Correct Answer: D. both equilibrium price and quantity will remain unchanged

Explanation

If there is an increase in supply while the demand tends to remain the same, prices will most likely fall. So an increase in the supply of fish in the market will only affect the demand and price of the fish as they may be more fish in the market than people who are willing and ready to buy the fish. This, however, will not affect the prices or the quantity demanded of meat.

Correct Answer: C. the marginal revenue curve

Explanation

For a perfectly competitive firm, the average revenue curve is a horizontal, or perfectly elastic, line. It is the same as a marginal revenue curve which is also a horizontal line at the market price, implying perfectly elastic demand.

Correct Answer: C. the price of the commodity

Explanation

Some of the factors that may cause a change in supply include; changes in the costs of production, improvements in technology, taxes, subsidies, weather conditions, health of livestock, and also by the price of other products. The price of the commodity itself does not affect the change in supply, but rather it affects the change in the quantity supplied.

Correct Answer: C. increasing retums to scale

Explanation

Increasing returns to scale happens when the output increases in a greater proportion than the increase in input.

Explanation

(a) Unemployment of labour is a situation where individuals in the labour force who are willing and able to work at the existing wage rate cannot find jobs.

(b)(i)Frictional unemployment– this form of unemployment exists as workers search for jobs of their choice having left their previous jobs or when school leavers enter the labour market from school e.g. a fresh graduate who has completed school and is looking for a job.

(ii)Structural unemployment – this form of unemployment occurs when there are changes in the pattern of demand or production resulting in labour lay-off. A change in technology can also result in structural unemployment. e.g. if an organization begins to use computer, a stenographer who can only type using the traditional typewriter will become unemployed.

(iii)Seasonal unemployment – This form of unemployment occurs when there is a fall in demand for a certain product at a particular time of the year e.g. during the rainy seasons, masons become unemployed and sellers at the school canteen become unemployed during vacation.

(c)(i) The seasonal nature of some jobs e.g. farmers become unemployed during the dry season and masons during the wet season.

(ii) Inadequate education and skills due to termination of education after the basic level and non – acquisition of skills, make people unable to enter certain professions.

(iii) If plants and machinery installed are under – utilized due to inadequate raw materials, poor power supply and limited market, unemployment will arise.

(iv) Urbanisation: a drift of people from the rural to urban centres due to neglect of agriculture creates unemployment.

(v) Advancement in technology can lead to unemployment if the skills of labour are not upgraded.

(vi) If population grows rapidly, surplus labour which cannot be absorbed by the economy will be unemployed.

(vii) If people lack information about the job market, they will be unemployed because they may not be aware of job opportunities elsewhere.

(viii) Government policies like retrenchment, privatization of state enterprises and poor development plans can lead to unemployment.

(ix) If the level of government expenditure increases but is not geared towards investment, there will still be unemployment.

(x) Adoption of labour-saving devices or capital- intensive method of production can lead to unemployment.

(xi) Inappropriate educational curriculum resulting in the non-acquisition of relevant skills for the labour market leads to unemployment.

Correct Answer: B. long-run

Explanation

The elasticity of supply measures how changes in prices would affect supply. The supply of agricultural products is most likely to be elastic in the long run, (a period of time where all factors of production and costs are variable). This means that in the long run, the cost of farm inputs and factors of production used in farming would be subject to change, and farmers cannot as a matter of fact place a fixed cost on their estimated expenses

Correct Answer: C. balanced budget

Explanation

(a)i. The size of the working population is;

= population of age group (19 - 40) + population of age group (41 - 60)

= 35% + 25% = 60%

= \(\frac{60}{100} \times \frac{200,000}{1}\) = 120,000

OR

35% of 200,000 = 70,000

25% of 200,000 = 50,000

70,000 + 50,000 = 120,000

(ii) The size of the dependent population = population of age group (0 - 18) + age group (61 and above)

= 30% + 10% = 40%

= \(\frac{40}{100} \times \frac{200,000}{1}\) = 80,000

OR

30% of 200,000 = 60,000

10% of 200, 000 = 20,000

60,000 + 20,000 = 80,000

(b) Percentage of population of age group (0 - 18) = 30%

\(\frac{30}{100} \times \frac{200,000}{1}\) = 60,000

\(\frac{2}{100} \times \frac{60,000}{1}\) = 1,200

Percentage population of age group (61 and above) = 10%

\(\frac{10}{100} \times \frac{200,000}{1}\) = 20,000

\(\frac{0.5}{100} \times \frac{20,000}{1}\) = 100

Natural increase in the population

= Births - Deaths

= 1,200 - 100 = 1,100

(c) The population is growing / a youthful one. This is because the population of the youth is more tha of the aged

Correct Answer: B. a surplus.

Explanation

If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the goods on the market.

Correct Answer: A. precautionary demand