Economics Questions and Answers

Total population = 100,000,000

  Total land area = 50 sq km

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

  =100,000000/50

  =2,000,000

  =2 million persons per sq km

By calculation, the population density is 2 million people per square meter

Invisible Export consists of services rendered to other countries. Such services include transport, banking, insurance and other consulting service.

Total budget =$7,200

  Expenditure on Health = x/$7200 × 3600 = 600

  3600x = 600 × $7200

  x = 600×$7200/3600

  x = $1,200

  Therefore, the budget allocated to Health is $1,200

  Expenditure on Agriculture =x /$7200 × 3600 = 800

  3600x = 800 × $7200

  x = 800 × $7200/3600

  x=$1,600

  Therefore, the budget allocated to Agriculture is $1,600

  Ratio of expenditure on Health to Agriculture;

  Ratio=1200:1600

  =3:4

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 services. 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.

Term of trade refer to the rate at which a country’s exports exchange for its import. It is expressed as a relation between the prices a country receives for its export and the prices it pay for import. Term of trade is usually measured by this mathematical formula.