Correct Answer: B. effect on incentive to work

Correct Answer: D. market

Explanation

The price in perfect competition is determined by market forces which is demand and supply. There is one market price in perfect competition, firms can't charge different prices as they are selling identical products. In perfect competition the firms and sellers are price takers.

Correct Answer: C. Student's grants and scholarships

Explanation

(a)(i) Import substitution strategy is a deliberate government effort which entails the local manufacture of goods which otherwise would have been imported.

(ii) Export promotion strategy is a deliberate government effort geared towards the establishment and deliberate promotion of industries that engage in the manufacture of goods for exports.

(b)The objectives of industrial development programmes are:

(i) To add value to products which were formerly exported in the crude state.

(ii) To create jobs for the unemployed.

(iii) To restructure the economy from an agricultural to an industrial one.

(iv) To conserve foreign exchange through import substitution industrialization.

(v) To provide the environment for the adoption of advanced technology to speed up the development process.

(vi) To take advantage of the ability of an industrial economy to provide high incomes and high standard of living.

(vii) To generate additional foreign exchange through export promotion.

(viii) To promote the development of skilled man power.

(ix) To generate more govemment revenue.

Correct Answer: C. costs per unit output falls

Correct Answer: D. a market in which companies produce homogeneous commodities

Correct Answer: C. market economy

Explanation

Deregulation is the reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. It is a characteristics of a market economy. A market economy is a system where the laws of supply and those of demand decide the production of goods and services.

Correct Answer: B. inflation

Explanation

(a) Value of visible exports = Crude Oil + Groundnut Oil + Bauxite

= $120,000,000 + $40,000,000 + $80,000,000

= $240,000,000

(b) Balance of trade = total value of visible exports - total value of visible imports

Visible exports = $240,000,000

Visible imports = rice and flour + petroleum product + vehicles and accessories

= $140,000,000 + $80,000,000 + $50,000,000

= $270,000,000

Therefore, Balance of trade = $240,000,000 - $270,000,000

= - $30,000,000

(c) Invisible imports include tourism, shipping and insurance.

Invisible imports include banking services and freight and insurance

(d) Current account balance = value of total exports - value of total imports

= $345,000,000 - $370,000,000

= -$25,000,000

(e) The country is a developing one. This is because;

(i) Its exports are made up mainly of unprocessed primary products.

(ii) Its imports are made up mainly of finished goods.

(iii) The value of imports exceeds exports.

Correct Answer: B. generally acceptable