Which of the following is a liability of commercial banks?

• A. deposits
• B. money at call
• C. loans to customers
• D. overdrafts

Personal income tax as a source of government revenue is increased when the

• A. tax rate is raised
• B. tax system is proportional
• C. retirement age is reduced
• D. tax base is contracted

Which of the following combinations is a veritable set of development indicators?

• A. Growth of governemnt expenditure and imports
• B. Growth of population and national income
• C. High fertility, literacy and school enrolment rates
• D. Low infant mortality and high per capital income and literacy rates

If as a result of fall in price of the commodity X, the quantity demanded of commodity Y falls, then commodities X and Y are

• A. complementary
• B. in joint demand
• C. luxuries
• D. substitutes

(ai) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

Identify the curves labelled X,Y,Z

(aii) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

State the direction of change in price and quantity with the introduction of subsidy

(bi) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

Calculate the total revenue of the producers before the introduction of subsidy

(bii) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

Calculate the total revenue of the producers after the introduction of subsidy

(c) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

Calculate the percentage increase or decrease in total revenue of the producers with the introduction of subsidy

(d) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

If the quantity demanded of maize increases from 20 to 40 bags as a result of a fall in price from $15 to $10, calculate the price elasticity of demand.

(e) The diagram below shows the effects of the introduction of a subsidy on the production of maize. Study the diagram and answer the questions that follow.

State the type of elasticity of demand in 2(d).

The tax imposed on good manufacture within a country is

• A. an excise tax
• B. a capital gain tax
• C. profit tax
• D. a sales tax

If price falls below the equilibrium

• A. Demand will equal supply
• B. Demand will be greater than supply
• C. Supply will be greater than demand
• D. Price will become indeterminate

when a firm is enjoying internal economies of scale, its?

• A. total cost of production is increasing
• B. average fixed cost is rising continuously
• C. average cost of production decreases as output increases
• D. average revenue and marginal revenue are decreasing

Part-time workers who desire full-time employment are:

• A. Underemployed and contribute to the unemployment statistic
• B. Underemployed but do not contribute to the unemployment statistic
• C. Not part of the labour force and do not contribute to the unemployment statistic
• D. Cyclical unemployment

A point X inside the production possibility curve indicates that

• A. resources are fully utilized
• B. the country is poor
• C. some resources are idle
• D. resources are not available