Theory question 102
Tools of Economic AnalysisThe following are the loans granted by a commercial bank to different categories of individuals. Use the information to answer the questions that follow: Bakers $8,000, Farmers $8,000, Miners $7,000, Retailers $5,000, Tailors $4,000, Teachers $6,000, Drivers $4,000, Fishermen $3,000
(a) Arrange the information in the form of a table grouping the individuals into: (i) Primary Sector; (ii) Secondary Sector; (iii) Tertiary Sector.
(b) Express the loan to each sector as a ratio of the total loan granted.
(c) Present the total loans granted to the sectors in a simple bar chart. (Use of graph sheet is essential)
Show the model answer
(a) Primary: Farmers $8,000, Miners $7,000, Fishermen $3,000 – total $18,000
Secondary: Bakers $8,000, Tailors $4,000 – total $12,000
Tertiary: Retailers $5,000, Teachers $6,000, Drivers $4,000 – total $15,000
Grand total = $45,000
(b) Primary 18,000 : 45,000 = 2 : 5; Secondary 12,000 : 45,000 = 4 : 15; Tertiary 15,000 : 45,000 = 1 : 3
(c) Sectors on the horizontal axis, loans ($) on the vertical axis; three bars of equal width and equal gaps with heights $18,000, $12,000 and $15,000; title, scale and labels.
Bakers and tailors make goods (secondary); retailers, teachers and drivers give services (tertiary).