Category: Economics
Types of joint – stock companies
Public limited companies These consist of not less than seven (7) members and there is no maximum number. The shares are freely transferable to the ... Read More
Demerits (disadvantages) of partnerships
Partnerships have unlimited liability. That is, in case of debts arising out of the business operations, personal property of the partners in addition to ... Read More
Joint-Stock Companies (Limited Liability Companies)
These are business organizations with several members (shareholders) who come together and contribute capital to start business with the aim of making profits. Read More
Merits (advantages) of partnerships
Losses and other risks are shared among the members. Partnerships involve a number of members and therefore the risks per unit member are greatly reduced. ... Read More
Types of partners
Active partner. This is one who contributes capital and takes part in the active management of the business. He also shares profits and losses jointly ... Read More
Partnerships
Partnerships is a business type where members come together and pool (contribute) financial resources in order to carry out business jointly with the aim of ... Read More
Merits (advantages) of a sole proprietor
It is easy to set up the business. This is because it does not require many bureaucratic procedures of registration and documentation as for ... Read More
Sole proprietorship
Sole proprietorship is where the business is owned and managed by one person. The owner may be assisted by family members. The major source of capital ... Read More
Factors that influence the supply of Entrepreneurs
The level of education and training. There higher the level of education and training, the greater the supply of entrepreneurs and the lower the level ... Read More
Functions of the entrepreneur
The entrepreneur is responsible for starting the business The entrepreneur employs other factors of production such as land, capital and labour The entrepreneur makes arrangements ... Read More
An entrepreneur
An entrepreneur is a person or group of persons who under take the task of organizing the other factors of production in order to make ... Read More
Factors affecting/Determinants of labour mobility
The length of the training period. The longer the length of the training period, the lower the mobility of labour and the shorter the training ... Read More
Types of occupational mobility of labour
Horizontal mobility of labour refers to the change of occupation where no change occurs in the status of the worker. For example a biology teacher ... Read More
Labour meaning
Labour refers to all human effort both mental and physical which is used in the production process. Labour can be skilled, semi-skilled or unskilled and ... Read More
What are the types of labour?
The four types of labor in economics are skilled, unskilled, semi-skilled, and professional. Together, these four types of labor make up the active labor force Read More
Importance (role) of capital accumulation in economic environment/development
It leads to technological development in form of inventions and innovations. This leads to the production of goods and services in large quantities and of ... Read More
Determinants of (factors influencing) capital accumulation
The level of savings; the higher the level of savings, the higher the level of capital accumulation on the other hand, the low rate of ... Read More
Capital Accumulation (Capital Formation)
Capital Accumulation (Capital Formation) is the process through which the stock of capital increases overtime for purposes of future investments. Capital accumulation can be in form ... Read More
Determinants of Marginal efficiency of capital (MEC)
Anticipated level of output is an expected increase in the level of output by the firm leads to an increase in MEC but an expected ... Read More
Marginal efficiency of capital (MEC)
Marginal efficiency of capital (MEC) refers to the expected (anticipated) monetary returns on an extra (additional) unit of capital employed in the production process. Read More
Marginal productivity of capital
Marginal productivity of capital is the additional output that results from adding one unit of capital—typically cash Read More
Capital productivity
Capital productivity is the measure of how well physical capital is used in providing goods and services in a given time Read More
Types of capital
Real capital is the physical assets used in the production of goods and services for example machines, buildings, roads etc. It is also called fixed ... Read More
What is Capital?
Capital refers to any man made resource which is used in the production process for example machinery, buildings, money, clothes etc. Capital is used to ... Read More
Importance of land as a factor of production
It is used for agricultural activities for example hunting, farming and fishing. Land acts as a ground for waste disposal for example sewage disposal Land ... Read More
Characteristics of land as factor of production
Its supply is fixed. Land is a gift of nature. It is geographically immobile that is, it cannot be transferred from one place to another. ... Read More
Types of mobility of factors of production
Geographical mobility of a factor of production; is the ease with which a factor of production can be moved from one geographical area to another. ... Read More
Mobility of factors of production
Factor mobility is the ease with which a factor of production can be moved from one geographical area to another or from one occupation to ... Read More
Factors (agents) of production
Factors of production are resources (inputs) required in the production of goods and services. They include, Land, Labour, Capital and Entrepreneurship Read More
Demerits (Disadvantages) of Specialization and Division of labour
It leads to boredom. This is because performing the same task all the time becomes monotonous which results into loss of efficiency and work dissatisfaction. ... Read More
Advantages (merits) of specialization and division of labour
It increases the efficiency of labour. This is as a result of performing the same task over time. It is time saving. This is because ... Read More
What is division of labour?
Division of labour is the allocation of tasks (activities) among workers in the production process such that each worker is given a task which he/she ... Read More
Forms/types of specialization
Specialization by craft. This was the earliest from of specialization where certain families specialized in different activities basing on their location like fishing, hunting, farming, ... Read More
Specialization in economic
Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency ... Read More
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
Conditions that can lead to fainting
to anxiety, fear, pain, intense emotional stress, hunger, or use of alcohol or drugs, hunger, sickness. 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
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