Correct Answer: D. Illiteracy

Correct Answer: A. raising the bank rates

Explanation

One way the central bank can reduce the rate at which banks lend money is by raising the interest rates bank charge on loans, this will discourage people from borrowing from commercial banks.

Correct Answer: A. easy access to raw materials

Explanation

In choosing the location of a company involved in the production of iron and steel, the source of its raw material is the first and most important factor to consider.

Correct Answer: C. prices of goods and services are rising rapidly

Explanation

Money is considered a store of value, where it can be used as a means of saving and allocating capital. Where the value of goods and services is on the rise, the purchasing power of money drops. With this, the value of the money that was stored years back will no longer have the same value due to the change in the prices of commodities.

Explanation

(a) Competitive demand is the demand for commodities that can be used interchangeably. An increase in the demand for one will lead to a decrease in the demand for its substitute. Joint demand on the other hand is the demand for commodities that are used together to satisfy a want. An increase in the demand for one will lead to an increase in the demand for the other.

(b) i. From the diagram above (figure 1), an increase in the price of the complement of commodity R from P\(_{1}\) to P\(_{2}\) has resulted in a fall in quantity demanded from Q\(_{1}\) to Q\(_{}\). Demand for commodity R shifted from D\(_{1}\) to D\(_{2}\) and the equilibrium price fell from P\(_{1}\) to P\(_{2}\) and quantity from Q\(_{1}\) to Q\(_{2}\)

ii. An increase in the price of a substitute of Commodity R will result in a fall of its quantity demanded from Q\(_{1}\) to Q\(_{2}\). (in figure 3). As a result of this, demand for commodity R will increase, Shown by the demand curve shifting from D\(_{1}\)D\(_{1}\) to D\(_{2}\)D\(_{2}\) in figure 4. The equilibrium price will increase from P\(_{1}\) to P\(_{2}\) and the equilibrium quantity from Q\(_{1}\) to Q\(_{2}\).

iii. The imposition of an indirect tax on commodity R will result in a shift of the supply curve from S\(_{1}\)S\(_{1}\) to S\(_{2}\)S\(_{2}\) in figure 5. with demand unchanged, the equilibrium price will increase from P\(_{1}\) to P\(_{1}\) but the equilibrium quantity will fall from Q\(_{1}\) to Q\(_{2}\).

Correct Answer: B. development of locally produced goods with imported ones

Explanation

Import substitution as a strategy of industrialization is a trade policy that advocates for the replacement of foreign imported goods with locally made goods.

Explanation

(a) Consumer goods are goods produced for the direct satisfaction of the wants of an individual.

(b)) Fixed capital: These are long-term assets of a firm that are very durable and are not used up in the course of production. they do not change their form as well, e.g. land, Buildings., Machinery, equipment tools, motor vehicles, etc.

i. Social capital:-This refers to capital that is collectively owned by society but is provided by the government. It is also called social infrastructure, e.g. roads, electricity, hospitals, schools, Water rail system, etc

ii. Circulating capital: This form of capital changes its form and is used up in the production process, e.g.stock of partly-finished goods, fuel, raw materials money for paying wages and salaries, etc.

(c) i. The income level is generally low and so most people cannot afford to save.

ii. The dependency ratio is high because the Working group is smaller compared to the youth and the aged.

iii. Most people have the tendency to consume rather than to save, engaging in prestigious but non-productive ventures, e.g. funerals, parties, weddings, etc

iv. There is little incentive to save since the interest rate on savings is low and also most institutions finally wind up, taking along customers savings with them.

v. The cost of living is high because prices of goods and services keep rising People are therefore left with nothing to save.

vi. The demand by banks is sometimes cumbersome because large initial deposits are required and other information that clients cannot provide.

vii Government tax policy; if the tax is high it reduces disposable income and makes savings low.

viii High levels of unemployment

ix. Inadequate financial institutions, especially in the rural area to mobilize savings.

Correct Answer: D. GNP+ Depreciation- Indirect taxes + Subsidies

Correct Answer: D. public company

Correct Answer: B. engage in trade if it can produce a commodity at a lower cost

Explanation

Comparative advantage is the edge a country has over its trading partners in the production of a particular good or service at a lower opportunity cost.