Category: Economics
Foreign aid
Foreign aid is the international movement of money, services, or goods/resources from governments or international institutions for the benefit of the receiving country or its ... Read More
Measures that have been to promote development of private sector in Uganda
Development/ improvement of infrastructures Provided affordable loans/credit facilities to investors. Ensuring -political stability / improved the political climate. Widened markets both local and foreign. Ensured ... Read More
Disadvantages/Demerits of Oligopolistic market
Distortion of consumer’s choice through advertising Exploitation of consumers through over charging due to collusion/profit maximization motives Duplication and hence wastage of resources Worsen /cause ... Read More
Factors that affect the implementation of development plans
The availability of data / information The degree of responsiveness of the private sector The level of government commitment / the level of conservatism/ the ... Read More
Factors which limit the effective operation of trade unions in your country
Disunity of workers Poor leadership ability Political interference Limited fund Limited skill of members High levels of unemployment. Limited membership/low level of unionization. Low demand ... Read More
Factors that influence the level of profits in your country (Uganda)
Price level/ the rate of inflation Cost of production/cost of sales/ efficiency of firms Goal / objective of the producer(s). Entrepreneurial skills organizational Degree risks ... Read More
Economic profit
Economic profit is an earning measured or derived by getting the difference between the revenue and opportunity cost of factors used in the production of ... Read More
Normal profit
Normal profit is the minimum rate of return that a firm must earn to remain in industry. or Normal profit is an earning or reward ... Read More
Account for the increase in public expenditure i n your country.(Uganda)
Rising costs of infrastructural development. Rising emergency funding due to frequency of natural hazards. Systemic corruption/rising levels of corruption/embezzlement by public officials/rising costs of fighting ... Read More
Explain the functions of banking financial institutions in your country.
Accepting deposits. Advancing loans. Act as custodians of their customers valuables (by providing strong rooms). Insurance of various forms of credit Instruments/provides easy means of ... Read More
Causes of voluntary unemployment.
Laziness/negative altitude. The desire (by the unemployment) to live on past savings. Low wages/remuneration and other benefits in the available jobs. The preference to live ... Read More
Benefits/ advantages/merits of nationalization of enterprises
Merits of nationalization of enterprises Reduces wasteful competition/duplication of activities. Encourages large scale production/increased output/economies of scale/economic growth. Reduces consumer exploitation by charging affordable prices/provision ... Read More
Explain the rationale for centralized planning in an economy
To minimize wastage of resources/efficient allocation of resources To ensure proper co-ordination in sectoral development since the private sector is still weak. To ensure equitable ... Read More
Explain the factors that limit regional l economic integration among the developing
They tend to produce similar goods and service which limits market Failure/fear to share benefits equally Fear to lose customs revenue Existence of political instabilities ... Read More
the feature of an economic union
Strong regional institutions. Use of a common currency. Sharing of common services. t economic planning. Free movement of goods and services/free trade within ... Read More
How does existence of monopolistic competitive markets affect producers in Uganda?
It lead to wastage of resource due to duplication of services/activities. They carryout competitive advertisement which leads to high operational costs. Production of excess capacity, ... Read More
Differences and similarities between pure monopoly and monopolistic competitive markets
Differences In pure monopoly there is only one producer/seller/firm while in competitive monopolistic competitive markets there are many producers i.e. no completion exist in pure ... Read More
Effects of agricultural price fluctuations in an economy
unstable/fluctuating terms of trade Unstable export earning Balance of payment instabilities Planning is made difficult Fluctuation of government revenue Unstable farmers income Fluctuations of employment ... Read More
Relevance of Malthusian theory to LDCs (Uganda)
Land supply being fixed and subject to the law of diminishing returns is what is being experienced and he envisaged this Natural family planning methods/control ... Read More
Limitations of the Malthusian population theory in developing countries
It assumes constant technology which is unrealistic since technology is ever changing/technological progress occurs. It assumes a closed economy, yet economies of most LDCs ... Read More
Effects of regressive taxes in an economy.
They encourage hard work among the poor. They widen income gap between the poor and the rich. They limit consumption of consumer goods/reduce standards of ... Read More
Distinguish between average product and marginal product
Average product is the output produced per unit of a variable factor employed e.g. Labour. While Marginal product is the change in total output resulting ... Read More
Factors that may lead to increase in marginal product of labour
Increase in wage rate Improvement in technology Increase in the level of education /training /skills Improvement in the quality of management and supervision· Increase in ... Read More
Advantages/ Benefits/merits of a mixed economy.
Limited resource wastage due to regulated Better quality products are produced because of competition between the private and public sectors. Production of a wide variety ... Read More
Reasons for stabilizing prices of agricultural products in an economy
to stabilize incomes of farmers to stabilize balance of payment for stabilize government revenue to stabilize foreign exchange earnings to control rural-urban migration to minimize ... Read More
Cause of low level of national income in developing countries
low level of natural resource exploitation small size of the market low level of infrastructural development political instabilities high population growth rate low level of ... Read More
Advantages of dual economy
government is awakened to its responsibility of providing utilities for the less developed regions government revenue through progressive taxes it provides impetus for research and ... Read More
A dual economy meaning
A dual economy is one where there is co-existence of two contrasting sectors/phenomenon/situations, one advanced/modern and the other backward/traditional or one superior and another inferior ... Read More
Causes of a decrease in supply
an decrease in the price of jointly supplied goods/product increase in the price of a competitively supplied commodity a change in objective of the producer ... Read More
Reasons for high liquid preference in developing countries
low income high rate of speculation high rate of inflation high level of cash transaction high degree of uncertinity low levels of development of commercial ... Read More
Liquidity ratio
Liquidity ratio is the percentage/proportion of commercial bank (total) deposit that is kept in cash or near cash form Read More
Features of agricultural sector in Uganda
mainly subsistence mainly on small scale mainly rural based mainly use labour intensive technology mainly produce low quality output produce mainly for local market mainly ... Read More
Transfer payment
Transfer payment is an income received by economical entity without anything given in return or payment made to an individual without corresponding goods/services rendered (i.e. ... Read More
Complementary goods
bb Complementary goods are goods that are jointly demanded e.g. car and petrol, guns and bullets, fountain pen and ink, bow and arrows, chalkboard and ... Read More
Contributions of private sector to economic development
provision of employment increase government revenue promote infrastructural development promote resource utilization promote industrialization promote innovation and invention promote development of entrepreneurship skills provide variety ... Read More
Methods of wage/salaries determination in Uganda
Collective bargaining. This refers to round table negotiations between the representatives of the trade union and the employer aimed at improving wages and other working ... Read More
Characteristic of formal sector in Uganda
made up of predominantly registered businesses mainly provide salaried employment has proper record keeping businesses are mainly governed by law/acts of parliament dominated by corporate ... Read More
Impact of unemployment in a country
decline in the level of skill acquisition increased dependence burden low government revenue brain drainage low aggregate demand for goods and services worsen income inequality ... Read More
Causes of youth unemployment
Technological progress and increased use of capital intensive technology lack of appropriate skills seasonal changes especially in agriculture poor attitude towards work rapid population growth ... Read More
Merits/benefits/merits of privatization
increases output hence economic growth increases government revenue widen customers choice due to a variety of goods improved quality of goods and services. reduced corruption ... Read More
Nationalization of firms/enterprises
Nationalization of firms/enterprises is the taking over by the state of ownership of firm/enterprises formally privately owned Read More
Imperfect oligopoly
Imperfect oligopoly is a market situation where there are a few seller/firm/ producers in the industry in similar but differentiated products. Read More
Perfect oligopoly
Perfect oligopoly is a market structure situation where there are a few firms/supplier/sellers in the industry industry dealing in homogeneous products Read More
Strategies taken to improve infrastructures in Uganda
constructed infrastructure rehabilitated infrastructures contracted private firms to develop infrastructure step up supportive institution such as UNRA improved labour skills by increasing the number of ... Read More
Roles of infrastructure in economic development of Uganda
Promotion of investment/capital inflow promotion trade/accessibility to market promotes resource utilization creates employment improves social welfare of people e.g. health and educational facilities facilitate innovation ... Read More
Measure to promote investment in Uganda
encourage saving increase peoples income control population growth widen market for local production provide investment incentives undertake entrepreneurial development and training purse economic linearization undertake ... Read More
Effects/Implications of Uganda’s population structure
Benefits/positive effects/implications/ advantages/merits of Uganda's population structure high market potentials high potential for labour force incentive for future investment high tax potential encourage labour mobility ... Read More
Population structure of Uganda
dominated by the young population female more than male over 80% live in rural areas majority are unskilled or semiskilled high growth rate dominated by ... Read More
Reasons for the low levels of investments in Uganda
limited capital limited skilled labour low income limited saving limited market high interest rates on capital loans political instability high levels of inflation limited entrepreneurs ... Read More
Challenges/Factors limiting the integration of firms in Uganda
Fear of high taxation limited market limited skilled manpower differences in economic objectives of firms fear of diseconomies of scale/complexity/high risk dealing in unrelated products ... Read More
Measures to reduce open urban unemployment
Advertise/publish the available jobs widen market population control to reduce population growth rate education reform to produce job creators/proper manpower planning undertake land reforms under ... Read More
effects/Implication of over population
Benefits/merits/Advantages of over population It increases the size of the domestic market for both the manufactured and agricultural products. It encourages labour mobility. This is ... Read More
Positive roles/advantages/benefits/merits /need for industrialization in less developed countries
Creates jobs in the country Promotes innovation, and technological advancement Leads development of infrastructures such as roads and power distribution. Promotes scientific research Provision of ... Read More
Reasons for/advantages/merits/benefits of price control
Price stability: resale price maintenance ensures that prices are stable since retailers cannot increase the set prices which are indicated on the commodities. This reduces ... Read More
Credit (Bank deposit/ Money) multiplier
Credit multiplier (M) is the number of times the initial bank deposits multiply to give the final bank deposits Example 1 Calculate the total credit ... Read More
Benefits/Advantages (Merits) of big push growth strategy
It increases employment opportunities. The strategy emphasizes the creation of labour intensive industries. This promotes employment and raises effective aggregate demand for goods and services ... Read More
Public goods
Public goods are goods provided by the government (state) and they are collectively owned by the members of society in such a way that their ... Read More
Mild inflation
Mild inflation is persistent increase in price level at a slow rate (i.e. less than 10%) Read More
Hyperinflation
Hyperinflation is a persistent increase in the general price levels at high/fast rate (i.e. over 10% per annum) Read More
Causes of tax evasion
the desire by the tax payer to keep all income ignorance of the tax payer on the advantages of taxes high level of corruption discourage ... Read More