What is meant by vent for surplus theory in economics?

11/30/2022 0

Vent for surplus theory explains the view that the exploitation of idle domestic resources for export can lead to an increase in national income because ... Read More

State government objectives of development

11/30/2022 0

Increase in the level of national income thereby increase standards of living To reduce income inequality and poverty or aims at equality of income distribution ... Read More

Briefly explain the liquidity preference theory

11/30/2022 0

Liquidity preference is the desire by individuals or firm to prefer holding or keeping their assets or wealth in money or cash form. According to ... Read More

Using specific examples from your country distinguish between “footloose” and rooted industries.

11/30/2022 0

A footloose industry is an industry which can be located anywhere. Proximity to the location of raw material is not required. A key industry is ... Read More

Consequences of an inflationary gap

11/30/2022 0

The inflationary gap occurs when the relative rise in real GDP causes an economy to increase its consumption, leading prices to climb in the long run. ... Read More

How does government multiplier operate?

11/30/2022 0

The multiplier effect occurs when an initial injection into the circular flow causes a bigger final increase in real national income. This injection of demand might ... Read More

What is government expenditure multiplier?

11/30/2022 0

  Government multiplier refers to the ratio of change in national income to a change in government spending. i.e. Government multiplier = / Read More

How is labour mobility and division of labour related?

11/30/2022 0

The relationship between the two is that the higher the division of labour the lower the mobility and vice versa. Read More

Distinguish between mobility of labour and division of labour.

11/30/2022 0

Mobility of labour refers to the ease with which labour can move from one job to another or activity to another or from one geographical ... Read More

How is devaluation of the currency supposed to cure an economy’s balance of payments current account deficit? Is it likely to succeed? Give reasons to support your answer.

11/29/2022 0

Answer When the demand for export is price elastic such that a fall in their prices lead to greater increase in quantity demanded abroad and ... Read More

What measures can be used to curb imported inflation?

11/29/2022 0

Measures to imported inflation Imported inflation is the Increase in prices of domestically produced goods and services due to increase in the prices of imported ... Read More

Account for the causes of demand-pull and cash-push inflation in your country

11/29/2022 0

Answer Causes of demand-pull inflation Demand-pull inflation is when growing demand for goods or services meets insufficient supply, which drives prices higher or Rising prices ... Read More

Under what socio-economic conditions may economic growth lead to economic development in an economy?

11/29/2022 0

When an increase in real per capita income is sustained for a long period of time When increase in national income is used to acquire ... Read More

What are remedies to Uganda’s (LDC) economic structure

11/29/2022 0

The following are proposed remedies The large subsistence sector can be reduced by the following measures There is need to establish, provide and maintain adequate ... Read More

Give salient features of Uganda’s (LDC) economy.

11/29/2022 0

Uganda’s economy is characterized by the following Agricultural sector (predominantly subsistence in nature) Dualism- technological, sectoral, social Industrial sector is small but growing Unemployment and ... Read More

Does the level of National income give an accurate picture of the economic and social wellbeing of the population? Give reasons to support your answer?

11/29/2022 0

Note: National income figures are not designed to assess welfare or the wellbeing of citizens. It was designed to measure production capacity and economic growth. ... Read More

Explain how National income is calculated

11/29/2022 0

National income is calculated in the following ways; The income approach: the national income is measured by adding up the pre-tax income generated by the ... Read More

Why may inefficient firm continue production both in short run and long run

11/29/2022 0

When the aim is to provide employment opportunities for the people other than profit maximization. In this case, as long as the desirable labour force ... Read More

What is meant by an inefficient firm in economic theory?

11/29/2022 0

An inefficient firm is a firm that operate at high cost of production. Or it is a firm that may not be in position to ... Read More

Why is aggregate demand curve down sloping?

11/29/2022 0

Note that different reasons account for down slopping of a demand curve (one product) and aggregate demand curves (many products) Three reasons cause the aggregate ... Read More

Explain and illustrate an aggregate demand curve

11/29/2022 0

A demand curve is the locus of points showing quantity demanded of commodity demanded at various prices per period of time. It draws on assumption ... Read More

Give differences between structural and frictional unemployment

11/29/2022 0

Unemployment that is frictional is chosen, whereas that which is structural is typically forced.  People who voluntarily quit their jobs and then don’t find new work right away usually fall ... Read More

Differentiate between revaluation and overvaluation of a currency

11/29/2022 0

Answer Revaluation of a currency occurs when the value of a currency is increased relative to another currency in a fixed exchange rate regime whereas ... Read More

Distinguish between social wealth and social welfare. Give two examples in each.

11/29/2022 0

Answer Social wealth refers to the physical assets or stock of goods owned by the public or society or local authority, e.g. schools, roads, public ... Read More

What is meant by international cartels?. Give one example of an international cartel.

11/29/2022 0

Answer International cartel refers to a group of firms from different countries coming together to coordinate output decisions and control prices in order to benefit ... Read More

Explain why leisure is an economic good.

11/29/2022 0

  Answer It is defined as rest, idleness, play, or recreation thereby regulating the body and mind, alleviating the stress of life, and providing a ... Read More

Distinguish between substitution effect and income effect

11/29/2022 0

Answer The substitution effect states that when the price of a good decreases, consumers will substitute away from goods that are relatively more expensive to ... Read More

What is the role of price in a free market?

11/29/2022 0

Answer Price is the amount of money that has to be paid to acquire a given product: Price acts as a signal for shortages and surpluses which help ... Read More

Distinguish between explicit costs and implicit costs

11/29/2022 0

Explicit costs are direct costs incurred by the firm during production process e.g. costs of labour, raw materials, power, water etc. whereas implicit costs are ... Read More

Distinguish between dividends and shares

11/28/2022 0

Dividends are part of a company’s profit that a firm periodically pays out to its shareholders as a return on their capital contribution. Whereas shares ... Read More

Explain the meaning of Giffen paradox

11/28/2022 0

Giffen paradox is a situation where the quantity demanded of inferior good increases whenever there is an increase in its price. Read More

Explain the meaning of complementary factors of production

11/28/2022 0

Complementary factors of production are factors inputs in the process of production that are used together to enhance one another e.g. capital and labour Read More

How is monopoly controlled?

11/28/2022 0

Nationalization of monopoly firm(s) by the state. By forming regulatory bodies such as water and electricity to check on monopoly decisions e.g. through price legislation ... Read More

Describe the basis of monopoly power.

11/28/2022 0

The basis of monopoly refers to the origin or causes of monopoly powers Passible causes/origin of monopoly power include Legal barriers comprising copyrights, licenses, patents, ... Read More

What is ‘Monopoly’

11/28/2022 0

Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as ... Read More

What are determinants of consumption in society?

11/28/2022 0

The level of disposable income. income which is available to individuals and households after taxation. When this income is high then consumption levels are high ... Read More

With examples distinguish between a ‘leakage’ and an ‘injection’ in the circular flow of income.

11/28/2022 0

‘Injections’ are the introduction of income into the flow, such as additions to investment, government expenditure and exports. “Leakages” are the withdrawal of income from the ... Read More

What problems are faced in administering the buffer stock and stabilizing fund policies

11/28/2022 0

LDCs are poor and therefore cannot afford purchasing the excess surplus due to limited funds There are inadequate storage facilities especially for perishable goods such ... Read More

Distinguish between buffer stock and stabilizing fund policies

11/28/2022 0

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target ... Read More

Why is marginal productivity theory rarely used in determining wages?

11/28/2022 0

The theory assumes that there is no government interference, but government usually interferers in wage determination The theory assumes the law of diminishing returns, but ... Read More

Explain what is meant by marginal revenue products.

11/28/2022 0

The marginal revenue product is the increase in total revenue resulting from the employment of each additional labour unit. Marginal revenue product in a perfectly competitive ... Read More

Why is it difficult to attain full employment in an economy?

11/27/2022 0

There is inadequate information about where jobs are; where jobs are advertised in newspapers most  unemployed people fail to get this information because they cannot ... Read More

What is meant by the term full employment

11/27/2022 0

Full employment refers to a situation where all factors of production especially labour are fully utilized. It is also defined as a state where the ... Read More

What are the functions of profit in an economic system?

11/27/2022 0

Profit plays the following roles in economic systems: It provides to entrepreneurs with reward for risk bearing without which he/she could not undertake production It ... Read More

Explain the concept of profits as used in economics.

11/27/2022 0

Profit is the return to an entrepreneur for bearing the uninsurable risks of production, Or it is the difference between total revenue and total cost. ... Read More

What is the importance of the concept of price elasticity to government, consumer and producers.

11/27/2022 0

Government It helps government in currency devaluation. The government can devalue it currency if her imports and exports have elastic demand and supply such that ... Read More

What is the relevance of the concept of price elasticity to producer

11/27/2022 0

Producer It helps a producer in determining prices for his commodities. If a commodity has elastic demand, the producer will reduce the price and charge ... Read More

What is the relevance of the concept of price elasticity to consumer

11/27/2022 0

It helps in determining incidence of tax. For goods whose demand is elastic, the burden is borne by the producer and for those whose demand ... Read More

What is the relevance of the concept of price elasticity to government.

11/27/2022 0

It helps government in currency devaluation. The government can devalue it currency if her imports and exports have elastic demand and supply such that as ... Read More

Outline the factors that determine the price elasticity of demand of a product.

11/27/2022 0

Availability of substitute The proportion of income spent on the product Habit forming products e.g. cigarettes and alcohol. The number of uses to which a ... Read More

What is Price Elasticity of Demand?

11/27/2022 0

Price Elasticity of Demand (PED) is an economic tool that measures the change in quantity demanded of a product when there is a fluctuation in ... Read More

List instruments of credit

11/27/2022 0

Over drafts Bills of exchange Credit cards Securities Promissory notes: bonds, checks, Read More

Distinguish between liquid money from money in circulation

11/27/2022 0

Liquid money is money in cash form possessed by the public while money in circulation refers  to liquid cash/ money in cash form in the ... Read More

What is liquidity in economics

11/27/2022 0

Liquidity refers to how quickly a financial assets can be used to buy a good or service. For example cash is very liquid because can ... Read More

What is liquidity in economics?

11/27/2022 0

Liquidity refers to how quickly a financial asset can be used to buy a good or service. For example, cash is very liquid. Cash of ... Read More

What are non-economic factors affect agricultural labour productivity in a country like Uganda

11/27/2022 0

Soil fertility Climatic changes Political stability Public opinions Pests and diseases Cultural/traditional practices Levels of skills of agricultural worker Population structure Read More

Explain what agricultural labour productivity is.

11/27/2022 0

Agricultural labour productivity is output per unit of labour input used in agricultural production process Read More

What are non-economic factors affect agricultural labour productivity in Uganda

11/27/2022 0

Soil fertility Climatic changes Political stability Public opinions Pests and diseases Cultural/traditional practices Levels of skills of agricultural worker Population structure Read More

Why does black market occurs?

11/27/2022 0

To avoid taxes Buying and selling goods prohibited by law such as cocaine or cannabis Hoarding of commodities due to expectation of higher prices To ... Read More

What is meant by the term “black market”?

11/27/2022 0

A black market is any market where the exchange of goods and services takes place in order to facilitate the transaction of illegal goods or to ... Read More