Economics Questions and Answers

Goods and services that satisfy human wants are produced with the help of resources such as land, labour, capital and enterprise. These resources are scarce while wants are unlimited. Due to scarcity of these resources, an economy cannot produce all that goods and services as required by its citizens.

Place utility involves the changing of location of a commodity from one geographical area where it has little utility to another area where its utility is higher. For example, cattle are mainly reared in the North where it has little utility but transported to the South where it has higher utility.

Factors that affect the size of Labour Force include the following: Size of population of a country, official school leaving age, retirement age, pursuit of higher education, age, structure of population, role of women in the society, number of working hours and working days, the number of disabled, the number of people willing to work, migration.

Total population = 180,000,000

  Total land area = 923,768 sq km

  Population density = (Total population) / (Land area)

  =180,000,000/923,768

  =194.85

  =195 persons per sq km

Extreme climates such as very hot or cold deserts are uncomfortable for human habitation. Areas with a comfortable climate, where there is not much seasonal variation, attract more people. People prefer to live in areas where fresh water is easily available. River valleys are among the most densely populated areas of the world. Spatial distribution of population can be better understood with the help of density of population. Hence, the correct answer is option C.