Alfred Ajibola
- 09th September, 2025 @ 09:20 AM
Topics in Economics
Forms of Socialism in Government Advantages and Disadvantages of Capitalism What is Capitalism? Characteristics of Capitalism Types of price elasticity of demand Types of elasticity of demand Types of capital market: Primary market and secondary market Capital market explained with its functions Basic tools for economic analysis: Graphs explained with its characteristics and importance Basic tools for economic analysis: Tables explained with its characteristics and importance Factors affecting population in economics Advantages of Inflation Disadvantages of Inflation Concept of Inflation in Economics Scheme of work for Economics, SS1, First Term Scheme of work for Economics, SS1, Second Term Scheme of Work for Economics, SS1, Third Term Functions of the Wholesaler Advantages and Disadvantages of the Wholesaler Wholesale Market: Who is a Wholesaler? Characteristics of the WholesalerAcademic Questions in Economics
_____ is defined as a gradual and sustained rise in price level of goods and services in relation to their availability.
A. Basis Point Rate
B. Hike Rate
C. Elastic Supply
D. Elasticity of Price
E. Price Inflation
F. Aggregate Supply
The wholesalers can bring about an economy of scale.
A. True
B. False
Which of the following statement isn't a characteristics of the wholesaler?
A. They may have to operate in specific areas or regions accorded them by the producer
B. They are often popular in the line of goods they supply
C. They are not risk bearers
D. They have good storage facilities
E. They often pay for goods supplied by the manufacturers in advance
F. They usually have business agents or brokers
The wholesalers act as the middlemen in supply chain.
A. True
B. False
Large retailers who buy directly from manufacturers are termed as _____.
A. Wholesale Retailers
B. Certified Retailers
C. Codified Retailers
D. Commodity Retailers
E. Manufacturers Retailer
F. Conspicuous Retailers
_____ is a market whereby the sellers buy goods in lesser quantities from the wholesalers and sells in bits to the final consumers.
A. Commodity
B. Retail
C. Wholesale
D. Labour
E. Common
F. General
Which of the following is not a financial market?
A. Money Market
B. Bond Market
C. Foreign Exchange Market
D. Virtual Market
E. Capital Market
F. Stock Exchange Market
A _____ market provides a platform whereby job seekers link up with employers in an attempt to be hired.
A. Wholesale market
B. Bond market
C. Physical market
D. Virtual market
E. Factor Market
F. Labor Market
Every nation is expected to have an economic system. The term "Economic System" refers to the framework through which a society uses to organize its capital, labor and resources through the production and distribution of consumer goods and services, in a manner that addresses what is produced, how it is produced, and for whom it is produced.
From the above perspective of an economic system, it can be seen that the three fundamental economic problems are addressed. These are:
What to produce?
How to produce?
For whom to produce?
Please read on production in commerce here.
The economic system practiced in a country will be dependent on the goals and ideals of the government. Such economic system could be capitalist (or capitalism) socialist (socialism) or a mixed economy.
In this article, we will focus on capitalism and its characteristics or features.
Please read on capital market here.
A capitalist economy is a free economic system whereby private individuals and cooperations have massive control on all the means and factors of production for the ultimate aim of generating profit. The means (or factors) of production refers to the essential inputs (resources) required to produce goods and services in an economy. They are: land, labor, capital and entrepreneur respectively.
Examples of countries where capitalism is operated include the USA, France, Germany Japan, Canada, New Zealand, Australia, Israel etc.
You can read on the types of specialization here.
The concept of capitalism (or a capitalist market) is best understood via its features: They are listed below:
Capitalism is a private business. In this regard, Individuals and businesses can own land, resources and assets. Ownership rights are protected by law.
Capitalist market is a free market where the laws of supply and demand determine price. Please read on the law of supply in economics here.
Among the population of people in a capitalist state, only few individuals have control over the factors of production. You can read on the types of production in commerce here.
The ultimate aim of capitalism and private businesses is to make and maximize profit. In fact, these profits can act as incentives for innovation, efficiency, and growth; which may occur at the expense of the consumers.
In a capitalist economy, there is presence of private property rights; and as a result, only few individuals can accumulate wealth. Please read on the fundamental human rights here.
Market competition thrives in a capitalist economy. Price, demand and supply of goods and services are determined by the market itself since consumers and producers interact freely in the marketplace. Please read on the concept of market in economics here.
There is freedom of individual initiative. Producers can decide on what to produce, the quantity to produce, and at what price to sell. However, this will be dependent on the purchasing power and willingness of the consumers.
Capitalist societies tends to divide the society into two economic classes. These are the owners of capital versus the labor workforce. Please read on positioning as a marketing mix here.
With regards to the standard of living, there is a distinct gap between the rich and poor in a capitalist society.
Capitalism encourages individuals to pursue their respective self-interest and ambition. Please read on specialization and exchange here.
Markets, not central authorities, decide most economic outcomes in capitalist societies. Although in practice, governments may regulate the market to correct failures.
Wealth and connections are vital tools towards expanding one's business and productivity in capitalist societies. Please read on scale of preference and opportunity cost here.
There is transfer of properties and wealth by the capitalist to whomever he or she chooses. In this regard, the capitalist can designate a recipient to inherit his/her properties at the time of death.
In capitalism, government have minimal intervention, and only a limited role to protect property right. You can read on fascism as a system of government here.
Capitalist societies offer rewards in the form of wages and salaries to majority of its populace.
You can read on black market, its advantages and disadvantages here
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Amazing facts in Economics
Notable points in Economics
A unitary elasticity of supply is seen when a change in price brings about a corresponding and proportional change in the quantity of goods or services supplied.
The graph below shows a unit elasticity of supply:
Below is an instance of a unitary elasticity of supply:
If a 100% increase in the price of wheat translates into a 100% increase in the production and supply of wheat, then the supply elasticity is said to be unitary elastic and its value is equal to 1.
Unitary elasticity is always equal to 1, that is: Es = 1
The supply curve runs diagonally and will pass through the center.
Supply elasticity is defined as the rate at which an increase in price of goods translates into its increased production and availability in the market. Supply elasticity is also termed as price elasticity of supply.
Consider the statements below:
If a 100% increase in the price of rice translates into a 100% increase in the production and supply of rice, the supply elasticity is said to be unitary elastic and its value is equal to 1.
If a 100% increase in the price of rice translates into a 50% increase in the production and supply (quantity) of rice, the supply elasticity is said to be inelastic and its value will be greater than zero and less than 1. In this case, the exact value is 0.5: (value of change in the quantity of rice divided by value of change in price of rice = 50/100 = 0.5).
The individual demand schedule is a table that shows the demand of a commodity that an individual (consumer) purchased at various prices, and at a particular time.
The table below shows an individual demand schedule:
|
Price in Naira (of a tuber of yam) |
Quantity demanded (per week) |
|
500 |
5 |
|
400 |
10 |
|
300 |
15 |
|
200 |
20 |
|
100 |
25 |
The market demand schedule is also referred to as an aggregate demand schedule, total demand schedule or composite demand schedule.
This is a table that shows the different commodities purchased by all the consumers or customers in the market.
The market demand schedule is the summation of the individual demand schedules, showing the demand of different customers for a commodity at a particular price. It is shown in the table below:
|
Unit price of commodity (Naira) |
Quantity demanded by consumer A (QA) |
Quantity demanded by consumer A (QB) |
Market demand (QA + QB) |
|
50 |
20 |
15 |
35 |
|
40 |
40 |
30 |
70 |
|
30 |
60 |
45 |
105 |
|
20 |
80 |
60 |
140 |
|
10 |
100 |
75 |
175 |
From the above table, notice that when the unit price of the commodity was 50 Naira, consumer A demanded 20 quantities while consumer B demanded 15 quantities.
Below are definitions of demand from the perspective of some notable professors:
The demand for goods is a schedule of the amounts that buyers would be willing to purchase at all possible prices at any one instant of a time.
Professor Mayers
Demand is the various quantities of goods that would be purchased per time period at different prices in a given market.
Professor Hibdon
The demand for anything, at a given price is the amount of it which will be bought per unit of time at the price.
Professor Benham
Generally, demand is defined as the willingness of a person, buyer or consumer to buy a specific quantity of goods or service at a given price and time.
From the above definitions, we can infer that the definition of demand is referenced to three major factors. These are:
Quantity of Goods Demanded
Price
Time