Question 1
State four reasons why people satisfy basic wants before secondary wants
Answer
- They can’t be postponed
- They are felt needs
- Limited resources
- One can’t do without them
- They are felt needs
- Limited resources
- One can’t do without them
Question 2
Write the type of accounts the following items fall under
Answer
- Nominal account
- Real account
- Creditors
- Private
- Real account
- Creditors
- Private
Question 3
Highlight four assumptions of the circular flow of income in a two-sector economy
Answer
- They are only two sectors in the economy
- Households spend all their incomes on goods and services produced by the firm
- Firms spend all their revenue on factors of production provided by households
- No government intervention
- Households spend all their incomes on goods and services produced by the firm
- Firms spend all their revenue on factors of production provided by households
- No government intervention
Question 4
Highlight four reasons why it is suitable to locate a bonded warehouse at a point of entry of a country.
Answer
- Facilitates easy collection of revenue
- Control entry of harmful goods
- For easy re-exportation
- To enable inspection of goods
- Control entry of harmful goods
- For easy re-exportation
- To enable inspection of goods
Question 5
State the type of unemployment described below
Answer
- Frictional
- Cyclical
- Erratic/casual
- Voluntary
- Cyclical
- Erratic/casual
- Voluntary