If Mr Wale took a loan for the purpose of investment, the demand for money is________________?
Precautionary motive
Transactionary and Precautionary motive
Speculative motive
Speculative and Transactionary motives
Correct answer is C
Speculative motive: A desire to hold cash in order to be poised to exploit any attractive investment opportunity requiring a cash expenditure that might arise.
* We hold cash rather than other assets whose values are falling.
* We hold on to cash to be able to buy them when their prices actually fall.
* So this is money held to play the market.
* It is money held to buy (or sell) bonds, depending on one's expectations of future interest rates.
In the theory of the consumer behavior, a consumer is said to maximize utility when
Marginal utility of a commodity is equal to the price paid for it
Marginal utility of a commodity X is equal to the price of commodity Y
Average utility of a commodity is equal to the price paid for it
Total utility of a commodity is equal to the price paid for it
Correct answer is A
MUx/Px = MUy/Py, where MUx is the marginal utility derived from good x, Px is the price of good x, MUy is the marginal utility of good y and Py is the price of good y. A consumer should spend his limited money income on the goods which give him the most marginal utility per dollar. Only when the ratio of MU/P is equal for all goods is a consumer maximizing his total utility.
From the graph above, fixing maximum price of garri below equilibrium prices at P1 will
Encourage the production of garri
Create an excess supply of garri
Increase the consumption of garri
Decrease the consumption of garri
Correct answer is C
No explanation has been provided for this answer.
One of the factors that determine the supply of agricultural produce in Nigeria is
Price of substitutes
Technological development
Consumers choice
Consumers income
Correct answer is B
Technological development; technological advances are an important factor in agriculture supply. Individual people can consume only a limited amount of food, but technology has contributed greatly to the ability of producers to grow more. Technology has been used to improve the performance of almost everything in agriculture, from seeds to livestock to equipment.
The adoption of technology in agriculture has expanded agricultural output over a range of prices. In other words, applying new technology to agricultural production has lowered costs, so at each price more production is offered for sale.
The additional cost incurred by producing an additional unit of output is known as
Fixed cost
Total cost
Average cost
Marginal cost
Correct answer is D
Marginal cost is the additional cost incurred in the production of one more unit of a good or service.
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