Correct Answer: C. instituting price control

Explanation

Instituting price control can affect the efficient distribution of goods in west Africa. Price control government regulation establishing a maximum price to be charged for specified goods and services, especially during periods of war or inflation.

Correct Answer: C. net factor income from abroad

Correct Answer: D. residual unemployment

Correct Answer: C. instability in political and industrial policies

Explanation

(a)(i) Building society is a financial institution which specializes in the provision of long term mortgage loans for building purposes.

(ii) The central bank is defined as the asex bank established by an Act of Parliament and charged with management and control of the national monetary affairs and the supervision and coordination of banking and financial activities of a country.

(b)(i) Open Market Operation (OMO): This is the sale and purchase of government securities like treasury bills to influence the supply of money. When there is excess liquidity in the economy, the central bank will sell her treasury bills and vice versa.

(ii) Liquidity ratio/cash ratio: banks are mandated by the law to keep a percentage of their total deposits in the form of liquid assets. This percentage can be increased if the central bank wants to reduce money supply and vice versa.

(iii) Bank rate: This is the rate at which the central bank lends to commercial banks and also discount bills of exchange. To increase money supply the central bank will reduce the bank rate and vice versa.

(iv) Special deposit: the central bank can mandate banks to make special deposits with it so as to mop up excess liquidity when the need arises.

(v) Special directives: the central bank can order or instruct other banks to increase their lending to a particular sector so as to stimulate the sector for the overall growth of the economy.

(vi) Moral suasion: unlike other instruments, this is more of an appeal to other banks to restrict or expand their loans to a particular sector(s) of the economy.

(vii) Funding: this refers to the process where short-term debts of government are converted to long-term debts to reduce excess liquidity.

Correct Answer: B. falling, marginal utility is negative

Explanation

The following are the various relationships between total and marginal utility.

-When marginal utility is positive , total utility increases. - When marginal utility is zero , total utility is at maximum. - When marginal utility is negative , total utility decreases.

Explanation

(a) P = TU\(_3\) = TU\(_2\) + MU\(_3\) = 19 + 6 = 25

Q = TU\(_6\) = TU\(_5\) + TU\(_6\) = 31 + 0 = 31

R = MU2 = \(\frac{TU_2 - TU_1}{2 - 1}\) = \(\frac{19 - 10}{1}\) = 9

S = MU5 = \(\frac{TU_5 - TU_4}{5 - 4}\) = \(\frac{31 - 30}{1}\) = 1

(b) The consumer attains equilibrium at the 5th level of consumption.

For one commodity, the consumer attains equilibrium when MU = Price.

At the 5th level, MU = M1 and the price is given as $1.00

(c)

(d) The law of diminishing marginal utility states thats a consumer consumes more units of a commodity, the satisfaction derived from each additional unit of the commodity diminishes.

Correct Answer: D. total polulation

Correct Answer: B. equal to marginal

Correct Answer: A. new and second hand shares