Economics Questions and Answers

Collectivism is a political-economic theory that advocates for a collective control of resources, especially over production and distribution. It is the opposite of individualism which seeks individual ownership of production factors

It is associated with socialism which advocates for collective ownership of resources, rather than by individuals.

Residual unemployment is the type of unemployment that occurs in periods of full employment, as a result of being mentally, physically, or emotionally unfit to work.

The average propensity to consume (APC) measures the percentage of income that is spent rather than saved. 

The formular is gotten as: APC = C / DI

Income = 500

consumption = 400 

400/500 = 0.8 

High taxes should be imposed on goods whose demand is inelastic.

Inelastic demand is when the buyer's demand does not change as much as the price changes. This means that no matter how high the prices may increase as a result of high taxes or other factors, people will still be willing to buy the goods.

Development banks are specialized banks that provide medium and long-term finance to the industrial and agricultural sectors. The Nigerian bank for commerce and industry is an example of a development bank. It provides loans and finances for entities involved in the industrial and agricultural sectors.