(1a)
Price index = current year /base year × 100

For Commodity A = 25/20 × 100 = 128%

For Commodity B = 10/5 × 100 = 200%

For Commodity C = 30/15 × 100 = 200%

For Commodity D = 50/40 × 100 = 125%

For Commodity E = 450/200 × 100 = 225%

(1b)
Total prices in 1971 = 25+10+30+50+450 = N565

Total Prices in 1970 = 20+5+15+40+20 = N280

:. Overall price index P.I = 565/280 × 100 = 201.8%

(1c)
Total prices in 1971 = 25+10+30+50+450 = N565

Total Prices in 1970 = 20+5+15+40+20 = N280

Total prices level between 1970 and 1971 = 565+280 = N845

Total prices level change between 1970 and 1971 = 565-280 = N285
:. General percentage change between 1970 and 1971 price level = 285/845 × 100 = 33.73%

(1d)
– Inflation : As a result of general increased change in price of commodities, the value of money starts reducing since consumers will need more money to buy the same goods
– Change in demand : The increased change in price level will cause the general shift in demand of goods previously patronized to a new lesser quality and quantity
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(3a)
Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output). It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.

(3b)
(i)Climate : The conditions of climate also influence the volume of production. If there exists a favorable climate and adequate rainfall, then production will increase and vice-versa.

(ii)Efficiency the people : The volume also depends on the efficiency of the people. If efficiency of the people is higher, production will be high and vice-versa.

(iii)Transport facilities: Transport facilities also determine the volume of production. Better transport and communications enable the free movement and distribution of goods within a country. They also create adequate demand for the raw materials

(iv)Availability of capital: Capital is an important factor in determining the volume of production. Capital includes both fixed capital and variable capital like machinery, buildings. raw materials, electricity etc.

(v)Political conditions : Political conditions of a country also influence the volume of manufacturing or production. If there exists political instability, Production will not increase. In other words production will be organized on large scale.
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(4a)
Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product.

(4b)
(i)Administrative Factor : An effective, honest, strong administration can give big push to the economic development. Corrupt , dishonest and inefficient administration is an obstacle in the way of economic development.

(ii)Social and Cultural Factors : If the attitude of the people is positive towards development then they can made rapid progress. For the economic development it is the necessary that people should leave the useless customs and they start thinking about their economic conditions.

(iii)Transport and Communication : According to modern economist transport and communication is a key to economic development. Transport means Railways, roads, Air and water transport. While post offices, telephone, telegraph, internet, radio and TV is included in the communication resources.

(iv)Power Resources Energy Resources : Energy resources like oil, gas, electricity. Energy resources are very useful in increasing the production of various sectors like agriculture, industry and transport.
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(5a)
(i) To facilitate the expansion and balanced growth of international tree i;e to ensure that payment does not constitute an impediment of trade
(ii) To eliminate Exchange control
(iii) To serve as clearing house for member of nations
(iv) To provide long term capital to members countries for economic reconstruction and development.

(5b)
(i)Removal of subsides on petroleum and fertilizer
(ii)Adjustment of producer price of agricultural commodities

(5c)
(i) Low level of trade : The level of trade among Western African countries are very low
(ii) Poor infrastructure facilities between member countries constitute a problem to ECOWAS
(iii) Fear of domination by larger member states : This is also the fear that the relatively larger and rich nations will dominate the community. The lesser and prosperous nations has thus been reluctant to come to an agreement with other West African countries
(iv) Different exchange unit : Member states have different currencies with different values. This makes exchange of goods and services difficult
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(7a)
market is defined as the sum total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities.

(7b)
(i)Perfect market is a hypothetical situation, which does not apply in the real world. Conversely, while Imperfect market is a situation that is found in the present day world.

(ii)perfect market deals in which there are a large number of buyers and sellers, and the sellers supply identical products to the buyers; while Imperfect market occurs when one or more conditions of the perfect competition are not met.

(iii)When it comes to perfect market, there are many players in the market, but while in imperfect market, there can be few to many players, depending upon the type of market structure.

(iv)perfect market, the sellers produce or supply identical products. As against, while in imperfect market the products offered by the sellers can either be homogeneous or differentiated.