(a) Why is scarcity a fundamental problem in Economics? [6 marks]

(b) Give a reason on why Economics is a (i) science; (ii) social science [3 marks each]

(c) How do governments solve the problem of scarcity? [8 marks

Fixing the prices of agricultural products can be a problem because of the

• A. activities of marketing boards
• B. size of agricultural exports
• C. instability of government policies
• D. unpredicatable output of farmers

The distinction between perfect competition and monoplistic competition is that the latter is characterized by

• A. a single market price
• B. many buyers and sellers
• C. product differentiation
• D. homogeneity of product

The major employer of labour in developing countries is the

• A. tertiary sector
• B. secondary sector
• C. primary sector
• D. industrial sector

An increase in money supply, other things being equal, will?

• A. lower interest rates
• B. reduce income
• C. ensure trade balance
• D. increase money demand

If the percentage change in the income of the consumers of an industrial product is less than the resulting percentage change in the quantity demanded of the product, then the income elasticity of demand for the product is?

• A. less than one
• B. equal to one
• C. greater than one
• D. equal to zero

When the demand for a good increases owing to an increase in income, it means that

• A. there is an increase in quantity demanded
• B. inflation has taken place
• C. demand has exceeded supply
• D. there is an increase in demand

The first petroleum exploring company to discover crude petroleum in Nigeria was?

• A. Mobil
• B. Texaco
• C. Agip
• D. Shell-BP

The increase in the demand for a commodity may lead to a decrease in the demand for another if both are

• A. in complementary demand
• B. of the same quality
• C. in composite demand
• D. in competitive demand

What is the ratio of expenditure on health to agriculture?

• A. 2.3
• B. 3.4
• C. 4.3
• D. 5.4