Chapter 2 Economic: Market analysis
Market concept A market is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services. Markets can be ... Read More
Ways of reducing the defects of price mechanism
Forming consumers’ association to educate and sensitize the consumers about the quality of commodities brought in the market. This helps to reduce on consumers' ignorance. ... Read More
Assumptions of Price mechanism
Consumers aim at utility maximization. There is no government interference (intervention) in resource allocation. Producers aim at profit maximization. There are many buyers and sellers ... Read More
Determinants of Economic rent or factors affecting the value of economic rent
Degree of specificity of the factor of production. The higher the degree of specificity of a factor of production, the lower the economic rent and ... Read More
Quasi rent
Quasi rent. This refers to the payment to a factor of production over and above its transfer earnings whose supply is inelastic in the short ... Read More
Transfer earning (supply price)
Transfer earning (supply price) is the minimum reward (payment) given to a factor of production in order to maintain its current employment (occupation) Or Supply ... Read More
What is an angle curve?
In microeconomics, an Engel curve describes how household expenditure on a particular good or service varies with household income Read More
Factors affecting/Determinants of Price Elasticity of supply
Cost of production. The higher the cost of production, the more inelastic the supply of the commodity and the lower the cost of production; the ... Read More
Determinants/Factors affecting price elasticity of demand
Level of consumers’ income. The higher the level of consumers' income, the lower the elasticity of demand (inelastic) and the lower the level of income, ... Read More
Effects of heat on matter.
Burns them Decompose matter Cause expansion Causes evaporation cause melting Read More
Reasons why some farmers prefer keeping local breeds of cattle to exotic breeds.
Resistant to diseases can survive and produce milk on poor feed and fodder resources resist parasites Read More
Conditions that can lead to fainting
to anxiety, fear, pain, intense emotional stress, hunger, or use of alcohol or drugs, hunger, sickness. Read More
State any two pieces of advice to give to a mother whose baby is dehydrated.
Give oral rehydration salt solution Give a lot of fruit fluids Read More
Signs which show that a baby is dehydrated
Sunken eyes Pale skin a dry or sticky mouth. Read More
Characteristic of seeds dispersed by wind
. They are light They have hairy extension Have wing-like extension Read More
Why is biogas regarded as an environmentally friendly source of energy?
Reduces deforestation It is renewable can help reduce methane and black carbon emissions Read More
Sign of snuffle disease in rabbits.
fever mucus coming from the nostrils Runny eyes. breathing problems, possibly some wheezing, coughing and sneezing, Read More
Apart from curing diseases, give one other characteristic of essential drugs.
Prevent diseases Reduce pain Provide dietary supplements Read More
Price elasticity of demand
Price elasticity of demand is the measure of the degree of responsiveness of quantity demanded due to changes in the price of the commodity. Read More
What is elasticity in economics? meaning
Elasticity is the measure of degree of responsiveness of dependent variable due to changes (variations) in the independent variable(s). In the theory of demand and ... Read More
Determinants of Reserve price
Degree of durability of the commodity. The higher the degree of durability of the commodity, the higher the reserve price and the more perishable the ... Read More
Reserve price
Reserve price refers to the minimum price set by the seller below which he is not willing to sell his commodity. Read More
Normal (natural) price
Normal (natural) price refers to the long run equilibrium price established in the market after a long period of price fluctuations. Read More
Equilibrium price
Equilibrium price refers to the market price where quantity demanded is equal to quantity supplied. Read More
Market price
Market price refers to the prevailing (ruling) price in the market at a given time. Market price is any price determined by the buyers and ... Read More
What are the causes of backward sloping supply curve of Labour?
Presence of target workers. These are workers who work only to fulfill their targets or objectives after which they abandon work or decide to work ... Read More
supply curve
Supply curve is a graph that shows the quantity supplied at each price. Read More
supply schedule
A supply schedule is a table that shows the quantity supplied at each price Read More
Demand curve
The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period ... Read More
Determinants of quantity demanded of a commodity
The price of the commodity .The higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded of ... Read More
Advantages (merits) of resale price maintenance
It is time saving since it does not involve bargaining It reduces unnecessary competition among sellers. It helps to control consumer exploitation in form of ... Read More
Resale price maintenance.
Resale price maintenance. This is where the producer (manufacturer) fixes the price of a commodity at which the seller (retailers) have to sell to the ... Read More
Methods of Price determination in the Market
Haggling (Bargaining). This is where the buyer negotiates with the seller for the suitable price of the during bargaining, the buyer keeps on reducing the ... Read More
Types of Markets
Competitive (Perfect) market. This is a market where buyers and sellers have no ability to influence the price in the Prices are determined by ... Read More
Future (Forward) market.
Future (Forward) market. This is a market where commodities are traded for future Read More
Spot market
The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery Read More
Characteristics/Features of competitive market
Large numbers of buyers and sellers in the market. Identical/homogenous products sold by all firms, the freedom of entry into and exit out of the ... Read More
Competitive (Perfect) market.
Competitive (Perfect) market. This is a market where buyers and sellers have no ability to influence the price in the Prices are determined by ... Read More
Chapter 1: Introduction to economics
Definition of economics Economics is concerned use of scarce resources to satisfy human endless needs. It deals with the ways in which production, distribution and ... Read More
Mixed economy
This is an economic system where the productive resources are owned, controlled and allocated by both the government and private individuals. Decision making and planning ... Read More
Command (Planned /centralized) Economy
This is an economic system where the resources are owned, controlled and allocated by the government (state) on behalf of its citizens. Planning and major ... Read More
Advantages (merits) free market economy
It provides a society with the right goods or services at the right time due to competition A market economy promotes entrepreneurship; because the emphasis ... Read More
Feature (Characteristics) of a Market Economy
There is private ownership and allocation of resources Freedom of entry and exit in economic activities There is perfect competition among firms Producers aim at ... Read More
Market (Free enterprise/Laissez fair) Economy
This is an economic system where productive resources are owned, controlled and allocated by private individuals without government intervention. Resources are allocated by forces of ... Read More
Limitations of the concept of opportunity cost
Some factors of production are specific in that they cannot be put to alternative uses. It is not applicable where costs and benefits cannot be ... Read More
Some uses (importance/applications) of the concept of opportunity cost
It helps the producer in allocation of resources. That is, determining what to produce, when produce, how to produce, where to produce and for whom ... Read More
Basic (fundamental) economic problems (principles)
There are three fundamental economic problems (principles). These include scarcity, choice and opportunity cost Scarcity. This refers to limited supply of resources required to produce ... Read More
Types of Goods in economics
(a) Consumer goods; these are goods meant for final consumption. They do not involve wore processing. For example food stuffs, books, clothes, etc. . (b) ... Read More
The fundamental economic questions
The economic questions influence resource allocation. They include; When to produce? That is, the period or season of production, whether to produce now or in ... Read More
Economic wants
Economic wants are desires that can be satisfied by consuming a good, service, or leisure activity. For example food, shelter, security etc. Read More
Definition of economics
Economics is concerned use of scarce resources to satisfy human endless needs. It deals with the ways in which production, distribution and consumption of goods ... Read More
Characteristics of wants
They are recurrent (endless) They are competitive in nature They are dynamic, that is, they keep on changing from time to time Read More
Characteristic of Wealth
1 It is relatively scarce. That is, it is limited in supply, It provides satisfaction (utility) It has money value. That is, it has price. ... Read More
Normative economics
Normative economics is subjective and value based, that is what people think the world would have been. Having a belief that the income should be ... Read More