Correct Answer: A. co-operative societies

Correct Answer: D. underutilization of resources

Explanation

An increase in national income without effective control of population size in a country can lead to the underlization of resources in a particular country.

Correct Answer: C. material of the photocathode

Correct Answer: A. Recurrent expenditure

Explanation

(a)Ageing population occurs when there is an increase in the proportion of old people in the population.

(b) Effects of Ageing population on an economy are:

(i) The dependency ratio will be high and the rate of expenditure will increase because old people require food, health services etc.

(ii) The working population will decline consider-ably.

(iii) Investment pattern will change as production of goods to satisfy old people's needs increases.

(iv) Population becomes less mobile geographically and occupationally.

(v) The gross domestic products of the country will fall

(vii) The level of savings will be affected as expenditure increases.

Correct Answer: D. capital market

Correct Answer: C. desire to widen the gap between developing countries and the developed world

Explanation

(a)(i) Abnormal demands: Are demand patterns which do not abide by the laws of demand and therefore give rise to the reverse of the basic laws of demand. At higher prices increased quantities are demanded.

(ii) Effective demand: is a desire backed by ability and willingness to pay for specific quantities of commodity at alternative prices and within a period of time.

(b)(i) Ostentatious goods:These are certain goods which have prestige value e.g jewelry. If the prices of these goods fall, less will be purchased and if their prices rise, more will be purchased.

(ii) If people expect price to rise in future, they will buy more but if they expect price to fall they will buy less.

(iii) Inferior goods: These are goods whose demand falls as income rises.

(iv) Perfectly elastic demand:A rise or fall in the price of the commodity will not affect the quantity demanded.

(v) Perfectly elastic demand: Price is constant and above this price nothing will be purchased.

(vi) Ignorance of the existence of substitutes.

(vii) Rare commodities or antiquities.

Correct Answer: C. medium of exchange

Explanation

The most important function of money is that it serves as a medium of exchange. By serving as a convenient medium of exchange, money has made division of labour or specialization possible by being generally acceptable

Explanation

(a) State-owned enterprises are business organizations established by law financed and controlled by the state for the benefit of society.

(b)(i) To provide social amenities such as water and electricity at affordable/reasonable prices.

(ii) Tp protect the people from exploitation by private firms through the establishment of similar firms.

(iii) To control private monopoly through nationalisation.

(iv) To raise revenue for government for developmental purposes.

(v) To provide public goods which are not normally provided by the private sector. E.g. Defense.

(vi) To create employment which helps to raise the standard of living of the citizens.

(vii) For strategic reasons since certain industries cannot be left in the hands of the private sector e.g ammunition production.

(viii) Where huge initial capital is involved, government steps in when the private sector cannot provide it.

(ix) To diversify the economy, leading to growth and development.

(x) To ensure even development across the country.

(c)(i) Red-tapeism/bureaucracy: There is a lot of bureaucracy and administrative difficulties in state enterprises which tend to make quick decision-making very difficult.

(ii) Lack of initiative: Bold and progressive policies are very important for the success of every business. This is however lacking in state-owned enterprises because they are to account to both the public and to parliament. The fear of failure may not allow them to take such decisions.

(iii)Less competition and inefficiency: Public corporation may not be competitive and efficient in their operations because they are usually monopolies without competitors, so they may not actually strive to be efficient.

(iv)Lack of personal interest: Management and workers of state corporations may not have the needed personal interest in the work since it belongs to the state.

(v)Loss of consumer sovereignty: Since most public corporation produce under monopolistic conditions, the consumers may not have wide variety of goods to choose from. Their sovereignty is lost.

(vi)Political influence: The appointment of managerial staff affects morale and efficiency where such appointments are not based on merit.

(vii) Corruption and misappropriation of resources result in inefficiency.

(viii) Inadequate funding of state enterprises poses a challenge to their ability to operate efficiently.

(ix)Pricing policy: Government often interfere in the pricing policy og goods and services in state-owned enterprises.

(x) Some management staff lacks the necessary managerial skills to handle large-scale operations.

(xi) There is tribalism and nepotism in the appointment and promotion of staff in state-owned enterprises.

(xii) Changes in policies due to changes in government affects the smooth operation od state-owned enterprises.