ECN 001 AND 002 Assignment 31/10/2017

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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

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

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.

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

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

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

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

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

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.

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”

(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

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.

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

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

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.

(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.

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.

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

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 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

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.

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.

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

[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

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.

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.

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.

[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

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.

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.

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

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.

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.

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.

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.

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.

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

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.

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.

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.

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

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

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.

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

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
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

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

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

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

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

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

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.

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).

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

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

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

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

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

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.

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