Table 1: Distribution of the population of a country in various occupations.
| Occupation | Total (millions) |
|---|---|
| Shoe Production | 30 |
| Banking | 37 |
| Fish Processing | 19 |
| Warehousing | 12.2 |
| Mining | 16.1 |
| Fish Farming | 10.8 |
| Food Crop Production | 15.6 |
| Baking | 19 |
| Laundry | 10.3 |
Instructions:
Study the table and answer the questions that follow:
(a) Calculate the size of the entire labor force in the country.
(b) What percentage of the labor force is engaged in the:
(i) Primary sector
(ii) Secondary sector
(iii) Tertiary sector
(c) Calculate the ratio of the workers in mining to the workers in shoe production.
(d) Calculate the percentage of people engaged in warehousing.
(e)
(i) Identify the type of economy depicted in the table.
(ii) Give a reason for your answer in (e)(i).
Table 2: Unit prices and quantities of hats produced by a firm.
| Quantity | Unit Price ($) | Total Revenue ($) | Marginal Revenue ($) | Average Revenue ($) |
|---|---|---|---|---|
| 10 | 180 | 1800 | - | 180 |
| 20 | 150 | 3000 | 120 | X |
| 30 | U | 3600 | 60 | 120 |
| 40 | 100 | V | W | Y |
| 50 | 80 | 4000 | 0 | 80 |
| 60 | 60 | 3600 | 40 | 60 |
Instructions:
Study the table and answer the following questions:
(a) Compute the values of U, V, W, X, and Y.
(b) In what type of market is the firm operating? Explain your answer.
(c) If the firm's marginal cost is $60.00 at all levels of output, at what level of output will it be in equilibrium? Explain your answer.
(d) If a total cost of $600.00 is incurred when 50 units of hats are produced, determine the margin of profit or loss made.
(e) What is another name for marginal cost?
(a) What is economies of scale?
(b) Outline three internal economies of scale a firm can enjoy.
(c) State three factors that can influence where a firm is sited.
(a) Define product retailing.
(b) Outline any three roles performed by the wholesaler to the manufacturer.
(c) Identify any three problems associated with the distribution of products.
(a) Define price elasticity of demand.
(b) Distinguish between elastic demand and inelastic demand.
(c) Using diagrams, explain what happens to a trader’s total revenue when the demand for their product is:
(i) Elastic
(ii) Inelastic
(a) State three characteristics of perfect competition.
(b) With the aid of diagrams, explain the equilibrium positions of a perfectly competitive firm in the:
(i) Short-run
(ii) Long-run
(a) Explain how the Central Bank controls money supply through the use of:
(i) Open Market Operations
(ii) Bank Rate
(b) Outline four functions performed by the Central Bank of your country.
(a) Distinguish between domestic trade and external trade.
(b) Distinguish between terms of trade and balance of trade.
(c) Outline four causes of a balance of payments deficit in a country.