In a socialist economy, prices of commodities are determined by
Forces of demand and supply
Producers of the commodities
The central planning authority
Consumers who are sovereign
Correct answer is C
No explanation has been provided for this answer.
Scale of preference is important for the following reasons except in
Satisfying wants
Making rational
Making optinum allocation of resources
Using scarce resources efficiently
Correct answer is A
No explanation has been provided for this answer.
Human wants are insatiable because wants are
Limited while means are scarce
Unlimited and means are also unlimited
Limited and means are also limited
Unlimited while means are scarce
Correct answer is D
No explanation has been provided for this answer.
If the marginal propensity to save is 0.8, calculate the multiplier?
1.25
5.00
1.30
2.25
Correct answer is B
The multiplier effect refers to the increase in final income arising from any new injection of spending. The size of the multiplier depends upon household's marginal decisions to spend, called the marginal propensity to consume (mpc), or to save, called the marginal propensity to save (mps).
The following general formula to calculate the multiplier uses marginal propensities, as follows:
1
1 - mpc
Hence, if consumers save 0.8 and spend 0.2 of every N1 of extra income, the multiplier will be:
1 = 1 = 5
1 - 0.8 0.2
Petroleum has the following positive contributions to the Nigerian economy except
Generate employment
Source of government revenue
Development of mono economy
Infrastructure development
Correct answer is C
Oil production brings about a billion investments in the country's economy as well as the development of related sectors of the economy and infrastructure. Besides, it supplies new jobs for Nigerian citizens and improvement of social and living standards in general.