2018 - WAEC Economics Past Questions and Answers - page 3

 Wholesalers either take title to the goods they purchase, or they own the goods they purchase. If there is a significant change in the value of the products between the time of the purchase from the producer and the sale to theretailer, the wholesaler will absorb that profit or loss.

Seasonal unemployment occurs when people are unemployed at certain times of the year, because they work in industries where they are not needed all year round. Examples of industries where demand, production and employment are seasonalinclude tourism and leisure, farming, construction and retailing.

Positive checks are those, according to Thomas Malthus, that increase the death rate. These include disease, war, disaster, and finally when other checks don't reduce the population, famine. Malthus felt that the fear of famine or the development of famine was also a major impetus to reduce the birth rate.

Import substitution is a trade and economic policy which advocates replacing foreign imports with domestic production, it is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. 

An industry is a group of manufacturers or businesses that produce a particular kind of goods or services. 

The largest component of national income is: compensation of employees. (wages and salaries). National income measures: the market value or cost of the resources used in the production of the national output.

floor = $250

distribution cost = $52

250 + 52 = 302

selling price $320 - $302 =  $18

National income of a country can be defined as the total market value of all final goods and services produced in the economy in a year.

the income of a housewife is not counted in the National Income or the Gross National Product of the country. This will make the national income under stated

There are five causes for demand-pull inflation:

1. A growing economy: When consumers feel confident, they will spend more, take on more debt by borrowing more. This leads to a steady increase in demand, which means higher prices.  
2. Asset inflation: a sudden rise in exports, which translates to an undervaluation of the involved currencies
3. Government spending: When the government opens up its pocketbooks, it drives up prices. Military spending prices may go up when the government starts to buy more military equipment.
4.  expectations: forecasts and expectations of inflation, where companies increase their prices to go with the flow of the expected rise
5. More money in the system: demand-pull inflation is produced by an excess in monetary growth or an expansion of the money supply. Too much money in an economic system with too few goods makes prices increase.