Correct Answer: B. ordinal utility

Explanation

In ordinal utility, the satisfaction a consumer obtains after consuming various commodity cannot be measured in numbers, but can be ranked in order of preference. ordinal utility uses rankings instead of values.

Explanation

(a) Privatization is the transfer to private ownership and control assets or enterprises which were previously under public ownership.

(b)Reasons for government participation in economic activities:

(i) Necessity: Sometimes private investors are unwilling to undertake businesses with low profit.

(ii) Inadequate domestic capital: At times, domestic private capital is not available or is inadequate for large and risky projects. Hence the government comes in

(iii) Ideology: Some governments establish or take over certain enterprises on ideological/political grounds e.g. a government wishing to change from capitalist to socialist system would place most industries In the public sector

(iv) For national self preservation: Projects in this category are usually for defence or strategic needs rather than. economic, such as production of ammunition, petroleum, electricity, etc.

(v) Protection from private monopolies: Private monopolies tend to create artificial scarcity so as to raise prices and so the government comes in.

(vi) To avoid waste through unnecessary competition. Leaving certain enterprises in private hands may result in too much duplication, with too many firms each producing under capacity.

(vii) Where it is felt that government control is necessary for carrying out government policy e.g the Central Bank.

(viii) To avoid subsidizing a private enterprise for too long. Some industries are unable to support themselves and have to be subsidized by Government for long periods. As such it is better for the Government to take over.

(ix) To provide employment

(x) To provide basic amenities

(xi) To create wealth for the common good. (xii) To bring about even development.

Explanation

(a) Economic resources are those resources which have an opportunity cost. Their supply is inadequate relative to the demand for them. They include production factors land, labour etc. People / producers are willing to forgo certain wants in order to obtain them. Non - economic resources are items whose supply is inexhaustible or greater than the demand for them. They are "free" goods. Air for example is useful but not an economic resources. Supply exceeds demand . It does not have an opportunity cost

(b) Wants are desires, wishes or ends not backed by money or ability to purchase while Demand refers to wants, desires or willingness to purchase plus ability to pay for such desires.

(c) Money cost is the naira value of an item. It is the cost in terms of legal tender currency while Real cost is opportunity cost or the best alternative foregone in order to produce or provide a particular item.

Correct Answer: C. a rightward shift of the demand curve

Explanation

All things being equal, a rise in income will lead to a rightward shift in demand. A rightward shift in the demand curve could also be as a result of higher price of a substitute good, lower price of a complement good, etc.

Correct Answer: C. bought for less than its face value

Explanation

(a) Occupational mobility of labour is the ease with which labour/ a worker moves from one occupation to another.

(b)(i) Natural abilities required in certain occupation may prevent such labour from moving e.g. musicians, artists.

(ii) Cost of training may be high.

(iii) Trade union or professional association may inhibit such movements.

(iv) Labour may be too old to learn new skills.

(v) Differences in remuneration may prevent labour from moving from one occupation to another.

(vi) Discrimination on account of sex or race in some places may prevent mobility.

(vii) Inadequate information about wage rates and opportunities in other occupations.

(viii) Training may take a long period of time.

(c)(i) Education and training e.g. formal education and on-the-job training.

(ii) Good remuneration: Higher wages and salaries serve to motivate the work harder.

(iii) Good work environment: Good ventilation, good furnishing etc will make labour more efficient.

(iv) Availability of co-operant factors: Availability and quality of other factors such as land, equipment etc will make labour more efficient.

(v) Other conditions of service e.g. housing, transport, bonuses, scholarship for children, insurance coverage etc will make labour more efficient.

(vi) Degree of specialization: The more a worker specializes, the more efficient he or she becomes.

(vii) Good management style: A good management style encourages workers to be more efficient.

Correct Answer: D. Firms compromising an industry are concentrated in one area

Correct Answer: B. speculative

Explanation

(a) Economic planning may be seen as government conscious formulation of economic policies for the allocation of resources to all sectors of the economy with a view to achieving rapid rate of economic development.

(b) The problems associated with economic planning are:

(i) Political instability often leads to change in plans.

(ii) Inadequate capital makes it difficult to achieve targets.

(iii) Another problem is wrong planning due to misplaced priorities.

(iv) Insufficient statistical data which implies that most of the planning are done on wrong projection is problem associated with it.

(v) Inadequate skilled labour and expert that makes plan implementation difficult.

(vi) Rapid population growth destabilizes planning.

(vii) Reliance on foreign aid and adherence to their conditionalities lead to plan failures.

(viii) Economic planning is affected by corruption and nepotism; Planned decision may be influenced by selfish and parochial considerations.

(ix) Unexpected sudden increases in the cost of projects compared to original estimates affects planning.

(x) Fluctuation in foreign exchange earnings on which plans are based and this may hinder implementation.

Correct Answer: C) change in total utility that results from a one unit change in the quantity of a good consumes

Explanation

This question is about Marginal Utility, which is a term used in Economics to describe the change in total satisfaction or usefulness that a consumer experiences from consuming one additional unit of a product. The question asks you to choose the correct definition of Marginal Utility from the given options.

Option A defines Marginal Utility as the pleasure or satisfaction a consumer gets from consuming a particular quantity of a good. While this definition is related to Marginal Utility, it is not the correct one.

Option B defines Marginal Utility as the average utility per unit consumed. This definition is also not correct.

Option C is the correct definition of Marginal Utility. It states that Marginal Utility is the change in total utility that results from consuming one additional unit of a product. In other words, it is the additional satisfaction or usefulness that a consumer gets from consuming one more unit of a product.

Option D defines Marginal Utility as the quantity of goods that a consumer prefers. This definition is not correct.

Understanding Marginal Utility is important in Economics as it helps to explain the behavior of consumers. It shows that as a consumer consumes more units of a product, the additional satisfaction or usefulness they get from each additional unit decreases. This is called the Law of Diminishing Marginal Utility.

In summary, the correct definition of Marginal Utility is option C, which states that Marginal Utility is the change in total utility that results from a one unit change in the quantity of a good consumed.