An argument for the use of commercial policy rest on the need to
Make imported goods affordable
Reduce domestic unemployment
Encourage the importation of non-essential goods
Make a country enjoy absolute advantage in production of all goods
Correct answer is D
Commercial policy may be defined as one that helps in accelarating the rate of economic development. by enabling the under-developed country to have larger share of the gains from trade, by augmenting the rate of capital formation and by promoting industrialization and maintaining equilibrium in the balance of payments.
Political instability hinders economic growth because it
Scares many people from politics
Prevent politicians from playing effective politics
Discourage entrepreneurs generally
Encourages urban-rural migration
Correct answer is C
Most developing countries are not politically stable e.g frequent changes in government, commnual crises, etc. These generally lead to low economic growth and development. Theferore, political instability, through its adverse influence on investment, accounts for substantial reduction in the economic growth.
Development planning focuses mainly on
Allocation of resources by the entrepreneurs
Mapping out strategies by the government
Developing some areas of the country by the government
Deciding on which types of homes to build
Correct answer is B
Economic development planning is the process government formulate economic policies for the allocation of resources to all sectors of the economy over a period of time. This brings about sustained growth in the economy.
If demand is perfectly inelastic, a tax imposed
Is borne only by the producer
Is borne only by the consumer
Will have greater impact on the seller
Will have no impact on the buyer
Correct answer is B
The incidence of tax when demand is perfectly inelastic is borne by the consumer.
The use of mass advertising media enable a firm to enjoy
Managerial economies
Financial economies
Marketing economies
Welfare economies
Correct answer is C
Marketing economies of scale is an advantage of large firms, which have a lower unit cost for advertising and promotion than small firms. A large firm can buy raw materials in bulk, produce in large quantities and distribute to many areas where they are required.