Economics Questions and Answers

The causes of overpopulation are: falling mortality rate, underutilized contraception, lack of female education etc.

The dotted line in the graph above represent the upturn and downturn of the econonmy. Therefore, the diagram is cyclical unemployment.

Working population also known as labour force refers to the total number of persons available to supply the labour for the production of economic goods and service. In other words, it is the total number of people of working age in a country who are able and willing by law to work.

Cost push inflation occurs when overall prices increase(inflation) due to increases in the cost of wages and raw materials. It can also occur when higher costs of production decrease the aggregate supply in the economy.

A financial intermediary is typically an institution that facilitates the channeling of funds between lenders and borrowers indirectly.

The causes of balance of payment deficit are: low level of agriculture, low level of technological development, inadequacies in export promotion strategy, political instability, poor social and economic infrastructure, servicing of huge external debts, existence of import dependent industries etc.

The model emphasizes the export of goods requiring factors of production that a country has in abundance. It also emphasizes the import of goods that a nation cannot produce as efficiently. It takes the position that countries should ideally export materials and resources of which they have an excess, while proportionately importing those resources they need.

The natural growth rate of a population is measured by the difference between the birth rate and the death rate. This is because the birth rate indicates the number of births in a population, while the death rate indicates the number of deaths. The difference between these two rates gives the natural increase or decrease in the population, without considering migration. 

A multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable such as investment, consumption, government expediture etc.

A normal demand curve slopes downward from left to right indicating at higher price, less quantity will be demanded and vice versa.