Correct Answer: A. consumer

Correct Answer: C) MR equal MC

Explanation

In this Economics question, we are talking about a monopolist. A monopolist is a company or individual that has complete control over the market for a particular product or service. In the short run, the monopolist can set the price of the product or service they offer. The question asks us about the equilibrium point for a monopolist in the short run.

The equilibrium point is the point at which the supply of a product or service meets the demand for that product or service. At this point, there is no excess supply or demand, and the market is said to be in balance. The question asks us how the monopolist can achieve this equilibrium point.

We are given four options to choose from, and we need to choose the correct one. Option A states that the price should equal MC (Marginal Cost). This is incorrect because the monopolist would make zero profit if they set the price equal to MC.

Option B states that the price should equal MR (Marginal Revenue). This is also incorrect because the monopolist would not be maximizing their profit if they set the price equal to MR.

Option D states that MR should equal AR (Average Revenue). This is also incorrect because MR is always less than AR for a monopolist.

The correct answer is Option C, which states that MR (Marginal Revenue) should equal MC (Marginal Cost). This is the correct answer because the monopolist can maximize their profit by setting the price at the point where MR equals MC. At this point, the monopolist can produce the quantity of goods that will maximize their profit.

To summarize, the correct short-run equilibrium for a monopolist is achieved when MR equals MC. This is the point at which the monopolist can maximize their profit.

Explanation

Merits of a joint stock company are:

(i) There is a perpetual existence because the death of any shareholder does not affect the business.

(ii) It has enough capital to engage specialists.

(iii) Joint stock company operates on a large scale and therefore enjoys the economies of large scale.

(iv) The company enjoys limited liability. The shareholders' liability is limited to the amount of shares held or agreed to purchase.

(v) It is a separate legal entity: It can sue and be sued as a corporate body.

(vi) The company can raise large capital by offering shares to the public.

(vii) It can easily raise loans, e.g debentures.

(viii) There is no limit to expansion.

(ix) There is democracy in its management: Shareholders are entitled to attend the annual general meeting and in the election of members of board of directors they have equal right to vote and be voted for.

(x) There is greater opportunity to undertake research programmes.

Explanation

(a) i. Capital expenditure: These are expenses made by the government on physical assets that are durable in nature, On the other hand, Recurrent expenditure: Those are expenses that are made by the government on regular basis.

ii. Fiscal policy: This is the use of taxation and government spending to achieve desired economic objectives while Monetary policy involves the use of instruments such as interest rates; open market operations, etc. to regulate money Supply to achieve desired economic objectives.

(b) i. To raise revenue for administration, defense and to provide social services.

ii. To regulate the importation of some commodities considered harmful. The taX makes the goods expensive to deter consumers.

iii. To redistribute income between the rich and the poor. This is done through the PAYE System where the rich pay higher tax than the poor.

iv. To protect local infant industries from foreign competition.

v. To correct a balance of payments problem by imposing taxes on imports to increase their prices to discourage imports.

vi. To check deflation or inflation

vii To prevent dumping. Taxes are imposed on dumped goods to raise their prices to discourage imports

viii As a retaliatory measure against other countries.

ix. To create and protect employment in the domestic economy.

Correct Answer: A. percentage rate remains constant as the tax base increases

Explanation

(a)Proportional tax: The rate of tax is the same , irrespective of the level of income. If a tax leads to both the rich and the poor paying the same proportion or percentage of their incomes as tax, then the tax is called proportional tax.

(b) Progressive tax:This is a form of tax in which tax rate increases as income increases. It takes a larger percentage of income from people with larger incomes. A progressive tax reduces inequality of income distribution. A good example is the PAYE.

(c) Regressive tax:The higher the income, the lower is the rate of tax. It is a tax system where tax rate decreases as income increase. In this type of taxation, a poor person pays a higher proportion of his income, e.g, poll tax.

Correct Answer: C. Emigration of skilled workers to foreign countries

Correct Answer: B. 15

Correct Answer: D. collection of deposits from the public for investment

Correct Answer: B. marginal cost curve cuts the marginal revenue curve from below