Category: Economics
Factors limiting effective demand for goods and services in Uganda
High prices of goods and service low consumes' income poor quality of goods expectation of price fall in future low level of advertisement unfavorable season ... Read More
Derived Demand
Derived Demand is demand for a good or service that arises as a result of demand for another related good or service. For instance the ... Read More
Effective demand
Effective demand is the desire for/to possess or to acquire goods and services backed by the ability to pay for them. Read More
Measures to increase the level of national income
Increase the level of exploitation and utilization of national resource Expand/widen market for good and services modernize/commercialize agriculture encourage further diversification of agriculture improve entrepreneurship ... Read More
Conditions necessary for the success of balanced growth strategy
availability of enough/adequate/sufficient capital availability of skilled labour availability of entrepreneurs favorable government policy on investment well developed infrastructure high level of accountability/low level of ... Read More
Cause of outward shift production possibility frontiers
The outward shift production possibility frontiers can be as a result of the following factors Improvement in technology through innovations and inventions. Innovation refers to ... Read More
The Production Possibility Frontier (PPF) / (Opportunity Cost curve)
The production possibility frontier (PPF) is a locus of points showing all possible combinations of two commodities that can be maximally produced when all resources ... Read More
Effect of inflation in Uganda
Positive effects/advantages/merits of inflation in Uganda increased government revenue encourage/stimulates investment encourage entrepreneur skill promotes hard working increased level of industrialization/import substitution industrialization leads to ... Read More
Suggestion/measures to increase the rate of economic growth (in Uganda)
improve labour skill develop techniques of production improve entrepreneurial skill change the land tenure system provide (tax) incentive to investors stabilize prices/control inflation political stability ... Read More
Disadvantages/demerits of specific tax
Leads to inflation promotes income inequality leads to misallocation of resource discourages investment promotes trade malpractice such as smuggling and tax invasion breeds insufficiency of ... Read More
Fiduclary issue
an issue of banknotes/currency money by central bank/monetary authority (at its discretion) not backed by gold or foreign reserves. Read More
Roles/functions of public enterprises
provide goods and services that have low commercial profitability but having high social benefits reduce duplication and wastage of resources and goods provide employment opportunities ... Read More
Consumption expenditure
Consumption expenditure is the amount of money/expenditure on final goods and services to provide utility/satisfy individual/collective human wants. Read More
Benefits of development planning in an economy
ensure proper allocation of resources ensure equitable allocation of resources reduces unemployment corrects balance of payment ensure stability of prices promotes resource mobilization means of ... Read More
Factors limiting/Challenges of regional integration in developing countries
limited market due to production of similar products fears of diseconomies of scale differences in techniques of production failure to share benefits equally political instability ... Read More
need for/benefits/Advantages of agricultural modernization
increased output increase government revenue creates employment improves quality of products ensures food security widens choice or variety of food promotes industrial development promotes technological ... Read More
Agricultural modernization meaning
Agricultural modernization is the transition from low productivity subsistence agricultural sector to commercialized high yielding sector Read More
Agricultural mechanization meaning
Agricultural mechanization is the extensive use of machinery in farm production activity to substitute or complement human labour to increase productivity Read More
measures to regulate public expenditure (in Uganda)
fight corruption and embezzlement avoid over ambitious planning encourage cost sharing in provision of services promote political stability control inflation restructure public administration appeal for ... Read More
Policies (measures) to control inflation in developing countries
Selling government securities to the public. This is aimed at reducing money supply and aggregate demand in the economy as a way of controlling inflation. ... Read More
Factors that Influence the level of economic growth (in Uganda)
the skills of labour the entrepreneur ability market size political atmosphere level of infrastructural development land tenure system rate of inflation existing (stock of ) ... Read More
Expenditure approach to measuring national income
It is done bu summing up the value spending on all final goods and services produced in the country. Such expenditures include consumption, investment, government ... Read More
Measures to minimize agricultural price fluctuation or measures to stabilize prices of agricultural products/output
development of transport system to ease movement of agricultural products from regions of plenty to regions of scarcisty promote irrigation and mechanization to boost output ... Read More
Negative role (implications)/disadvantages/demerits of Foreign Direct investments and Multinational Corporations in developing countries
They promote regional income inequalities in economy. This is because most of the production, and business activities of foreign investors are mainly concentrated in ... Read More
Contribution of/Positive roles (implications) Multinational corporation in economic development
They create employment opportunities. Foreign investors set up production activities and business enterprises like banks, hotels, industries etc. which provide employment to the local population. ... Read More
Public corporation/enterprise
Public corporation is a business organization/enterprise in which government holds either all or majority of its share capital. (it is created by an act of ... Read More
Effects of depreciation of currency
leads to inflation/rice in domestic prices makes project planning difficult erodes peoples' confidence in local currency worsens the external debt burden encourages foreign investment discourages ... Read More
Currency depreciation
currency depreciation is the fall in the value of local currency relative to other currencies due to forces of demand and supply in the currencies ... Read More
Roles of education in economic development
Provide skills/promotes literacy promotes development of entrepreneur skills promotes national integration/unity Promotes innovations and inventions provides revenue to the government promotes development of infrastructures promotes ... Read More
Disadvantages/demerits of external resource dependence in uganda
balance of payment problems leads to underemployment and unemployment leads to cultural erosion stagnate the development of local technology leads to under utilization of local ... Read More
Direct economic dependence
External resource dependence is the reliance of a country on foreign decisions Read More
External resource dependence
External resource dependence refers to the reliance of an economy on factor inputs/resource/producer goods such as capital, skilled labour and technology from other countries for ... Read More
Factors that influence production cost in Uganda
wage rate and number of workers employed quantity of output produced the interest and amount of borrowed capital the entrepreneurship ability taxation and level of ... Read More
Explicit costs
Explicit costs are direct costs incurred by the firm during production process e.g. costs of labour, raw materials, power, water etc. Read More
Arguments for (merits/advantages) for export promotion industrialization strategy
It encourages the exploitation and utilization of domestic idle resources. This is because as production for the export market increases through the vent for surplus ... Read More
Implications (Advantages/merits and disadvantages/demerits) of government price control.
Arguments for government control of prices of essential good Price stability: resale price maintenance ensures that prices are stable since retailers cannot increase the set ... Read More
Price support
Price support is where the government buys the surplus output on the market arising from the fixing of minimum price with the aim of supporting ... Read More
Price control
Price control is the setting/fixing of prices of good by government either below the equilibrium price (maximum price) to protect consumer or above the equilibrium ... Read More
Partial plan
Partial plan is a plan drawn to cover part of the economy or sector(s) of the economy Read More
Merits/advantages of fixed exchange rate
encourages capital inflow discourages speculation prevents corruption and embezzlement encourages regional economic integration encourages discipline among monetary authority encourages long term contracts Read More
What is fixed exchange rate
A fixed exchange rate is one where the rate of domestic currency in terms of other currencies is fixed and maintained by the central monetary ... Read More
Why are payment to land always considered economic rent?
the supply price for land is zero since it is free gift of nature land is fixed in supply (perfectly inelastic) land is geographically immobile Read More
Uses of opportunity cost to the producer
it helps in pricing factors of production it helps in the pricing of commodities it helps in deciding what to produce it helps in deciding ... Read More
Relationship between choice and opportunity cost
Due to scarcity, choice has to be made between competing alternatives. The choice of one of the alternative would mean foregoing of another which is ... Read More
Objectives (Aims) of taxation (Fiscal policy) in an Economy/ Why is it necessary to levy tax in your country
To rise government revenue so as to meet her recurrent and development expenditures. To achieve equitable distribution of wealth and incomes by using progressive tax ... Read More
Instruments (Tools) of the monetary policy
These are guide lines/instruments used by the central government through the central bank to regulate the amount of money in circulation, availability of credit and ... Read More
Involuntary unemployment and causes
Involuntary unemployment is a situation where labor is willing and able to work at the ongoing wage rate but cannot find a job. Causes of ... Read More
Factors that determine strength of trade unions
The prevailing economic climate the size of membership Price elasticity of demand of product Financial ability to finance strikes The level of unemployment the quality ... Read More
Distinguish between forward and backward linkages
Forward linkage is a situation where existence or establishment of an industry leads into emergence of another industry to provide market for the products and ... Read More
Backward linkage
Backward linkage is a situation where existence of an industry results into establishment of new industries to provide inputs for the existing industry Example sugar ... Read More
Forward linkage
Forward linkage is a situation where existence or establishment of an industry leads into emergence of another industry to provide market for the products and ... Read More
Ways of attracting foreign investment into the country
provision of incentives to foreign investors privatization increasing international publicity liberalizing of economy political stability improving infrastructure economic stability Read More
Determinant of price
auctioning price leadership i.e. the strategy of setting prices much lower than those of the competition Price legislation resale price maintenance collusion/treaty forces of demand ... Read More
Price leadership
Price leadership is the strategy of setting prices much lower than those of the competition. Read More
Under what circumstances may inflation be desirable in an economy/advantages of inflation
Mild Inflation is healthy to the economy in the following ways; It stimulates production of goods and services in the economy. This is due to ... Read More
LIMITATIONS OF MALTHUSIAN POPULATION THEORY
To a greater extent, the Malthusian population theory is of limited relevance or to developing countries in the following ways: He assumed that resources e.g. ... Read More
Characteristics /features of economic underdeveloped Countries or Features of economic under development
Low standards of living for the majority of the people. The low levels of living are manifested, in form of low incomes, inadequate housing facilities, ... Read More
Price legislation
Price legislation is a process by which the government or its agency control prices by fixes the price of essential commodities. Read More
Casual (Erratic) Unemployment
Casual (Erratic) Unemployment. This is where a worker becomes unemployed when work is completed for example people working on contract such as building contractors. Read More