JUPEB ECONOMICS BY COOLBOY
*JUPEB ECONOMICS*
(3a)
National income can be defined as the sum total of the money value of all the goods and services produced in a country within a specific period of time, usually a year. In other words it is the sum total of all the incomes received by the factors of production within a period of time.
(3b)
(i) Output method
(ii) Expenditure method
(iii) Income method
(i) Output method: This method measures the total money value of all goods and services produced in the country in a year. In order to avoid double counting, the figures are collected on the basis of value added.
(ii) Expenditure method: The expenditure approach calculates the total amount spent on consumption and investment purposes during the year. It is the total amount spent on goods and services by individuals, the government and firms.
(iii) Income method: This is obtained by adding incomes received by all the factors of production. The incomes to be added include workers' earning, profits of entrepreneurs, rents on land, etc. Transfer payments such as payment to old people, beggars are not included.
(3c)
(i) Incomplete information: Income returns are inaccurate and incomplete.
(ii) Double counting.
(iii) Inflation which changes the value of money upsets the calculation.
(iv) Subsistence production, i.e. housewife, production of goods for one's family.
(v) Unpaid goods and services, e.g. housewife, housekeepers.
(vi) Illegal transactions like drug peddling, smuggling etc.
4a
In macroeconomics, aggregate demand or domestic final demand is the total demand for final goods and services in an economy at a given time. It is often called effective demand, though at other times this term is distinguished. This is the demand for the gross domestic product of a country.
b)Aggregate supply is the total value of goods or services in a market, sector or economy. Aggregate supply is used to show the amount of goods that can be produced at different price levels in a given time period – usually one year.
Aggregate supply can be split into short-run aggregate supply and long-run aggregate supply.
Short-run aggregate supply (SRAS) is the relationship between real gross domestic product (GDP) and current price levels. It shows the output an economy can manage in the short term at varying price levels.
SRAS assumes that capital levels are inflexible because of fixed costs such as wage contracts, rent agreements and regulated prices – to name a few.
(c)The multiplier effect is the term used to describe the impact that changes in monetary supply can have on economic activity. When an individual, government or company spends money it has a trickle-down effect to businesses and individuals. The resulting impact can be much wider than the initial action.
*JUPEB ECONOMICS*
*NUMBER SIX*
(6ai)
Optimum population is the size of population which when combined with the available resources and level of technology will yield the highest output per head.
(6aii)
Population Explosion: This refers to the rapid increase in the population of a place over a short period of time.
(6aiii)
Terms of trade: Refers to the rate which a country's exports exchange for imports.
*OR*
Terms of trade = index of export prices / index of import prices × 100
A country's terms of trade are said to improve when this ratio increases and to worsen when it decreases.
(6aiv)
A managed floating exchange rate is an exchange rate system that allows a nation’s central bank to intervene regularly in foreign exchange markets to change the direction of the currency’s float and/or reduce the amount of currency volatility.
(6av)
Balance of Payment: This shows the relationship between a country's total payments to other countries and its total receipts from them within a given period.
(6b)
[PICK ANY FIVE]
(i) Unemployment:
More people but less employment facilities lead to increasing unemployment which breeds frustration and agitations in unemployed youth. At the end of March 1990, around 13 million workers were unemployed.
(ii) Education:
Overpopulation leads to rush in educational institutions which lowers educational standard, impairs teacher-taught relationship and increased dropouts.
(iii) Hygienic condition:
More people in a small area breed unhygienic conditions which have ill- effects on human health.
(iv) Pollution:
Overpopulation leads to increased industrialization and increased use of automobiles which cause environmental pollution.
(v) Price-rise:
Overpopulation causes deficiency of basic needs of life so causing hike in their prices.
(vi) Energy crisis:
Population explosion accompanied with rapid industrialization and urbanization has led to greater demand for already deficient energy (fuel wood, fossil fuels and electricity).
*JUPEB ECONOMICS*
*NUMBER EIGHT*
(8ai)
Economic integration is the deliberate act of governments to pool their economic resources together in order to achieve a greater efficiency in the production of goods and services for the social and economic welfare of their countries.
(8aii)
Standard of living: The standard of living indicates the volume of available goods and services at the disposal of individuals and therefore shows the level of their welfare.
(8aiii)
Globalization refers to the spread of the flow of financial products, goods, technology, information, and jobs across national borders and cultures
(8iv)
Labour productivity represents the total volume of output (measured in terms of Gross Domestic Product, GDP) produced per unit of labour (measured in terms of the number of employed persons or hours worked) during a given time reference period.
(8b)
[PICK ANY THREE]
(i) The enlarged market will encourage large scale production.
(ii) Efficiency will be induced in production units.
(iii) Greater resources mobility will be achieved.
(iv) The countries will benefit from specialization in some areas of production.
(v) Job opportunities will be created in the process.
(vi) A wide range of economic activities will improve the quality of life.
(vii)There will be stimulation of faster economic development in the region.
(viii) The countries will have greater powers to participate effectively in the world market.
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