Correct Answer: D. borrowers of money will gain

Correct Answer: D. privatization

Explanation

(a)A market economy is an economic system in which most of the means of production are owned and controlled by private individuals and in which the economic activity of the government is minimal. Also, in a market economy, resources are allocated through the price mechanism.

(b) The features of a market economy are:

(i) Firms are motivated by profit and households or individuals aim at getting maximum value for the money they spend.

(ii) The price mechanism is the key in the free market system. The answer to the questions what, how and for whom to produce lies in the price system.

(iii) There is consumer sovereignty. The wishes of the consumer ultimately determine what to produce, when to produce and at what price to produce.

(iv) Resources are efficiently allocated.

(v) There is free competition among economic units.

(vi) There exists private ownership of property.

Correct Answer: C. In order to specialize, a country must have absolute advantage

Correct Answer: C) Many factors leads to change in demand but only change in price affect change in quantity demanded

Explanation

This question is asking about the difference between change in demand and change in quantity demanded. These two terms may sound similar, but they have different meanings. Change in demand refers to a shift in the entire demand curve, while change in quantity demanded refers to a movement along the demand curve.

Option A states that all factors affecting change in demand also affect change in quantity demanded except income. This is incorrect because changes in factors such as taste, price of substitutes or complements, and future expectations can cause a shift in demand, but won't necessarily affect the quantity demanded.

Option B says that all factors affecting change in demand are not affecting change in quantity demanded except income. This is also incorrect because changes in many factors can affect both demand and quantity demanded.

Option C is the correct answer. It says that many factors lead to a change in demand, but only a change in price affects the quantity demanded. This is because a change in price causes a movement along the demand curve, while a change in any other factor leads to a shift in the demand curve.

Option D is incorrect because changes in income can affect both demand and quantity demanded, while changes in other factors such as taste or the price of substitutes may only affect demand.

In summary, the correct answer is option C because a change in price is the only factor that affects quantity demanded, while changes in other factors lead to a shift in demand.

Correct Answer: A. wage

Correct Answer: C. Ratio of change in income to the expenditure that brought it about

Correct Answer: C. that members can specialize in various functions

Correct Answer: C. tax rate increases as the tax base increases

Correct Answer: D. how scarce resource can be used efficiently