Here are the answers to the questions:
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Highlight four adverse effects of production activities on the environment and community.
- Environmental pollution: Release of harmful substances into the air, water, and soil.
- Resource depletion: Over-extraction of natural resources like minerals, forests, and water.
- Habitat destruction: Clearing land for factories and infrastructure leads to loss of biodiversity.
- Community health issues: Exposure to pollutants can cause respiratory diseases, cancers, and other health problems for nearby residents.
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State four factors that influence the level of national income in a country.
- Availability of natural resources: Abundance of land, minerals, and energy sources.
- Capital formation: Investment in machinery, infrastructure, and technology.
- Human capital: The quality and quantity of skilled labor and entrepreneurship.
- Technological advancement: Innovation and adoption of new production methods.
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State four ways of determining prices for commodities.
- Market forces (supply and demand): Prices are set at the equilibrium point where quantity supplied equals quantity demanded.
- Cost-plus pricing: Adding a markup percentage to the total cost of production.
- Government regulation: Imposing price ceilings or floors on certain essential commodities.
- Competition-based pricing: Setting prices based on what competitors are charging for similar products.
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List four types of source documents.
- Invoices: Documents requesting payment for goods or services provided.
- Receipts: Proof of payment for a transaction.
- Purchase orders: Documents issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
- Bank statements: Records of all transactions in a bank account over a period.
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State four principles of a good tax system.
- Equity (Fairness): Taxes should be levied according to the ability to pay, ensuring a fair distribution of the tax burden.
- Certainty: Taxpayers should know exactly what, when, and how much tax they are required to pay.
- Convenience: The method and timing of tax payment should be easy and convenient for the taxpayer.
- Economy (Efficiency): The cost of collecting taxes should be minimal compared to the revenue generated.
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Mention four problems faced when computing price indices (CPI).
- Quality changes: It is difficult to account for improvements or deteriorations in the quality of goods over time.
- New goods and services: The basket of goods needs frequent updating to include new products, which is a complex process.
- Substitution bias: Consumers tend to substitute away from goods whose prices have risen, but the fixed basket of goods in CPI doesn't immediately reflect this.
- Sampling errors: Data collection relies on samples of prices and outlets, which may not perfectly represent the entire market.
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