Scheme of work for Economics, SS1, First Term

The concept of  Ceteris Paribus Assumption in economics states that _____.

• A. Supply and Demand are antagonistic

• B. When given two choice of similar products with the same price (assuming all other factors are constant), you will prefer to buy that with a lower price

• C. Supply and Demand are agonistic

• D. When given two choice of dissimilar products with the same price (assuming all other factors are constant), you will prefer to buy that which you need most

• E. When given two choice of similar products with the different prices (assuming all other factors are constant), you will prefer to buy that with a lower price

• F. When given two choice of dissimilar products with the different prices (assuming all other factors are constant), you will prefer to buy that with a lower price

The willingness of a person to buy a specific quantity of goods or services at a given price and time is termed _____.

• A. Scale of preference

• B. Economies of scale

• C. Opportunity Cost

• D. Cost

• E. Supply

• F. Demand

Costs generally treated as expenses in business are termed _____.

• A. Fixed cost

• B. Variable cost

• C. Sunk cost

• D. Direct cost

• E. Private cost

• F. Outlay cost

When an entrepreneur pays cash (money) for materials needed for production, such money is termed as an _____ cost.

• A. Accounting

• B. Entrepreneurship

• C. Economic

• D. Outlay

• E. Opportunity

• F. Incremental

A government mandated maximum price for goods or services is termed _____.

• A. Price height

• B. Price maxima

• C. Price ceiling

• D. Price level

• E. Price finale

• F. Price top-zone

The quantity of supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.

The above statement is attributed to the _____.

• A. Law of price increase and price decrease

• B. Law of product quantity

• C. Law of demand

• D. Law of supply

• E. Law of quantity demanded and supplied in relation to price

• F. Law of purchases on services and goods

The following statements are true concerning explicit opportunity cost except _____.

• A. They are recorded in the accounts book

• B. It is a type of cost

• C. They may also be referred to as 'out of pocket' cost

• D. They are utilized as factors of production

• E. Money spent on wages, salaries and raw materials are examples of explicit opportunity cost

• F. Explicit opportunity cost are always utilized for investment

Which of the following statement is incorrect concerning the table?

• A. Ipod is the least important need of the individual

• B. If the individual has 200,000 Naira at hand, then the laptop, iPad, smart watch and iPod will all be considered as opportunity cost

• C. If the individual has 480,000 Naira, he or she will purchase all the items in the table

• D. Console game is the most important need of the individual

• E. The table shows a scale of preference

• F. The individual needs an ipod

A Black market is said to take place when there is illegal buying and selling of goods and services.

Black markets usually take place outside the government's rader and without government's knowledge so as to avoid tax or any other government regulations.

Black market presents the avenue for government prohibited goods like hard drugs, war weapons and firearms to be bought by criminals.

A black market can also occur on the web for cyber criminals or those who are involved in computer hacking. To achieve their malicious aim, these individuals will go into the dark web and purchase or rent their respective hacking tools for a fee. Normally, payments are made in crypto currencies.

However, a black market isn't generally considered as bad. Infact, it has its advantages and disadvantages.

Please read more on black market here

Below are some advantages of black market:

• Goods and services are sold at a cheaper price.

• It helps some people make plenty of money.

• The illegal sales of human organs, for example, the sale of human kidneys have aided in saving some lives.

• Some people actually depend on black market for their daily bread.

• Some of the proceeds from black market may been utilized towards the economic growth of a Nation. For instance, schools and hospitals had been from money made from black market.

The law of supply states that:

The quantity of the supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.

These constant factors are very important when stating the supply law. They include:

• The price of Input resources

• The kind of technology used during production

• The number of suppliers

• The number of buyers; and so on.

A graph that shows the relationship between the price of a product or service, and its quantity supplied is the supply curve.

Supply curve can be defined as a graphical representation of the direct relationship between the prices of goods and services and the quantity supplied (of such goods and services) within a particular period of time provided all other factors remain constant.

Please read more on the law of supply and supply curve here

Consider the table below:

The above table shows us what a scale of preference would look like.

A scale of preference can be defined as the list of a person's needs or wants written in an order of importance.

You will observe that the person puts his most important needs or wants at the top of the list. Further down the list are his less important needs.

Now, let's imagine that this individual has 170,000 Naira to spend. According to the above scale of preference, the followings can be deduced;

• A phone will be considered to be the most important; and it costs 50,000. He buys the phone.

• A console game according to this person is next in importance; and it costs 120,000. He buys the console game.

Another question worth asking is:

• What happens to his other needs?

This is where the term 'Opportinity Cost comes into play.

Please read more on scale of preference and opportunity cost here.

Scale of Preference can be defined as the list of a person's needs or wants written in an order of importance. 📜✍️

When you have a limited amount of money and could only buy some of the items on your list (the top items on the list); then the remaining items that you didn't buy will be generally considered as your opportunity cost.

Opportunity cost can be defined as the value of the best alternative that a person could have achieved or bought but couldn't achieve after the best choice had been achieved.

Opportunity cost are of two types. They are:

1. Explicit Opportunity Cost
2. Implicit Opportunity Cost

Please read on scale of Preference, Opportunity cost and the types of Opportunity cost here