Alfred Ajibola
- 11th May, 2023 @ 10:55 AM
Topics in Economics
Types of capital market: Primary market and secondary market Capital market explained with its functions Basic tools for economic analysis: Graphs explained with its characteristics and importance Basic tools for economic analysis: Tables explained with its characteristics and importance Factors affecting population in economics Advantages of Inflation Disadvantages of Inflation Concept of Inflation in Economics Scheme of work for Economics, SS1, First Term Scheme of work for Economics, SS1, Second Term Scheme of Work for Economics, SS1, Third Term Functions of the Wholesaler Advantages and Disadvantages of the Wholesaler Wholesale Market: Who is a Wholesaler? Characteristics of the Wholesaler Retail Market: Who is a Retailer and Examples of Retailers Market: Types of Market What is a Market in Economics? Elasticity of supply explained with its types Supply Elasticity: Elasticity of Supply explainedAcademic Questions in Economics
_____ is defined as a gradual and sustained rise in price level of goods and services in relation to their availability.
A. Basis Point Rate
B. Hike Rate
C. Elastic Supply
D. Elasticity of Price
E. Price Inflation
F. Aggregate Supply
The wholesalers can bring about an economy of scale.
A. True
B. False
Which of the following statement isn't a characteristics of the wholesaler?
A. They may have to operate in specific areas or regions accorded them by the producer
B. They are often popular in the line of goods they supply
C. They are not risk bearers
D. They have good storage facilities
E. They often pay for goods supplied by the manufacturers in advance
F. They usually have business agents or brokers
The wholesalers act as the middlemen in supply chain.
A. True
B. False
Large retailers who buy directly from manufacturers are termed as _____.
A. Wholesale Retailers
B. Certified Retailers
C. Codified Retailers
D. Commodity Retailers
E. Manufacturers Retailer
F. Conspicuous Retailers
_____ is a market whereby the sellers buy goods in lesser quantities from the wholesalers and sells in bits to the final consumers.
A. Commodity
B. Retail
C. Wholesale
D. Labour
E. Common
F. General
Which of the following is not a financial market?
A. Money Market
B. Bond Market
C. Foreign Exchange Market
D. Virtual Market
E. Capital Market
F. Stock Exchange Market
A _____ market provides a platform whereby job seekers link up with employers in an attempt to be hired.
A. Wholesale market
B. Bond market
C. Physical market
D. Virtual market
E. Factor Market
F. Labor Market
Basic tools for economic analysis refers various representations that organizes and interprets economic problems which seems somewhat difficult to comprehend. In simple terms, basic tools for economic analysis helps us to simplify complex economic statements through the use of carefully organized data represented in the form of tables, charts, graphs and so on.
Please read on demand schedule here.
Examples of basic tools utilized in economic analysis include the followings:
Tables
Charts
Arithmetic Mean
Geometric Mean
Harmonic Mean
Median
Mode
Arithmetic Average
Standard Deviation
Calculus
Matrix
Algebra
A table shows a structural representation of data, information or variables in an orderly and systematic manner through its rows and columns.
The use of tables enables us to better understand the relationship between variables and their corresponding correlations. These data and variables can be quite complex when expressed in statements. For this reason, a table is typically used for simplifying and analyzing complex statements and data.
You can read on supply elasticity here.
As stated earlier, tables always have rows and columns. Row shows a vertical representation of data while column reflects the horizontal representation of data. The data in tables can be expressed in words or figures.
The instance below shows the interpretation of data through a scale of preference table.
|
Needs / Wants |
Cost (Naira) |
|
Phone |
50,000 |
|
Console Game |
120,000 |
|
Laptop |
80,000 |
|
Ipad |
100,000 |
|
Smart watch |
85,000 |
|
Ipod |
40,000 |
The above table shows a simplified and organized arrangement of an individual's preference. If the contents of this table were to be written in statements, it may become somewhat complicated to the reader. However, the use of table becomes a tool of economic analysis since it gives us a single and simplified view of a somewhat complex statement.
From the scale of preference table, you will observe that the person puts his most important needs (or wants) at the top of the table. Further down the table are his less important needs.
Now, let's imagine that this individual has 170,000 Naira to spend. According to the above scale of preference (table), the following can be deduced;
A phone will be considered to be the most important; and it costs 50,000 Naira. He buys the phone.
A console game according to this person is next in importance; and it costs 120,000 Naira. He buys the console game.
Please read more on scale of preference and opportunity cost here.
A table used for economic and data analysis should have the following characteristics:
It should have a title.
It should be simple and easy to understand.
A table must have rows and columns where data is entered.
A table should have headings on its rows. Headings may also be present on the columns.
The units of measurement for data should be clearly specified.
Data source on the table should be referenced.
When two or more tables are present, they should be numbered appropriately.
The use of tables have proven to be crucial in various fields of life. For instance, we have timetables for academics, football tables for match groupings, accounting tables, economic tables and so on. Below are the importance of using tables:
It gives a simplified and summarized version of data. In this regard, information is presented in a simple view through tables.
Different varieties of data can be juxtaposed and compared through tables.
It presents data in an orderly and well arranged manner.
Complex data are more easily comprehended through tables.
Data are easily interpreted through tables.
Repetition of information (data) is avoided through the use of tables.
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Amazing facts in Economics
Notable points in Economics
A unitary elasticity of supply is seen when a change in price brings about a corresponding and proportional change in the quantity of goods or services supplied.
The graph below shows a unit elasticity of supply:
Below is an instance of a unitary elasticity of supply:
If a 100% increase in the price of wheat translates into a 100% increase in the production and supply of wheat, then the supply elasticity is said to be unitary elastic and its value is equal to 1.
Unitary elasticity is always equal to 1, that is: Es = 1
The supply curve runs diagonally and will pass through the center.
Supply elasticity is defined as the rate at which an increase in price of goods translates into its increased production and availability in the market. Supply elasticity is also termed as price elasticity of supply.
Consider the statements below:
If a 100% increase in the price of rice translates into a 100% increase in the production and supply of rice, the supply elasticity is said to be unitary elastic and its value is equal to 1.
If a 100% increase in the price of rice translates into a 50% increase in the production and supply (quantity) of rice, the supply elasticity is said to be inelastic and its value will be greater than zero and less than 1. In this case, the exact value is 0.5: (value of change in the quantity of rice divided by value of change in price of rice = 50/100 = 0.5).
The individual demand schedule is a table that shows the demand of a commodity that an individual (consumer) purchased at various prices, and at a particular time.
The table below shows an individual demand schedule:
|
Price in Naira (of a tuber of yam) |
Quantity demanded (per week) |
|
500 |
5 |
|
400 |
10 |
|
300 |
15 |
|
200 |
20 |
|
100 |
25 |
The market demand schedule is also referred to as an aggregate demand schedule, total demand schedule or composite demand schedule.
This is a table that shows the different commodities purchased by all the consumers or customers in the market.
The market demand schedule is the summation of the individual demand schedules, showing the demand of different customers for a commodity at a particular price. It is shown in the table below:
|
Unit price of commodity (Naira) |
Quantity demanded by consumer A (QA) |
Quantity demanded by consumer A (QB) |
Market demand (QA + QB) |
|
50 |
20 |
15 |
35 |
|
40 |
40 |
30 |
70 |
|
30 |
60 |
45 |
105 |
|
20 |
80 |
60 |
140 |
|
10 |
100 |
75 |
175 |
From the above table, notice that when the unit price of the commodity was 50 Naira, consumer A demanded 20 quantities while consumer B demanded 15 quantities.
Below are definitions of demand from the perspective of some notable professors:
The demand for goods is a schedule of the amounts that buyers would be willing to purchase at all possible prices at any one instant of a time.
Professor Mayers
Demand is the various quantities of goods that would be purchased per time period at different prices in a given market.
Professor Hibdon
The demand for anything, at a given price is the amount of it which will be bought per unit of time at the price.
Professor Benham
Generally, demand is defined as the willingness of a person, buyer or consumer to buy a specific quantity of goods or service at a given price and time.
From the above definitions, we can infer that the definition of demand is referenced to three major factors. These are:
Quantity of Goods Demanded
Price
Time