Economics Past Questions and Answers

<img src='https://www.schoolngr.com/eattachments/e1d94f4e4330a8167cfffca36b7d4703936a4596' width='300'/><br/><br/>The diagram above represents the equilibrium position of a firm in a perfectly competitive industry. Study it carefully and answer the questions that follow.<br/>(a) i. At what level of output and prices is the firm in equilibrium?<br/>ii. Calculate the firm's profit in equilibrium<br/>iii. What type of profits is it?<br/>(b) i. Why is the average revenue (AR) function horizontal?<br/>(c) State any two ways in which marginal cost (MC) and average total cost (ATC) are related.

The extract from a country's balance of payments account is shown below<br/><table class='tbn'><tbody><tr><td> Item </td><td> Imports ($ million) </td><td> Export ($) </td></tr><tr><td> Agricultural products </td><td> - </td><td> 200 </td></tr><tr><td> Mineral products </td><td> - </td><td> 300 </td></tr><tr><td> Consumer goods </td><td> 250 </td><td> - </td></tr><tr><td> Capital goods </td><td> 400 </td><td> - </td></tr><tr><td> Insurance </td><td> 50 </td><td> 25 </td></tr><tr><td> banking </td><td> 75 </td><td> 30 </td></tr><tr><td> Transportation </td><td> 85 </td><td> 25 </td></tr><tr><td> Loans </td><td> 150 </td><td> 60 </td></tr></tbody></table><br/><br/><br/>Using the table above, calculate the:<br/>(a) balance of trade<br/>(b) invisible trade balance<br/>(c) balance on current account

(a) i. Define distribution of goods.<br/>ii. Illustrate the normal chain of distribution of goods.<br/>b. Describe a consumers' cooperative society.<br/>c. Outline any four roles performed by a consumers' cooperative society

(a) What is an industry?<br/>(b) Explain the following:<br/>i. division of labor<br/>ii. economies of scale <br/>(c) Outline any four internal economies of scale.

a. Define a joint venture.<br/>b. identify any three merits of a private company over a partnership.<br/>c. State any three sources of finance to a public enterprise