Economics Questions and Answers

Agriculture accounts for about 60% of the active labour force in West Africa. This is because a large portion of the population in West Africa is engaged in farming and other agricultural activities for their livelihood. The other options are incorrect as agriculture does not account for 60% of the arable land, service sector activities, or the commodity market in West Africa.

Explanation

e = \(\frac{∆Q}{∆P}\times\frac{p}{q}\)

where ∆Q = Q2 - Q1 and ∆P = P2 - P1
 

e = \(\frac{30 - 20}{6 - 8}\times\frac{8}{20}\)

= -2 since price elasticity of demand is always positive, then e = 2

y = \(\frac{a + i + G}{1 - b}\)

where b = 0.75
 

= \(\frac{100 + 50 + 200}{1 - 075}\)

= \(\frac{350}{0.25}\)

= 1400

Alternatively:
Y = C + I + G
Y = 100 + 0.75Y + 50 + 200
Y - 0.75Y = 350
Y( 1 - 0.75) = 350
 

= \(\frac{350}{0.25}\)

Y = 1400

The consumer is at equilibrium is at point k where the slope of the indifference curve is tangential to the budget line.

Lack of homogeneity of goods is not a characteristics or features of a perfect market. The features/ characteristics are: perfect knowledge about the market, there is free entry and exit, there are large number of buyers and sellers, the goods are portable and homogeneous, there is no preferential treatment etc

The supply curve of labour market is given as S = 4L + 8. To find the value of L when S = 20, we substitute S = 20 in the equation and solve for L. This gives us L = 3.

Demand for a commodity is its quantity which consumers are willing and able to buy at various prices during a given period of time.

Individual output is also called average product and it is calculated as:

They are goods that are divisible and to which principle of exclusion is fully applied. It is based on the following assumptions: Ability to pay, Rivalry in consumption, price is its basis, willingness to pay etc.

The total product can be calculated by multiplying the number of workers by the average product per worker. In this case, 40 men produced an average of 30 tonnes of cassava each. Therefore, the total product is 40 men * 30 tonnes/man = 1,200 tonnes.