Highlight four adverse effects of production activities on the environment and community.

Here are the answers to the questions:

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. 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.