatization of public corporations is one of the ways to maintain efficiency in the sector. This happens when government owned and controlled enterprises are transferred to private shareholders which include corporate bodies and individuals. The main reason for privatization is for economic growth and development, to reduce waste and to encourage the development of the economic sectors.

Correct Answer: B. under-populated