ECONS 101

ANSWERS TO REVISION QUESTIONS

Hello World, Happy Holiday to you all and Happy Friday and Happy Weekend. Its alot of Happy Points for Us this Season Guyz. Lolz- Hope this Holiday is Fun for You and All Your Loved Ones. It is Well in Jesus Name. Well for some weeks now, we have dealt solely on revision Questions gotten from WAEC Past Questions and Today we will try to Answer them, Hope you all tried them cos thats the only way you can truly be sure of your performance. Alright Let's get Started.........

1. C- How to Produce.

2. C- Balance of Trade.

3. B- Change in Demand.

4. A- Elastic.

5. A- Equality of the Ratio of Marginal Utilities and the Ration of Prices.

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ECONS 101

REVISION QUESTIONS

Hey Readers, Thank God Its Friday Again!!!!... It's always the Feeling of Friday, The Feeling of Now i can Relax, so before we do, lets revise some questions in the spirit of Holiday. We are continuing the Revision of Questions of WAEC, JAMB, GCE etc. So Let's get Started....

37. The Differences between Birth Rate and Death Rate is known as ?

a.  Demographic Transition

b. Natural Growth Rate

c. Migration Rate

d. Fertility Rate.

38. Mr Okpoti has Meat and wants Maize, while Mr Adama has Maize and wants Meat.  A Transaction is possible because of?

a. Joint Demand

b. Scale of Preference

c. Double Coincidence of Wants

d. Opportunity Cost.

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ECONS 101

REVISION QUESTIONS

Hey Readers, Thank God Its Friday Again & lAST dAY OF THE mONTH OF jULY!!!!... It's always the Feeling of Friday, The Feeling of Now i can Relax, so before we do, lets revise some questions in the spirit of Holiday. We are continuing the Revision of Questions of WAEC, JAMB, GCE etc. 

So Let's get Started....

25. The Difference between the Number of Immigrants and Emigrants is?

a. Natural Growth Rate

b. Natural Increase

c. Net Migration                  

d. Census.

26. All the Following are Features of Optimum Population except

a. Full Employment of Available Resources

b. Unlimited Amount of Unexploited Resources

c. Maximum per Capita Production and Income

d. High Standard of Living.

27. The Financial Institution that specialises in risk spreading is called

a. An Investment Bank

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ECONS 101

REVISION QUESTIONS

Hey Readers, Thank God Its Friday Again!!!!... It's always the Feeling of Friday, The Feeling of Now i can Relax, so before we do, lets revise some questions in the spirit of Holiday. We are continuing the Revision of Questions of WAEC, JAMB, GCE etc. So Let's get Started....

13. If a Particular Consumer derives Total Utility of 22Utils having Consumed 4 units of a given product, his average Utility will be

a. 88 Utils

b. 18 Utils

c. 5.5 Utils

d. 3.5 Utils.

14. The Law of Diminishing Marginal Utility applies to a

a. Firm which Minimizes Cost

b. Consumer who Maximises Satisfaction

c. Producer who Maximises Marginal Product

d. Consumer who Minimises Total Utility.

15. Why is the Law of Diminishing Returns a short run Phenomenon?

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ECONS 101

REVISION QUESTIONS

Hey Readers, Thank God Its Friday!!!!... It's always the Feeling of Friday, The Feeling of Now i can Relax, so before we do, lets revise some questions in the spirit of Holiday. 

1. Which of the Following problems arises where there are more than one technically possible methods of production?

a. Where to Produce

b. For Whom to Produce

c. How to Produce

d. What to Produce.

2. Visible Balance is also known as

a. Terms of Trade

b. Balance of Payments

c. Balance of Trade

d. Capital Balance.

3. A Shift in the Demand Curve indicates

a. Exceptional Demand

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ECONS 101

PUBLIC CORPORATION

Hey Guyz, watsup? How are y'all doing, I hope you are great. I just had one of the most difficult week of my Life. I worked tirelessly hard on a project that was dear to my heart and it didn't just work out. So y'all have to be doing good cos my happiness clings on that, I find that so many times when am in a place of pain, the happiness of others heal me alot- I could just see and hear a good news about somebody else and immediately feel a surge of happiness come my way. so I can say I share in others happiness how much more the happiness and joy of my esteemed readers who have been with me from day one. so y'all be happy not just for yourselves but for others who might be like me near you. God Bless, so let's get straight to today's lesson.

Public Corporation is defined as a Large Scale Business Organisation set up, owned and financed by the government of a country mainly to provide services to the members of the public. They are directly under the control of the government  to cater for the welfare of the people. It can also be known as Public Enterprise or Statutory Corporation which are run by the government through the tax paid by the people, they are established by an act of parliament or decree. They are controlled by a Board of Directors, appointed by the Government. Examples include- Nigerian National Petroleum Corporation (NNPC), Federal Radio Corporation of Nigeria (FRCN), Nigerian Ports Authority (NPA), etc.

Features of Public Corporation:

a. Monopolistic in Nature- Some Corporations are conferred with monopoly power by an act of parliament or decree.

b. Restriction of Services- It is true that Public Corporations provide services but each one is restricted to the provision of special services, e.g. Former N.E.P.A provides electricity to the public.

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ECONS 101

STOCK & DEBENTURE

Hey Guyz, Happy New Week hope the weekend was wonderful for you and your loved ones. I had a Blast myself. I Pray that this new week brings all kinds of happiness and joy your way in Jesus name- Amen. We are continuing from where we stopped last time, so let's get started.....

Raising of Capital:

1. By Prospectus- By giving particulars of the company and its business, is published with application form. Shares are allotted to those who apply.

2. By Offer for Sale- The whole issue of shares is allotted to an issuing house (merchant bank, finance house) which offers them to the public by means of a document known as "Offer for Sale."

3. By Introduction- The company concerned can apply to the stock exchange for sales of its shares. There will be an offer to the public of a new issue of shares through the stock exchange.

4. By a Right Issue- When a Company is established, it may raise further capital by offering the shares concerned to existing members on favourable terms.

5. By Placing- This is a method of issuing securities through an intermediary such as a firm of stock brokers. The intermediary will Endeavour to place issue among its institutional

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ECONS 101

SHARES

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

Shares can be defined as the individual portion of the company's capital owned by shareholders. It is the interest which a Shareholder has in a company. In other words, share is a unit of capital measured by a sum of money. The Company Act defines a Share as "The Interest in a Company's Share Capital of a Member who is entitled to share in the income of such company."

TYPES OF SHARES:

There are two major types of shares. These are Preference and Ordinary Shares.

1. PREFERENCE SHARES- is the type of share which has priority i terms of dividend payment and repayment of capital in the event of winding up. They have a fixed rate of dividends

Features of Preference Shares:

* They have no Voting Rights.

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ECONS 101

PUBLIC LIMITED LIABILITY COMPANY/ JOINT STOCK COMPANY

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

A Public Limited Liability Company is defined as one which by its articles allows the public to subscribe for its shares, must have a minimum of 7 persons but no maximum number. It allows the shares to be transferred and the name of the public limited company must end with the abbreviation "plc".

Public meaning that any member of the public is free to purchase shares in the business when shares are advertised for sale. Public limited company is usually owned by private individuals and organizations.

Public Limited Liability Companies or Joint Stock Companies are organisations which have separate legal entity. It is regarded in law as having an identity of its own. The Shareholders are not personally responsible for anything that is done in the name of the organisation. The shareholders also enjoy the advantage of a large number of people who through the purchase of shares become owners of the company. For Example- First Bank Plc, Texaco Nig. Plc etc.

FEATURES/CHARACTERISTICS OF PUBLIC LIMITED LIABILITY COMPANY:

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ECONS 101

PRIVATE LIMITED LIABILITY COMPANIES

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

A Private Limited Liability Company is defined as one which by its articles restricts the rights to transfer its shares, limits the number of its shareholders from two to fifty, prohibits any invitation to the public to subscribe for its shares, and the name of the private liability company must end with the abbreviation of "Limited", e.g. Burberry Nigeria Limited, News watch Nigeria Limited etc.

FEATURES/CHARACTERISTICS OF PRIVATE LIMITED LIABILITY COMPANIES:

a.  Ownership- The business is owned by shareholders who may be between two and fifty persons in number.

b. Objective- The major aim of Private limited company is to make profit.

c. Source of Capital- The Capital required to set up and run the business is provided by the shareholders in form of shares. However, shares are not sold to the general public. They are sold privately.

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ECONS 101

LIMITED LIABILITY COMPANY CONTD

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

 

Formation of a Limited Liability Company:

The Steps involved in the formation of a Limited Liability Company (Whether Private or Public) are as follows:

Step 1- The Promoter devises a scheme of Capitalization, bearing in mind the cost of Formation, assets to be brought and working capital.

Step 2- The Promoter is required to secure the services of a solicitor to prepare certain documents to be filed with the Registrar of Companies. The Documents are:

* Memorandum of Association

* Article of Association

* Statement of Nominal Capital.

Step 3- The documents are stamped and lodged with the Registrar of Companies.

MEMORANDUM OF ASSOCIATION is a document forming the constitution of a Company and

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ECONS 101

LIMITED LIABILITY COMPANIES

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. HAPPY DEMOCRACY DAY FOR NIGERIA !!!. Let's Get Started.....

A Company can be defined as a Legal Person or Entity created by the Association of a Number of People in accordance with the Law for the Purpose of Pooling their Capital together in order to set up a Business Venture. Examples of Limited Liability Companies are: Julius Berger Nigeria Plc, Dunlop Nigeria Plc etc. A Company is an artificial person and is more than a mere association of individuals. It is a legal person with a personality of its own.

Types of Companies:

1. UNLIMITED LIABILITY COMPANY- The Liability of a member is limitless and he may be liable to the full amount of the company's debts in the event of liquidation. The Members will contribute more money, including their capital, to settle the debt of the company.

2. LIMITED LIABILITY COMPANY- The Liability or Burden of Debt in the company is limited to the amount of share capital the shareholders had agreed to contribute individually in the event of liquidation. A Shareholder cannot suffer the liability of the company up to his/her

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ECONS 101

PARTNERSHIP

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

Types of Partnership:

a. Limited Partnership is a type of partnership which is formed and registered under the Limited Partnership Act. In a Limited Partnership, there must be one general partner with unlimited liability and one limited partner whose liability is limited to the amount invested. The Partners cannot take equal part in management and administration of the business. The Limited Partner can have access to the account of the partnership.

Features of Limited Partnership:

* A Limited Partner cannot participate in the Management of the Business.

* Liability is Limited but there must be a partner with Unlimited Liability.

* It must be Registered.                  

b. General/Ordinary Partnership is a partnership where partners have equal responsibility and risk in the business. All Partners are agents of the Firm and they all share the

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ECONS 101

SOLE PROPRIETORSHIP

Hello Readers, How are you all today? It's Beautiful to be here with y'all doing this now and being a source of help to you all. I thank God everyday for meeting you all and being able to write to you and generally interact with you all. Let's Get Started.....

Sole Proprietorship may be defined as a form of business enterprise owned, financed and managed by one person with the primary aim of maximising profits. The Sole Proprietorship, also popularly referred to as one-man business, is the oldest and the most common type of business organisation. It is an unincorporated business unit owned by one person who provides the capital, runs the business and undertakes the risks and profits of the business alone. For Example- Farming, Fishing etc.

 Features of Sole Proprietorship:

1. Ownership is by one person.

2. The Main Objective of the one man business is to make profit.

3. Life Span depends on the owner and the business can fold up at any time.

4. The Business is controlled and managed by the owner himself.

5. The Sole Proprietor has unlimited liability.

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ECONS 101

BUSINESS ORGANISATION CONTD

Hey Guyz, Happy New Week hope the weekend was wonderful for you and your loved ones. I had a Blast myself. I Pray that this new week brings all kinds of happiness and joy your way in Jesus name- Amen. We are continuing from where we stopped last time, so let's get started.....

Differences Between Private and Public Enterprise:

Private Enterprises	Public Enterprises
6. Owners bear losses suffered by private enterprises.	Tax payers bear losses suffered by public enterprises.
7. They require small amount of capital to set up.	They require huge amount of capital to set up.
8. They are established by ordinary registration or by incorporation.	They are established by acts of parliament.

Reasons for the Establishment of Many Private Enterprises in West Africa:

1. Existence of Official Corruption in Public Enterprises- The existence of official corruption in public enterprises discourages government from further investment in public enterprises, thereby giving way for the proliferation of private enterprises in many west African countries.

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ECONS 101

BUSINESS ORGANISATIONS

Hey Everyone, Happy New Week. Happy FRIDAY to you all. Hope this weekend brings you happiness and joy beyond your expectation. Let's get started!!!!

Business Organisation can be defined as an enterprise set up by an individual/group of individuals, government or its agencies for the main purpose of making profit and providing goods and services for the satisfaction of human wants. All firms irrespective of their size is there to provide goods & services to the customers.

TYPES OF BUSINESS ORGANISATIONS:

1. PRIVATE ENTERPRISES are the enterprises owned and managed by private individuals. This type of business organisation is usually classified as a private sector enterprises and examples are- Sole Proprietorship, Partnership, Private & Public Limited Liability Company and Co-operative Societies. Their Major Aim is to Maximise Profits.

CHARACTERISITICS OF PRIVATE ENTERPRISES:

# Private Individuals provide the capital- Private Individuals that owned the enterprises are the people

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ECONS 101

SMALL & LARGE FIRMS

Hey Everyone, Lovely New Week even though its ended but um its beautiful today isn't it. FRIDAY!!!. LOLZ- Its very self-explanatory.... Okay let's work a lil before we throw our books to the other side *winks*.

A Firm is defined as an independently administered businesses unit which is capable of carrying out production, construction or distribution activities. It forms an industry with other firms performing or producing complementary goods and services. Firms may be small or large depending on capital outlay and the level of production.

CHARACTERISTICS OF SMALL & LARGE FIRMS:

Characteristics	Small Firms	Large Firms
1. Capital Requirement	Require Small Capital Outlay.	Require Large Capital Outlay.
2. Type of Industry	They are mainly involved in primary production, agriculture and some direct services.	They are mainly involved in secondary and tertiary production.
3.  Nature of Market	They require small market due to output of goods.	They require a large market because of their high output of goods.
4. Employment	They usually employ few workers.	They usually employ large number of workers.
5. Techniques of Production	They employ simple techniques as most of the operations are manual.	They employ heavy techniques, with machinery and equipment.
6. Economies of Scale	They cannot take advantage of economies of scale.	They can easily benefit from internal and external economies of scale.
7. Nature of Product	They have no special or standard design for their product.	Their product is subject to standardisation.
8. Research and Publicity	They may lack the resources to carry out research and publicity.	They usually embark on extensive research and publicity to enhance their efficiency.

ECONOMIES OF SCALE/ SCALE OF PRODUCTION

Economies of Scale can be defined as the growth of a firm as a result of the expansion of the volume of productive capacity resulting in the increase in output and a decrease in its caot of production per

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ECONS 101

RELATIONSHIP BTW PRODUCTION POSSIBILITY CURVE & OPPORTUNITY COST

Hi Everyone, Happy New Week to you all. It's another opportunity to learn and grow and generally become better at what we already know or what we have an idea of. So let's get started...

We are continuing from where we stopped last time.

Interpretation/ Points to Note from the Graph:

  Points A to F on the graph indicate efficient use of resources.

  At Points O  & P (Outside the curve), production is not feasible. Production at these points are not feasible due to the limited resources and technology.

  At points K & L (Inside the curve), production is feasible. It represents where resources are not efficiently utilised.

 The downward slope of the PPC indicates that there is an opportunity cost of producing more of one type of commodity and less of the other due to limited resources and technical know-how.

RELATIONSHIP BTW PRODUCTION POSSIBILITY CURVE & OPPORTUNITY COST

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ECONS 101

FACTORS OF PRODUCTION CONTD

Hello Everyone, Happy Friday. Thank God It's FRIDAY!!!!!.... LOLZ, Yes the last working day of the week and then rest rest rest!!!... There's time for HARD WORK and also time for REST... Pls Make Sure you Balance the Two Very Essential. Straight to the Point of the Day

CAPITAL CONSUMPTION refers to the using up of existing capital stock and not replacing worn-out capital goods used in production. When fixed assets like Buildings, Machinery or Motor Vehicle are used continuously, they undergo wear and tear, hence such assets depreciate in value. It is this wear and tear of these capital goods which reduces their value which is referred to in Economics as CONSUMPTION or DEPRECIATION.

During the period of Capital Consumption, enough savings are not made to maintain and replace depreciating capital goods or assets. If a Country finds it difficult to maintain its stock of capital, either by making provision for depreciation or her inability to replace worn-out capital or asset, such a country is said to be living on capital or consuming capital and this affects the standard of living of the people negatively.

ENTREPRENEUR

An Entrepreneur can be defined as the factor of production that co-ordinates and organises other factors of production( Land, Labour and Capital) in order to produce goods and services. The

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ECONS 101

FACTORS OF PRODUCTION CONTD

Hi Everyone, How Beautiful is today? Magnificent isn't it, well I think so too. Just being alive is such a pleasure and a privilege that sometimes, I think of some great people who have died and I am filled with awe that God picked me to live till today. God is Good.

Last time we started this series and today hopefully we will either finish or draw closer to the close of this particular topic so let's take this ride together.

CAPITAL

Capital may be defined as man-made assets used in production. In other words, It refers to Man-made wealth or goods used to produce other goods and services. It may also be defined as the stock of previous wealth invested in order to produce future wealth.

Capital when properly combined with other factors, produces goods and services. Examples of Capital include Physical Cash, Cutlass, Machines, Buildings, Motor Vehicles and other equipment used in the production of goods and services. The Reward for Capital is INTEREST.

Characteristics/Features of Capital:

* Capital is man-made before it can be used in further production of goods and services.

* Capital is durable assets that can be used for production.

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