Correct Answer: C. over population

Correct Answer: B. investment

Correct Answer: B. population increased in geometric progression while food production increased in arithmetic progression

Correct Answer: C. lending our deposits to borrowers

Explanation

The decline in the contribution of agriculture to the Gross Domestic Product (GDP) of Nigeria can be attributed to:

(i) Land tenure system

(ii) Pests and diseases

(iii) Inadequate storage facilities

(iv) Inadequate capital

(v) Increasing rural - urban movement, which is affecting the agricultural sector adversely

(vi) The use of crude implements like cutlasses and hoes

(vii) Poor application of research findings

(viii) The emergence of oil and oil products, i.e. petroleum etc which has led to the neglect of agriculture

(ix) The wage rate in other sectors has been increasing especially construction and services while the agricultural sector remains stagnant

(x) Poor infrastructural facilities

(xi) High level of illiteracy

Correct Answer: C. political stability in West Africa

Explanation

(a)Cross elasticity of demand is the degree of responsiveness of demand for a commodity to changes in the price of another commodity. It is the proportionate change in the quantity of goods (x) demanded over the proportionate change in the price of another goods (y) demanded.

=% change in quantity demanded of commodity x

,% change in price of commodity y

or

change \(\frac{QX} {QX} \times \frac{PY} {DPY}\)

b(i) Cross elasticities of demand for bread and yam

Let X = Yam, Y = Bread

New demand = 200kg,

Initial demand = 150kg

Change in demand = 200 -150 = 50kg

Initial price = N15,

New price = N20

Change in price = 20 - 15 =N5

\(\frac{200-150} {150}\) x 100 = 33.3%

\(\frac{20 -15} {15}\) x 100 = 33.3%

or

changeQX xPY=50x15=750= 1

Py Qx 5 150 750

(ii) Beef and fish: Let x = fish, y = Beef

Initial demand = 1000kg,

New demand = 3000kg

Change in demand = 3000 - 1000 = 2000kg

Initial price = N25

New price = N40

Change in price = N40 - N25 = N15

Cross elasticity = change in \(\frac{Qx}{Qx} \times \frac{Py}{Py}\)

\(\frac{2000}{1000} \times \frac{25}{15}\)

= \(\frac{10}{3}\) = 3.3

or

\(\frac{3000-1000} {1000}\) x 100= \(\frac{200}{60}\) = 3.3

\(\frac{40-20} {25}\) x 100

iiiLet x = Margarine,

y = Butter

Initial demand = 250kg

New demand = 400kg

Change in demand = 400 - 250 = 150kg

Initial price = N100

New price = N150

Change in price = N150 - N100 = N50

Cross elasticity = \(\frac{-QX}{QX}\)

\(\frac{PY}{PY}\)

= \(\frac{150}{50} \times \frac{100}{50}\) = \(\frac{6}{5}\) = 1.2

or

\(\frac{400 - 250}{250}\) x 100

= \(\frac{60}{50}\) = 1.2

\(\frac{150 - 100}{100}\) x 100 =50

Correct Answer: C. price index

Correct Answer: B. Perfectly inelastic

Correct Answer: D. can have a large pool of skilled labours