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Tuesday, 31 October 2017

ECN 001 AND 002 Assignment 31/10/2017


Do the assignments on Pages 3-5 (T.1) and pages 15-17 (T.2)







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120 comments:

Nmecha kalu said...

1 What do you understand by the concept of scarcity, choice, land, Labour, capital and opportunity cost
Answers :Labour
Is the brain power and muscle power of human beings.
*Land
Is natural resources of all kinds.
*Capital
Comprise all equipment, building, tools etc and other manufactured goods that can be used in production.
(2) relationship between scarcity and opportunity cost?
Answers: It represent two interlinking concepts in economics as companies must often choose among scarce resources. In most cases economics resources are not completely number so companies must make a choice about which resources to use during production.
*MULTI choice questions
1
Answer : planning committee
2
Answer : unlimited human wants
3
Answer : resources are limited in relation to want
4
Answer : it uses scientific methods to explain observed phenomena and predict future events
5
Answer : consumer preference for luxurious goods
6
Answer : the need to satisfy wants
7 in economic life choice among alternative depends
income of the decision maker
8 not produce in sufficient quantities to satisfy the effective demand for them
9 10 orange
10 five naira real cash value
Name:Nmecha Kalu
Reg no:Unn/soc/17/033

Chimezie chiamaka Victoria said...

Name:CHIMEZIE CHIAMAKA VICTORIA
Reg non:UNN/SOC/17/015
1.In a market economy the question of what to produce,how and for whom to produce are solved by the Answer:price mechanism. 2.Which of the following situation can give rise to economic problems? Answer: limited means available for satisfying wants. 3. Scarcity in economic means that Answer: resources are limited in relation to wants. 4.Economics is often described as a science because. Answer: it uses scientific method to explain observed phenomena and predict future events. 5.scale of preference refers to Answer:list of goods and services in order of priority. 6. The need to construct a scale of preference is necessitated by Answer: scarcity of resources. 7.in economic life,choice among alternative depends on the. Answer: scale of preference of the decision maker. 8.economic goods are termed scarce goods when they are. Answer: not produced in sufficient quantities to satisfy the effective demand for them. 9.if one Orange cost 20k and one kilogram of beef cost # 10.00 the opportunity cost of one kilogram of beef is. Answer Answer: 50 oranges. 10.a school girl who needs a book and a mirror each costing five naira decides to purchase the book instead of the mirror since she cannot pay for the two at the same time Determine the real cost of her book. Answer: the mirror

Akushie Johnbosco said...

Do you agree or disagree with this statement? Explain your answer.

I agree because the resources needed for the production is already down and the technology will help in fast productions. Therefore there will be an efficient production.

15. Drawing.

victoria chimezie said...

Name:CHIMEZIE CHIAMAKA VICTORIA
Reg no:UNN/SOC/17/015
What do you understand by the concept of scarcity, choice,land,labour,capital,and opportunity cost. Answer: scarcity this us the limited supply of resources relative to demand it is the central economic problem because human wants ate in satiable. Choice: this is the satisfaction of the most pressing want out of a range of alternative. Since human wants are unlimited and the resources available to satisfy them are limited choice is constantly made between alternative wants. Land:this can be referred to all forms of natural resources with which a particular country has been endowed with, which are used in production e.g soil,forest, farmlands,mineral deposit etc the reward for land is rent. Labour: these refers to all human effort which may be physical or mental skilled or unskilled scientific or artistic,used in the productive process usually for a reward. The reward for labour is wages and salary. Capital:this is referred to man made productive assets; ie all man made wealth or goods used to produce other goods and services they are also referred to as investment goods or producer goods they are used in the production of consumer goods eg machineries, factory building, raw material,etc the reward for capital is profit or interest. Opportunity cost: this can also be called real cost or true cist it is the forgone alternate in other to acquire a particular commodity or to produce s particular goods or services. 3.what is the relationship between concept of scarcity and opportunity cost. Answer: scarcity refers to the limited supply of resources relative to demand while opportunity cost are forgone alternative in other to acquire a particular commodity. Because of the scarcity of resources, an unlimited wants of human, choice is constantly made between different alternative in other to chose a commodity, wants must be scarified.

Egwuatu Raphael said...

Explain the concepts of scarcity, choice, land, labour, capital and opportunity cost.
Scarcity: Refers to the limited resources in relation to wants which are unlimited and insatiable.
Choice: As a result of the scarcity of resources in relation to wants, the need for choice arises.
Land: This refers to all endowments ansmd resources on the earth such as land, minerals, forest.
Labour: Refers to the physical and mental effort directed by man towards any productive activity.
Capital: Refers to inputs to production that are not necessarily consumed for their own sake, but which is used up in the process of making other goods eg: plant and equipment, machinery, furniture etc.
Opportunity cost: Refers to the foregone alternative. Due to relative scarcity of resources in relation to wants, the need for choice arises therefore, the alternative(s) foregone in order to purchase any good or service is termed opportunity cost.
What is the relationship between the concept of scarcity and opportunity cost? Scarcity refers to the limited resources in relation to wants which are unlimited. It simply means that the resources available to satisfy human wants are limited.
Opportunity cost on the other hand refers to the foregone alternative. Opportunity cost arises as a result of the scarcity of resources to satisfy wants which necessitates choice. Therefore, opportunity cost arises only because the consumer/buyer is forced to make a choice between two or more alternatives.
MULTI-CHOICE QUESTION
In a market economy, the question of what, how, and for whom to produce is solved by the?
- price mechanism.

Which of the following situations can give rise to economic problems?
- limited means available of satisfying wants.

. Scarcity in economics means that?
- resources are limited in relation to wants.

. Economics is often described as a science because?
- it uses scientific method to explain observed phenomena and predict future events.

. Scale of preference refers to?
- list of goods and services in order of priority.

The need to construct a scale of preference is necessitated by?
scarcity and the need for choice.

In economic life, choice among alternatives depends on the?
- scale of preference of the decision maker.

. Economic goods are termed scarce when they are?
- not available in sufficient quantities to satisfy all wants for them.

If one orange is 20k and one kilogram of beef costs N10.00, the opportunity cost of one kilogram of beef is?
- 50 oranges.

A school girl who needs a book and mirror each costing five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book?
- the mirror.
NAME:EGWUATU CHUKWUKA RAPHAEL
REG NO:UNN/SOC/17/020

Egwuatu Raphael said...

1. Why do households need to take decisions?
Ans: Households need to take decisions to ensure that the scarce resources are efficiently allocated/distributed to satisfy the needs/wants of the household. Core needs such as cloth, food, and shelter are given top priority.

2. Why do we say economic problems arise from scarcity?
Ans: We say economic problems arise from scarcity because the resources to satisfy wants are limited and the wants on the other hand are unlimited. If resources were not scarce, all wants will be satisfied therefore eliminating economic problems.

3. Who are the main decision makers in the economy?
Ans: The main decision makers in the economy are households, firms, and government.

4. Give examples of economic decisions taken by households, firms, and government?
Ans:
a) Households: make decisions such as whether to spend more money on clothing, food, or to save money for education or retirement.
b) Firms: at times have to decide either to spend more on production to increase the quality of goods or to channel its funds into expansion.
c) Government: has to decide whether to spend more on defending its territory or boundaries from external aggression, or spend more on the provision of goods and services to raise the standard of living of its citizens.

5) Distinguish between positive statements and normative statements and give examples.
Ans: Positive statements : talks about what is i.e the present state of the economy without including either good orbad judgment. For example: the current administration is proposing restructuring. While normative statement talks about what ought to be i.e it includes personal judgment and gives ear to public opinion. For example: the Nigerian government should revalue the naira.
6. Distinguish between statistical hypotheses and deterministic hypotheses and give examples.
Ans: statistical hypotheses recognises exceptions. For example a statement such as if the price of yam falls, the demand for yam is likely to rise. While deterministic hypotheses does not recognise exceptions. For example a statement such as if the price of yam falls, demand for yam will rise.
7. How is economics a science?
Ans: Economics is considered a science because it adopts a scientific method of inquiry. Unlike other natural sciences such as chemistry and physics, Economics deals with the man's behaviour thereby making it more complex as man is unpredictable. Hence the classification "social science ".
8. What are the two subfields of Economics?
Ans: The two subfields of economics are microeconomics and macroeconomics.
MICROECONOMICS
Focuses on how individual households, firms, government and industry make decisions and how they interact in the different market.
MICROECONOMICS
Focuses on a wider scope if economics. It deals with economic behaviour of aggregates such as national output, inflation, and unemploymet.
NAME:EGWUATU CHUKWUKA RAPHAEL
REG NO:UNN/SOC/17/020

Akushie Johnbosco said...

Akushie Johnbosco c
UNN/SOC/17/004
Economics Assignment
C.C. AGU
1. Why do households need to take decisions?
Households needs to take decisions because resources are scarce relative to the limitless wants of people and that the available resources have alternative uses.

2. Why do we say that economic problem arise from scarcity?
Economic problem arise from scarcity because the available resources for providing goods and services which satisfy human wants are scarce and human wants to be satisfied by consuming goods and services are, for all practical purposes, insatiable.

3. Who are the main decision makers in the economy?
The main decision markers in the economy are the households, firms and government.

4. Give examples of economic decision made by households, firms and government.
Examples of economic decision made by households, a household can decide to buy food, clothing or a house.
For firms, a firm can decide to provide agriculture, banks and insurance companies or automobile manufactures.
For government, a government may decide whether to spend more on national defence to protect it's borders from foreign aggression or to spend more in the provision of goods and services to raise the standard of living of it's people .

5. Distinguish between positive and normative statements with examples.
Positive statement attempts to describe the economy as it is without making judgements about whether the outcome is good or bad. while a normative statement is an assertion about what the economy ought to be.

6. Distinguish, between statistical and deterministic hypotheses.
Statistical hypotheses deals with exceptions e.g, a statement such as if the price of rice falls, the demand for rice is likely to increase. While deterministic hypotheses does not recognise exceptions for e.g, a statement like
if the price of rice falls, demand for rice will increase.

7. Explain how economics is a science?
Economics is a science because it adopts a scientific method of inquiry. It deals with observation and formulation of theories. Economics deals with man's behaviour, thereby making it more complex as man is unpredictable. Hence the classification "Social science".

8. What are the two sub-fields into which economics is divided? Explain what each sub-fields studies.
a. Micro economics &
b. Macro economics
a. Micro economics: This studies on how households, individuals, firms, government and industry make decisions and how they interact in the different markets.

b. Macro economics: This studies about the wider scope of economics. It deals with the economic behavior of aggregates such as national output inflation and unemployment.

9. Drawing

10. Drawing



Akushie Johnbosco said...

11. Describe some of the trade- offs faced by
a. A family deciding whether to buy a new car.
b. A professor deciding whether to prepare for a class.
A. A family deciding whether to buy a new car will forgo some things needed in the house, like food stuffs, paying of school fees, e.t.c

b. A professor deciding whether to prepare for a class has to forgo some important issue he or she is handling at home in order to come to the class for lectures .

12. You win N100 in a pool. You have a choice between spending the money now or putting it in a banks saving account that pays 5 per cent interest. What is the opportunity cost of spending the
N100 now?

The opportunity cost of spending the N100 now is the alternative forgone which is putting the money in a bank savings account that pays 5% interest. Therefore the opportunity cost is N105.

13. Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?

(a) The cut in property tax is likely to cause a moderate increase in saving by higher income households.
(c) The primary purpose of ECOWAS is to integrate the individual national markets for goods, capital and labour so that the community can advance harmoniously as one region
(d) Public opinion is that Liberia should not be allowed to join one currency zone of Economic Community of West African States (ECOWAS) because Liberia's economy is torn by civil war.
(e) Allowing Liberia to join the zone would drag the entire zone backward.

14. "As long as all resources are fully employed, and every firm in the economy is producing its output using the best available technology, the result will be efficient" Do you agree or disagree with this statement? Explain your answer.

I agree because the resources needed for the production is already down and the technology will help in fast productions. Therefore there will be an efficient production.

15. Drawing.



Egwuatu Raphael said...

11. What are the tradeoffs made by
a) a family deciding whether to buy a new car:
A family deciding whether to buy a new car will be forced to forgo on so many alternatives such as clothing or savings for education or retirement.
b) a professor deciding whether to prepare for a lecture:
If a professor has a lecture by 8am, he has two alternatives either to go jogging or stat in bed. Now if the professor goes for the lecture his foregone alternative if he is a jogger is an hour of jogging and if he is not a jogger, the one hour in bed is foregone.
12. If you win N100.00 and you can either spend it now or put it in a bank savings account that pays 5% interest, what is the opportunity cost of spending the N100.00 now?
Ans: the opportunity cost of spending the N100.00 now is the alternative foregone which is putting the money in a savings account that pays 5% interest. Therefore, the opportunity cost is N105.00.
13. Group the following statements under either positive economic analysis or normative analysis.
POSITIVE ECONOMIC ANALYSIS:
*The primary purpose of ECOWAS is to integrate the individual national markets for goods, capital and labour so that the community can advance harmoniously as one region.

NORMATIVE ANALYSIS
* The cut in property tax is likely to cause a moderate increase in savings by higher income households.
*The property tax should be repealed because it is unfair.
*Public opinion is that Liberia should not be allowed to join one currency zone of ECOWAS because Liberia's economy is torn by civil war.
*Allowing Liberia to join the zone would
drag the entire zone backwards.
*The establishment of a new political regime in the Democratic Republic of Congo (DRC formerly Zaire) will cause the world price of diamonds to drop because the supply of diamonds from DRC in the world market will increase.
*The first priorities of a new regime in Sierra Leone should be to rebuild hospitals, schools and roads.
14. "As long as all resources are fully employed and every firm in the economy is producing its output using the best available technology, the result will be efficient". Do you agree with this statement? Explain your reason.
Ans: I agree with the statement.
I agree with the statement because it is simply pointing out that if all factors of production are employed in adequate and sufficient proportion, then the output should be a above par.
NAME:EGWUATU CHUKWUKA RAPHAEL
REG NO:UNN/SOC/17/020

Anonymous said...

Name:CHIMEZIE CHIAMAKA VICTORIA
Reg no:UNN/SOC/17/015 1.why do households need to take decisions? House holds need to take decision because resources are scarce relative to the limitless wants of people also the available resources have alternative uses.
2.why do we say that economic problem arise from scarcity. Answer: economic problem arise from scarcity because the available resources necessary for providing goods and services which satisfy human want are limited in supply and man has unlimited wants.
3.who are the main decision maker in the economy. Answer: the main decision maker in the economy are i households ii firm iii government.
4.give examples of decision made by the households, firm,government. Answer:decision made by households how to spend household income its either buying cloths,foods or house or can save some for retirement.
ii decision made by government: government may decide whether to spend more on national defense or to protect its broader from foreign aggression or to spend more in the production of goods and services to increase the standard of living of the people.
iii decision made by the firm:a firm might decide to spend more money on buying raw materials for production of consumable goods or spending more on machineries that can help improve the companies products.
5.distinguish between positive and normative statements with examples Answer: positive statement are statement that strive to describe the world as it is example increment in tax will reduce households disposable income while normative statements are statement that involves judgment and law for course of action example government should reduce income tax of households.

6.distinguish between statistical and deterministic hypotheses. Answer: deterministic hypotheses are those hypotheses that do not recognize exception while statistical hypotheses on the other hand are those hypotheses that predict the probability of a certain occurrence.
7.explain how economics can be called a science. Answer: economics can be called a science because it has Many laws like physical sciences it also observes the behaviour of man while engaged in his daily activities

victoria chimezie said...

8.what are the two subfields into which economic is divided explain what each subfields studies. Answer: i micro economic
ii macro economic.
MICRO ECONOMIC studies small scale economic activities such as individuals or company.
MACRO ECONOMIC this is concerned with the study of the total economy in times of total amount of goods and services produce
11.describe some of the trade offs faced by a i family deciding whether to buy a new car ii professor deciding whether to prepare for class or not.
Answer:i a family deciding whether to buy a new car is faced with the trade off of deciding to buy food stuff,going on vacation,saving up for the future or buying food stuffs
ii a professor deciding whether to prepare for class is faced with the trade off of deciding to go jogging or staying on bed

12.you win #100 in a pool you have a choice between spending the monkey now or putting in a bank's saving account that pay 5% interest what is the opportunity cost of spending #100 now
Answer: the opportunity cost of spending the #100 now is saving the #100 that will pay 5% interest

13.which of the following statements are examples of positive economic analysis?which are normative analysis.
Answer: positive economic
I the primary purpose of ECOWAS is to integrate the individual national market for goods capital and labour so that the community can advance inharmonious as one region.
ii the cut in property tax is likely to cause a moderate increase in saving by higher income households.
iii the establishment of a new political regime in the democratic republic of Congo will cause the world price of diamond to drop because the supply of diamond from DRC to world market will inccrease. Normative analysis
i the property tax should be replaced because it is unfair
ii public opinion is that Liberia should not be allowed to join one currency zone of ECOWAS because Liberia's economy is turn by civil war.

14.as long as resource are fully employed and every firm in d economy is producing its output using the best available technology; the result will be efficient do you agree or disagree with this statement explain your answer. Answer: I AGREE reason when resources are fully employed and every firm producing using the best available technology their would be surplus resources with no room for scarcity

Akushie Johnbosco said...

Akushie Johnbosco c
UNN/SOC /17/004

1. What do you understand by the concept of scarcity, choice, land, labour, capital and opportunity cost?
a) Scarcity:
This can be defined as the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources. It states that the society has insufficient productive resources to fulfil all human wants and needs.
decisione:
This can be said as the selection between alternative. Choice involves decision making, because resources are scarce relative to wants, there is a need for some choice to be made.
c) Land:
This are those natural resources used in production, that is, land, minerals and forests. To we economist, these resources are collectively known as land.
d) Labour:
This refers to all human efforts of any kind, mental or physical, are collectively known as labour.
e) Capital:
Capital is one of the three factors of production the others are land and labour, capital here comprises all those artificial aids of production such as tools, machinery, plant and equipment.
f) Opportunity cost:
Opportunity cost is also known as alternative cost. This is the value of the choice of a best alternative cost while making a decision.

2. What is the relationship between the concept of scarcity and opportunity cost.
Opportunity cost arises only because the consumer is forced to make a choice because of the scarce resources and unlimited. Therefore if there was no scarcity of resources, there would be no need for alternative forgone.
Multi - choice questions
1) In market economy, the question of what, how and for whom to produce are solved by the
c. price mechanism
2) which of the following situations can give to economic problem?
a. Unlimited human wants.
3) Scarcity in economics means that.
d. resources are limited in relation to wants
4) Economics is often described as a science because
c. It uses scientific methods to explain observed phenomena and predict future events.
5) Scale of preference refers to
c. List of goods and services in order of priority.
6) The need to construct a scale of preference is necessitated by
b. Scarcity and the need for choice.
7) In economic life, choice among alternative depends on the
d. Status of the decision maker.
8) Economic goods are termed scarce goods when they are.
a. Not available in sufficient quantities to satisfy all wants for them.
9) If one orange costs 20k and one kilogram of beef costs N10.00 the opportunity cost of one kilogrvam of beef is
a. 50 oranges
10) A school girl who needs a book and mirror, each cost five naira, decides to purchase the book instead of the mirror since she cannot pay for the two act the same time. Determine the real cost of her book.
c. The mirror

Akushie Johnbosco c
UNN/SOC/17 /004
F.E. Onah


Azubike oluchukwu(unn/soc/17/010) said...

Name:Azubike oluchukwu
Reg no:unn/soc/17/010

Assignment on principles of economics by F.E Onah
1)what do you understand by the concept of scarcity,choice,land,labour,capital and opportunity cost.
I.scarcity:This is a situation whereby there is limited resources to satisfy unlimited wants of an individual.
IiChoice:it involves decision making.it means the act of selecting some needs for satisfaction out of many others based on the resources available to the person making the decision.
Iii.Land:This is a natural gift.it is a factor of production in the sense that it can be used for cultivation,building of (houses,schools,church),sitting of industrries,serve as collateral to business partners etc but when a land is not properly managed it leads to disaster such as earthquake,erosion etc.its reward is rent.
Iv.Labour:it can be defined as both physical and mental efforts in production process.it is a factor of production because when man cultivates on a land,the outcome is a product.The reward for labour is wages &salaries.
V.Capital:This can be define as wealth reserved or set aside for production of further wealth.it may not necessary be money but all those artifical aids such as tools,machinery,plant and equipment used in production.its reward is interest.
Vi.Opportunity cost:it can be called real cost.it is an alternative forgone.it refers to needs that is left unsatisfied inorder to satisfy the pressing one or needs.
2)its relationship is that it is only scarcity i.e limited resources that can make an individual to forgone some alternatives by making decision(choice)on his most pressing needs.
OBJECTIVES:
1.B 2.C 3.D 4.C 5.C 6.B 7.B 8.A 9.B 10.C

Azubike oluchukwu(unn/soc/17/010) said...

Name:Azubike oluchukwu
Reg no:unn/soc/17/010

Principles of economics by C.C Agu
1)Why do households need to take decision?
Household takes decision because there is limited resources to satisfy unlimited individual's want.
2)Why do we say that economic problems arise scarcity?
Economic problem arise from scarcity in the sense that when there is limited resources satisfying numerous wants in an economy,it will lead to problems like inflation,deflation,unemployment etc.
3)Who are the main decision makers in the economy?
The government are the main decision makers.
4)Give examples of economic decisions made by household,firms and governments.
Household:declaring that there will not be comsuption of home-made goods.
Firms:increase in genera price level
Government declaration of state public holidays.
5)Distinguish between positive and normative statements with examples
Positive statement:petroleum price increase will reduce movement on vehicles.
Normative statement:government should reduce the increase in petroleum price.
6)Distinguish between statistical and deterministic hypotheses.
Statistical hypothesis indicates "exception"which means that changes might occure as man is dynamic.it try to predict the probability of certain occurance.
Deterministic hypothesis does not indicate "exception"which means that things are positive.
7)Explain how economics is a science.
It is called a science because it uses scientific measures to explain observed phenomena and predict the outcome of future events.These scientific measures include,collection of data,carrying experiment,analysing and then the result.Again Economics is a social science unlike other sciences because it studies human behaviours.
8)What are the two sub-fields into which economics is divided?Explain what each sub-field studies.
The two fields are microeconomics and macroeconomics.
Microeconomics studies the simple and smaller unit of the economy.it studies the decision,behaviour and interaction of individual,household in a market.
Macroeconomics studies economic as a whole.it studies economic wide phenomenia i.e the interaction,decision of a firm,government,household in an economy.

Azubike oluchukwu(unn/soc/17/010) said...

Assignment on principles of economics by F.E Onah
1)what do you understand by the concept of scarcity,choice,land,labour,capital and opportunity cost.
I√scarcity:This is a situation whereby there is limited resources to satisfy unlimited wants of an individual.
Ii√Choice:it involves decision making.it means the act of selecting some needs for satisfaction out of many others based on the resources available to the person making the decision.
Iii√Land:This is a natural gift.it is a factor of production in the sense that it can be used for cultivation,building of (houses,schools,church),sitting of industrries,serve as collateral to business partners etc but when a land is not properly managed it leads to disaster such as earthquake,erosion etc.its reward is rent.
Iv√Labour:it can be defined as both physical and mental efforts in production process.it is a factor of production because when man cultivates on a land,the outcome is a product.The reward for labour is wages &salaries.
V√Capital:This can be define as wealth reserved or set aside for production of further wealth.it may not necessary be money but all those artifical aids such as tools,machinery,plant and equipment used in production.its reward is interest.
Vi√Opportunity cost:it can be called real cost.it is an alternative forgone.it refers to needs that is left unsatisfied inorder to satisfy the pressing one or needs.
2)its relationship is that it is only scarcity i.e limited resources that can make an individual to forgone some alternatives by making decision(choice)on his most pressing needs.
OBJECTIVES:

Name:Azubike oluchukwu
Reg no:unn/soc/17/010

12)You win N100 in a pool.you have a choice between spending the money now or putting it in a banks' saving account that pays 5 per cent interest,what is the opportunity cost of spending the N100 now?
Spending the money will be forgone for one to save the money in a bank that pays 5% interest.
13)which of the following statements are examples of positive economic analysis?which are examples of normative analysis?
A.The cut in property tax is likely to cause a moderate increase in saving by higher income households---Normative statement.
B.The propserty tax should be repealed because it is unfair----Positive statement.
C.The primary purpose of ECOWAS is to integrate the individual national markets for goods,capital and labour so that the community can advance harmoniously as one region-----Normative statement.
D.Public opinion is that liberia should not be allowed to join one currency zone of Economic Community of West African States(ECOWAS)because liberia's economy is torn by civil war------Normative statement.
E.Allowing liberia to join the zone would drag the entire zone backwards----Positive statement.
F.The establishment of a new political regime in the democratic republic of congo(DRC formerly Zaire)will cause the world price of diamonds to drop because the supply of diamonds from DRC to world markets will increase----Positive statement
G.The first priorities of a new regime in sierra leone should be to rebuild hospitals,schools and roads----Positive statement.
14)"As long as all resources are fully employed, and every firm in the economy is producing its output using the best available technology,the result will be efficient"Do you agree or disagree with this staetement?Explain your answer.
I agree because it will lead to economic growth in the sense that there will be maximum output and there will be unlimited resources(scarcity).

Sirgius Okechukwu said...

Okechukwu sergius c.soc sc./17/047
Assignment on eco 002.
(1) What do you understand by the concept of scarcity, choice, land, labour,capital and opportunity cost. They are:
a. scarcity: scarcity in my understanding means the limited resources to satisfy human wants or need.
b. Choice: this is said to the means of selection among alternative.
c. Land: in economics i can say that land is defined as all physical element in the wealth of nation given by nature such as, environment, climate,minerals, streams and mountains etc.
d. Labour: labour is defined as aggregate human physical and mental effort used in creation of goods and services for human consumption.
e. Capital: capital in my word is defined as anything that can enhance a person power to perform economical useful work.
f. Opportunity cost: In my own definition,i will say that opportunity cost is the method of listing of once need according to their relative importance.
(2) what is the relationship between concept of scarcity and opportunity cost.
The relationship between concept of scarcity and opportunity cost is:
a. In scarcity, it it considers what is to be done and what not to be done,what goods to be produced and what not to produced, And that is applicable to opportunity cost. They all help in knowing the level of sacrifices one needs to make.
Multiple choice
questions.
(1) B (2) C (3) B (4) C (5) C (6) B (7) D (8) A (9)B (10) A.

Sirgius Okechukwu said...

Okechukwu sergius c.Soc sc./17/047
Second assignment
(1)Why do household need to take decision?
The household need to take decision because they recognise the available alternative uses of available resources and the trade off that can be made.
(2) Why do we say that economic problem arise from scarcity?
We say that economic problem arise from scarcity because, the available resources for providing goods and services which satisfy human wants is to be satisfied by consuming goods and services are for all practical purpose,insatiable.
(3) who are the main decision makers in the economy?
The decision makers in the economy are:
(a) Government (b) Firms (c) Household.
(4) Give examples of economic decisions made by households,firms and governments.
The economic decision made by household,firms and governments are:
National defence, public health,education and law enforcement.
(5) Distinguish between positive and normative statement with examples.
A statement about what ''is'' are positive statement while statement about what ought to be are normative statement .
Examples
Positive statement: This is when market price increases, the sells will reduce.
Normative statement: Government should reduce income tax of household.
(6) Distinguish between statistical and deterministic hypotheses.
Deterministic hypotheses do not recognize exception but statistical hypotheses do recognize exception.
(7) Explain how economics is a science.
Economics is regarded as a science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organisations.
(8) what are the two sub-fields into which economics is divided? Explain what each sub-field studies.
(a) The two sub-field into which economics is divided are:
(i) Micro economics.
(ii) Macro economics.
What they studies are:
Micro economics: This is a branch of economics that studies the smallunits of firms, households and individuals etc.
Macro economics: This is defined as a branch of economics that deals with the structure, behaviour and making decision of an economy as a whole.

Ugwuoke Jennifer said...

Ugwuoke Chidera
UNN/SOC/17/061
Economics Assignment
C.C. AGU
1. Why do households need to take decision?
Households need to take decisions because resources are scarce relative to the limitless wants of people and that the available resources have alternative uses.
2.why do we say that economic problems arises from scarcity?
Economic problems arises from scarcity because the available resources for providing goods and services which satisfy human wants are scarce and human wants to be satisfied by consuming goods and services are,for all practical purposes insatiable.
3.who are the main decision makers in the economy?
The main decision makers in the economy are the households,firms and government.
4.Give examples of economic decisions made by households, firms and government?
-for households, a household can decide to buy food, clothing or a House.
-for firms,a firm can decide to provide agriculture, banks and insurance companies or automobile manufactures.
-for government,a government may decide whether to spend more on national defense to protect its borders from foreign aggression or to spend more in the provision of goods and services to raise the standard of living of its people.
5.Distinguish between positive and normative statements with examples?
Positive statements attempts to describe the economy as it is without making judgements about whether the outcome is good or bad.While a normative statement is an assertion about what the economy Ought to be.
6.Distinguish between statistical and deterministic hypothesis?
Statistical hypothesis deals with exceptions e.g.a statement such as if the price of rice falls,the demand for Rice is likely to increase.While deterministic hypothesis does not recognise exception for eg,a statement like if the price of rice falls, demand for Rice will increase.
7.Explain how Economics is a science?
Economics is a science because it adopts a scientific method of inquiry.it deals with observation and formulation of theories.Economics deals with Man's behavior, thereby making it more complex as man is unpredictable. Hence the classification "social science".
8.What are the two subfields into which economics is divided? Explain what each subfields studies
i.Micro economic and
ii.Macro economics
Micro economics: this studies on how households, individuals, firms,government and industry make decision and how they interact in the different market.
Macro economic: studies about the wider scope of economic it deals with the economic behavior of aggregates such as national output inflation and unemployment.
9.Drawing
10.Drawing
11.Describe some of the trade offs faced by (a)a family deciding whether to buy a new car(b)a professor deciding whether to prepare for a class?
A. A family deciding whether to buy a new car will forgo some things needed in the house, like food stuffs, paying of school fees e.t.c.
B. A professor deciding whether to prepare have forgo some important issues, he or she Is handling in order to come to the class for lectures.

Ugwuoke Jennifer said...

12. You win N 100 in a pool. You have a choice between spending the Money now or putting it in the bank saving account that pays 5 per cent interest. What is the opportunity cost of spending the N 100 now?
The opportunity cost of spending the N100 now is the alternative forgone which is putting the money in the bank saving account that pays 5% interest. Therefore the opportunity cost is N 105.
13.which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
A.the cut in property tax is likely to cause a moderate increase in saving by higher income households.
C.the primary purpose of ECOWAS is to integrate the individual national markets for goods,capital and labour so that the community can advance harmoniously as one region.
Normative analysis:
D.public opinion is that liberia should not be allowed to join one currency zone of Economic community of West African States (ECOWAS) because Liberia's economy is torn by civil war.
E.Allowing Liberia to join the zone would drag the entire zone backwards.
14.As long as all resources are fully employed, and every firm in the economy is producing its outfit using the best available technology, the result will be efficient. Do you agree or disagree with this statement? Explain your answer.
I agree because the resources needed for the production is already down and the technology will help in fast productions. Therefore there will be an efficient production.
15.Drawing.
Ugwuoke chidera
UNN/SOC/17/061
C.C.AGU

Sirgius Okechukwu said...

Okechukwu sergius c.Soc sc/17/047
(11) Trade off faced by family.
(a) A family deciding whether to buy a new car will be forced to go in agreement of not buying cloths, eating and spending money unnecessarily for them to meet up with their goal.
(b) A professor deciding whether to prepare for a class.
The professor will first wake up in time and begin to prepare in other to cash up with time, meanwhile, a professor must forfeit all he have to do before preparing for class.
(12) You win #100 in a pool. you have a choice between spending the money now or putting it in a bank savings that pay 5 per cent interest. What is the opportunity cost of spending the #100 now? your opportunity cost is putting the money in a bank savings account that pays 5 per cent interest.
(13) which of the following statement are examples of positive economic analysis? which are examples of normative analysis?
The positive analysis is allowing Liberia to join the zone backward.
The normative analysis is the cut in property is likely to cause a moderate increase in saving by higher income households.
(14) As long as all resources are fully employed, and every firm in the economy is producing its output by using the best available technology, ''the result will be efficient'' Do u agree or disagree with the statement? I agree with the statement .
Because the resources are fully employed the manufacturers or producers will be producing a large quantity of goods and services that will consume the whole of consumers need.

Ugwuoke Jennifer said...

Ugwuoke chidera
UNN/SOC/17/061
Principles of Economics
F.E.Onah

1.What do you understand by the concepts of scarcity,choice, land,labour, capital and opportunity cost?
A.scarcity can be defined as the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources to fulfill all human wants and needs.
B.choice can be said as the selection between alternative choice involves decision making, because resources are scarce relative to wants, there is a need for some choice to be made.
C.land are those natural resources used in production that is,land,minerals and forest. To we economist, these resources are collectively known as land.
D.labour is refers to all human efforts of any kind,mental or physical, are collectively known as labour.
E.capital is one of the three factors of production, the others are land and labour, capital here comprises all those artificial aids to production such as tools,machinery, plant and equipment.
F.opportunity cost is also known as alternative cost,is the value of the choice of a best alternative cost while making a decision.
2.What is the relationship between the concepts of scarcity and opportunity cost?
Opportunity cost arises only because the consumer buyer is forced to make a choice because of the scarce resources and unlimited wants.that is to say that if there was no scarcity of resources there would be no need for alternative forgone.
Multi-choice questions
1.C
2.A
3.D
4.C
5.C
6.B
7.D
8.A
9.A
10.C

Nmecha kalu said...

Nmecha kalu
Reg no: Unn/soc/17/033
Answers
1 so that increase their consumption of goods and services statistical hypothesis on the other hand accept exception.
2 we say that because resources are scarce relative to human want in all societies using resources to produce one good or service implies not using them to produce something else.
3 there are household, firms and government. Making decisions in the face of scarcity implies a cost and that is the opportunity cost.
4 They are decision household and government take decision and how they interact in different market example MICRO-ECONOMICS and MACRO-ECONOMICS.
5 positive statement: it is a statement that describes the world or economic system as it is without making judgement about if the income is good or bad.
Normative statement: it is described as the individual about how he/she will like the world to be.
6 statistical hypothesis in the other hand accept exception.
7 The essence of science is use of scientific method. The dispassionate development and testing of theories about how the world works.
8 focuses on how the individual household firms government etc take their decisions and how they interact in different market macro economics.
11 before you make a decision you have to check the opportunity cost whether to pay the children school fees or to buy a new car you have to check the most important thing first.
(b) the professor deciding whether to prepare for class or not may the professor is not active to go

Nmecha kalu said...

12 maybe he/she has something very important to do with the money maybe to pay house rent school fees health problem the person can't wait till 5 years for the 5 percentage the saving account will give to he/she that person has to check the opportunity cost.
(13) primary purpose of ECOWAS is to intergrate the individual national markets for goods, capital and labour so that the community can advance harmoniously as one region.
(14) yes i agree with that because creating a standard technology in the economy you should expect standard output.
Name: Nmecha Kalu
Reg no: Unn/soc/17/033

OBI JUDITH UKAMAKA UNN/SOC/17/047 said...

NAME: OBI JUDITH UKAMAKA
COURSE CODE: ECO 002
REG NO: UNN/SOC/17/047
ASSIGNMENT

1. In market economy, the question of what, how and for whom to produce are solved by the? Price mechanism.
2. Which of the following situation can give rise to economic problems? Limited means available for satisfying wants.
3. Scarcity in economics means that? That resource is limited in relation to wants.
4. Economics is often described as a science because? It was scientific method to explain observed phenomena and predict future event.
5. Scale of preference refers to? List of goods and services in order of priority.
6. The need to construct a scale of preference is necessitated by? The needs to satisfy wants.
7. In economic life, choice among alternative depends on the? Status of the decision maker.
8. Economic goods are termed scarce goods when they are? Not produced in sufficient quantities to satisfy the effective demand for them.
9. If one orange costs 20k and one kilogram of beef cost #10.00 the opportunity cost of one kilogram of beef is? 10 oranges
10. A school girl who needs a book and mirror, each costing five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book? The mirror.

Anonymous OBI JUDITH UKAMAKA UNN/SOC/17/047 said...

NAME: OBI UKAMAKA JUDITH
COURSE CODE: ECO 002
REG NO: UNN/SOC/17/047
ASSIGNMENT

Principles of Economics – by C.C. AGU
1. Why do households need to take decisions?
A household is referred as people living under one roof. Households/families need to budget for their regular household expenditure, insure themselves against the unexpected and save for the future e.t.c.
2. Why do we say that economics problems arise from scarcity?
Scarcity forces decision and choices making on the economy, we live in a world of scarcity. People want and need variety of goods and services. This applies equality to rich and poor people. It implies that human wants are unlimited but the means to fulfil them are limited.
3. Who are the main decision makers in the economy?
Four [broadly defined] economic actors are;
i. Household – is any group people living together as a decision making unit
ii. Firms- is an organisation that produces goods and services
iii. Government- is an organisation that has two functions; The provision of goods and services to households and firms and the redistribution of income and wealth
iv. The rest of the world
4. Give examples of economics decision made by households, firms and government?
Households; e.g i. Demand goods and services from product markets ii. Supply labour, capital, land and entrepreneurial ability to resource market.
Government; e.g. ii. Establishing and enforcing the rules of the game ii. Promoting competition iii. Producing public goods
Firms; e.g iii. They formed profit-seeking entrepreneurs who employ resources to produce goods and services for sale.
5. Distinguish between positive and normative statement with example
Positive statements are descriptive; they attempt to describe the operation of economic systems without making judgements about whether the outcomes of good or bad. E.g collecting data and information on tax changes and household disposable income over a period of time and then analyse them. While, normative staments is expressing an individual’s view of how he/she would like the world to be. E.g Normative entails value judgement as well as the us of data. It cannot be judge using data alone.
Distinguish between statistical and deterministic hypotheses; Statistical hypothesis: accept exceptions for e.g if household’s income increases they are likely to increase their consumption of goods and services. on the other hand, Deterministic hypotheses, do not recognize exceptions e.g if households income increases, household will increase their consumptions of goods and service.
6. Explain how economics is a science?
Economics is the scientific study of the ownership use, and exchange of scarce resource it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organization using economic tools and analysis
7. Two sub-fields into which economics is divided?
Micro and Macro Economics
Microeconomics: focused on how individuals, household,firm, government and industry take their decision and interact in different market.
Macroeconomics: deals with the forces and trend that affect the economy as a whole
Some trade-offs faced by
[a] Family deciding to buy a new car.
i. a cost of the car [ii].family income.
(b).a professor deciding whether to prepare for a class.
i. if the lesson not is ready
ii.time duration for the class
iii.number of students to cover
8. The 5 percent interest from the bank.
9. The examples of positive or normative analysis
a. normative analysis
b. normative analysis
c. positive statement
d. normative analysis
e. normative analysis
f. normative analysis
g. positive statement
10. Agreed. Because using the best available technology and resources will yield the best result



NWADIOGBU MMESOMA VICTORIA UNN/SOC/17/088 said...

NAME: NWADIOGBU MMESOMA VICTORIA
COURSE CODE: ECO 002
REG NO: UNN/SOC/17/088
ASSIGNMENT

1. In market economy, the question of what, how and for whom to produce are solved by the? Price mechanism.
2. Which of the following situation can give rise to economic problems? Limited means available for satisfying wants.
3. Scarcity in economics means that? Those resources are limited in relation to wants.
4. Economics is often described as a science because? It was scientific method to explain observed phenomena and predict future event.
5. Scale of preference refers to? List of goods and services in order of priority.
6. The need to construct a scale of preference is necessitated by? The needs to satisfy wants.
7. In economic life, choice among alternative depends on the? Status of the decision maker.
8. Economic goods are termed scarce goods when they are? Not produced in sufficient quantities to satisfy the effective demand for them.
9. If one orange costs 20k and one kilogram of beef cost #10.00 the opportunity cost of one kilogram of beef is? 10 oranges
10. A school girl who needs a book and mirror, each costing five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book? The mirror.

Anonymous NWADIOGBU MMESOMA VICTORIA UNN/SOC/17/088 said...

NAME: NWADIOGBU MMESOMA VICTORIA
COURSE CODE: ECO 002
REG NO: UNN/SOC/17/088
ASSIGNMENT

Principles of Economics – by C.C. AGU
1. Why do households need to take decisions?
A household is referred as people living under one roof. Households/families need to budget for their regular household expenditure, insure themselves against the unexpected and save for the future e.t.c.
2. Why do we say that economics problems arise from scarcity?
Scarcity forces decision and choices making on the economy, we live in a world of scarcity. People want and need variety of goods and services. This applies equality to rich and poor people. It implies that human wants are unlimited but the means to fulfil them are limited.
3. Who are the main decision makers in the economy?
Four [broadly defined] economic actors are;
i. Household – is any group people living together as a decision making unit
ii. Firms- is an organisation that produces goods and services
iii. Government- is an organisation that has two functions; The provision of goods and services to households and firms and the redistribution of income and wealth
iv. The rest of the world
4. Give examples of economics decision made by households,firms and government?
Households; e.g i. Demand goods and services from product markets ii. Supply labour, capital, land and entrepreneurial ability to resource market.
Government; e.g ii. Establishing and enforcing the rules of the game ii. Promoting competition iii. Producing public goods
Firms; e.g iii. They formed a profit-seeking entrepreneurs who employ resources to produce goods and services for sale.
5. Distinguish between positive and normative statement with example
Positive statements are descriptive; they attempt to describe the operation of economic systems without making judgements about whether the outcomes of good or bad. E.g collecting data and information on tax changes and household disposable income over a period of time and then analyse them. While, normative stament is expressing an individual’s view of how he/she would like the world to be. E.g Normative entails value judgement as well as the use of data. It cannot be judge using data alone.
Distinguish between statistical and deterministic hypotheses; Statistical hypothesis: accept exceptions for e.g if household’s income increases they are likely to increase their consumption of goods and services. on the other hand, Deterministic hypotheses, do not recognize exceptions e.g if households income increases, household will increase their consumptions of goods and service.
6. Explain how economics is a science?
Economics is the scientific study of the ownership use, and exchange of scarce resource it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organization using economic tools and analysis
7. Two sub-fields into which economics is divided?
Micro and Macro Economics
Microeconomics: focused on how individuals,household,firm, government and industry take their decision and interact in different market.
Macroeconomics: deals with the forces and trend that affect the economy as a whole
Some trade-offs faced by
[a] Family deciding to buy a new car.
i. a cost of the car [ii].family income.
(b).a professor deciding whether to prepare for a class.
i. if the lesson not is ready
ii. Time duration for the class
iii. Number of students to cover
8. The 5 percent interest from the bank.
9. The examples of positive or normative analysis
a. normative analysis
b. normative analysis
c. positive statement
d. normative analysis
e. normative analysis
f. normative analysis
g. positive statement
10. Agreed. Because using the best available technology and resources will yield the best result

UNN/SOC/17/016 said...

Chukwudinobi ifeanyi victor UNN/SOC/17/016
ASIGNMENT ON PRINCIPLES OF EONOMICS by CC Agu(pg 15,16 & 17, 1-15)
1) Why do households need to take decision.
Households take decision to balance the benefit of having more something things against the cost of having something else (trading off one goal for the other), especially in the case of saving some of its income for children’s education or for retirement. Or even using it to buy food, clothing, house, car e.t.c .

2) Why do we say that economic problems arise from scarcity.
This is simply because human beings are plagued with many material wants. And the total of our material is beyond the production capacity of all available resources, so there occur the SCARCITY.

3) Who are the main makers in the economy.
The main organs of decision making in the economy are the households, firms and government.

4) Give examples of economic decisions made by households firms and governments.

- Decisions made by government: deciding whether to spend more on national defense to protect its borders from foreign aggression or to spend more in the provision of goods and services to raise standard of living of its people, and on the scale of their purchasing.

- Decisions made by households: deciding how to spend the household income to buying fold stuffs, clothing or a house or it can save some of its income for children’s education or for retirement.

- Decision made by firms: deciding on how to use judiciously the lived factors of production to produce goods and services and paying in returns.

5) Distinguish between positive and normative statements with examples.

Positive statement: This do strife to describe the world as it is (descriptive in nature). It attempts to describe the operation of the economic systems without making judgments about whether the outcomes are good or bad (statement about what is) e.g, tax increase will reduce households’ disposable income.

Normative while this involves judgment and prescription for causes of actions; expressing individual’s view of how he/she would like the world to be e.g, the banks ought to be loaning money without interests.

6) Distinguish, between statistical and deterministic hypotheses.

Deterministic hypothesis: This on the other hand accept exceptions, do make try to predict the probability of a certain occurrence.

7) Explain how economics is a science.

Economics as a science, induced the theoretical scientific method, the dispassionate development and testing of theories about how the world works, which can as well includes careful and systematic observations, measurement, development of a body of theories to direct and interprete observations. Economics collect data and information through series of observations, engage in logical deductions from the available information and data-in this way they accept, discard or reformate existing theories.

Example; an economist might decide to develop a theory of demand, the theory might be the higher the prices of a good, the lower the demand for the goal….

8) What are the two sub-fields into which economics is divided? Explain what each sub-field studies.

- Economics is divided into two broad distinct viz: Macroeconomics and microeconomics.

- Macroeconomics: This is always known as the sub-field of economics that studies in wide phenomena that is; it is concerned with the explanation of the determinants of the level of aggregate output, the rate of growth of aggregate output, the general price level, unemployment, inflation, business cycle and growth – deals with the economy as a whole.

- Microeconomics: In this sub-field of economics, it studies on how the individuals, households, firms, governments and industries take their decisions on how the individuals, households, firms, governments and industries take their decisions and how they interact in different markets.

9. Drawing
10 Drawing

UNN/SOC/17/016 said...

UNN/SOC/17/016
Chukwudinobi ifeanyi victor


11 Describe some of the trade-offs faced by (a) a family deciding whether to buy a new car (b) a professor deciding whether to prepare for a class.

- A family deciding whether to buy a new car is faced with many scarifies (trade-offs) challenging buying the car or not for the use of the money for other things like; children’s education, retirement sustaining, savings or even to buy food stuffs.

- A professor deciding whether to prepare for class or not in faced with some alternatives to consider, whether to prepare for the class which is as well never to be a waste of time, or to trade-it-off for other useful ventures as well like; appointment, taking a few hours sleep etc.

12 You win N100 in a pool. You have a choice between spending the money now or putting it in a bank savings account that pay 5% interest. What is the opportunity cost of spending the N100 new?

- The opportunity cost of spending the money is the cost of saving/putting it in the bank for gone of the future interest (double) of the money scarified. Or the 5% interest forgone period.

13 Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?

a. The cut in property tax is likely to cause a moderate increase in saving by higher income households – POSITIVE ANALYSIS
b. The property tax should be repealed because it is unfair – NORMATIVE ANALYSIS
c. The primary purpose of ECOWAS is to integrate the individual national markets for goods, capital and labour so that the community can advance harmoniously as one region – POSITIVE ANALYSIS
d. Public opinion is that Liberia should not be allowed to join one currency zone of economic community of west African States (ECOWAS) because liberia’s economy is torn by civil war – POSITIVE ANALYSIS
e. Allowing Liberia to join the zone would drag the entire zone backwards – NORMATIVE ANALYSIS
f. The establishment of a new political regime in the democratic republic of Congo (DRC formerly Zaire) will cause the world price of diamonds to drop because the supply of diamonds from DRC to world markets will increase – NORMATIVE ANALYSIS

g. The first priorities of a new regime in sierra leon should be to rebuild hospitals, schools and roads – NORMATIVE ANALYSIS

14 “As long as all resources are fully employed, and every firm in the economy is producing its output using the best available technology, the result will be efficient”. Do you agree or disagree with this statement? Explain your answer.

- YES 1 AGREE. Why, simple because in this case (all resources been fully employed and every firm in the economy producing its output using the best available technology) the insatiable and unlimited of human wants that cause SCARCITY is eliminated. By the provision of these resources for providing goods and services which satisfy human wants and moreover, all these limited technology for the production. Manufacturing services are made available. So the result will be quite satisfying or even more then expecting.

15 DRAWING


UNN/SOC/17/016 said...

UNN/SOC/17/016
Chukwudinobi ifeanyi victor
ECONOMICS ASSIGNMENT; On F. E Onah – principles of ECO( PG; 3,4,5. 1-10)

1. What do you understand by the concepts of scarcity, choice, land, labour capital and opportunity cost?

Scarcity: In the concept of scarcity it’s briefly understood as unsatisfiable of human want, which is as well as element of choice. Since human wants of goods and services are too numerous, for the availability of its resources therefore comes the curtailing of provision of these goals and services ascribed to as SCARCITY.

Choice: Choice can be defined as or understood as the decision one makes in the sense of limitless of human wants that leads to scarcity, to have more of one thing which by necessity have to had less of the other. To balance the benefit of having more of some things against the cost of having something else.

Land: On the concept of land, it consists of all those natural resources used in production, i.e land, minerals and forests.
Labour:Labour is modified as all human efforts of any kind; mental or physical.

Capital: In the concept of capital here were to consider it solely as those artificial help to production, everything which is not used up for its sake but which is used up in the process of making other goods such as; machinery, tools, plant, equipments, building etc.

Opportunity cost: Economists use the term opportunity cost to emphasize that making decisions in the face of scarcity implies a cost. Therefore briefly, I understand opportunity cost as the cost of what is sacrificed to gain the other alternative since SCARCITY implies. Or the sacrificed benefit of doing one thing in order to manage the other.

2. What is the relationship between the concepts of scarcity and opportunity cost?

- Scarcity and opportunity cost represent two interlinking concepts in economics as companies must often choose among scarce resources. The relationship between this two interlinking concept of scarcity and opportunity cost is their most combacts to go for the best and most wanted despite the need for other resources due to scarcity naturallity. The decision here relies determining first what scarce to decide what should be sacrificed, e.g this two concepts have a direct link because; for example, companies may use a lower quality but more available resource for producing goals and services.



UNN/SOC/17/016 said...

UNN/SOC/17/016
CHUKWUDINOBI IFEANYI VICTOR

OBJECTIVE ECONOMICS – by Prof. F.E Onah(pg, 3 & 4, 1-10)

Multi-choice question

1. In market economy, the question of what, how and for whom to produce are solved by the

a. Elected representatives of the people
b. Planning committee
c. Prince mechanism
d. government

2. Which of the following situations can give rise to economics problems?

a. Unlimited human wants
b. Wants of varying importance
c. Limited means available
d.Means used in different ways.

3. Scarcity in economics means that

a. Human wants are limitless
b. The economy has very few resources.
c. The economy can scarcely produce anything
d. Resources are limited in relation to wants

4. Economics is often described as a science because.

a. Laboratory experiment are performed
b. It makes use of controlled experiment
c. It uses scientific methods to explain observed phenomena and predict future events
d. It makes use of field work.

5. Scale of preference refers to

a. Consumers preference for luxurious goods.
b. The household monthly income
c. List of goods and services in order of priority
d. Budget preparation without paying due regard to priority

6. The need to construct a scale of preference is necessitated by.

a. The need to satisfy wants
b. Scarcity and the need for choice
c. Scarcity of resources.
d. Non-availability of factors of production.

7. In economic life, choice among alternatives depends on the

a. Income of the decisions maker
b. Scarcity of resources
c. Scale of preference of the decision maker
d. Status of the decision maker.

8. Economic goods are termed scarce goods when they are.

a. Not available in sufficient quantities to satisfy all wants for them
b. Not produced in sufficient quantities to satisfy the effective demand for them.
c.Of high quality
d. Of primary importance in satisfying the needs of a society.



9. If one orange costs 20k and one kilogram of beef cost N10.00 the opportunity cost of one kilogram of beef is.

a. 50 oranges
b. 10 oranges
c. 5 oranges
d. 9.80

10. A school girl who needs a book and mirror, each costing N5.00 decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book.

a. The five naira she spent on the book
b. Five naira real cash value
c. The mirror
d. The book






NEW ASSIGNMENT ON NATIONAL INCOME APPROACH/ CALCULATION

Given; Y= C + 1 + G
C = 20 + 0.67d
Yd = y - t
T = 10 + 0.27
I = N5m
G = N80m

i. Find the equilibrium N.I.
ii. Find the income multiplier.
iii. Find the value of the tax multiplier
iv. What effect will  50% increase in government spending have in national income.
v. Suppose the government pursues a balance budget what effect will this policy have in equilibrium national income.

Solution
Y = C + 1 + G -------------------------------- (1)
C = C + by ------------------------------------ (2)
Y = 20 + 0.6 (y – (10 + 0.2y) + 5 + 80 --------------------- (3)
Y = 20 + 0.6( y – 10 – 0.2y) + 5 + 80 --------------------- (4)
Y = 20 + 0.6y – 6 – 0.12y + 20 + 5 + 80 ------------------ (5)
Y = 0.6y + 0.12y = 20 + 5 + 80_
1 – 0.6 + 0.12

Y = 105
0.52

Y = N201.9m

iv. From eqn (5) = Y = 20 + 0.6y – 6 0.12y + 5 + 120
Y – 0.6 + 0.12 = 20 + 5 + 120
Y (1 – 06 + 0.12) = 145
Y =1 (145)
1-0.6+0.12
Y = N278.8m

(6) The effect is that there must be average over trade cycle of the economy, which means;there must be limits among governments spending, investment and tax in the equilibrium national income.

UNN/SOC/17/016 said...

UNN/SOC/17/016
CHUKWUDINOBI IFEANYI VICTOR
OBJECTIVE ECONOMICS – by Prof. F.E Onah(pg, 3 & 4, 1-10)

Multi-choice question

1. In market economy, the question of what, how and for whom to produce are solved by the

a. Elected representatives of the people
b. Planning committee(ANS)
c. Prince mechanism
d. government

2. Which of the following situations can give rise to economics problems?

a. Unlimited human wants
b. Wants of varying importance (ANS)
c. Limited means available
d.Means used in different ways.

3. Scarcity in economics means that

a. Human wants are limitless
b. The economy has very few resources.
c. The economy can scarcely produce anything
d. Resources are limited in relation to wants(ANS)

4. Economics is often described as a science because.

a. Laboratory experiment are performed
b. It makes use of controlled experiment
c. It uses scientific methods to explain observed phenomena and predict future events(ANS)
d. It makes use of field work.

5. Scale of preference refers to

a. Consumers preference for luxurious goods.
b. The household monthly income
c. List of goods and services in order of priority
d. Budget preparation without paying due regard to priority(ANS)

6. The need to construct a scale of preference is necessitated by.

a. The need to satisfy wants
b. Scarcity and the need for choice(ANS)
c. Scarcity of resources.
d. Non-availability of factors of production.

7. In economic life, choice among alternatives depends on the

a. Income of the decisions maker(ANS)
b. Scarcity of resources
c. Scale of preference of the decision maker
d. Status of the decision maker.

8. Economic goods are termed scarce goods when they are.

a. Not available in sufficient quantities to satisfy all wants for them(ANS)
b. Not produced in sufficient quantities to satisfy the effective demand for them.
c.Of high quality
d. Of primary importance in satisfying the needs of a society.



9. If one orange costs 20k and one kilogram of beef cost N10.00 the opportunity cost of one kilogram of beef is.

a. 50 oranges
b. 10 oranges (ANS)
c. 5 oranges
d. 9.80

10. A school girl who needs a book and mirror, each costing N5.00 decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book.

a. The five naira she spent on the book (ANS)
b. Five naira real cash value
c. The mirror
d. The book


NEW ASSIGNMENT ON NATIONAL INCOME APPROACH/ CALCULATION

Given; Y= C + 1 + G
C = 20 + 0.67d
Yd = y - t
T = 10 + 0.27
I = N5m
G = N80m

i. Find the equilibrium N.I.
ii. Find the income multiplier.
iii. Find the value of the tax multiplier
iv. What effect will  50% increase in government spending have in national income.
v. Suppose the government pursues a balance budget what effect will this policy have in equilibrium national income.

Solution
Y = C + 1 + G -------------------------------- (1)
C = C + by ------------------------------------ (2)
Y = 20 + 0.6 (y – (10 + 0.2y) + 5 + 80 --------------------- (3)
Y = 20 + 0.6( y – 10 – 0.2y) + 5 + 80 --------------------- (4)
Y = 20 + 0.6y – 6 – 0.12y + 20 + 5 + 80 ------------------ (5)
Y = 0.6y + 0.12y = 20 + 5 + 80_
1 – 0.6 + 0.12

Y = 105
0.52

Y = N201.9m

iv. From eqn (5) = Y = 20 + 0.6y – 6 0.12y + 5 + 120
Y – 0.6 + 0.12 = 20 + 5 + 120
Y (1 – 06 + 0.12) = 145
Y =1 (145)
1-0.6+0.12
Y = N278.8m

(6) The effect is that there must be average over trade cycle of the economy, which means;there must be limits among governments spending, investment and tax in the equilibrium national income.

Godis Umeifekwem said...

1. Why do households need to take decisions?
A household is referred as people living under one roof. Households/families need to budget for their regular household expenditure, insure themselves against the unexpected and save for the future e.t.c.
2. Why do we say that economics problems arise from scarcity?
Scarcity forces decision and choices making on the economy, we live in a world of scarcity. People want and need variety of goods and services. This applies equality to rich and poor people. It implies that human wants are unlimited but the means to fulfil them are limited.
3. Who are the main decision makers in the economy?
Four [broadly defined] economic actors are;
i. Household – is any group people living together as a decision making unit
ii. Firms- is an organisation that produces goods and services
iii. Government- is an organisation that has two functions; The provision of goods and services to households and firms and the redistribution of income and wealth
iv. The rest of the world
4. Give examples of economics decision made by households,firms and government?
Households; e.g i. Demand goods and services from product markets ii. Supply labour, capital, land and entrepreneurial ability to resource market.
Government; e.g ii. Establishing and enforcing the rules of the game ii. Promoting competition iii. Producing public goods
Firms; e.g iii. They formed a profit-seeking entrepreneurs who employ resources to produce goods and services for sale.
5. Distinguish between positive and normative statement with example
Positive statements are descriptive; they attempt to describe the operation of economic systems without making judgements about whether the outcomes of good or bad. E.g collecting data and information on tax changes and household disposable income over a period of time and then analyse them. While, normative stament is expressing an individual’s view of how he/she would like the world to be. E.g Normative entails value judgement as well as the use of data. It cannot be judge using data alone.
Distinguish between statistical and deterministic hypotheses; Statistical hypothesis: accept exceptions for e.g if household’s income increases they are likely to increase their consumption of goods and services. on the other hand, Deterministic hypotheses, do not recognize exceptions e.g if households income increases, household will increase their consumptions of goods and service.
6. Explain how economics is a science?
Economics is the scientific study of the ownership use, and exchange of scarce resource it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organization using economic tools and analysis
7. Two sub-fields into which economics is divided?
Micro and Macro Economics
Microeconomics: focused on how individuals,household,firm, government and industry take their decision and interact in different market.
Macroeconomics: deals with the forces and trend that affect the economy as a whole
Some trade-offs faced by
[a] Family deciding to buy a new car.
i. a cost of the car [ii].family income.
(b).a professor deciding whether to prepare for a class.
i. if the lesson not is ready
ii. Time duration for the class
iii. Number of students to cover
8. The 5 percent interest from the bank.
9. The examples of positive or normative analysis
a. normative analysis
b. normative analysis
c. positive statement
d. normative analysis
e. normative analysis
f. normative analysis
g. positive statement
10. Agreed. Because using the best available technology and resources will yield the best result
name:umeifekwem godis
regnumber:unn/sco/17/073

UKEJE EDWARD said...

UKEJE EDWARD
UNN/SOC/17/072
1. Why do households need to take decisions?
Answer: Households needs to take decisions because resources are sources relative to the limitless wants of people and that the available resources have alternative uses.
2. Why do we say that economic problems arise from scarcity?
Answer: This is because the available resources for providing goods and services which satisfy human wants are scarce and human wants to be satisfied by consuming goods & services are, for all practical purposes, insatiable
3. Who are the main decision makers in the economy?
Answer: These are the households, firms and government.
4. Give examples of economics decisions made by households, firms and Government.
Answer:
A household can decide to buy food, clothing or a house
A firm can decide to provide agriculture, banks & insurance companies or automobile manufactures.
A Government may decide whether to spend more on national defense to protect its borders from foreign aggression as to spend more in the provision of goods & services
5. Distinguish between positive and normative statements with examples.
Answer: Positive statement describe the economy as it is without making judgments about whether the outcome is good or bad. While a normative statement is an assertive about what the economy ought to be.
6. Distinguish between statistical and deterministic hypothesis
Answer: statistical hypothesis deals with exceptions, while Deterministic hypothesis does not recognize exceptions.
7. Explain how Economics is a Science
Answer: Economics is a Science because it adopts a scientific method of inquiry. It deals with observation and foundation of theories. Economics deals with man's behaviour, thereby making it more complex as man is unpredictable.
8. What are the two sub-fields into which economics is divided?
Answer: Micro-economics and Macro-economics
Micro-economics: This studies on how households, individuals, firms, Government and Industry make decisions and how they interact in their different market.
Macro-economics: This study about the wider scope of economics. it deals with the economics behaviour of aggregates such as: national output inflation & unemployment.
11. Describe some of the trade-offs faced by a (i) Family deciding to buy a new car (ii) Professor deciding whether to prepare for class or not
Answer:
(i) A family deciding whether to buy a new car is faced with the trade-off of deciding to buy food stuffs, going on vacation or saving up for the future.
(ii) A Professor deciding whether to prepare for class is faced with the trade-off of waiting or staying.
12. You win #100.00 in a pool; you have a choice between spending the money now or putting it in a bank saving account that pay 5% interest. What is the opportunity cost of spending $100.00 now?
Answer: The opportunity cost of spending the #100.00 now is the alternative forgone which is putting the money in a bank savings account that pays 5% interest. Therefore the opportunity cost is #105.00.
13. Which of the following statements are examples of positive economic analysis? (ii) Which economic analysis?
Answer: Positive economic
(i) The primary purpose of ECOWAS is to integrate the individual national market for goods, capital and labour so that the community can advance in harmonious as one region.
(ii) The cut in property tax is likely to cause a moderate increase in saving by higher income households.
Normative analysis
(i) the property tax should be replaced because it is unfair. (ii) Public opinion is that Liberia should not be allowed to join one currency zone of ECOWAS because Liberia's economy is torn by civil war.
14. As long as resource are fully employed and every available technology; the result will be efficient to you. Agree or Disagree with this statement; explain your answer.
Answer: I agree. When resources are fully employed using the best available technology, there would be surplus resources

chidubem nwaoga said...

NWAOGA CHIDUBEM 001and002ECONOMICS/UNN/11-11-2017/ART/
1.why do households needs to take decision?
households needs to take decisions because resources are scarce relative to the limitless wants of people and that the available resources have alternative uses.
2.Why do we say that economic problem scarcity? Economic problems arise from scarcity because the available resources for providing goods and service which satisfy human wants are scarce and human wants to be satisfied by consuming goods and service are for all practical purposes,insatiable.
3.Who are the main decision makers in the economy?
The main decision makers in economy are households,firms and governments.
4.Give examples of economic decision made by households,firms and government?
a.For households:A household can decide to buy food, clothing or a house.
b.For firms:A firm can decide to provide agriculture, banks, insurance companies, or automobile manufactures.
c.For government:A government may decide whether to spend more on national defense to protect its borders from foreign aggression as to raise the standard of living of its people.
5.Distinguish between positive and normative statements with examples
Positive statement attempts to describe the economics as it is without making judgements about whether the outcome is good or bad.While a normative statement is a assertion about what the economy ought to be.
6.Distinguish between statistied and determination hypothesis deals with exceptions example a statement such as if the price of rice falls, the demand for rice is likely to increase.While determination hypothesis does not recognize exception for example a statement like if the price of rice falls, demand for the will increases.
7.Explain how economics is a social science?
Economics science because if adopts a scientific method of inquiry.It deals with observation and formulation of theories.Economics deals with mans behaviour thereby making it more complex as man its impredictable.Hence the classification "social science".
8.what are the two subfields into which economics is divided?
a.Micro-economics
b.macro-economics
Micro economics:This studies on how household,individuals,firms,government and industries makes decision and how they interact different market.
Macro economics:This studies about the wider scopes of economics deals with the economic behaviour of aggregates such as rational output unemployment.
9.The opportunity cost of spending the #`100.00 now is the alternative forgone which is pretting the money in bank savings account that pays 5% interest .Therefore the opportunity cost is 105.00
10.A family deciding who there to a new car will be far.

victoria chimezie said...

Name:OJIAKOR OBIANUJU FRANSISCA
ECO 001
1 What do you understand by the concept of scarcity, choice, land, Labour, capital and opportunity cost
Answers :Labour
Is the brain power and muscle power of human beings.
*Land
Is natural resources of all kinds.
*Capital
Comprise all equipment, building, tools etc and other manufactured goods that can be used in production.
(2) relationship between scarcity and opportunity cost?
Answers: It represent two interlinking concepts in economics as companies must often choose among scarce resources. In most cases economics resources are not completely number so companies must make a choice about which resources to use during production.
*MULTI choice questions
1
Answer : planning committee
2
Answer : unlimited human wants
3
Answer : resources are limited in relation to want
4
Answer : it uses scientific methods to explain observed phenomena and predict future events
5
Answer : consumer preference for luxurious goods
6
Answer : the need to satisfy wants
7 in economic life choice among alternative depends
income of the decision maker
8 not produce in sufficient quantities to satisfy the effective demand for them
9 10 orange
10 five naira real cash value

victoria chimezie said...

Principles of Economics – by C.C. AGU
1. Why do households need to take decisions?
A household is referred as people living under one roof. Households/families need to budget for their regular household expenditure, insure themselves against the unexpected and save for the future e.t.c.
2. Why do we say that economics problems arise from scarcity?
Scarcity forces decision and choices making on the economy, we live in a world of scarcity. People want and need variety of goods and services. This applies equality to rich and poor people. It implies that human wants are unlimited but the means to fulfil them are limited.
3. Who are the main decision makers in the economy?
Four [broadly defined] economic actors are;
i. Household – is any group people living together as a decision making unit
ii. Firms- is an organisation that produces goods and services
iii. Government- is an organisation that has two functions; The provision of goods and services to households and firms and the redistribution of income and wealth
iv. The rest of the world
4. Give examples of economics decision made by households, firms and government?
Households; e.g i. Demand goods and services from product markets ii. Supply labour, capital, land and entrepreneurial ability to resource market.
Government; e.g. ii. Establishing and enforcing the rules of the game ii. Promoting competition iii. Producing public goods
Firms; e.g iii. They formed profit-seeking entrepreneurs who employ resources to produce goods and services for sale.
5. Distinguish between positive and normative statement with example
Positive statements are descriptive; they attempt to describe the operation of economic systems without making judgements about whether the outcomes of good or bad. E.g collecting data and information on tax changes and household disposable income over a period of time and then analyse them. While, normative staments is expressing an individual’s view of how he/she would like the world to be. E.g Normative entails value judgement as well as the us of data. It cannot be judge using data alone.
Distinguish between statistical and deterministic hypotheses; Statistical hypothesis: accept exceptions for e.g if household’s income increases they are likely to increase their consumption of goods and services. on the other hand, Deterministic hypotheses, do not recognize exceptions e.g if households income increases, household will increase their consumptions of goods and service.
6. Explain how economics is a science?
Economics is the scientific study of the ownership use, and exchange of scarce resource it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organization using economic tools and analysis
7. Two sub-fields into which economics is divided?
Micro and Macro Economics
Microeconomics: focused on how individuals, household,firm, government and industry take their decision and interact in different market.
Macroeconomics: deals with the forces and trend that affect the economy as a whole
Some trade-offs faced by
[a] Family deciding to buy a new car.
i. a cost of the car [ii].family income.
(b).a professor deciding whether to prepare for a class.
i. if the lesson not is ready
ii.time duration for the class
iii.number of students to cover
8. The 5 percent interest from the bank.
9. The examples of positive or normative analysis
a. normative analysis
b. normative analysis
c. positive statement
d. normative analysis
e. normative analysis
f. normative analysis
g. positive statement
10. Agreed. Because using the best available technology and resources will yield the best result


victoria chimezie said...

11. Describe some of the trade-offs faced by a (i) Family deciding to buy a new car (ii) Professor deciding whether to prepare for class or not
Answer:
(i) A family deciding whether to buy a new car is faced with the trade-off of deciding to buy food stuffs, going on vacation or saving up for the future.
(ii) A Professor deciding whether to prepare for class is faced with the trade-off of waiting or staying.
12. You win #100.00 in a pool; you have a choice between spending the money now or putting it in a bank saving account that pay 5% interest. What is the opportunity cost of spending $100.00 now?
Answer: The opportunity cost of spending the #100.00 now is the alternative forgone which is putting the money in a bank savings account that pays 5% interest. Therefore the opportunity cost is #105.00.
13. Which of the following statements are examples of positive economic analysis? (ii) Which economic analysis?
Answer: Positive economic
(i) The primary purpose of ECOWAS is to integrate the individual national market for goods, capital and labour so that the community can advance in harmonious as one region.
(ii) The cut in property tax is likely to cause a moderate increase in saving by higher income households.
Normative analysis
(i) the property tax should be replaced because it is unfair. (ii) Public opinion is that Liberia should not be allowed to join one currency zone of ECOWAS because Liberia's economy is torn by civil war.
14. As long as resource are fully employed and every available technology; the result will be efficient to you. Agree or Disagree with this statement; explain your answer.
Answer: I agree. When resources are fully employed using the best available technology, there would be surplus resources
NAME:OJIAKOR OBIANUJU FRANSISCA
ECO 001

alaebi krotimi wisdom said...

ALAEBI KROTIMI WISDOM
UNN/SOC/17/063
Principles of Economics
F.E.Onah
1.What do you understand by the concepts of scarcity,choice, land,labour, capital and opportunity cost?
A.scarcity can be defined as the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources to fulfill all human wants and needs.
B.choice can be said as the selection between alternative choice involves decision making, because resources are scarce relative to wants, there is a need for some choice to be made.
C.land are those natural resources used in production that is,land,minerals and forest. To we economist, these resources are collectively known as land.
D.labour is refers to all human efforts of any kind,mental or physical, are collectively known as labour.
E.capital is one of the three factors of production, the others are land and labour, capital here comprises all those artificial aids to production such as tools,machinery, plant and equipment.
F.opportunity cost is also known as alternative cost,is the value of the choice of a best alternative cost while making a decision.
2.What is the relationship between the concepts of scarcity and opportunity cost?
Opportunity cost arises only because the consumer buyer is forced to make a choice because of the scarce resources and unlimited wants.that is to say that if there was no scarcity of resources there would be no need for alternative forgone.
Multi-choice questions
1.C
2.A
3.D
4.C
5.C
6.B
7.D
8.A
9.A
10.C

alaebi krotimi wisdom said...

ALAEBI KROTIMI WISDOM
Principles of Economics
UNN/SOC/17/063
by C.C. AGU
1. Why do households need to take decisions?
A household is referred as people living under one roof. Households/families need to budget for their regular household expenditure, insure themselves against the unexpected and save for the future e.t.c.
2. Why do we say that economics problems arise from scarcity?
Scarcity forces decision and choices making on the economy, we live in a world of scarcity. People want and need variety of goods and services. This applies equality to rich and poor people. It implies that human wants are unlimited but the means to fulfil them are limited.
3. Who are the main decision makers in the economy?
Four [broadly defined] economic actors are;
i. Household – is any group people living together as a decision making unit
ii. Firms- is an organisation that produces goods and services
iii. Government- is an organisation that has two functions; The provision of goods and services to households and firms and the redistribution of income and wealth
iv. The rest of the world
4. Give examples of economics decision made by households, firms and government?
Households; e.g i. Demand goods and services from product markets ii. Supply labour, capital, land and entrepreneurial ability to resource market.
Government; e.g. ii. Establishing and enforcing the rules of the game ii. Promoting competition iii. Producing public goods
Firms; e.g iii. They formed profit-seeking entrepreneurs who employ resources to produce goods and services for sale.
5. Distinguish between positive and normative statement with example
Positive statements are descriptive; they attempt to describe the operation of economic systems without making judgements about whether the outcomes of good or bad. E.g collecting data and information on tax changes and household disposable income over a period of time and then analyse them. While, normative staments is expressing an individual’s view of how he/she would like the world to be. E.g Normative entails value judgement as well as the us of data. It cannot be judge using data alone.
Distinguish between statistical and deterministic hypotheses; Statistical hypothesis: accept exceptions for e.g if household’s income increases they are likely to increase their consumption of goods and services. on the other hand, Deterministic hypotheses, do not recognize exceptions e.g if households income increases, household will increase their consumptions of goods and service.
6. Explain how economics is a science?
Economics is the scientific study of the ownership use, and exchange of scarce resource it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organization using economic tools and analysis
7. Two sub-fields into which economics is divided?
Micro and Macro Economics
Microeconomics: focused on how individuals, household,firm, government and industry take their decision and interact in different market.
Macroeconomics: deals with the forces and trend that affect the economy as a whole
Some trade-offs faced by
[a] Family deciding to buy a new car.
i. a cost of the car [ii].family income.
(b).a professor deciding whether to prepare for a class.
i. if the lesson not is ready
ii.time duration for the class
iii.number of students to cover
8. The 5 percent interest from the bank.
9. The examples of positive or normative analysis
a. normative analysis
b. normative analysis
c. positive statement
d. normative analysis
e. normative analysis
f. normative analysis
g. positive statement
10. Agreed. Because using the best available technology and resources will yield the best result

alaebi krotimi wisdom said...

NEW ASSIGNMENT ON NATIONAL INCOME APPROACH/ CALCULATION
UNN/SOC/17/063
ALAEBI KROTIMI WISDOM
Given; Y= C + 1 + G
C = 20 + 0.67d
Yd = y - t
T = 10 + 0.27
I = N5m
G = N80m

i. Find the equilibrium N.I.
ii. Find the income multiplier.
iii. Find the value of the tax multiplier
iv. What effect will a 50% increase in government spending have in national income.
v. Suppose the government pursues a balance budget what effect will this policy have in equilibrium national income.

Solution
Y = C + 1 + G -------------------------------- (1)
C = C + by ------------------------------------ (2)
Y = 20 + 0.6 (y – (10 + 0.2y) + 5 + 80 --------------------- (3)
Y = 20 + 0.6( y – 10 – 0.2y) + 5 + 80 --------------------- (4)
Y = 20 + 0.6y – 6 – 0.12y + 20 + 5 + 80 ------------------ (5)
Y = 0.6y + 0.12y = 20 + 5 + 80_
1 – 0.6 + 0.12

Y = 105
0.52

Y = N201.9m

iv. From eqn (5) = Y = 20 + 0.6y – 6 0.12y + 5 + 120
Y – 0.6 + 0.12 = 20 + 5 + 120
Y (1 – 06 + 0.12) = 145
Y =1 (145)
1-0.6+0.12
Y = N278.8m

(6) The effect is that there must be average over trade cycle of the economy, which means;there must be limits among governments spending, investment and tax in the equilibrium national income.

Ukeje Edward Emenike said...

Ukeje Edward Emenike said...
1. What do you understand by the concepts of scarcity, choice, land,labour, capitalism and opportunity cost?.
Answer: Scarcity: This can be determined as the limited availability of a commodity, which may be in demand in the market. The human wails which can be satisfied by consuming goods and devices are too numerous, they are regarded for all purposes as insatiable.
Choice: This involves decision making. It includes judging the merits of multiple option and selecting one or more of them.
Scarce: Relative to wants,there is need for some devices to be made.
Land: This consists of all the natural resources used in production e.g: land, mineral and forest.To the economist these resources are collectively known as land.
Labour:This is all the effort and hard work that have seen involved in doing a particular piece of work,weather mentally or physically. This collectively is known as labour to the economist.
Capital: capital consists of anything that can enhance a person's power to perform economically useful work. It comprises of all those artificial aids to production which includes tools,mechinery,plant and equipment. It is not consumed for its own sake out is used up in the process of making other good.These resources are collectively known as capital to the economist.
Opportunity cost: Opportunity cost refers to a benefits that a person could have received, but gave up,to take another course of action it can also be called alternative cost.It is expressed in terms of the alternative refused.In other words,cost is measured in terms of what is lost or sacrificed as a result of a particular choice.
2. What is the relationship between the concepts of scarcity of and opportunity cost.
Answer: since there is limited availability of a commodity and the human wants which can be satisfied by consuming goods and services are too numerous, and that brings in opportunity cost which helps to give up some commodities or sacrifice for a particular commodity.
Multi choice questions
1. B
2. A
3. D
4. C
5. C
6. B
7. C
8. A
9. A
10. B

AGBO VALENTINE C. said...

NAME: AGBO VALENTINE C.
REG NO: UNN/MGT/17/001
What do you understand by the concepts of scarcity, choice, land, labour capital and opportunity cost?
Scarcity: This can be defined as the limited availability of a commodity, which may be in demand in the market. The human wants which can be satisfied by consuming goods and services are too numerous, they are regarded for all purposes as insatiable.
Choice: this involves decision making. It is the selection between alternatives. It includes judging the merits of multiple options and selecting one or more of them. Because resources are scarce relative to wants, there is need for some choices to be made.
Land- This consist of the natural resources used in production e.g., land, minerals and forest. To the economists, these resources and collectively known as land.
Labour- This is all the effort and hand work that have involved in doing a particular piece of work, weather mentally or physically. This collectively is known to the economist as labour.
Capital- capital consists of anything that can enhance a person’s; power to reform economically useful work. It comprises of all artificial aids to production which includes tools, machinery, plant and equipment. It is not consumed for its own sake but it is used up in the process of making other goods. These resources are collectively known as capital to the economist.
Opportunity Cost: Opportunity Cost refers to a benefit that person could have received, but gave up, to take another course action. It can also be called alternatives refused. In other words cost is measured in terms of what is lost or sacrificed as a result of a particular choice.

2. What is the relationship between the concept of scarcity of and opportunity cost? Since there is limited availability of a commodity and the human wants which can be satisfied by consuming goods and services are too numerous, and that brings in opportunity cost which helps to give up some commodities or sacrifice for a particular commodity.

AGBO VALENTINE C. said...

NAME: AGBO VALENTINE C.
REG NO: UNN/MGT/17/001
Multi choice question
1. B
2. A
3. D
4. C
5. C
6. B
7. C
8 A
9. A
10. B
1. Why do house hold need to make decisions
Ans. Households need to make decision because resources are scarce relative to limitless wants of people and the availability resources have alternative uses.
2. Why do we say economic problems arise from scarcity?
Ans. The problem of economic arises because the available resource for providing goods and services which satisfy human wants are scarce and human wants to be satisfied by consuming goods and services are, for all purposes, insatiable. Our unlimited wants will always outstrip the resources available to satisfy them.
3. Who are the main decision makers in the economy?
Ans.Houseeholds, firms and the governments.
4. Give economic decision made by households firms and government
Ans. Households-Deciding on how to spend the household income in buying food, clothing or a house. Or saving its income for children’s education or retirement firms- Deciding on.
Government- Deciding on whether to spend much money on national defence to protect its borders from foreign aggression or to spend more in providing goods and services to raise its standard of living of its people.
5. Distinguish between positive and normative statements with examples.
Ans. Positive Statements- These are statements about what is. Example of positive statement is, “Tax increase will reduce household disposable income. While Normative Statements- Are the statements about output to be. Example is “Government should reduce income tax of households”
6. Distinguish between statistical and determinative hypothesis
Ans. Statistical hypotheses accept exceptions for example: if household’s income increases, households will increase their consumption of goods and services.
7. Explain how economic a science is
Ans. Science uses scientific methods, it tests theories and proves how the word works by careful and systematic observations and measurement and also develops a body of theories to direct and interpret observations. Economics is therefore a science because it uses scientific methods. Economists collects data and information through series of observations, engage in logical deductions from the available information and data. In this way they accept, discard or reformulated existing theories.
8. What are the two subfields into which economics is divided? Explain each subfield studies.
Ans. The two subfield are macro and micro economics
Macroeconomics- is the economy that deals with the study of smaller or specific economic units or parts that make the economy and relationship between those parts e.g. households, firms and industries.
Macroeconomics is the economics that study wide phenomena. It studies general price level, aggregate output, inflation, unemployment.

NWEKE BATHOLOMEW CHIJIOKE said...

NWEKE BATHOLOMEW CHIJIOKE
UNN/SOC/17/037
1. Households need to take decision or make choices to ensure that scares resources are efficiency are located to satisfy the need of the household. Core need/wants such as clothe, food and shelter are given more consideration
2. We say economic problems arrive from scarcity because the resource to satisfy want are limited and on the other hands wants are unlimited. If resources were not scares all wants will be satisfied therefore, eliminating economics problems.
3. the main/primary decision makers in the economy are;
a. household
b. firm
c. government
4. household:
Make decisions such as whether to spend more money on cloth, food and shelter or to save more money for education or retirement.
FIRMS:
Firms at times have to decide either to increase the cost of production to increase the quality of products or channel its funds into expansion.


GOVERNMENT:
Has to decide whether to spend more on defending its territory or boundaries from external aggression or spend more in the provision of goods and services to raise the standard of living of its citizens.
5. Positive statements talk about what is i.e the present state of the economy without including a good or bad judgments. For example: the current administration is proposing restructuring.
While
Normative statement talks about what ought to be i.e it includes personal judgment and gives ear to public opinion. For examples: the Nigerian government should revalue the naira compared to the dollar.
6. Statistical hypotheses recognize exceptions. For example: a statement such as if the price of yam falls, the demand for yam is likely to rise. While deterministic hypotheses does not recognize exceptions. For examples: a statement such as if the price of yam falls, demand for yam will increase/rise.
7. Economics is considered a science because it adopts a scientific method of inquiry. It deals with observation and formulation of theories. Unlike other natural sciences like chemistry and physics, economics deals with man’s behaviour thereby making it more complex as man I s unpredictable. Hence the classification “Social Sciences”
8. the two sub-fields of economics are
a. microeconomics and
b. macroeconomics
MICROECONOMICS
Focuses on how individual households, firms, government and industry make decisions and how they interact in the different market.
MACROECONOMICS
Focuses on a wider scope of economics. It deals with the economics behavior of aggregate such as national output inflation and unemployment.
Trade-off faced by family deciding whether to buy a new car.
A family deciding whether to buy a new car can will be forced to forgo on so many alternatives such as clothing or savings for education or investments
The opportunity cost of spending the N100.00 now is the alternative forgone which is putting the money in a bank savings account that pay s 5% interest. Therefore the opportunity cost is N105.00.
POSITIVE ECONOMIC ANALYSIS
The cut in property tax is likely to cause a moderate increase in savings by higher income households.
The primary purpose of ECOWAS is to integrates the individual national markets for goods, capital and labour so that the community can advance harmoniously as one region.
NORMATIVE ANALYSIS
- The property tax should be repeated because it is unfair.
- Public opinion is that Liberia should not be allowed to join one currency zone of ECOWAS because Liberia’s economy is torn by Civil war
Allowing Liberia to join the zone would drag the entire one backwards.

NWEKE BATHOLOMEW CHIJIOKE said...

The establishment of a new political regime in the democratic republic of Congo (DRC) Formerly Zaire) will cause the world price of diamonds to drop because the supply of diamonds from DRC in world market will increase.
The first priorities of a new regime in Sierra Leone should be to rebuild hospitals, schools and roads.
- I agree with the statement; as long as all resources are fully employed, and every firm in the economy is producing its output using the best available technology, the result will be efficient
- I agree with the statement because it is simply stating that if all factors of production are employed in adequate and sufficient proportion, then the output should be above par.
Scarcity- means limited or less resources. This means that the resources needed to satisfy our wants are limited and supply. Therefore our wants cannot be completely satisfied, if the mean that will have to make choices.
Choices- choice means selecting among alternative choice is necessary in economics or choice decision making requires truting off one goal against another.
Land is made up of soil, forest, minerals, and resources for production in economics.
Labour- is a generic name used to denote productive services which are obtainable through physical and mental efforts used in production of goods and services usually for reward. Its reward is the wage it receive.
Capital in economics, we mean manmade aid to production. It is a stock of goods that is meant to be used in production of other goods it includes such things as machine, buildings, commercial vehicles etc.
Opportunity cost- opportunity cost if any action is the best alternative forgone. Economist use the term opportunity cost to emphasize that making decision in the face of scarcity implies a cost.
The relationship between scarcity and opportunity cost is opportunity cost of a particular choices refers to the value of the next best alternative or opportunity. The opportunity cost is the potential benefit of the best opportunity that we are giving up by choosing another alternative.
Objective
1. C Price Mechanism
2. C limited means available satisfy want
3. D Resources are limited in relation to want
4. C It uses scientific methods to explain observed phenomena and predict future events
5. C list of goods and services in order of priority
6. B Scarcity and need for choice
7. C Scale of preferred of decision makers
8. A not valuable sufficient quantities to satisfy all want for them
9. A 50 Oranges
10. C the book

NWEKE BATHOLOMEW CHIJIOKE said...

NWEKE BATHOLOMEW CHIJIOKE
UNN/SOC/17/037

The establishment of a new political regime in the democratic republic of Congo (DRC) Formerly Zaire) will cause the world price of diamonds to drop because the supply of diamonds from DRC in world market will increase.
The first priorities of a new regime in Sierra Leone should be to rebuild hospitals, schools and roads.
- I agree with the statement; as long as all resources are fully employed, and every firm in the economy is producing its output using the best available technology, the result will be efficient
- I agree with the statement because it is simply stating that if all factors of production are employed in adequate and sufficient proportion, then the output should be above par.
Scarcity- means limited or less resources. This means that the resources needed to satisfy our wants are limited and supply. Therefore our wants cannot be completely satisfied, if the mean that will have to make choices.
Choices- choice means selecting among alternative choice is necessary in economics or choice decision making requires truting off one goal against another.
Land is made up of soil, forest, minerals, and resources for production in economics.
Labour- is a generic name used to denote productive services which are obtainable through physical and mental efforts used in production of goods and services usually for reward. Its reward is the wage it receive.
Capital in economics, we mean manmade aid to production. It is a stock of goods that is meant to be used in production of other goods it includes such things as machine, buildings, commercial vehicles etc.
Opportunity cost- opportunity cost if any action is the best alternative forgone. Economist use the term opportunity cost to emphasize that making decision in the face of scarcity implies a cost.
The relationship between scarcity and opportunity cost is opportunity cost of a particular choices refers to the value of the next best alternative or opportunity. The opportunity cost is the potential benefit of the best opportunity that we are giving up by choosing another alternative.
Objective
1. C Price Mechanism
2. C limited means available satisfy want
3. D Resources are limited in relation to want
4. C It uses scientific methods to explain observed phenomena and predict future events
5. C list of goods and services in order of priority
6. B Scarcity and need for choice
7. C Scale of preferred of decision makers
8. A not valuable sufficient quantities to satisfy all want for them
9. A 50 Oranges
10. C the book

Odoh Victor Chukwuemeka said...

Assignment on eco 002. By F.E Onah
(1) What do you understand by the concept of scarcity, choice, land, labour,capital and opportunity cost.
Scarcity
In scarcity, the human wants which are meant to be satisfied by goods And services are too many and in the contrary, the resources that are suppose to be use in satisfying the human needs are limited. So therefore are suppose to use in satisfing the human needs are limited. Human wants are unlimited while the
available resources are limited.
Choice
This is the selection of wants or want to be satisfied from a number of alternative wants. The most important are choosen followed.
Land
Land is a free gift of nature. In land, there are many thing we classify as land and they are; soil, minerals and forests. The rewards for land is rent. Land is characterised by the following:
...Lands are heterogenous in nature.
...The rewards for land is rent
...It is a free gift of nature
...The supply of land is fixed.
...It is geographically immobile. Etc
Labour
This is defined as all human effort which may be physical or mental. It involves human beings who work on other factors of production like land and capital in order to produce goods and services.
Capital
This is defined as a man - made assets used in production or all man - made goods used to produce other goods and services. motor vehicle etc.
Opportunity cost
This can be said in my understanding, as want givenup in order to satisfy another want.
(2) what is the relationship between concept of scarcity and opportunity cost.
The relationship between concept of scarcity and opportunity cost is that; opportuinty cost come into being as a result of scarcity. When there are limited resources, some of the wants are usually foregone
(1) B (2) C (3) D (4) C (5) C (6) B (7) A (8) B (9) B (10) A

Odoh Victor Chukwuemeka said...

Assignment from C C Agu Text
(1) Why do households need to take decisions? The reason why household need to take decision are;
(i)Scarcity in resources relative to the limitless wants of the people.
(ii)The available resources have alternative uses, that means; The resoures on ground can be alternatively used.
(2) Why do we say that economic problems arise from scarcity?
We say that economic problem arise from scarcity because the resources which are meant to satisfy human wants are scarce and limited. Human wabts which are to be satisfied are unlimited thereby making human wants insatiable.
(3) Who are the main decision makers in the economy? They are;
Households
Firms
Government
(4) Give examples of economic decision made by households, firms and givernments.
Households - They decide on how to spend their income in buying their needs.
Firms - They decide on how to use judiciousely the hired factor of production in producing goods and services
Government - They decide on how to spend more in either defence or in the circulation of money all round the country.
(5) Distinguish between positive and normative statements with examples.
Positive statement is all about the real truth. eg increasment in the UNN shool fees will reduce the number of students that apply for UNN per year
Normative statement is all about individuals ideas. Eg federal government should reduce UNN school fees for them to have more students every year.
(6) Distinguish between statistical and deterministic hypotheses.
Statistical hypothesis accept exception. Eg if households income increase, they are likely to increase their consumption of goods and services.
Deterministic hypothesis do not accept exceptions. Eg if household income increase, households will increase their consumption of goods and services.
(7) Explain how economics is a science.
Economics is a science becsuse; it involve the use of scientific methods. ie it deals with systematic observations, collections, classification of events information and data and their critical and logical analysis with the purpose of matching evidence with actual phenomena. Economics on the hand is a science of human behaviour hence it is known as social science.
(8) what are the two sub-fields into which economics is divided? Explain what each sub-field studies.
The two sub-field into which economics is divided are:
(i) Micro economics.
(ii) Macro economics.
What they studies are:
Micro economics: This is a branch of economics that studies the small units the economy.It deals with the study of households, firms and industries. While
Macro economics: This is the study of the leves of aggregate output, the rate of growth of aggregate output, general price level and the rate of growth of price.
It is seen as the study of inflation, unemployment, business cycle and growth of the economy.
(11) Trade off faced by;
(a) A family deciding whether to buy a new car.
He will be faced with;
(i) Am i to use the money to investing into business.
(ii) Am i to use the money in building a mighty house and so on.

(b) A professor deciding whether to prepare for a class
A professor deciding whether to prepare for class is been faced with the following;
(i) If the time happens to be afternoon, he will be faced with whether to keep on enjoying his afternoon siesta or not.
(ii) Am i to stay back and listing to the programs that are been showed in television and so on.

Odoh Victor Chukwuemeka said...

(12) You win #100 in a pool. you have a choice between spending the money now or putting it in a bank savings that pay 5 per cent interest. What is the opportunity cost of spending the #100. The opportunity cost of spending the #100 is the 5 per cent interest
(13) Which of the following statement are examples of positive economic analysis? which are examples of normative analysis?
(a) The cut in prooerty tax is likely to cause a moderate increase in saving by higher income households. positive economic
(b) The property tax should be repealed because it is unfai normative analysis
(c) The primarypurpose of ECOWAS is to integrate the the individual nationalarket for good, capital and labour so that the community can advance harmoniously as one region.positive economic
(d) Public opinion is that Liberia should not be allowed to join one currency zone of Economic Community of West Africa States (ECOWAS) because Liberia's economy is torn by civil war. normative analysis
(e) Allowing Liberia to join the zone would drag the entire zone backwards.positive economic
(f) The establishment of a new political regime in the Democratic Republic of Congo (DRC formaly Zaire) will cause the world price of diamonds to drop because the supply of diamonds from DRC to world markets will increase. positive economic
(g) normative analysis
(14) As long as all resources are fully employed, and every firm in the economy is producing its output by using the best available technology, ''the result will be efficient'' Do u agree or disagree with the statement?
I agree
This is because when all the resouces are fully employed, ie when all the resources needed to carryout production processes are on ground, and there are enogh tecnologies of which firms will be using, they will produce more than expected. When we say that the result will be efficient, it means that the result will be more than expected that is increase in output of production. For instance; if a bread baking company produces 1000 loaves of bread per day using human power, because of the availability of enough technologies needed for the production, there is every tendency that the result will be increased by 2 or 3 times.
Note: my answer to number 9 10 and 15 is in the teared out sheet

okechukwu chioma said...

OKECHUKWU CHIOMA SANDRA
REG NO.UNN/SOC/17/046
1.why do households need to take decisions?answer.households take decisions so that they can regulate the amount spent on commodities.
2.why do we say economic problem arise from scarcity?answer.we say that economic problem arise from scarcity because the available resources for providing goods and services which satisfy human wants are scarce and human wants to be satisfied by consuming goods and services are insatiable and unlimited.
3.who are the main decision makers in the economy?Answer.the decision makers are the households,firms and the government.
4.give examples of economic decisions made by households,firms,and governments.answer.
households decide on what commodity to purchase,firms decides on what to produce and in what quantity,and government decides the amount of tax to be accrued to the citizens,they decide on the scale of the purchase of production from households and goods and services from firms.
5.distinguish between positive and normative statements with examples.Answer.POSITIVE STATEMENTS is about what is,it describes the world as it is.positive statements are descriptive,they describe the operation of the economic system without making judgements about whether the outcomes are good or bad.It is objective and fact based .we can confirm positive statements by examining evidence,it do not need to be correct,but they must be able to be tested and proved or disproved.example government provided healthcare increases public expenditure.
NORMATIVE STATEMENTS are statements about what ought to be,it is subjective and value based.A normative statement involves judgements and prescriptions for causes of actions.Evaluating normative statements entails value judgement as well as the use of data,it cannot be judged using data alone,they are opinion based,so they cannot be proved or disproved.example,government should provide basic health care to all citizens.
6.DISTINGUISH BETWEEN STATISTICAL AND DETERMINISTIC HYPOTHESES.ANSWER.Statistical hypotheses is an assumption about population parameter.this assumption may or may not be true.it accepts exception.Deterministic hypothesis do not recognize exceptions.
7.EXPLAIN HOW ECONOMICS IS A SCIENCE.Economics is the scientific study of the ownership, use, and exchange of scarce resources - often shortened to the science of scarcity. Economics is regarded as a social science because it uses scientific methods to build theories that can help explain the behaviour of individuals, groups and organizations.
8.WHAT ARE THE TWO SUB FIELDS INTO WHICH ECONOMICS IS DIVIDED?EXPLAIN WHAT EACH SUB-FIELD STUDIES.ANSWER.
i.microeconomics
ii.macroeconomics
MICROECONOMICS:is concerned with the study of specific economic units or parts that make up the economy and the relationship between those parts,it focuses mainly on individual households,firms and industries and the way in which they make decisions and interact in various markets.
MACROECONOMICS:it is the study of economy wide phenomena.i.e it is concerned with the explanation of the determinants of the level of aggregate output,the rate of growth of aggregate output,the general price level and the rate of growth of prices(inflation).Therefore it is the study of inflation,unemployment,business cycle and growth.
11.DESCRIBE SOME OF THE TRADE-OFFS FACED BY
a.a family deciding whether to buy a new car
b.a professor deciding whether to prepare for a class
ANSWER
A family deciding whether to buy a new car is faced with the idea to invest the money in a business or to use the money to provide clothing and shelter for the family.
a professor deciding whether to prepare for a class is faced with the idea to either use his time to sleep or to involve himself in a recreational activity.
12.You win N100 in a pool.You have a choice between spending the money now or putting it in a banks' savings account that pays 5% interest.What is the opportunity cost of spending the money now?answer.the opportunity cost of spending the money now is at 5% interest.

okechukwu chioma said...


13.WHICH OF THE FOLLOWING STATEMENTS ARE EXAMPLES OF POSITIVE ECONOMIC ANALYSIS?WHICH IS THE EXAMPLES OF NORMATIVE ANALYSIS?
POSITIVE ECONOMIC ANALYSIS.
The cut in property tax is likely to cause a moderate increase in savings by higher income households.
The primary purpose of ECOWAS is to integrates the individual national markets for goods, capital and labor so that the community can advance harmoniously as one region.
the establishment of a new political regime in the democratic Republic of Congo(DRC formerly Zaire)will cause the world price of diamonds to drop because supply of diamonds from DRC to world markets will increase.
NORMATIVE ANALYSIS

- The property tax should be repeated because it is unfair.
- Public opinion is that Liberia should not be allowed to join one currency zone of ECOWAS because Liberia’s economy is torn by Civil war
Allowing Liberia to join the zone would drag the entire one backwards
-The first priorities of a new regime in Sierra Leone should be to rebuild hospitals,schools and roads.
14."As long as all resources are fully employed, and every firm in the economy is producing its output using the best available technology,the result will be efficient"Do you agree or disagree with this statement?Explain your answer.
I AGREE
As long as all resources are fully employed,and every firm in its economy is producing its output using the best available technology,the result will be efficient because the use of more technology and full resources will improve the output which will be produced by the firm.

AGBO VALENTINE C. said...

UNN/MGT/17/001
C.C. Agu
Assignment
1. What are functions of money?
The functions of money can be subdivided into two primary functions are medium of exchange and unit of account. Medium of exchange: Any ass that serves as a generally acceptable medium of exchange or means of payment is money. Money serving as a medium of exchange, removes the need for double coincidence of want for exchange to take place and all the inconveniences associated with a barter system to trade.
Unit of account: money is a standard measure of value. That is, for exchange of goods and services to proceed in an orderly fashion, there is need for an accounting unit. Therefore a unit of accounting simply a way of placing specific prices (value) on goods and services.
Derivative functions are store of value and standard of deferred payment.
Store of value: Money can be used to transfer purchasing power from the present into the Future, so it also a store of value. Money serves as a store of value because who so ever holds a “generalize purchasing power” can spend it at his/her convenience and on goods of his/her choice.
Standard of deferred payment: standard of deferred payment involves the use of money as a medium of exchange and a unit of account. It also an agreed measure that enables contracts to be written for future payment receipt is called standard of deferred payment.
2. What distinguishes money from other assets?
What distinguishes money from other assets is the primary function of money and the function distinguishes it from other assets or things else is that it serves as a generally acceptable means of payment medium of exchange.
3. What is a commodity money? Commodity money is a physical commodity valued in its own right and also used as a medium of exchange. So that means the commodity money has an intrinsic value while at the same time it is used as money. What is fiat money? Fiat money is an order or a decree, and fait money is established as money by government decree. So fiat money is a money without intrinsic value.
4. What is a fiduciary issue? What is convertible paper money? What is convertible paper money? Fiduciary issue recent time, most of the Paper money in circulation in must countries are not backed by gold so such paper money not backed by gold in inconvertible convertible paper money is a paper claim to a commodity that circulates as a medium of exchange and it is fractionally packed.
5. What are demand deposits, and why should they included in the stock of money in an economy? Demand deposits is an account, the bank gives a promise to pay, on demand, the amount deposited by the customers. Is an account with a bank or other financial institution that allows the depositors to with draw his/her funds from the account without warning or with less than seven days notice.
6. What assets make up the narrow definition of money in your country and what assets make up broader definition of money? The asset which make up that narrow definition of money are; securities, accounts receivable, inventory, office equipment, real estate, car and other property. The assets that then make up the broader definition are deposits, mashing etc.
7. Are cherubs and credit cards money? Explain
Cheque is not a money because it a means of using the depositors to pay for goods and services and other transitions in the economy. Credit card is not a money because it do not diminish the role of money as a medium of exchange, unit of account, store of value, and standard for deferred payment.
8. Has the use of electronic funds transfer system made the use of money as a medium of exchange obsolete? The use of Electronic funds transfer system (EFTS) does not make it obsolete but rather it means that the method of transferring money is changing.

AGBO VALENTINE C. said...

UNN/MGT/17/001
9. Discuss or define the following terms and concepts. Means of payments, store of value, unit of account, standard of deferred payment, barter, liquidity, near money and fiduciary issue?
 Means of payment money is the asset used in a means of payment means of means of payment is used as that asset which can be used as exchange medium for that commodity.
 Store of value: Money can be used to transfer purchasing power from the present into the future, it also a store of value so in other words, money serves as a store of value because whosoever hold a “generalized purchasing power” consent it at his/her convenience time in goods and services of his/her choice.
 Unit of account: Unit of accounting therefore, is a way of placing specific prices (value) on goods and services. So for any exchange of goods and services to proceed in an orderly fashion, there is need for an accounting unit.
 Standard of deferred payment: it is an agreed measure, that enables contracts to be written for future payments and receipt. it also simultaneously involves the use of money as a medium of exchange and a unit of account.
 Barter: Barter in ordinary sense means the process where goods would be exchanged for other goods and it is direct. Barter system is the existence of double coincidence of wants in exchange.
 Liquidity: Liquidity refers to the ease with which the asset can be redeemed on short notice and with minimum cost.
 Near money: near money are asset which adequately perform a function of store of value and are very liquid.
 Fiduciary issue: fiduciary issue in recent time, most of the paper money incirculation in most conntries is not backed by gold and such paper money not also backed by gold.
10. What are the characteristics of an asset that makes it useful as a medium of exchange and as a store of value and unit of account?
The characteristics of money are:
a. Durability i.e. it needs to last long.
b. Portability i.e. easy to carry about
c. Divisibility i.e. it can be broken down into smaller units.
d. Hard to counterfeit i.e. it can’t easily be faked or copied
e. Must be generally accepted by the population
f. Valuable generally holds value overtime
11. How do banks create money? What factors limit the ability of banks to create money?
1. Banks create money when the bank employs a balance sheet (a T-account) for a bank in our hypothetical banking system. It is a part of computer animated series of four to five minutes modules illustrating standard concepts in high school economies. The module illustrates how banks increase the supply of money through their leveling activities which create money in form of new checking deposits. This process is called multiple deposit creation. It limitation is that factor that reduces the size of the multiplier reduce the quantity of money that banks can create out of the available reserve inflow into the banking system. The multiplier in the real world is considerably smaller than the reciprocal of the solutionary required ratio leakages whereby the entire loan is not typically deposited, into another bank currency drain, where the deposits increase,, the public may wish to hold more currency.
excess reserve: All banks have a desired reserve ration which is usually greater than legally required reserved ratio.
12. Assume that the central bank sets the required reserved ration equal to 10 percent. If the banking system has #20 million in reserved assets, what is the amount of demand deposits outstanding?
Solution
Required reserve ration= 10%
Required reserve = #20,000,000 of 10%

AGBO VALENTINE C. said...

UNN/MGT/17/001

=#2,000,000
. .. Excess reserve= #20,000,000
__ 2, 000, 000 = 18,000,000
The demand deposits then is 20,000,000+18,000,000
Required assets excess reserve.
= #38,000,000
If rd =25, what is the simple money multipler? If the reserves increase by #100, by how much do loans and deposits increase?
Solution
Multipler=1/rD × TR
RD=25 ... 1/25× 100/1=4
In this case depositor and loans increased by:
100×4= #400
assume that the banking system has total of # 100 billion. Assume also that required reserve are 10 percent of demand deposits, and that banks hold no excess reserve and households hold no currency.
what is the money multipler? What is the money supply?
If the central bank now raised
Solution
money multipler =1/0.1=10
money supply = 10× 100=1000
20 money multipler =11.225
5×100=500
1000-500=#500
F. E ONAH
what are the four sources of saving?
saving that refers to the difference between government receipts and its recurrent expenditure, which is used to finance its capital expenditure.
Savings that refers to the difference being used to buy fixed and working capital such s equipments and stocks of material.
Savings that refers to money out of income, which being surplus on consumption requirement and may be either directly or indirectly to the government.
Savings which refers to the control and managerial participation by the foreign investors.
What is the function of the capital market?
Link between savers and investors:
The capital market functions as a link between savers and investors. It also plays an important role in mobilizing the saving and diverting then in productive investment
Encouragement to saving:
With the development of capital, market, the banking and non-banking institutions provide facilities, which encourage people to save more.
Encouragement to investment it provide facilities through banks and non- banking financial institution.
Promotes economic growth
The capital market not only reflects the general conditions of the economy, but also some thanes and accelerates the process if economic growth.
Stability in security prices;
The capital market helps the investors, i.e. those who have funds to invest in long- term financial assets.
Discuss the alternative sources of long-term finance provided by financial intermediaries in Nigeria.

AGBO VALENTINE C. said...

UNN/MGT/17/001
A financial intermediary is an institution or individual that serves as a middle man among diverse parties in order to facilitate financial transactions. Through the process of financial intermediation, certain asset or liabilities are transformed into different assets or liabilities are transformed into different assets or liabilities. As the name suggest, long term finance is a form of finance that is provided for a period of more than a year. The source of long-term finance refers to the institutions or agencies from or through which funds for a long period can be procured.
4. What is the difference between owning shares and stocks?
Stock is a general term used to describe the ownership certificate of any company. Shares refers to the ownership certificate of a particular company. So, if investors say they own stocks, they are generally referring to their overall ownerships one or more companies.
5. What does the stock exchange deal in?
Stock exchange is an exchange or bourse where stocks brokers and traders can buy and sell shares at stock, bonds and other securities.
Stock exchange deals in providing facilities for issues and redemption of securities and other financial instruments and capital events including the payment of income and dividends.
6. What is the main outlet of funds collected by:
a. What is the main outlet of funds collected by:
b. Mortgage banks
c. The Nigerian industrial development Bank
d. Urban development banks
a. Finance house
It provides hire purchases, i.e. granting of credit to consumers and companies to purchase durable consumer goods and capital goods on an instalamental basis.
b. Mortgage banks.
This financial intermediary has its main funds outlet by, new issues of securities in the form of offer for subsection, right issue (i.e. offering a new shares to existing share holders), offer for sale (may be house purchase secured) and private placement.
c. The Nigerian industrial Development Bank (NIDB)
Its outlet of fund collects are long-term loans for industrial, agricultural and commercial development.
d. Urban development bank (UDB)
It provides long-term loans for industrials, agricultural and commercial development too.



OBJECTIVE OF PAGE 186-188 (1-10) ON PROF. F E ONAH
1. B
2. C
3. A
4. B
5. A
6. B
7. B
8. B
9. A
10. A


Joel Onyeabor said...

NAME: ONYEABOR CHINONSO JOEL
REG NO: UNN/SOC/17/085

1. WHAT ARE THE FUNCTIONS OF MONEY?

The functions of money can be subdivided into two ‘PRIMARY AND DERIVATIVE FUNCTIONS’.
THE PRIMARY FUNCTIONS ARE ‘MEDIUM OF EXHANGE AND UNIT OF ACCOUNT’.
A. MEDIUM OF EXCHANGE: Right from the beginning, money has been performing an important function as medium of exchange in our society. Any asset that serves as a generally acceptable medium of exchange or the means of payment of money.
Money serves as a medium of exchange to take place and all the inconvenience associated with a barter system to trade.
B. UNIT OF CCOUNT: Money is a standard measure of value. That is, for exchange of goods and services to proceed in an orderly fashion, there is need for an accounting unit. Therefore a unit of accounting, simply a way of placing specific prices (VALUE) on goods and services.
DERIVATIVE FUNCTIONS ARE ‘STORE OF VALUE AND STANDARD OF DEFERED PAYMENT’
C. STORE OF VALUE: Money can be used to transfer purchasing power from the present into the future, so it also a store of value. Money serves as a store of value because whosoever holds a ‘generalized purchasing power’ can spend it at his/her convenience and on goods of his/her choice.
D. STANDARD OF DEFERED PAYMENT: Standard of deferred payment involves the use of money as a ‘medium of exchange’ and a ‘unit of account’. It also an agreed measure that enables contracts to be written for future payments and receipt is called standard of deferred payments.

2. WHAT DISTINGUISES MONEY FROM OTHER ASSETS?

What distinguishes money from other asset is the primary functions of money and the functions distinguishes it from other asset or things else is that is serves as a generally acceptable means of payment and medium of exchange.

3. WHAT IS COMMODITY MONEY?
Commodity money is a physical commodity valued in its own right and also used as a medium of exchange. So that means of commodity money has an intrinsic value while at the same time it is used as money.
(ii). WHAT IS FLAT MONEY?
Flat money is an order or a decree, and flat money is established as money by government decree. So flat money is money without intrinsic value.

4. WHAT IS FIDUCIARY ISSUE?
Fiduciary issue in recent time, most of the paper money in circulation in most countries are not backed by gold, so such paper money not backed by gold is inconvertible.
(ii). WHAT IS CONVERTIBLE PAPER MONEY?
Convertible paper money is a paper claim to a commodity that circulates as a medium of exchange and it is fractionally backed.

Joel Onyeabor said...

NAME: ONYEABOR CHINONSO JOEL
REG NO: UNN/SOC/17/085


5. WHAT ARE DEMAND DEPOSITS, AND WHY SHOULD THEY BE INCLUDED IN THE STOCK OF MONEY IN AN ECONOMY?
Demand deposit is an account the bank give, a promise to pay, on demand, the amount deposited by the customers is an account with a bank or other financial institution that allows the depositor to withdraw his/her funds from the account without warning or with less than seven days notice.

6. WHAT ASSETS MAKE UP THE NARROW DEFINATION OF MONEY IN YOUR COUNTRY AND WHAT ASSETS MAKES UP BROADER DEFINITION OF MONEY?
The asset which makes up that narrow definition of money are; Security, Accounts receivable, Inventory, Office Equipment, Real estate, Car and other property. The assets that then makes up the broader definition are deposit, etc.

7. ARE CHEQUES AND CREDIT CARDS MONEY? EXPLAIN!
Cheque is not money because it is a means of using the depositor to pay for goods and services and others transaction in the economy.
Credit cards is not a money because it do not diminish the role of money as a medium of exchange, unit of account, store of value, and standard for deferred payment.

8. HAS THE USE OF ELECTRONIC FUND TRANSFER SYSTEM ‘EFTS’ MADE THE USE OF MONEY AS A MEDUIM OF EXCHANGE OBSOLETE?
The use of electronic funds transfer system (EFTS) does not make it obsolete but rather it means that the method of transferring money is changing.

9. DISCUSS OR DEFINE THE FOLLOWING TERMS AND CONCEPTS.
Means of payment, Store of value, unit of account, standard of deferred payment, barter, liquidity, near money and fiduciary issue.
(I). MEANS OF PAYMENT: Money is the asset used in a means of payment is used as that asset which can be used as exchange medium for that commodity.
(II). STORE OF VALUE: Money can be used to transfer purchasing power from the present into the future, so it also a store of value. Money serves as a store of value because whosoever holds a ‘generalized purchasing power’ can spend it at his/her convenience and on goods of his/her choice.
(III). UNIT OF ACCOUNT: Unit of accounting therefore, is a way of placing .specific prices (value) on goods and services. So far, any exchange of goods and services to proceed in an orderly fashion, there is need for and accounting unit.
(IV). STANDARD OF DEFERRED PAYMENT: It is an agreed measure, that enables contracts to be written for future payment and receipts. It also simultaneously involves the use of money as a medium of exchange and a unit of account.
(V). BARTER: Barter in ordinary sense means the process where goods would be exchanged for other goods and it is direct. Barter system is the existence of double coincidence of wants in exchange.

Joel Onyeabor said...

NAME: ONYEABOR CHINONSO JOEL
REG NO: UNN/SOC/17/085

(VI). LIQUIDITY: Liquidity refers to the ease with which the asset can be redeemed on short notice and with minimum cost.
(VII). NEAR MONEY: Near money are asset which adequately perform a function of store of value and are very liquid.
(VIII). FIDUCIARY ISSUE: Fiduciary issue in recent times, most of the paper money in circulation in most countries are not backed by gold and such paper money not also backed by gold.
10. WHAT ARE THE CHRACTERISTICS OF AN ASSET THAT MAKES IT USEFUL S A MEDIUM OF EXCHANGE AND AS A STORE OF VALUE AND UNIT OF ACOCUNT?
The characteristics of money are;
a. Durability. i.e, It needs to last long
b. Portability. i.e, Easy to carry about
c. Divisibility. i.e, It can be broken down into smaller unit
d. Hard to counterfeit. i.e, It can’t easily faked or copied
e. Must be generally accepted by the population
f. Valuable generally holds value Overtime.

11. HOW DO BANKS CREATE MONEY? WHAT FACTORS LIMIT THE ABILITY OF BANKS TO CREATE MONEY?
-Banks create money when the bank employs a balance sheet (a T-Account) for a bank in our hypothetical banking system. It is a part of computer animated series of four to five minute modules illustrating standard concept in high school economics. This illustrate how banks increase the supply of money through their leveling activities which create money in form of new checking deposit. This process is called multiply deposit creation, and its limitation is that factors that reduce the size of the multiplier reduces the quantity of money that banks can create out of the available reserve inflow into the banking system. The multiplier in real world is considerably smaller than the reciprocal of the solution required ratio leakages whereby the entire loans is not typically deposited into another bank currency drain, where the deposit increase, the public may wish to hold more currency.
-EXCESS RESERVE: All banks have a desired reserve ratio which is usually greater than legally required reserved ratio.

12. Assume that the central bank set the required reserved ratio equal to 10 percent. If the banking system has N20 Million in reserved assets, what is the amount of demand deposit outstanding?
Solution
Required reserve ratio = 10%
Reserved asset =N20,000,000
Required reserve =N20,000,000 of 10%
=N2,000,000
Excess reserve =N20,000,000 – N2,000,000 = N18,000,000
The demand deposit then is N20,000,000 + N18,000,000 = N38,000,000.
Required asset Excess reserve

Joel Onyeabor said...

NAME: ONYEABOR CHINONSO JOEL
REG NO: UNN/SOC/17/085

13. If rD = 25, what is the simple money multiplier? If the reserve increase by N100, by how much do loans and deposit increase?
Solution

Multiplier = 1 x TR
rD
rD = 25 :- 1 x 100 = 4
25 1
In this case deposit and loans increased by:
100 x 4 = N400


14. Assuming that the banking system has total of N100 Billion
Assume also that required reserve are 10 percent of demand deposits, and that banks hold no excuses reserve and household holds no currency
(a) What is the money multiplier? What is money supply?
(b) If the central bank now raises required reserve to 20 percent deposits, what is the change in reserve and change in the money supply.

Solution
(a) Money multiplier = 1 =10
0.1
Money supply = 10 x 100 = 1,000

(b) 20. Money multiplier = 11.225
5 x 100 = 500
1000 – 500 = N500

Uzoanya Diana said...

Name: Diana Uzoanya
Reg no: UNN/SOC/17/062
C.C AGU
1. What are the functions money?
The functions of money can be subdivide into two, which are PRIMARY and DERIVATIVE function
• The primary functions are the medium of exchange and unit of account
Medium of exchange: any asset that serves as a medium of exchange is money. People demand for money because it is the most convenient asset used for purchasing goods and services. When you buy items like soap in a store, clothing and other goods, you exchange these items with money.
Unit of account: a unit of account is a way of placing specific price [value] on goods and services. Money is the standard unit of a value. In a complex economy like ours, the exchange price of goods and services are measured in the unit of money. For example, in Nigeria prices are expressed in Naira, in USA dollars, in UK pounds etc.
• The derivative functions are store of value and standard for deferred payment.
Store of value: money is store of value because it can be used in purchasing power even for the future. For money to be generally accepted, the item most be able to store value or specifically purchasing power. In other words, money serves as a store of value because who so ever holds a generalized purchasing power must be able to spend it at his/her convenient time or any goods and services of his/her choice. People want money not only for today’s exchange, but also for future use.
Standard for deferred payment: this simultaneously involves money a unit of account and a medium of exchange. Any agreed measure that enables contracts and receipt to be written for future payment is called standard for deferred payment.#

2. What distinguishes money from other assets?
What distinguishes money from other assets is that it is the most liquid of all asset.
3. What is a commodity money? What is fiat money?
A commodity money is a money that has a value of its own. It has an intrinsic value. It can also be used as a medium of exchange. Eg gold, silver, diamond etc.
A fiat money is a money without intrinsic value. It can be used in form of order or decree. A fiat money is established by government order.
4. What is fiduciary issue? What is paper money?
Fiduciary issue is a paper money that is not backed by gold and it is in-convertible.
Convertible paper money is a paper money that is fully backed by commodity money that is used as a medium of exchange
5. What are demand deposits? And why should it be included as stock of money in an economy?
Demand deposits are the deposits in the bank account which depositors can assess on demand by writing cheques anytime they want to.
It should be added to the stock of value of an economy because, the use of cheques as a medium of settling debts and also for the purchase and payment of goods and services, means that money held in individual’s checking account is also the same as money held in an individual’s wallet.
6. What assets make up the narrow definition of money in your country and what assets make up the broader definition of money?
In my country, Nigeria, M1 = public [money in the hand of public] + demand deposit, which is the narrow definition of money.
The broader definition of money is that M2 + time deposit + savings deposit.

Uzoanya Diana said...

7. Are cheques and credit card money? Explain.
Cheques and credit cards are not money.
Cheque is not money in the sense that it does not serve as a medium of exchange. It is only a means of using a deposit account to pay for goods and services and other transactions. Same is for credit cards. A credit card is like an ID card, one that enables you to borrow money once a purchase is made, on the promise of repaying later. When you purchase goods and services, you sign a credit card receipt. The bank then debits your demand deposit account to pay for your debts. It is now the demand deposit account that is money and not credit card.
8. Has the use of ELECTRONIC FUNDS TRASNFERE SYSTEM made the use of money as a medium of exchange obsolete?
No. The use of EFTS has not made money as a medium of exchange obsolete. Using the EFTS has not devalued money or made it not useful. EFTS is not money, rather it is the demand deposit account that is money. In using the EFTS, a telephone signal is sent accros if the demand deposit account is been debited or credited. It gives signal about transaction that has been made.
9. Define the following; means of payment, store of value, unit of account, standard for deferred payment, barter, liquidity, near money and fiduciary issue.
• Means of payment:
• Store of value: money is a store of value because it can be used to purchase power from the present to the future. Who so ever holds money as a medium of exchange, should be able to spend it at his/her convenient time and on his/her choice of goods and services.
• Unit of account: in purchasing of goods and services, there is need for an accounting unit. Therefore, unit of accounting is the way of placing specific price [value] on goods and services. In a complex economy, a unit of account is always placed in a commodity.
• Standard for deferred payment: this simultaneously involves money a unit of account and a medium of exchange. Any agreed measure that enables contracts and receipt to be written for future payment is called standard for deferred payment.

• Liquidity: this is the property of an asset of been able to be sold without affecting its value. It is also the degree to which it can easily be converted into cash.

• Barter: this is the transaction of goods and services made without money involved.

• Fiduciary issue: this is known to be a commodity that is not backed by gold and it is inconvertible.

10. What are the characteristics of an asset that is useful as a medium of exchange, store of value and unit of accounting?
Any asset that serves as a medium of medium of exchange, store of value and unit of account is money. And the characteristics are;
• General acceptability
• Homogeneity
• Portability
• Durability
• Divisibility
• Scarcity
• Stability
• No intrinsic value
11. How do banks create money? What factors limit the ability of banks to create money?
When a deposit is made, the banks do not keep all the deposits in its vault. If it does, it will not be in a position to do any business, and earning profit. And also, the banks do not use all its deposit to make business, if it does, it will not be able to meet the withdrawal demand of the depositors. To be able to invest part of its customers’ deposit, the central bank of a country prescribes or gives a percentage of their deposit which is known as RESERVED RATIO. The remaining money is known as EXCESS RESERVES which the bank use in making business to earn profit.
Factors that limits the ability of banks to create money;
• Leakages
• Currency drain
• Excess reserves

Azubike oluchukwu(unn/soc/17/010) said...

Name;Azubike oluchukwu
Reg no;unn/soc/17/010
Assignment by F.E Onah

1)what are the four sources of savings?
A.Government:In this type of context,government save the remaining part of money after the recurrent expenditure is being extracted from the government receipts.
B.Companies:They save when all their profits are not distributed as dividends,the difference is being use to buy fixed & working capital such as machines, equipments etc.
C.Individuals:Individuals save money out of income but when surplus they may decide to lent directly or indirectly to the government.
D.Foreign sector:They may provide money capital for investment in a country.The money capital may represent a grant or gift from foreign government & organisation for expenditures on specific project in the country.
2.What is the function of capital market?
A.They organised & regulated. Capital market motivates individuals to save & invest funds. The availability of safe & profitable source of investment is an essential criterion to create propensity to save & invest on the part of the earning public.
B. It provides for the investors a safe & product channel for investment of savings & secure the recurring benefits of return thereon as long as the savings are retained.
C. It provides liquidity to the savings of investors by developing a secondary capital market & thus makes even short term savings consistently available for long term users.
D. It thus mobilizes savings of large number of individuals,families & associations and make the same available individuals for meeting the large capital needs of organised industry,trade & business and for progress and development of the country as a whole and its economy.

Azubike oluchukwu(unn/soc/17/010) said...

3.Discuss the alternative sources of long term finance provided by financial intermediaries in Nigeria.
A. By issuing stock: They include gilt-edged stocks and debentures stocks of joint stock companies. Gilt-edged stock is a fixed interest security issued by government and traded on the stock exchange.it is called gilt-edged because it is certain that interest will be paid and that it will be redeemed(where appropriate) on the due date. While some loan stocks are redeemable at a certain time,there are some that are permanent.
B. By issuing shares;shares are issued by joint stock companies and give their owners a share in the assets of the company.They are different type of shares,they include cumulative preference and the most common is the ordinary share(also known as the equity of the company) which has no guarantee rate of interest and a return which depends on the profits.stocks and shares are jointly referred to as securities.
4. What is the difference between owning shares and stocks?
Stock is one of the financial instruments. It is a general term used to describe the ownership certificates of any company and shares refers to the ownership certificate of a particular company.

Azubike oluchukwu(unn/soc/17/010) said...

[12/14, 10:45 AM] Jennifer: 5. What does the stock exchange deals in?
Stock exchange is a market for existing securities(stock,bonds). It is an exchange where the stock brokers and traders can buy and sell shares of stock,bonds and other securities. They plays an important role in the economic development of a country.
[12/14, 11:01 AM] Jennifer: 6. What is the main outlet of funds collected by
(a)finance houses
(b)mortgage banks
(c)the Nigerian industrial development bank
(d)urban development banks?
A. Finance houses:

I. Shareholders funds
II. Borrowing from members of the public
III. Securities such as debentures & investment notes
IV.Borrowing from banks and other financial institutions.
V.Foreign sector: finance houses shall be allowed to raise funds from foreign investors or parties subject to CBN approval.
B.Mortgage banks: they obtain their funds through new issues of securities in the form of offer for subscription, rights issue (offering of new shares to existing shareholders), offer for sale and private placement.
C. the NIDB:it sources its funds from banks, the CBN,the federal government and the international finance corporation.
D. UDB:their source of funds is from federal, state and local government and the Nigerian labour Congress.
[12/14, 11:04 AM] Jennifer: OBJ
1.B 2.D 3.C 4.D 5.C 6.A 7.B 8.B 9.D 10.D

Azubike oluchukwu(unn/soc/17/010) said...

Name:Azubike oluchukwu
Reg no:unn/soc/17/010
Assignment by C.C Agu

1.Functions of money?
Primary function: Medium of exchange
Store of value
Derivative function:Unit of account
Standard for deferred payment.
-Medium of exchange: Anything generally accepted and can save as a medium of exchange is money and as such is can be used in exchange for another. By serving as a medium of exchange, money prevent the need for coincidence of wants for exchange to take place and all the inconveniences associated with a barter system of trade.
-Unit of account:A unit of account simply means placing specific prices of all goods and services. Money simplifies the rate at which one commodity could exchange for another.
-Store of value: As a store of value money could be used to transfer purchasing power from the present to the future. In the sense that one can spend money at his or her convenience on good of his or her own choice.
-Standard for deferred payment:This function simultaneously as medium of exchange and unit of account. It is a measure that that enables contrast to be written for future payment and receipts, is contract requiring future receipts and payments and debts that are stated in money terms
2.what distinguishes money from other assets?
What distinguishes money from other assets is that money is generally accepted and a medium of exchange

Azubike oluchukwu(unn/soc/17/010) said...

3. What is commodity money? What is Fiat money?
Commodity money has an intrinsic value which means that it can serve as money (medium of exchange) and production of another specific purpose. Eg,Gold is an intrinsic value because it is a medium of exchange and used in industry and in making of jewelry.
-Fiat money:This is a type of money without an intrinsic value. It is an order or a decree and can be established as Money by government decree. Eg,currency.
4.What is fiduciary issue? What is convertible paper money?
-Fiduciary issue: paper money not backed by anything is known as fiduciary issue.
-Convertible paper money:A paper claim to a commodity that circulates as a medium of exchange is called convertible paper money. It is convertible because the paper is fully backed by a valued commodity.
5.What are demand deposits, and why should they be included in the stock of money in an economy?
-Demand deposits are balances in bank accounts that depositors can access on demand by writing a cheque.
- They should be included in the stock of money because one can exchange cheque with money.cheque serves as a medium of exchange to cooperate entities.

Azubike oluchukwu(unn/soc/17/010) said...

6.What assets make up the narrow definition of money in your country and what assets make up broader definition of Money?
-Narrow definition- M1(public money ie money in the hand of the public)+ demand deposits.
-Broader definition- M1+Time deposits + Savings deposits.
7.Are cheques and credit cards money?Explain.
-Cheque is not money rather they serves as medium of exchange, it is a means of using the deposits to pay for goods and services and other transactions in the economy.
-Credit cards is not equally a money and it does not diminish the role of money as a medium of exchange, unit of account etc.it is an ID card,one that enables the user to borrow money at the instant a purchase is made on the repaying later.
8.Has the use of electronic funds transfer system made the use of Money as a medium of exchange obsolete?
-No; The use of electronic funds transfer system has not made money as a medium of exchange obsolete.
Using the electronic funds transfer system has not devalued money or make money unuseful.Electronic funds transfer system is not money rather it is the demand deposits account that is money.In using the electronic funds transfer system,a telephone signal is sent across if the demand deposits account is being debited or if the account is been credited,it only gives about a transaction which has been made.

Azubike oluchukwu(unn/soc/17/010) said...

9.Discuss or define the following terms and concept: Means of payments, store of value, unit of account, standard for deferred payment, Barter, Liquidity, Near money, and fiduciary issue?
A.Means of Payments:As a means of payments, money is being used in payment of goods and services rendered in a economy
B. Store of value: Money could be used to transfer purchasing power from the present to the future,in the sense that one can spend money at his or her convenience on good of his or her own choice.
C.Unit of account: A unit of account simply means placing specific prices on all goods and services.
D.Standard for deferred payment:This function simultaneously as medium of exchange and unit of account. It is a measure that enables contracts to be written for future payment and receipts ie contract requiring future receipts and payment and debts that are stated in money terms.
E.Barter: This is the exchange of goods and services ie one can exchange what he has with what he don't have.
F.liquidity: Liquidity of an assets refers to the ease with which the assets can be redeemed on short notice and with minimum cost.
G.Near money:This is an assets which adequately performe the function of the store of value.
H.fiduciary issue: This is when a paper commodity money is not backed up by any valued commodity.

Azubike oluchukwu(unn/soc/17/010) said...

[12/14, 3:25 PM] Jennifer: 10.What are the characteristics of an assets that made it useful as a medium of exchange and as a store of value and unit of account
I.Acceptability
II. Durability
III. Portability
IV. Divisibility
V.Stability
IV. Scarcity
VI.Homogeneity
11.How do banks create money? What factors limits the ability of banks to create money?
-When a deposits is made, the banks doesn't not keep all its deposits in its vault. If it does,it will not be in a position to do any business and earning profits. And also the bank does not use all its deposits to make business, if it does it will not be able to meet the withdrawal demand of its depositors.To be able to invest parts of its consumers deposits, the central Bank of a country prescribe or give a percentage of their deposits which is known as Reserved Ratio.The remaining money is known as Excess Reserved which the banks used in making business to earn profits.
B.Factors: Leakages,currency drain,excess reserves.
12.Assume that the central bank sets the required reserve ratio equal to 10 percent. If the banking system has #20 million in required reserve assets, what is the amount of demand deposits outstanding?
RR=rD×D
20million=10×D
D=20/10
D=2million
[12/14, 3:29 PM] Jennifer: 13.If rD=25,what is the simple money multiplier? If the reserve increases by #100,by how much do loans and deposits increase?
-Simple multiplier=1/rD
ie,1/25=4
Therefore, 4×100=400
Loans and deposits increases by #400.

Ugwuoke chidera(unn/soc/17/061) said...

Name;Ugwuoke chidera
Reg no;unn/soc/17/061
Assignment by F.E Onah

1)what are the four sources of savings?
A.Government:In this type of context,government save the remaining part of money after the recurrent expenditure is being extracted from the government receipts.
B.Companies:They save when all their profits are not distributed as dividends,the difference is being use to buy fixed & working capital such as machines, equipments etc.
C.Individuals:Individuals save money out of income but when surplus they may decide to lent directly or indirectly to the government.
D.Foreign sector:They may provide money capital for investment in a country.The money capital may represent a grant or gift from foreign government & organisation for expenditures on specific project in the country.
2.What is the function of capital market?
A.They organised & regulated. Capital market motivates individuals to save & invest funds. The availability of safe & profitable source of investment is an essential criterion to create propensity to save & invest on the part of the earning public.
B. It provides for the investors a safe & product channel for investment of savings & secure the recurring benefits of return thereon as long as the savings are retained.
C. It provides liquidity to the savings of investors by developing a secondary capital market & thus makes even short term savings consistently available for long term users.
D. It thus mobilizes savings of large number of individuals,families & associations and make the same available individuals for meeting the large capital needs of organised industry,trade & business and for progress and development of the country as a whole and its economy.

Ugwuoke chidera(unn/soc/17/061) said...

[12/14, 10:41 AM] Jennifer: 3.Discuss the alternative sources of long term finance provided by financial intermediaries in Nigeria.
A. By issuing stock: They include gilt-edged stocks and debentures stocks of joint stock companies. Gilt-edged stock is a fixed interest security issued by government and traded on the stock exchange.it is called gilt-edged because it is certain that interest will be paid and that it will be redeemed(where appropriate) on the due date. While some loan stocks are redeemable at a certain time,there are some that are permanent.
B. By issuing shares;shares are issued by joint stock companies and give their owners a share in the assets of the company.They are different type of shares,they include cumulative preference and the most common is the ordinary share(also known as the equity of the company) which has no guarantee rate of interest and a return which depends on the profits.stocks and shares are jointly referred to as securities.
4. What is the difference between owning shares and stocks?
Stock is one of the financial instruments. It is a general term used to describe the ownership certificates of any company and shares refers to the ownership certificate of a particular company.
[12/14, 10:45 AM] Jennifer: 5. What does the stock exchange deals in?
Stock exchange is a market for existing securities(stock,bonds). It is an exchange where the stock brokers and traders can buy and sell shares of stock,bonds and other securities. They plays an important role in the economic development of a country.

Ugwuoke chidera(unn/soc/17/061) said...

[12/14, 11:01 AM] Jennifer: 6. What is the main outlet of funds collected by
(a)finance houses
(b)mortgage banks
(c)the Nigerian industrial development bank
(d)urban development banks?
A. Finance houses:

I. Shareholders funds
II. Borrowing from members of the public
III. Securities such as debentures & investment notes
IV.Borrowing from banks and other financial institutions.
V.Foreign sector: finance houses shall be allowed to raise funds from foreign investors or parties subject to CBN approval.
B.Mortgage banks: they obtain their funds through new issues of securities in the form of offer for subscription, rights issue (offering of new shares to existing shareholders), offer for sale and private placement.
C. the NIDB:it sources its funds from banks, the CBN,the federal government and the international finance corporation.
D. UDB:their source of funds is from federal, state and local government and the Nigerian labour Congress.
[12/14, 11:04 AM] Jennifer: OBJ
1.B 2.D 3.C 4.D 5.C 6.A 7.B 8.B 9.D 10.D

Ugwuoke chidera(unn/soc/17/061) said...

1.What do you understand by fiduciary issue?
This is when a paper commodity money is not backed up by any valued commodity.
2.The central bank acts as banker to government.what does this entail?
The central bank acts as government's bank in the sense that they keep QN account of all government income and expenditures.
3.What is meant when the central bank is referred to as the lender of last resort?
As a lender of last resort, it means that the central bank guarantees the stability of the banking system and thus ensures that confidence is maintained in the banks and bank deposits
4.What are the functions of a central Bank?
I.it acts as a government bank:central bank keep an account of all government income and expenditures.
II. It is a banker to the banking system: it is a bank to all the commercial banks.it acts as a lender of last resort to commercial bank.
III.the central banks manages national debts: National debts are total amount owned by the government.the central bank contracts government loans and ensures regular payment of interest and repayment of the loans.
IV.they issue currency.

Ugwuoke chidera(unn/soc/17/061) said...

5.How do open market operations work?
Open market operations: this instrument involves the buying and selling of government securities in order to influence the commercial banks'cash and liquid assets base.it was introduced on 30th June 1993.
6.What are special deposits? What is their purpose?
Special deposits :the central Bank can cause commercial banks to maintain a certain percentage of their gross deposits with it as special deposits. The important point is that these special deposits cannot be treated by the banks either as or liquid assets.
The main purpose of these deposits is thus to tie up some of the banks liquid Cash and thus cause a reduction in their deposits
OBJECTIVES
1.B 2.C 3.A 4.B 5.A 6.B 7.B 8.B.9.A.10.A

Ugwuoke chidera(unn/soc/17/061) said...

Name;Ugwuoke chidera
Reg no;unn/soc/17/061
Assignment by C.C Agu

1.Functions of money?
Primary function: Medium of exchange
Store of value
Derivative function:Unit of account
Standard for deferred payment.
-Medium of exchange: Anything generally accepted and can save as a medium of exchange is money and as such is can be used in exchange for another. By serving as a medium of exchange, money prevent the need for coincidence of wants for exchange to take place and all the inconveniences associated with a barter system of trade.
-Unit of account:A unit of account simply means placing specific prices of all goods and services. Money simplifies the rate at which one commodity could exchange for another.
-Store of value: As a store of value money could be used to transfer purchasing power from the present to the future. In the sense that one can spend money at his or her convenience on good of his or her own choice.
-Standard for deferred payment:This function simultaneously as medium of exchange and unit of account. It is a measure that that enables contrast to be written for future payment and receipts, is contract requiring future receipts and payments and debts that are stated in money terms
2.what distinguishes money from other assets?
What distinguishes money from other assets is that money is generally accepted and a medium of exchange

Ugwuoke chidera(unn/soc/17/061) said...

3. What is commodity money? What is Fiat money?
Commodity money has an intrinsic value which means that it can serve as money (medium of exchange) and production of another specific purpose. Eg,Gold is an intrinsic value because it is a medium of exchange and used in industry and in making of jewelry.
-Fiat money:This is a type of money without an intrinsic value. It is an order or a decree and can be established as Money by government decree. Eg,currency.
4.What is fiduciary issue? What is convertible paper money?
-Fiduciary issue: paper money not backed by anything is known as fiduciary issue.
-Convertible paper money:A paper claim to a commodity that circulates as a medium of exchange is called convertible paper money. It is convertible because the paper is fully backed by a valued commodity.
5.What are demand deposits, and why should they be included in the stock of money in an economy?
-Demand deposits are balances in bank accounts that depositors can access on demand by writing a cheque.
- They should be included in the stock of money because one can exchange cheque with money.cheque serves as a medium of exchange to cooperate entities.

Ugwuoke chidera(unn/soc/17/061) said...

6.What assets make up the narrow definition of money in your country and what assets make up broader definition of Money?
-Narrow definition- M1(public money ie money in the hand of the public)+ demand deposits.
-Broader definition- M1+Time deposits + Savings deposits.
7.Are cheques and credit cards money?Explain.
-Cheque is not money rather they serves as medium of exchange, it is a means of using the deposits to pay for goods and services and other transactions in the economy.
-Credit cards is not equally a money and it does not diminish the role of money as a medium of exchange, unit of account etc.it is an ID card,one that enables the user to borrow money at the instant a purchase is made on the repaying later.
8.Has the use of electronic funds transfer system made the use of Money as a medium of exchange obsolete?
-No; The use of electronic funds transfer system has not made money as a medium of exchange obsolete.
Using the electronic funds transfer system has not devalued money or make money unuseful.Electronic funds transfer system is not money rather it is the demand deposits account that is money.In using the electronic funds transfer system,a telephone signal is sent across if the demand deposits account is being debited or if the account is been credited,it only gives about a transaction which has been made.

Ugwuoke chidera(unn/soc/17/061) said...

9.Discuss or define the following terms and concept: Means of payments, store of value, unit of account, standard for deferred payment, Barter, Liquidity, Near money, and fiduciary issue?
A.Means of Payments:As a means of payments, money is being used in payment of goods and services rendered in a economy
B. Store of value: Money could be used to transfer purchasing power from the present to the future,in the sense that one can spend money at his or her convenience on good of his or her own choice.
C.Unit of account: A unit of account simply means placing specific prices on all goods and services.
D.Standard for deferred payment:This function simultaneously as medium of exchange and unit of account. It is a measure that enables contracts to be written for future payment and receipts ie contract requiring future receipts and payment and debts that are stated in money terms.
E.Barter: This is the exchange of goods and services ie one can exchange what he has with what he don't have.
F.liquidity: Liquidity of an assets refers to the ease with which the assets can be redeemed on short notice and with minimum cost.
G.Near money:This is an assets which adequately performe the function of the store of value.
H.fiduciary issue: This is when a paper commodity money is not backed up by any valued commodity.

Ugwuoke chidera(unn/soc/17/061) said...

[12/14, 3:25 PM] Jennifer: 10.What are the characteristics of an assets that made it useful as a medium of exchange and as a store of value and unit of account
I.Acceptability
II. Durability
III. Portability
IV. Divisibility
V.Stability
IV. Scarcity
VI.Homogeneity
11.How do banks create money? What factors limits the ability of banks to create money?
-When a deposits is made, the banks doesn't not keep all its deposits in its vault. If it does,it will not be in a position to do any business and earning profits. And also the bank does not use all its deposits to make business, if it does it will not be able to meet the withdrawal demand of its depositors.To be able to invest parts of its consumers deposits, the central Bank of a country prescribe or give a percentage of their deposits which is known as Reserved Ratio.The remaining money is known as Excess Reserved which the banks used in making business to earn profits.
B.Factors: Leakages,currency drain,excess reserves.
12.Assume that the central bank sets the required reserve ratio equal to 10 percent. If the banking system has #20 million in required reserve assets, what is the amount of demand deposits outstanding?
RR=rD×D
20million=10×D
D=20/10
D=2million
[12/14, 3:29 PM] Jennifer: 13.If rD=25,what is the simple money multiplier? If the reserve increases by #100,by how much do loans and deposits increase?
-Simple multiplier=1/rD
ie,1/25=4
Therefore, 4×100=400
Loans and deposits increases by #400.

Akushie Johnbosco said...

Akushie Johnbosco c
UNN/SOC/17/004
Assignment (C.C. Agu)
1.What are the functions of money?
The functions of money are subdivided into two: Primary functions and Derivative functions.
*Primary functions: Medium of exchange and unit of account.
*Derivative functions: Store of value and standard of deferred payment.
2.What distinguishes money from other assets?
What distinguishes money from other assets is that it serves as a generally acceptable means of payment or medium of exchange, it is also the most liquid of all assets.
3.What is commodity money? What is fiat money?
Commodity money: This is a physical commodity valued by itself and also used as a medium of exchange. This means that the commodity has an intrinsic value while at the same time used as money.
Fiat money: Money without intrinsic value is called fiat money. A fiat is an order or a decree, and a fiat money is established as money by government decree. Although government has the power to decree fiat money, the acceptance of fiat money depends to very large extent on the peoples confidence in the money as a medium of exchange.
4. What is a fiduciary issue? What is convertible paper money?
Fiduciary issue is paper money that is not backed by gold and is inconvertible.
Convertible paper money: This is a paper claim to a commodity which circulates as means of exchange, it is convertible because the paper is fully backed by the commodity money.
5.What are demand deposits, and why should they be included in the stock of money in an economy?
Demand deposits are balances in bank accounts that depositors can access on demand by writing a cheque.
Why it is included in the stock of money is that the use of cheques to settle debts and for purpose of payments for goods and services means that money held in individuals chequeing accounts is almost as convenient for buying things as money held in individuals wallets (cash at hand)
6.What assets make up the narrow definition of money?
The narrow definition of money M1=Public (money in the hands of public) + Demand deposits.
The broader definition of money M2= M1+ Time deposit + Savings deposit.
7.Are cheques and credit cards money?
Cheques are not money, cheques are simply a means of transferring or using the deposits to pay for goods and services and other transactions in the economy.
So as credit cards are not money. A credit card is an ID card that enables the user to purchase goods and services with the promise of repaying the borrowed money. Thus this implies that credit card is not money but the balance in your demand deposit account that is money.
8.Has the use of electronic funds transfer system made the use of money as a medium of exchange obsolete?
The use of EFTS has not made money as a medium of exchange obsolete because it is the demand deposit account that is debited, the EFTS is just a means of transferring money. When an electronic automatic debit system is used it doesn't mean money is not used, what simply

Akushie Johnbosco said...

Happens is that an electronic signal is transferred over a telephone line. The electronic signal is interpreted to reduce the available "money" if a purchase is made or increase the available "money" if a deposit is made. The use of EFTS in exchanging goods and services doesn't make money obsolete.
9.Discuss or define the following terms and concept: Means of payment, store of value, unit of account, standard of deferred payment, batter, liquidity, near money and fiduciary issue.
*Means of payment: we say that anything that serves as a generally acceptable medium of exchange or means of payment is money. This is to say that the essential function of money is to serve as a means of payment and other functions.
*Store of value: Money can be used to transfer purchasing power from the present to the future and this implies that anyone who holds money as a store of value can spend it at his or her own time. This means that money retains its value and can be used to purchase goods and services at any time even if the money being used was received sometime in the past.
* Unit of account: Money serves as a standard measure of value. For exchange to occur in an orderly fashion, price ought to be affixed to terms. This function of money makes it possible for accounting records to be kept on both sales and purchases.
* Standard for deferred payment: This involves money as a medium of exchange and a unit of account. This enables contracts to be written in future date. These contracts may range from a month to several years but during the course of time, the value of money may change, therefore the longer it takes the credit to mature, the good greater the risk to the borrower or lender.
*Fiduciary issue: This refers to paper money that is not backed by gold but rather by government decree. Most bank notes issued are said to be fiduciary issue. It can also be seen as fiat money not backed by gold.
Near money: This is seen as those assets which adequately perform the function of store of value and are very liquid.
*Liquidity: This is the ability of the bank to keep enough liquid assets in order to meet there depositors demand for withdrawal of cash.
Batter: This is the exchange of goods and services without involving money.
10. What are the characteristics of an assets that is useful as a medium of exchange as a store of value and unit of account?
For an asset to be useful as a means of payment, store of value and unit account, that means that asset is money. Therefore we look at the features of money.
General acceptability, homogeneity, portability, durability, divisibility, scarcity, stability, No intrinsic value.
11. How do bank create money?
When deposits are made, banks do not keep all the deposits in the vault, they use part of this deposits to run their business and create profit. Also when deposits are made, the bank does not use all of the money to run business they also keep some money in the bank in order to be able to meet up with depositors

Akushie Johnbosco said...

demand for withdrawal. In order for banks to be able to engage in business with less risk, the central bank of a country has prescribed that banks keep a percentage of its deposit with them which is called Required Reserve Ratio, the left over from this is called Excess Reserve and the banks can their excess reserves to invest in profitable business. It is with this excess reserves that banks are able to create money.
12.Assume that the Central bank sets the required reserve ratio equal to 10 percent. If the banking system has 20 million naira in required reserve assets what is the amount of demand deposits outstanding?
SOLUTION
RR=10
TR=20million
20m ×10%=2m
Demand deposits=18m (20m-2m)
13.If rD=.25, what is the simple money multiplier? If the reserves increase by 100naira, by how much do loans and deposits increase?
SOLUTION
rD=.25
multiplier =1/0.25=4
1/0.25×100=4×100
D= 400naira
Loans and deposits increase by 400naira.

Akushie Johnbosco said...

Akushie Johnbosco c
UNN/SOC/17/004 (F.E ONAH)
(1) What are the four sources?
The four sources of savings are:
(a) investment account (b) deposit account (c) pension account (d) as cash.
(2) what is the function of capital market? they are:
(a) Encouragement to the investment: the capital market facilitates lending to the business men and the government and encourages investment.
(b) Encouragement to saving: with the development of capital market, the banking and non-banking institution provides facilities, which encourage people to save more.
(c) Stability in security prices: The capital market tends to stabilise the value of stocks and securities and reduce the fluctuation in the price to the minimum.
(d) Benefit to investors: it helps the investors to have funds in long term financial assets , in many ways.
(3)Discuss the alternative sources of long term finance provided by financial intermediaries in Nigeria.
(a) by using stocks: this stocks includes gilt edged stock issued by government and debenture stocks of joint stock companies.
This is a fixed interest security issued by government and traded on the stocks and exchange .It is called gilt edged because it is certain that interest will be paid at when appropriate and the due time
(b)By issuing of stock: these are issued by joint stock companies and give their owners a share in the asset of the company stocks and shares are often referred jointly.
(4) What is the difference between owning a share and owning a stock?
The difference are as follows:
A share is a unit of account for a various investments, means the stock of a cooperation but is also used for collective investment.
A stock is a type of security that signifies ownership in a corporation and represent a claim on part of the corporation asset and earnings.
(5) What does the stock exchange deals in?
This deals in where stocks brokers of stock, bonds, and other securities.

(6) What is the main outlook of funds collected by.
(a) financial houses: this is said to be a financial institution engaged in the provision of hire purchase . It is also called a finance company, or a hire purchase finance house.(b) montage bank: this montage bank is composed of the primary montage institution and the apex institution. Federal montage bank in Nigeria (FMBN), which exercises surveillance over the primary institutions. (c) the Nigeria industries development bank.(NIDB).This is one of the specialised financial institution established to provide long term loan for industrial, agriculture and commercial development. It was established in 1964 and charged with the responsibility of harnessing local and foreign skills and capital in the development of new industries and expansion of the existing ones.
(d) Urban development bank? this was established in 1992 in other to create a greater capacity for dealing with problem of inadequate housing transportation, electricity and water supply.
(1) B (2)D (3)C (4)A (5)C (6)A (7)D (8)B (9)D (10)D

Akushie Johnbosco said...

Akushie Johnbosco c
UNN/SOC/17/004 (F.E ONAH page 186)
(1) what do you understand by the fiduciary of issues? what i understand by fiduciary issues is that it is money that is not backed up by anything.
(2) The center banked work as bankers to government, what does it entail? this entails that the government keeps an account at the central bank. The government keep her money in the central bank. Central bank as a whole is responsible when it come to financial aspects of the government. They are the body through which the government borrows from abroad and in the contrary, settle old debts owned by the government.
(3) What is meant when the central bank is referred to as the lender of last resort? the meaning of the phrase "lender of last resort" is that the central bank is always ready to lend money to commercial banks whenever in difficulty, it means that the central bank guarantees the stability of the banking system and thus ensure that confidence is maintained in the bank and bank deposit.
(4) What are the main functions of central bank? the main functions of central bank are:
(a) issue of currency
(b) banker to government
(c) bankers bank
(d) management of international financial Affairs.
(e) management of monetary system
(5) How do open market operation work?
This involves the buying and selling of government securities in other to influence the commercial bank to restrict credit and buying securities it forces them to increase credit.
(6) what are special deposit what is their purposes? this is the process whereby central bank can cause commercial bank to maintain a certain percentage at their gross deposits with it as special deposits.
The purpose of special deposits is to tie up some of the bank liquid cash and thus cause a reduction in their deposits.

(1) A (2) B (3) D (4) A (5) A (6) C (7) B (8) B (9)D (10) D

Victor Chukwuemeka Odoh said...

ODOH VICTOR CHUKWUEMEKA
UNN/SOC/17/043
Assignment (C.C. Agu)
1.What are the functions of money?
The functions of money are subdivided into two: Primary functions and Derivative functions.
*Primary functions: Medium of exchange and unit of account.
*Derivative functions: Store of value and standard of deferred payment.
2.What distinguishes money from other assets?
What distinguishes money from other assets is that it serves as a generally acceptable means of payment or medium of exchange, it is also the most liquid of all assets. While assets are seen as a near money, meaning that it is not yet money but in no distance time, with little stress, it will be coverted into money. Eg. Treasury bills.
3.What is commodity money? What is fiat money?
Commodity money: This is a physical commodity valued by itself and also used as a medium of exchange. This means that the commodity has an intrinsic value while at the same time used as money.
Fiat money: Money without intrinsic value is called fiat money. A fiat is an order or a decree, and a fiat money is established as money by government decree. Although government has the power to decree fiat money, the acceptance of fiat money depends to very large extent on the peoples confidence in the money as a medium of exchange.
4. What is a fiduciary issue? What is convertible paper money?
Fiduciary issue is paper money that is not backed by gold and is inconvertible.
Convertible paper money: This is a paper claim to a commodity which circulates as means of exchange, it is convertible because the paper is fully backed by the commodity money.
5.What are demand deposits, and why should they be
included in the stock of money in an economy?
Demand deposits are balances in bank accounts that depositors can access on demand by writing a cheque.
Why it is included in the stock of money is that the use of cheques to settle debts and for purpose of payments for goods and services means that money held in individuals chequeing accounts is almost as convenient for buying things as money held in individuals wallets (cash at hand)
6.What assets make up the narrow definition of money?
The narrow definition of money M1=Public (money in the hands of public) + Demand deposits.
The broader definition of money M2= M1+ Time deposit + Savings deposit.

Victor Chukwuemeka Odoh said...

7.Are cheques and credit cards money?
Cheques are not money, cheques are simply a means of transferring or using the deposits to pay for goods and services and other transactions in the economy.
So as credit cards are not money. A credit card is an ID card that enables the user to purchase goods and services with the promise of repaying the borrowed money. Thus this implies that credit card is not money but the balance in your demand deposit account that is money.
8.Has the use of electronic funds transfer system made the use of money as a medium of exchange obsolete?
The use of EFTS has not made money as a medium of exchange obsolete because it is the demand deposit account that is debited, the EFTS is just a means of transferring money. When an electronic automatic debit system is used it doesn't mean money is not used, what simply Happens is that an electronic signal is transferred over a telephone line. The electronic signal is interpreted to reduce the available "money" if a purchase is made or increase the available "money" if a deposit is made. The use of EFTS in exchanging goods and services doesn't make money obsolete.
9.Discuss or define the following terms and concept: Means of payment, store of value, unit of account, standard of deferred payment, batter, liquidity, near money and fiduciary issue.
*Means of payment: we say that anything that serves as a generally acceptable medium of exchange or means of payment is money. This is to say that the essential function of money is to serve as a means of payment and other functions.
*Store of value: Money can be used to transfer purchasing power from the present to the future and this implies that anyone who holds money as a store of value can spend it at his or her own time. This means that money retains its value and can be used to purchase goods and services at any time even if the money being used was received sometime in the past.
* Unit of account: Money serves as a standard measure of value. For exchange to occur in an orderly fashion, price ought to be affixed to terms. This function of money makes it possible for accounting records to be kept on both sales and purchases.
* Standard for deferred payment: This involves money as a medium of exchange and a unit of account. This enables contracts to be written in future date. These contracts
may range from a month to several years but during the course of time, the value of money may change, therefore the longer it takes the credit to mature, the good greater the risk to the borrower or lender.
*Fiduciary issue: This refers to paper money that is not backed by gold but rather by government decree. Most bank notes issued are said to be fiduciary issue. It can also be seen as fiat money not backed by gold.
Near money: This is seen as those assets which adequately perform the function of store of value and are very liquid.
*Liquidity: This is the ability of the bank to keep enough liquid assets in order to meet there depositors demand for withdrawal of cash.
Batter: This is the exchange of goods and services without involving money.
10. What are the characteristics of an assets that is useful as a medium of exchange as a store of value and unit of account?
For an asset to be useful as a means of payment, store of value and unit account, that means that asset is money. Therefore we look at the features of money.
General acceptability, homogeneity, portability, durability, divisibility, scarcity, stability, No intrinsic value.

Victor Chukwuemeka Odoh said...

11. How do bank create money?
When deposits are made, banks do not keep all the deposits in the vault, they use part of this deposits to run their business and create profit. Also when deposits are made, the bank does not use all of the money to run business they also keep some money in the bank in order to be able to meet up with depositors demand for withdrawal. In order for banks to be able to engage in business with less risk, the central bank of a country has prescribed that banks keep a percentage of its deposit with them which is called Required Reserve Ratio, the left over from this is called Excess Reserve and the banks can their excess reserves to invest in profitable business. It is with this excess reserves that banks are able to create money.
12.Assume that the Central bank sets the required reserve ratio equal to 10 percent. If the banking system has 20 million naira in required reserve assets what is the amount of demand deposits outstanding?
SOLUTION
RR=10
TR=20million
20m ×10%=2m
Demand deposits=18m (20m-2m)
13.If rD=.25, what is the simple money multiplier? If the reserves increase by 100naira, by how much do loans and deposits increase?
SOLUTION
rD=.25
multiplier =1/0.25=4
1/0.25×100=4×100
D= 400naira
Loans and deposits increase by 400naira.

Assignment (F.E ONAH) page 165-167
ODOH VICTOR CHUKWUEMEKA
UNN/SOC/17/043
(1) What are the four sources?
The four sources of savings are:
(a) investment account (b) deposit account (c) pension account (d) as cash.
(2) what is the function of capital market? they are:
(a) Encouragement to the investment: the capital market facilitates lending to the business men and the government and encourages investment.
(b) Encouragement to saving: with the development of capital market, the banking and non-banking institution provides facilities, which encourage people to save more.
(c) Stability in security prices: The capital market tends to stabilise the value of stocks and securities and reduce the fluctuation in the price to the minimum.
(d) Benefit to investors: it helps the investors to have funds in long term financial assets , in many ways.
(3)Discuss the alternative sources of long term finance provided by financial intermediaries in Nigeria.
(a) by using stocks: this stocks includes gilt edged stock issued by government and debenture stocks of joint stock companies.
This is a fixed interest security issued by government and traded on the stocks and exchange .It is called gilt edged because it is certain that interest will be paid at when appropriate and the due time
(b)By issuing of stock: these are issued by joint stock companies and give their owners a share in the asset of the company stocks and shares are often referred jointly.

Victor Chukwuemeka Odoh said...

(4) What is the difference between owning a share and owning a stock?
The difference are as follows:
A share is a unit of account for a various investments, means the stock of a cooperation but is also used for collective investment.
A stock is a type of security that signifies ownership in a corporation and represent a claim on part of the corporation asset and earnings.
(5) What does the stock exchange deals in?
This deals in where stocks brokers of stock, bonds, and other securities.

(6) What is the main outlook of funds collected by.
(a) financial houses: this is said to be a financial institution engagedin the provision of hire purchase . It is also called a finance company, or a hire purchase finance house.(b) mortage bank: this mortage bank is composed of the primary mortage institution and the apex institution. Federal mortage bank in Nigeria (FMBN), which exercises surveillance over the primary institutions.
(c) the Nigeria industries development bank.(NIDB).This is one of the specialised financial institution established to provide long term loan for industrial, agriculture and commercial development. It was established in 1964 and charged with the responsibility of harnessing local and foreign skills and capital in the development of new industries and expansion of the existing ones.
(d) Urban development bank? this was established in 1992 in other to create a greater capacity for dealing witj problem of inadequate housing transportation, electricity and water supply.
(1) B (2)D (3)C (4)A (5)C (6)A (7)D (8)B (9)D (10)D



Assignment (F.E ONAH) page 186
ODOH VICTOR CHUKWUEMEKA
UNN/SOC/17/043
(1) what do you understand by the fiduciary of issues? what i understand by fiduciary issues is that it is money that is not backed up by anything.
(2) The center banked work as bankers to government, what does it entail? this entails that the government keeps an account at the central bank. The government keep her money in the central bank. Central bank as a whole is responsible when it come to fianacial aspects of the government. They are the body through which the government borrows from abroad and in the contrary, settle old debts owned by the government.
(3) What is meant when the central bank is referred to as the lender of last resort? the meaning of the phrase "lender of last resort" is that the central bank is always ready to lend money to commercial banks whenever in difficulty, it means that the central bank guarantees the stability of the banking system and thus ensure that confidence is maintained in the bank and bank deposit.

Victor Chukwuemeka Odoh said...

(4) What are the main functions of central bank? the main functions of central bank are:
(a) issue of currency
(b) banker to government
(c) bankers bank
(d) management of international financial Affairs.
(e) management of monetary system
(5) How do open market operation work?
This involves the buying and selling of government securities in other to influence the commercial bank to restrict credit and buying securities it forces them to increase credit.
(6) what are special deposits? what is their purposes? this is the process whereby central bank can cause commercial bank to maintain a certain percentage at their gross deposits with it as special deposits.
The purpose of special deposits is to tie up some of the bank liquid cash and thus cause a reduction in their deposits.

(1) A (2) B (3) D (4) A (5) A (6) C (7) B (8) B (9)D (10) D

UKEJE EDWARD said...

UKEJE EDWARD
UNN/SOC/17/072
Assignment by F. E. Onah
What are the four source of saving?
a. the government can save from excess income i.e. when income exceeds expenditure (budget surplus)
b. companies can save when all their income are not being used as dividend, unlike being used to buy fixed and working capital such as monetary stock of material etc.
c. individual save from surplus income, this surplus income can be lent directly or indirectly to government or another individuals who are in need of such funds.
d. the least of the word may provide many capital market? The capital market provide long term financed institutions that will invest in real capital.
2. Discuss the alternative sources of long term finance provided by financial in terms of diaries in Nigeria
a. insurance companies, finance houses, building finance institution.
3. What is the difference between share and stock?
Shares are issued by joint stock companies and they give the owners a part of the assets of the company stocks companies. The difference therefore being theft share gives the owners a part are entitled to dividend while stock do not give part of assets to its receivable after its maturity.
4. What does the stock exchange deal in?
a. a stock exchange is an exchange where stock brokers and traders can buy and sell shares of stock, bonds and other securities. Trade or exchange is restricted to brokers who are members of the exchange. They neither supply or demand for stock exchange does not engage in issuing new securities but they can assist by either quoting the shares once they are issued or by assisting in placing share.
5. What is the main outlet of funds collected by?
a. finance houses: is based on the lease to own agreement model in industrialized countries, opens up innovative possibilities for example, better prices for seed, equipment, livestock, and other productive assets.
b. mortgage bank: through new issues of securities in form of offer for subscription, rights issue, offer for sale and pirates placement.
c. the Nigerian/industrial development bank from banks, CBN and the international finance cooperation.
d. urban development bank: federal, state, local government and labour congress.
2a Insurance companies: A business that provides coverage in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments.
b. finance house: is a financial institution that lends to people or business so that they can buy things such as cars or machinery.
c. building finance institution: they accept and manage deposits and make loans, including trust companies and mortgage loans.
Multiple choice questions
1. B 2. D 3. C 4. D 5. C 6. A 7. B 8. B 9. D `10. D

Assignment by C C. Agu
1. Functions of money?
Primary function: medium of exchange store of value.
Derivative function: unit of account standard for deferred payment.
Medium of exchange: anything generally accepted and can save as money of exchange for another. By serving as a medium of exchange, money prevent the need for coincidence of wants for exchange to take place and all the inconveniences associated with a barter system of trade.
Unit of account: A unit of account simply means placing specific prices of all goods and services. Money simplifies the rate at which one commodity could exchange for another.
Store of value: As a store of value money could be used to transfer purchasing power from the present to the future in the sense that one can speed money at his or her convenience on good of his or her own choice.

UKEJE EDWARD said...

UNN/SOC/17/072

Standard for deferred payment: this function simultaneously as a medium of exchange of unit of account. It is a measure that enables contrast to be written for future payment and debts that are stated in money terms.
2. What distinguishes money from other assets is that money is generally accepted and medium of exchange.
3. What is commodity money? What is flat money?
Commodity money has an intrinsic value which means that it can serve as money (medium of exchange) and production of another specific purpose. Eg Gold is an intrinsic value because it is a medium of exchange and used in industry and in making of jewelry.
Flat money: this is a type of money without intrinsic value. It is an order on a decree and can be established as money by government decree. E.g. currency.
4. What is fiduciary issue? What is convertible paper money?
Fiduciary issue: paper money not back up by anything is fiduciary money.
Convertible paper money: a paper claim to a commodity that circulates a medium of exchange is called convertible paper. It is convertible because the paper is fully backed by a valued commodity.
5. What are demand deposits and why should they be included in the stock of money in an economy?
Demand deposits are balances in bank account that depositors can access on demand by writing a cheque.
They should be included in the stock of money because one can exchange cheque with money. Cheques serve as a medium of exchange to cooperate entities.
6. What assets make up make up the narrow definition of money in your country and what assets make up broader definition of money?
Narrow definition: MI (public money i.e. in the hand of the public) + demand deposits.
7. Are cheques and credit cards money? Explain
Cheque is not money rather they serve as a medium of exchange, it is a means of using the deposits top pay for goods and services and other transactions in the economy
Credit card is not equally a money and it does not diminish the role of money as a medium of exchange, unit of account etc. it is an ID card, one that enables the user to borrow money at the instant of purchase is made on the repaying later.
8. Has the use of electronic funds transfer system make the use of money as a medium of exchange obsolete.
Using the electronic funds transfer system has not made money as a medium of exchange obsolete.
Using the electronic funds transfer system has not devalued money or make money un-useful. Electronic fund transfer system is not money rather it is the demand deposits account that is money. In using the electronic transfer system, a telephone signal is sent across if the demand deposits account is being debited or if the account is being credited, it only gives about a transaction which has been made.
9. Discuss or define the following terms and concepts: means of payments, store of value, unit of account, standard for deferred payment, barter, liquidity, near money and fiduciary issue?
a. means of payment: as a means of payments, money is being used in payments of goods and services rendered in an economy.
b. store of value: money could be used to transfer purchasing power from the present to the future, in the sense that one can spend money at his or her own choice.
c. unit of account: a unit of account simply means placing specific prices on all goods and services.
d. standard for deferred payment: this function simultaneously as a medium of exchange and unit of account. It is a measure that enables contract to be written for future payments and receipts and payment and debits that are stated in money terms.
e. barter: this is the exchange of goods and services i.e one can exchange what he has with what he does not have.
f. liquidity: liquidity of an assets refers to the ease with which the asset can be redeemed on short notice and with minimum cost.
9. Near money: this is an asset which adequately perform the function of the store of value

UKEJE EDWARD said...

UNN/SOC/17/072

Fiduciary issue: this when a paper commodity money is not backed up by any valued commodity.
10. What are the characteristics of an asset that made it useful as a medium of exchange and as a store of value and unit of account?
i. Acceptability
ii. Durability
iii. Portability
iv. Divisibility
v. Scarcity
vi. Homogeneity
11. How do banks create money? What factors limit the ability of banks does not keep all its deposits in it vault if it does it will not be in a position to do any business and earning profits. And also the bank does not use all its deposits to make business, if it does it does it will not be able to meet the withdrawal demand of its depositors. To be able to invest parts of it consumer deposits, the central bank of a country give a percentage of their deposits which is known as reserved ratio. The remaining money is known as excess reserved which the banks used in making business to earn profits.
B factors: leakages, currency drain, excess reserves.
12. Assume that the central bank sets the required reserved ratio equal to 10percent. If the banking system has N20 million in required assets, what is the amount of demand deposits outstanding?
RR=rD*D
20 million = 10*D
D=20110
D=2 million
13. If rD= 25, what is the simple money multiplier? If the reserves increases by N100 by how much do loans and deposits increase?
Simple multiplier= 1/rd
i.e. 1/25=4
Therefore, 4*100= 400
Loans and deposit increases by N400



Joel Onyeabor said...

NAME: ONYEABOR CHINONSO JOEL
REG NO: UNN/SOC/17/085
(F.E. ONAH)
(1) What are the four sources?
The four sources of savings are:
(a) investment account (b) deposit account (c) pension account (d) as cash.
(2) what is the function of capital market? they are:
(a) Encouragement to the investment: the capital market facilitates lending to the business men and the government and encourages investment.
(b) Encouragement to saving: with the development of capital market, the banking and non-banking institution provides facilities, which encourage people to save more.
(c) Stability in security prices: The capital market tends to stabilise the value of stocks and securities and reduce the fluctuation in the price to the minimum.
(d) Benefit to investors: it helps the investors to have funds in long term financial assets , in many ways.
(3)Discuss the alternative sources of long term finance provided by financial intermediaries in Nigeria.
(a) by using stocks: this stocks includes gilt edged stock issued by government and debenture stocks of joint stock companies.
This is a fixed interest security issued by government and traded on the stocks and exchange .It is called gilt edged because it is certain that interest will be paid at when appropriate and the due time
(b)By issuing of stock: these are issued by joint stock companies and give their owners a share in the asset of the company stocks and shares are often referred jointly.
(4) What is the difference between owning a share and owning a stock?
The difference are as follows:
A share is a unit of account for a various investments, means the stock of a cooperation but is also used for collective investment.
A stock is a type of security that signifies ownership in a corporation and represent a claim on part of the corporation asset and earnings.
(5) What does the stock exchange deals in?
This deals in where stocks brokers of stock, bonds, and other securities.

(6) What is the main outlook of funds collected by.
(a) financial houses: this is said to be a financial institution engaged in the provision of hire purchase . It is also called a finance company, or a hire purchase finance house.(b) montage bank: this montage bank is composed of the primary montage institution and the apex institution. Federal montage bank in Nigeria (FMBN), which exercises surveillance over the primary institutions. (c) the Nigeria industries development bank.(NIDB).This is one of the specialised financial institution established to provide long term loan for industrial, agriculture and commercial development. It was established in 1964 and charged with the responsibility of harnessing local and foreign skills and capital in the development of new industries and expansion of the existing ones.
(d) Urban development bank? this was established in 1992 in other to create a greater capacity for dealing with problem of inadequate housing transportation, electricity and water supply.
(1) B (2)D (3)C (4)A (5)C (6)A (7)D (8)B (9)D (10)D

Joel Onyeabor said...

NAME: ONYEABOR CHINONSO JOEL
REG NO: UNN/SOC/17/085
(F.E. ONAH)
(1) what do you understand by the fiduciary of issues? what i understand by fiduciary issues is that it is money that is not backed up by anything.
(2) The center banked work as bankers to government, what does it entail? this entails that the government keeps an account at the central bank. The government keep her money in the central bank. Central bank as a whole is responsible when it come to financial aspects of the government. They are the body through which the government borrows from abroad and in the contrary, settle old debts owned by the government.
(3) What is meant when the central bank is referred to as the lender of last resort? the meaning of the phrase "lender of last resort" is that the central bank is always ready to lend money to commercial banks whenever in difficulty, it means that the central bank guarantees the stability of the banking system and thus ensure that confidence is maintained in the bank and bank deposit.
(4) What are the main functions of central bank? the main functions of central bank are:
(a) issue of currency
(b) banker to government
(c) bankers bank
(d) management of international financial Affairs.
(e) management of monetary system
(5) How do open market operation work?
This involves the buying and selling of government securities in other to influence the commercial bank to restrict credit and buying securities it forces them to increase credit.
(6) what are special deposit what is their purposes? this is the process whereby central bank can cause commercial bank to maintain a certain percentage at their gross deposits with it as special deposits.
The purpose of special deposits is to tie up some of the bank liquid cash and thus cause a reduction in their deposits.

(1) A (2) B (3) D (4) A (5) A (6) C (7) B (8) B (9)D (10) D

okechukwu chioma said...

NAME:OKECHUKWU CHIOMA SANDRA
REG NO:UNN/SOC/17/046
F.E ONAH(PAGE 186)

1. What do you understand by fiduciary issues?
Ans.fudiciary issues are paper money in circulation they are not backed by gold and are inconvertible.
2. The central bank acts as banker to government, what does this entails?
Ans.The government keeps an account at the central bank, from the account expenditures are met and into them revenues are paid. it is the central bank’s role in the management of government debt. They act as government agent in raising new loans, reedeming old ones and paying the interest on the national debt. it also lends to the government, usually on a very short term basis, through “ways and means advances”. it is also an adviser to the government in all financial matter.
3. What is meant when the central is referred to as the lender of last resort?
Ans.it means that the central bank is always ready to lend, albeit on its term, to commercial banks whenever in difficulty.
4. What are the main functions of the central bank?
Ans.issue of currency, banker to government, banker’s bank, management not international financial affairs, management of monetary system.
5. How does open- market operation work?
Ans.this instrument involve the buying and selling of government securities in order to influence the commercial bank’s cash and liquid assets base. By selling securities the central bank forces commercial banks to restrict credit and buying securities it forces them to increase credit.
6. What are special deposits? What is their purpose?
Ans.special deposits are used by the central to cause commercial banks to maintain a certain percentage of their gross deposits.
Special deposits tie up some of the banks’ liquid cash and thus cause a reduction in their deposits.
OBJECTIVES.(page 186)1-10
1.B
2.C
3.A
4.A
5.D
6.B
7.B
8.A
9.A
10.C
F.E ONAH(PAGE 165)
1. What are the four sources of savings?
I. business savings and households’ savings
Ii.private savings by households, government savings, and savings by foreigners.
Iii.the difference between income and spending of households
Iv.the difference between income and spending of households and businesses.
2. What is the function of capital market?
Capital market channel money capital from people who save into the hands of joint stock companies, public corporations, the government and other organizations that wish to invest in real capital. It is a longer-tern loan able fund market.
3. Discuss the alternative sources of long-term finance provided by financial intermediaries in Nigeria?
By issuing stock: stock includes gilt-edged stocks (issued by government) and debenture stocks of joint-stock companies. A gilt-edged stock is a fixed interest security issued by government and traded on the stock exchange; it is certain that interest will be paid and that it would be redeemed on the due date.
By issuing shares: shares are issued by joint-stock companies and give their owners a share in the asset of the company. it has no guarantee rate of interest and a return which depends on the profit.
4. What is the difference between owing shares and owing stock?
Owing stock refers to the overall ownership in one or more companies while owning shares refers to ownership in one company.
5. What does the stock exchange deal in?
Stock exchange refers deals in provision of means whereby lenders can retain liquidity; it also helps in the supply of long-term finance.
6. What is the main outlet of fund collected by financial house, mortage bank, the Nigeria industrial development bank, urban development bank?
Finance house-hire purchase.
Mortgage banks-issuing of securities in the form of offer for subscriptions, rights issue, offer for sale and private placement.
Nigerian Industrial Development Bank-provision of long-term loan for industrial, agricultural and commercial development.
OBJECTIVES (page 165)
1.B
2.D
3.D
4.A
5,C
6.A
7.A
8.B
9.D
10.D

okechukwu chioma said...

CC AGU
1.what are the functions of money?
it is subdivided into two;primary and derivative functions.
primary functions are meduim of exchange and unit of account while derivative functions are store of value and standard for deffered payments.
2.what distinguishes money from other assets?
Ans.it is the most convenient means for payment of goods and services and it is generally acceptable.
3.what is a commodity money?what is fiat money?
ans.commodity money is a physical commodity valued in its own right and also used as a meduim of exchange,this means that the commodity has an intrinsic value which at the same time is used as money.
Fiat money:it is money without intrinsic value,it is an order or decree,it is a money established by government decree.
4.what is a fudiciary issue?what is a convertible paper money?
Ans.Fudiciary issue are paper money in circulayon that are not backed by gold and is inconvertible.
Convertible paper money is money claim to a commodity that circulates as a meduim of exchange.it is convertible because the paper is fully backed by the commodity money.
5.what are demand deposits,and why should they be included in the stock of money in an economy?
Ans.Demand deposits are funds held in sn account from which deposited funds can be withdrawn at any time without any advance notice to to the depository institution,it can be demanded by an account holder at any time.
They should be included in the stock of money because one can exchange cheque with money. Cheques serve as a medium of exchange to cooperate entities.
6.what assets make up the narrow definition of money in your country and what assets make a broader definition of money?
Ans.naira currency
bank notes and coins.
7.Are cheques and credit cards money?explain.
Ans.no,they are not money because cheques are simply a means of using
the deposits to pay for goods and services and other transactions in the economy.And credit cards are ID cards,one that enables the user to borrow at the instant a purchase is made on the promise of repaying later.
8. Has the use of electronic funds transfer system make the use of money as a medium of exchange obsolete.
No but it means that the method of transferring money is changing.
9. Discuss or define the following terms and concepts: means of payments, store of value, unit of account, standard for deferred payment, barter, liquidity, near money and fiduciary issue?
Means of payment:it is generally acceptable tool used in exchange of goods and services.
Store of value:it is the purchasing powe of money.
Unit of account:it is a way of placing specific prices(value)on goods and services.
Standard for deffered payments:it is an agreed measure that enables contracts to be written for future payments and recipients.
Barter:it is the direct exchange of goods and services.
Liquidity:it refers to the ease with which the asset can be converted into the economy's meduim of exchange cost.
Near money:are assests which adequately perform the function of store of value and are very liquid.
Fudiciary issue:are paper money in circulation that are not backed by gold and is inconvertible.
10. What are the characteristics of an asset that made it useful as a medium of exchange and as a store of value and unit of account?
i. Acceptability
ii. Durability
iii. Portability
iv. Divisibility
v. Scarcity
vi. Homogenety.

okechukwu chioma said...

11. How do banks create money?when a deposit is made in a bank,the bank does not keep all the deposits in its vault.the central bank preserves the percentage of the deposit banks must keep as required reserves.Whenever banks have excess reserves they are able to create money,banks do not create money,they create currency.deposits can be however be converted into currency.
12.Assume that the Central bank sets the required reserve ratio equal to 10 percent. If the banking system has 20 million naira in required reserve assets what is the amount of demand deposits outstanding?
SOLUTION
RR=10
TR=20million
20m ×10%=2m
Demand deposits=18m (20m-2m)
13.If rD=.25, what is the simple money multiplier? If the reserves increase by 100naira, by how much do loans and deposits increase?
SOLUTION
rD=.25
multiplier =1/0.25=4
1/0.25×100=4×100
D= 400naira
Loans and deposits increase by 400naira.

Sirgius Okechukwu said...

(7) What is the main outlook of funds collected by.
(a) financial houses: this is said to be a financial institution engagedin the provision of hire purchase . It is also called a finance company, or a hire purchase finance house.(b) mortage bank: this mortage bank is composed of the primary mortage institution and the apex institution. Federal mortage bank in Nigeria (FMBN), which exercises surveillance over the primary institutions.
(c) the Nigeria industries development bank.(NIDB).This is one of the specialised financial institution established to provide long term loan for industrial, agriculture and commercial development. It was established in 1964 and charged with the responsibility of harnessing local and foreign skills and capital in the development of new industries and expansion of the existing ones.
(d) Urban development bank? this was established in 1992 in other to create a greater capacity for dealing witj problem of inadequate housing transportation, electricity and water supply.
M C Q
(1) B (2)D (3)C (4) ()D (6) (7)D (8)A (9)B (10)A

Sirgius Okechukwu said...

Okechukwu Sergius C. unn/soc/17/047.
1)What are the functions of money?
Money is anything that is generally acceptable by the public for the payment, medium of exchange and settlement of depts.
And the functions is divided into two,they are~
A) Primary functions~ ¡)they are medium of exchange
¡¡)unit of acco
B) Derivative functions of money~¡)store of value
¡¡)standard for deffered payment
2) What distinguish money from other asset?
What distinguish money from other assets are gold because it has an intrisic value and fiat money is money without intrinsic value but declared money by law

3) What is commodity Money?
A) Commodity money is a physical money valued by its self and also as a medium of exchange e.g gold,corn etc..
B) What is fiat money? it is defined as an order or a decree of the government and it is money without intrinsic value and it is declared many by law

4) What is fiduciary issue~ This is money that is not backed up by anything
B) What is convertible paper money? Convertible paper money is a paper claim to a commodity that circulate as a means of exchange. It is convertible because the paper is fully backed up by the commodity

5) What are demand deposits? and why should they be involved as stock of money in an economy?
Demand deposits are deposits in the bank accounts that depositors can access in demand by writing a cheque anytime they want.
It should be added to stock of money in an economy because the use of cheque as a means of settling of debts and also for the purpose of payment of goods and services means that money hold in an individual checking account is also the same as money held in an individual wallet or purse

unn/soc/17/016 said...

PRINCIPLES OF ECONOMICS BY CC. AGU (pg. 313 – 314, 1-14)
CHUKWUDINOBI IFEANYI VICTOR (UNN/SOC/17/016)
1. What are the functions of money
Primary functions of money are:
a. Medium of exchange
b. Unit of account
While the derivatives or the secondary are;
a. Money, as store of value
b. Money, as standard for deferred payment.
2. What distinguishes money from other assets?
The principal thing that distinguishes money from other assets, is its role plays as a medium of exchange; or as generally acceptable medium of exchange or means of payment that eliminates the need for double coincidence of wants for exchange to take place (as did occur to barter system)
3. What is Commodity Money? What is Fiat Money?
i) Commodity Money: It’s a physical commodity valued in its own right and also used as a medium of exchange. This means that the commodity has an intrinsic value and simultaneously serving as money as well (as it is transactionary).
ii) Fiat Money: Fiat money is money without intrinsic value and established by government decree/order to be generally acceptable as a medium of exchange.
4. What is Fiduciary Issue? What is convertible paper Money?
Fiduciary Issue: This is note not backed by gold but it’s issued by the central bank by government securities.
Convertible Paper Money: This is means the paper money or a paper claim to a commodity that circulates as a medium of exchange and fully backed by the commodity money.
5. What are demand deposits, and why should they be included in the stock of money in an economy?
i.) Demand deposit or deposit monies are balances in bank accounts that depositors can access on demand by writing a Cheque. These balance are known as demand deposits, and its liquidity is high in as much as its transactionary frequency is equitably convenient as banks are bound to answer or transact with the customers whenever needed (as it’s demand on deposit).
ii.) Demand Deposit should be included in the stock of money in an economy, since its liquidity is high and can be converted to money quickly without loss of normal currency value and without much cost.
Though this is operational with current account and goes with cheques, the use of cheques to settle debts and for the purposes of payments for goods and services means that money held in individual’s chequing accounts is almost as convenient for buying things as money held in individuals wallets.
6. What assets make up the narrow definition of money in your country and what assets make up definition of money?
i.) Nigeria as my country we have; money in the hands of public, demand deposit with non-bank financial intermediaries, treasury bills, stocks and shares as financial assets in the narrow definition of money.
ii.) While in the broader definition it’s make-up of the “narrow definition plus time and savings deposits with commercial banks and non-bank financial institutions”

unn/soc/17/016 said...

7. Are cheques and credit cards money? Explain.
i.) No
ii.) Credit cards and cheques are not money, it’s because cheques are simply a means of using the deposits to pay for goods and services and other transactions in the economy. In the same way, credit cards and other electronic automatic debit/credit system are not money and do not diminish the role of money as a medium of exchange, unit of account, store of value, and standard for deferred payment because it enables the user to borrow money at the instant a purchase is made on the promise of repaying later. When one make a purchase, he/she signs a credit card sales slip that creates a debt in the person’s name. Which in effect, he/she is saying that he agrees to pay for these goods when the credit card firm(i.e. when the bank bills the person).
The bank automatically on receipt of the sales slip debits the persons demand deposit account to pay for his/her purchases. In other words, it is the demand deposit account balance is the means of the payment here, and medium of exchange
8. Has the use of electronic funds transfer system made the use of money as a medium of exchange obsolete?
No.
Why, because this purchase at a store using electronic funds transfer system (a sophisticated electronic automatic debit system) do not mean that money is no longer as a medium of exchange. What is debited is your demand deposit account balance in your bank, which is money. What simply happens is that an electronic signal is transferred over a telephone line. The electronic signal is interpreted to reduce the available “money” if a purchase is made or increase the available “Money” if a deposit or receipt has been made or received.
In using this method of fund transfer, individuals have still to decide what portion of their demand deposit account balance should be spent. Electronic banking does not mean that money is no longer functional. Rather it means that the method of transferring money is changing.

unn/soc/17/016 said...

9. Discuss or define the following terms and concepts: Means of payments, store of value, unit of account, standard for deferred payment, barter, liquidity, near money and fiduciary issue.
- Money as means of payment/medium of exchange: This the essential function of money (Primary function of money) whereof its other functions developed by serving as a means of payment, money dissolves the need for double concurrence of wants for exchange to take place and all the inconveniences associated with a barter system of trade.
- Money as store of value: Under this concept, money is referred to as store of value among others, i.e. other financial liquid assets that serves as a store of value. In the sense that it can be used to transfer purchasing power from the present into the future, it is also a store of value in as much as it’s a “generalized purchasing power” people can spend it at their convenience and on goods and services of their choice.
- Money as a unit of account: Money as a standard measure of value, in this concept it concisely treatise a way of placing specific prices (value) on goods and services. For exchange of goods and services to proceed in an orderly fashion, there is need for an accounting unit, Moreover, money as unit of account calculate the rate at which one commodity could exchange for another or the other.
- Money as standard for deferred payment: This function simultaneously involving the use of money as a medium of exchange and unit of account. This is an agreed measure that enables contracts to be written for future payments and receipts, contracts requiring future receipts and payments and debts are stated in monetary terms. This is an important function in our today’s complex economy where a lot of economic transactions are based on deferred payments viz- salaries, investments, interest, dividends, and debts.
- Barter: This is the practice in a world without money where goods would be exchanged for other goods (direct exchange of goods for goods) as referring to what we called “double coincidence of wants” for exchange.
- Liquidity: The liquidity of an item refers to the ease with which the asset can be redeemed on short notice and with minimum cost. In other words, liquidity is the ease with which an asset can be converted into the economy’s medium of exchange.
- Near Money: Near money, to some economists emphasize the function of money as a store of value and play down the medium of exchange role of money. While many financial assets can serve as a store of value (for example, time and savings deposits with banks and non-bank financial intermediaries, treasury bills, stocks and shares) they may not qualify as a medium of exchange.
Summarily, these assets (items) which adequately perform the function of store of value and are liquid are known as near monies.
- Fiduciary Issue: this is note not backed by gold but it’s issued by central bank and on government securities. This principle was however introduced to allow central banks issue some notes that were not backed by gold but on government securities.

unn/soc/17/016 said...

10. What are the characteristics of an asset that make it useful as a medium of exchange and as a store of value and unit of account?
i) An asset as a medium of exchange; facilitates exchanges, enables man to specialize in a particular trade and later make possible the division of labour within each trade(perhaps the occupation)
ii) By serving as medium of exchange money removes the need for double coincidence of wants for exchange to take place and all the inconvenience associated with a barter system of trade, and through this purpose (as a medium of exchange) that its other functions developed.
iii) A way of placing specific prices (value) on goods and services, as standard measure of value for exchange of good and services to proceed in an hierarchical fashion, there is need for accounting units - asset as a unit of account.
iv) Assets enabling one to spend it (as a purchasing power) at his/her convenience on goods and service of his/her choice has the character to storing value and moreover an asset has no intrinsic value.
11 How do banks create money? What factors limit the ability of banks to create money?
Well, we mostly recommend banks main creation of money as borrowing and lending of money. They borrow in the form of deposits on some of which they may pay a small rate of interest. They lend what has been deposited with them in a variety of ways, in this aspect their profits arise because they lend at higher rates of interest. They lend what has been deposited with them in a variety of way, in this aspect their profit arise because they lend at higher rates of interest than they pay for borrowing. Apart from borrowing and lending the banks has other ways of creating money. People may deposit their money with banks in either current account or deposit accounts. Current account is more liquid since the whole sum may be withdrawn on demand, and this can be done by means of the cheque system. Current accounts earn no interest and the bank charges the customer some amount each year for the facilities provided (may say on the transactions).

The banks receives cheques and make payments on behalf of their clients if so instructed. They also pay tax to the appropriate authority and make other payments through banker’s (Clients’) orders. Banks sometimes act as executors and trustees of wills. They also manage client’s financial investments, thus acting a stockbrokers. They provide for valuables in their safes and vault. Banks offer foreign exchange services, such as buying and selling currencies. The charges for all these services rendered contribute to the bank’s profits, it should be noted that banks even creates money (credit) by trading in short-time securities like treasury bills and treasury certificate.
And more over the last and not the least is the banks providential reserves (desired reserve ratio) which they reserves above (or for ahead of time for unforeseen circumstances) the legally required reserve ratio
Factors that limits banks’ ability to create money:
- The ability of commercial banks to make loans is controlled either by regulating the minimum ratio of cash to deposits, or of liquid asset to deposits as the primary factor. Then the bank rates, open market operation, special deposits request and directives.
i. The cash ratio
ii. The liquid ratio
iii. Special deposits
iv. Open market operation
v. Bank rate
vi. Request and directives

unn/soc/17/016 said...


12 Assume that the central bank sets the required reserve ratio equal to 10%. If banking system has N20m in required reserve assets what is the amount of demand deposits outstanding?
RR = rd x D
ER = TR – RR
TR = RR = rd x D
D= TR/rd
D= 1/rd x TR

RR = 20
rD = 10%
20 /10 = 2
20 – 2 = 18

N18 m= as the amount of demand deposits outstanding
13 If rD = .25, what is the simple money multiplier? If the reserves increase by N100, by how much do loans and deposits increase?
Solution:
1/0.25 = 4 (simple Money Multiplier)
Loan and deposits = 4 x 100 = 400

14 Assume that the banking system has total reserves of N100 billion. Assume also that required reserves are 10% of demand deposits, and that banks hold no excess reserves and household no currency
a. What is the money multiplier? What is the money supply.
b. If the central bank now raise required reserves to 20% deposits what is the reserves and change in the money supply?
Solution:
a. Money multiplier 1/0.1 = 10
Money supply =10 x 100 = 1,000
b. rD =20%
Multiplier = 1/.2 = 5
Change TR = 5 X100 = 500
1000 – 500 = 500
Change in the money supply = 500

unn/soc/17/016 said...

UNN/SOC/17/016
CHUKWUDINOBI IFEANYI VICTOR
PRINCIPLES OF ECONOMICS – BY F.E ONAH (PG 165 – 167, 1—6, 1—10 & PG 186, 1—6, 1—10)
ATTEMPTING QUESTION 1—6 (PG 165—167)
1) What are the four sources of saving?
---amongst the four sector economy they have different ways they make savings.
I. Financial markets (companies etc.) save when all their profits are not distributed as dividends, the difference being allotted to buy fixed and working capital.
II. Individuals (households) save money out of income, which being surplus on consumption requirements may be lent either directly or indirectly to other parties. Though the important feature of the source of individuals. Sources of saving is that money which having paid out as income to households by firms, government etc. is not returned to them in the form of expenditure on goods and services.
III. While government may save when income from taxation and other sources exceeds current expenditure. Saving of the government in this context refers to the different between government receipts and its recurrent expenditure which is used to finance its capital expenditure.
IV. The external sectors (i.e. the rest of the world) may provide money capital for investment in the country; money capital may also represent a grant or gift from foreign governments and organizations for expenditure on specific projects in the country. Whichever from it takes, it represents money capital saved outside the country but which now flows into the country for investment purpose. It may be by way of direct investment by companies domiciled in other countries or in companies domiciled in that country.
2) What is the function for the capital market?
Though capital market as the collection of financial institutions and functions on (purpose of which) channeling money capital from people who save, into the hands of joint – stock companies, public corporations, the government and other organizations that wish to invest in real capital.
3) Discuss the alternative sources of long-term finance provided by financial intermediaries in Nigeria.
1) By issuing stocks: stock include gift-edged stocks (issued by government) and debenture stocks of joint – stock companies. A gift – edged stock is a fixed – interest’ security issued by government and traded on the stock exchange. It is called gift-edged because it is certain that interest will be paid and that it would be redeemed (where appropriate) on the due date. Gift-edged securities are not, of course a risk free investment because of fluctuations in their market value. There are some loan stocks that are redeemable at a certain time, while some are permanent. Debentures’ are dated for redemption (i.e. repayment of their nominal value by borrower’ to the holder) between ten and forty years ahead. Occasionally debentures may be irredeemable also.

unn/soc/17/016 said...

2)By issuing shares: shares are issued by joint – stock companies, and give their owners a share in the assets of the company of the different types of shares as we have, the most common is the ordinary share (also known as equity of company), which has no guarantee rate of interest and a return which depends on the profits of the company.
3) What is the difference between owning shares and stocks?


Owning stock Owning shares
1. Owning stock refers to or describe the ownership certificate of any company (perhaps more than two or even more)
2. One that owns stock makes loan to company(s) and collects interest from they may be yearly Shares refer to the ownership certificate of a particular company.

While a shareholder receives dividends (may be a fixed one) from company, though it almost depends on the company’s annual profits.

4) What does the stock exchange deal in?
Well, one is flawless to say that the principal deal of the stock exchange market’ is to provide a means whereby lenders (like the financial intermediaries and the government) can retain liquidity – i.e. money.
Stock exchange market furthermore assists these lenders by agreeing to quote the shares once they have been issued, they as well places share’ that is, the sale of a new issue of share or stock usually to institutional investors on behalf of the company issuing the share (or maybe even the government).
5) What is the main outlet of funds collected by:
(a) Financial houses.
(b) Mortgage banks.
(c) The Nigerian industrial development bank.
(d) Urban development banks

unn/soc/17/016 said...

Answer:
The Nigerian industrial development bank (NIDB)
- It is outlet of fund collects are long-term loans for industrial, agricultural and commercial development.
Urban development bank (UDB).
- It provides hire purchases, i.e. granting of credit to consumers and companies to purchase durable consumer goods and capital goods on an instalmental basis.

Mortgage bank:
- This financial intermediary has its main fund outlet by; new issues of securities in the form of offer for subscription on rights issue (i.e. offering new share to existing shareholders), offer for sale (maybe house purchase secured) and private placement on privatization.

Objectives of page 165 – 167 (1-10) on prof .F.E ONAH’S.
1. The stock exchange is a market for the buying for the buying and selling of
b. Existing share
2. The capital market is a market for trading of financial asset such as
d. Long-term securities
3. The stock exchange market is where
c. Existing bonds and stocks are traded
4. Which of the following is directly concerned with dealing in treasury wills
d. Discount houses
5. Stocks and shares as well as bonds are examples of instruments used in the
c. Capital market
6. A capital market differs from the money market in that in the former
a. Loan sought is long-term

unn/soc/17/016 said...

7. Insurance companies invest mainly in instruments traded on the
b. Capital market
8. The distinguishing characteristics between the money market and the capital market lies in whether the
b. Debt instruments provided are long-term or short-term
9. Insurance companies, pension and provident funds and unit trusts are all examples of
d. Non-bank financial institutions
10. The capital provides business firms with the avenue to
d. Obtain long-term funds

Attempting question No. 1—6 (prof .F.E ONAH, PG 186—188)
1. What do you understand by the fiduciary issue?
The principle was however introduced to allow central banks to issue some notes that were not baked by gold but by government securities,
This, fiduciary issue is note not backed by gold but it is issued by central bank by government securities,
2. The central bank(s) acts as government. What does this entail?
The central bank(s) acts as government’s agent in as much as it’s the nation/country’s central bank, it is reckoned to be as banker to the government in that case the central bank manage the government’s account, debt, raising new loans, redeeming old ones and paying the interest on the national debt, and lends to the government, usually on a very short—term basis. Through keeping an account with the central bank (by the government, as do all government departments) expenditure are met and into them revenues are paid. Even with these, the central bank is known as an adviser to the government in all financial matters.
3. What is meant when the central bank is referred to as lender of last resort?
The central bank being the lender of last resort allied to role of the central bank as the bankers bank as well.
Thus, this meant that the central bank is always ready to lend, due on its term to commercial banks whenever in difficult, and it’s done by rediscounting treasury bills or first class trade wills at the bank rate.
4. What are the main functions of a central bank:
i. Issuance of currency (or printing of currency note/coins).
ii. Management of monetary system
iii. Functions as bankers’ bank
iv. A banker to the government
v. Management of international financial affairs
5. How do open-market-operations work?
Open-market-operation also abbreviated as “O.M.O” involves the buying and selling of government securities in order to influence the commercial banks cash and liquid asset base. Though these securities might be bough ten from the commercial bank direct or from individuals or firm, the end result is exactly the same. Suppose for example, that the central bank buys security from a private individual, it pays for them with a cheque drawn on itself

unn/soc/17/016 said...

bank buys security from a private individual, it pays for them with a cheque drawn on itself which it presents to the seller (the individual or any) who in turn deposits it with his own bank. The seller’s bank deposit rises, and when his bank presents the cheque to the central bank for payment, its (i.e. that banks account) own account in the central bank rises by the same amount. Now since the commercial banks account at the central bank is regarded as cash, the end result is that the commercial bank’s cash base has increased and this in the usual way can lead to a further increase in bank’s deposits in a multiple manner.
And in the otherwise, if the commercial banks issue cheques in payment for the securities they have purchased. The deposits of these banks with the central bank are reduce by the amount of the purchased and consequently their cash ratios are reduced
6. What are special deposits? What is their purpose?
These are certain percentage(s) of the commercial banks gross deposits, ordered or caused by the central bank to be kept with it (i.e. the central bank). And these deposits cannot be done with by the banks as cash.

Purpose:
The purpose of these special deposits (by the central bank) is to tie up some of the banks’ liquid cash, and so causing a reduction in their deposits – meeting up meant aim. Summarily it is targeted toward restricting the commercial banks power of credit expansion.

Objectives of page 186—188 (1—10) on prof .F.E ONAH’S
1. The central bank’s expansionary monetary policy is justified at a period
(a) Of economic depression accompanied by low capacity utilization
2. Fiduciary issue is that part of
(c) The issue of notes not backed by gold
3. The best way to reduce the supply of money in the economy is to
(a) Increase the number of bank notes and cheques produce
4. Bills of exchange originate from a
(b) Commercial bank
5. The monetary control instrument most effectively used by the central bank of Nigeria is the
(a) Open market operations
6. The role of the central bank in the economic development of Nigeria is to
(b) Maintain a stable price system
7. Which financial institution is charged with the formulation of monetary policies in Nigeria?
(b) The central bank of Nigeria
8. An increase in both the legal reserve ratio and discount rate has the effect of
(b) Decreasing the quantity of money in circulation
9. One method through which the central bank can restrict the commercial banks power of credit expansion is to
(a) Demand for increased special deposits
10. One of the techniques of monetary control by the central bank of Nigeria
(a) Selective credit control

Sirgius Okechukwu said...

Assignment on eco 002
Okexhukwu sergius c. UNN/soc sc/17/047.
(1) what do you understand by the fiduciary of issues? what i understand by fiduciary issues is that it is money that is not backed up by anything.
(2) The center banked work as bankers to government, what does it entail? this entails that the government keeps an account at the central bank as do all government department.The ventral bank as government agent in raising new loans, reducing old ones and paying the interest on the national debt.
(3) What is meant when the ventral bank is referred to as the lender of last resort? the meaning of the phrase "lender of last resort" is that the central bank is always ready to lend money to commercial banks whenever in difficulty, it means that the central bank guarantees the stability of the banking system and thus ensure that confidence is maintained in the bank and bank deposit.
(4) What are the main functions of central bank? the main functions of central bank are:
(a) issue of currency
(b) banker to government
(c) bankers bank
(d) management of international financial Affairs.
(e) management of monetary system
(5) How do open market operation work?
This involves the buying and selling of government securities in other to influence the commercial bank to restrict credit and buying securities it forces them to increase credit.
(6) what are special deposits? what is their purposes? this is the process whereby central bank can cause commercial bank to main

Sirgius Okechukwu said...

(6) what are special deposits? what is their purposes? this is the process whereby central bank can cause commercial bank to maintain a certain percentage at their gross deposits with it as special deposits.
The purpose of special deposits is to tie up some of the bank liquid cash and thus cause a reduction in their deposits.
M C Q
(1) A (2) B (3) D (4) A (5) A (6) C (7) B (8) (9)D (10) B

Sirgius Okechukwu said...

1)What are the functions of money?
Money is anything that is generally acceptable by the public for the payment, medium of exchange and settlement of depts.
And the functions is divided into two,they are~
A) Primary functions~ ¡)they are medium of exchange
¡¡)unit of acco
B) Derivative functions of money~¡)store of value
¡¡)standard for deffered payment
2) What distinguish money from other asset?
What distinguish money from other assets are gold because it has an intrisic value and fiat money is money without intrinsic value but declared money by law

3) What is commodity Money?
A) Commodity money is a physical money valued by its self and also as a medium of exchange e.g gold,corn etc..
B) What is fiat money? it is defined as an order or a decree of the government and it is money without intrinsic value and it is declared many by law

4) What is fiduciary issue~ This is money that is not backed up by anything
B) What is convertible paper money? Convertible paper money is a paper claim to a commodity that circulate as a means of exchange. It is convertible because the paper is fully backed up by the commodity

5) What are demand deposits? and why should they be involved as stock of money in an economy?
Demand deposits are deposits in the bank accounts that depositors can access in demand by writing a cheque anytime they want.
It should be added to stock of money in an economy because the use of cheque as a means of settling of debts and also for the purpose of payment of goods and services means that money hold in an individual checking account is also the same as money held in an individual wallet or purse

6) What makes up the narrow definition of money in your country and what assets make up broader definition of money?
In Nigeria MI=public money in the hands of public plus demand deposits. Narrow definition of money in M2 which is M1 plus time deposit plus savings deposit

7) Are cheques and credit cards money? Explain
Cheques and credit card are not money. Cheques are means of using depositsto pay for goods and services and other transactions in the economy. Credit card is not a money because it does not play the role of money as a medium of exchange,unit of account,store of value,and standard for deffered payment.

8) Has the use of Electronic Funds Transfer Systen made the use of money as a medium

Sirgius Okechukwu said...

Okechukwu sergius c. Unn/soc/17/047
8) Has the use of Electronic Funds Transfer Systen made the use of money as a medium of exchange obsolete?
It is established that demand deposits is money, the use of EFTS has not made money as a medium of exchanging absolute because it is the demand deposit account that is debited. The EFTS is just a means of transferring money. When an electronic automatic debit system is use,it doesn't mean money is not used,what simply happens is that an electronic signal is transferred over a telephone line. The elctronic is interpreted to reduce the available money if a purchase is made or increase the available money if a deposit or receipt is made. The use of EFTS in exchanging goods and services doesn't make money absolute,it only means that the means of transferring money is changing.

9) Discuss and define the following terms and concepts~ Means of payments,store of value,units of accounts,standard for deffered payment,barter liquidity,near money,and fidiciary issue
*) Means of payment~ This means that money is a means of payment in the sense that it serves as generally acceptable means of payment or medium of exchange.
*) Store of value~ Many serves as a store of value because who ever holds a generalized purchasing power can spend it at his/her convienience and on goods of his/her choices.
*) Unit of account~ This is defined as the means of placing a specific price value on goods and services.
*) Standard for deffered payment~ This is an agreed measure that enables contracts to be written for future payments and receipts.
*) Barter liquidity~ This is defined as a direct exchange of goods for goods or a barter system is tge existence of double coincidence of wants in exchange.
*) Near money~ Near money is assets which adequately perform the function of store of value and are very liquid.
*) Fiduciary issues~ Fiduciary issues is a money that is not backed up by anything.

10) What are the characteristics of an asset that make it useful as a medium of exchange and as a store of value and unit of account?
For an asset to be used as a medium of payment,state of value and unit of account that means that asset is money. Here are the features of money~
A) Acceptability
B) Portability
C) Durability
D) Divisibilty
E) Scarcity
F) Stability
G) No instrinct value.

11) How do bank create money?
When deposits are made,the bank do not keep all the money in the vault,they use some of the money to run some business for profit making. And also when deposits are made,the bank do not spend all the money,they keep some in the bank in other to meet up with the depositors demand for withdrawal. The Central Bank of every Country have said that banks keeps a percentage of its deposits which is called Revenue Ratio and the left over from this is called Excess Revenue. It is wity this excess revenue that banks are able to create money. What are the factors that limit to ability of banks to create money?
Any factor that reduces the size of the multiplier reduces the quantity of money that banks can create of the available reserve inflow into the bank system.

M.C.Q
1) B (2) C (3)A (4)B (5) A (6) B (7) B (8)B (9) A (10) A

Sirgius Okechukwu said...

UNN/SC/540
Owor Joseph Isong
Explain the concepts of scarcity, choice, land, labour, capital and opportunity cost.
Scarcity: Refers to the limited resources in relation to wants which are unlimited and insatiable.
Choice: As a result of the scarcity of resources in relation to wants, the need for choice arises.
Land: This refers to all endowments ansmd resources on the earth such as land, minerals, forest.
Labour: Refers to the physical and mental effort directed by man towards any productive activity.
Capital: Refers to inputs to production that are not necessarily consumed for their own sake, but which is used up in the process of making other goods eg: plant and equipment, machinery, furniture etc.
Opportunity cost: Refers to the foregone alternative. Due to relative scarcity of resources in relation to wants, the need for choice arises therefore, the alternative(s) foregone in order to purchase any good or service is termed opportunity cost.
What is the relationship between the concept of scarcity and opportunity cost? Scarcity refers to the limited resources in relation to wants which are unlimited. It simply means that the resources available to satisfy human wants are limited.
Opportunity cost on the other hand refers to the foregone alternative. Opportunity cost arises as a result of the scarcity of resources to satisfy wants which necessitates choice. Therefore, opportunity cost arises only because the consumer/buyer is forced to make a choice between two or more alternatives.
MULTI-CHOICE QUESTION
In a market economy, the question of what, how, and for whom to produce is solved by the?
- price mechanism.

Which of the following situations can give rise to economic problems?
- limited means available of satisfying wants.

. Scarcity in economics means that?
- resources are limited in relation to wants.

. Economics is often described as a science because?
- it uses scientific method to explain observed phenomena and predict future events.

. Scale of preference refers to?
- list of goods and services in order of priority.

The need to construct a scale of preference is necessitated by?
scarcity and the need for choice.

In economic life, choice among alternatives depends on the?
- scale of preference of the decision maker.

. Economic goods are termed scarce when they are?
- not available in sufficient quantities to satisfy all wants for them.

If one orange is 20k and one kilogram of beef costs N10.00, the opportunity cost of one kilogram of beef is?
- 50 oranges.

A school girl who needs a book and mirror each costing five naira, decides to purchase the book instead of the mirror since she cannot pay for the two at the same time. Determine the real cost of her book?
- the mirror.

Sirgius Okechukwu said...

nwaoga chidubem keneolisa unn/arts/184/
Standard for deferred payment: this function simultaneously as a medium of exchange of unit of account. It is a measure that enables contrast to be written for future payment and debts that are stated in money terms.
2. What distinguishes money from other assets is that money is generally accepted and medium of exchange.
3. What is commodity money? What is flat money?
Commodity money has an intrinsic value which means that it can serve as money (medium of exchange) and production of another specific purpose. Eg Gold is an intrinsic value because it is a medium of exchange and used in industry and in making of jewelry.
Flat money: this is a type of money without intrinsic value. It is an order on a decree and can be established as money by government decree. E.g. currency.
4. What is fiduciary issue? What is convertible paper money?
Fiduciary issue: paper money not back up by anything is fiduciary money.
Convertible paper money: a paper claim to a commodity that circulates a medium of exchange is called convertible paper. It is convertible because the paper is fully backed by a valued commodity.
5. What are demand deposits and why should they be included in the stock of money in an economy?
Demand deposits are balances in bank account that depositors can access on demand by writing a cheque.
They should be included in the stock of money because one can exchange cheque with money. Cheques serve as a medium of exchange to cooperate entities.
6. What assets make up make up the narrow definition of money in your country and what assets make up broader definition of money?
Narrow definition: MI (public money i.e. in the hand of the public) + demand deposits.
7. Are cheques and credit cards money? Explain
Cheque is not money rather they serve as a medium of exchange, it is a means of using the deposits top pay for goods and services and other transactions in the economy
Credit card is not equally a money and it does not diminish the role of money as a medium of exchange, unit of account etc. it is an ID card, one that enables the user to borrow money at the instant of purchase is made on the repaying later.
8. Has the use of electronic funds transfer system make the use of money as a medium of exchange obsolete.
Using the electronic funds transfer system has not made money as a medium of exchange obsolete.
Using the electronic funds transfer system has not devalued money or make money un-useful. Electronic fund transfer system is not money rather it is the demand deposits account that is money. In using the electronic transfer system, a telephone signal is sent across if the demand deposits account is being debited or if the account is being credited, it only gives about a transaction which has been made.
9. Discuss or define the following terms and concepts: means of payments, store of value, unit of account, standard for deferred payment, barter, liquidity, near money and fiduciary issue?
a. means of payment: as a means of payments, money is being used in payments of goods and services rendered in an economy.
b. store of value: money could be used to transfer purchasing power from the present to the future, in the sense that one can spend money at his or her own choice.
c. unit of account: a unit of account simply means placing specific prices on all goods and services.
d. standard for deferred payment: this function simultaneously as a medium of exchange and unit of account. It is a measure that enables contract to be written for future payments and receipts and payment and debits that are stated in money terms.
e. barter: this is the exchange of goods and services i.e one can exchange what he has with what he does not have.
f. liquidity: liquidity of an assets refers to the ease with which the asset can be redeemed on short notice and with minimum cost.
9. Near money: this is an asset which adequately perform the function of the store of value

Sirgius Okechukwu said...

Achusi sochima christopher
Unn/soc/075
1. What are the functions of money
Primary functions of money are:
a. Medium of exchange
b. Unit of account
While the derivatives or the secondary are;
a. Money, as store of value
b. Money, as standard for deferred payment.
2. What distinguishes money from other assets?
The principal thing that distinguishes money from other assets, is its role plays as a medium of exchange; or as generally acceptable medium of exchange or means of payment that eliminates the need for double coincidence of wants for exchange to take place (as did occur to barter system)
3. What is Commodity Money? What is Fiat Money?
i) Commodity Money: It’s a physical commodity valued in its own right and also used as a medium of exchange. This means that the commodity has an intrinsic value and simultaneously serving as money as well (as it is transactionary).
ii) Fiat Money: Fiat money is money without intrinsic value and established by government decree/order to be generally acceptable as a medium of exchange.
4. What is Fiduciary Issue? What is convertible paper Money?
Fiduciary Issue: This is note not backed by gold but it’s issued by the central bank by government securities.
Convertible Paper Money: This is means the paper money or a paper claim to a commodity that circulates as a medium of exchange and fully backed by the commodity money.
5. What are demand deposits, and why should they be included in the stock of money in an economy?
i.) Demand deposit or deposit monies are balances in bank accounts that depositors can access on demand by writing a Cheque. These balance are known as demand deposits, and its liquidity is high in as much as its transactionary frequency is equitably convenient as banks are bound to answer or transact with the customers whenever needed (as it’s demand on deposit).
ii.) Demand Deposit should be included in the stock of money in an economy, since its liquidity is high and can be converted to money quickly without loss of normal currency value and without much cost.
Though this is operational with current account and goes with cheques, the use of cheques to settle debts and for the purposes of payments for goods and services means that money held in individual’s chequing accounts is almost as convenient for buying things as money held in individuals wallets.
6. What assets make up the narrow definition of money in your country and what assets make up definition of money?
i.) Nigeria as my country we have; money in the hands of public, demand deposit with non-bank financial intermediaries, treasury bills, stocks and shares as financial assets in the narrow definition of money.
ii.) While in the broader definition it’s make-up of the “narrow definition plus time and savings deposits with commercial banks and non-bank financial institutions”
6 January 2018 at 03:12
Anonymous unn/soc/17/016 said...
7. Are cheques and credit cards money? Explain.
i.) No
ii.) Credit cards and cheques are not money, it’s because cheques are simply a means of using the deposits to pay for goods and services and other transactions in the economy. In the same way, credit cards and other electronic automatic debit/credit system are not money and do not diminish the role of money as a medium of exchange, unit of account, store of value, and standard for deferred payment because it enables the user to borrow money at the instant a purchase is made on the promise of repaying later. When one make a purchase, he/she signs a credit card sales slip that creates a debt in the person’s name. Which in effect, he/she is saying that he agrees to pay for these goods when the credit card firm(i.e. when the bank bills the person).
The bank automatically on receipt of the sales slip debits the persons demand deposit account to pay for his/her purchases. In other words, it is the demand deposit account balance is the means of the payment here, and medium of exchange

Sirgius Okechukwu said...

Okechukwu Emeka
UNN/ARTS/17/162
1 What do you understand by the concept of scarcity, choice, land, Labour, capital and opportunity cost
Answers :Labour
Is the brain power and muscle power of human beings.
*Land
Is natural resources of all kinds.
*Capital
Comprise all equipment, building, tools etc and other manufactured goods that can be used in production.
(2) relationship between scarcity and opportunity cost?
Answers: It represent two interlinking concepts in economics as companies must often choose among scarce resources. In most cases economics resources are not completely number so companies must make a choice about which resources to use during production.
*MULTI choice questions
1
Answer : planning committee
2
Answer : unlimited human wants
3
Answer : resources are limited in relation to want
4
Answer : it uses scientific methods to explain observed phenomena and predict future events
5
Answer : consumer preference for luxurious goods
6
Answer : the need to satisfy wants
7 in economic life choice among alternative depends
income of the decision maker
8 not produce in sufficient quantities to satisfy the effective demand for them
9 10 orange
10 five naira real cash value

Anonymous said...

Okechukwu Emeka.
Unn/Art/17/162.
1. What are the functions of money
Primary functions of money are:
a. Medium of exchange
b. Unit of account
While the derivatives or the secondary are;
a. Money, as store of value
b. Money, as standard for deferred payment.
2. What distinguishes money from other assets?
The principal thing that distinguishes money from other assets, is its role plays as a medium of exchange; or as generally acceptable medium of exchange or means of payment that eliminates the need for double coincidence of wants for exchange to take place (as did occur to barter system)
3. What is Commodity Money? What is Fiat Money?
i) Commodity Money: It’s a physical commodity valued in its own right and also used as a medium of exchange. This means that the commodity has an intrinsic value and simultaneously serving as money as well (as it is transactionary).
ii) Fiat Money: Fiat money is money without intrinsic value and established by government decree/order to be generally acceptable as a medium of exchange.
4. What is Fiduciary Issue? What is convertible paper Money?
Fiduciary Issue: This is note not backed by gold but it’s issued by the central bank by government securities.
Convertible Paper Money: This is means the paper money or a paper claim to a commodity that circulates as a medium of exchange and fully backed by the commodity money.
5. What are demand deposits, and why should they be included in the stock of money in an economy?
i.) Demand deposit or deposit monies are balances in bank accounts that depositors can access on demand by writing a Cheque. These balance are known as demand deposits, and its liquidity is high in as much as its transactionary frequency is equitably convenient as banks are bound to answer or transact with the customers whenever needed (as it’s demand on deposit).
ii.) Demand Deposit should be included in the stock of money in an economy, since its liquidity is high and can be converted to money quickly without loss of normal currency value and without much cost.
Though this is operational with current account and goes with cheques, the use of cheques to settle debts and for the purposes of payments for goods and services means that money held in individual’s chequing accounts is almost as convenient for buying things as money held in individuals wallets.
6. What assets make up the narrow definition of money in your country and what assets make up definition of money?
i.) Nigeria as my country we have; money in the hands of public, demand deposit with non-bank financial intermediaries, treasury bills, stocks and shares as financial assets in the narrow definition of money.
ii.) While in the broader definition it’s make-up of the “narrow definition plus time and savings deposits with commercial banks and non-bank financial institutions”
6 January 2018 at 03:12

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