Correct Answer: D. maximize their satisfaction

Correct Answer: A. an increase in output-input ratio

Correct Answer: B. natural growth rate

Correct Answer: A. the existence of competition

Correct Answer: C. fixed costs

Explanation

Examples of general and administrative expenses are: Accounting staff wages and benefits. Building rent. Consulting expenses. Corporate management wages and benefits (such as for the chief executive officer and support staff) Depreciation on office equipment. Insurance. Legal staff wages and benefits. Office supplies. Fixed costs are those costs that must be incurred in fixed quantity regardless of the level of output produced.

Correct Answer: B. Production possibility curve

Explanation

The digram above represent the production possibility curve which is also known as production possibility frontier, production possibility boundary, or transformation curve.

Correct Answer: D. Marginal product of the variable factor

Correct Answer: B. a restrictive monetary policy

Explanation

The purpose of restrictive monetary policy is to ward off inflation. It's called restrictive because the banks restrict liquidity. It reduces the amount of money and credit that banks can lend. It lowers the money supply by making loans, credit cards and mortgages more expensive.

Explanation

(a) i. Free trade area

- Member countries remove all kinds of restrictions in trade among themselves

- Member countries have no common tariff policy in their trade with outsiders. Each country determines its own tariff policy.

ii. Common market

- Member countries remove all kinds of restrictions on trade long themselves

- Member countries have a common tariff policy against non-members.

- Free movement of factors of production

(b) Advantages

i. Existence of a large market such that firms have access to the market of member countries.

ii. Large scale production with possibility of regional specialization

iii. There is more efficient allocation of resources, since resources move about freely in the region

iv. Development may spread from more advanced countries to less developed ones

v. It fosters peace, unity and understanding among members.

vi. Consumers have a wider market to choose from, and at better prices.

Disadvantages

i. Trade from cheaper sources outside the region are diverted i.e cheaper sources are prevented from entering the union

ii. Developed members may develop at the expense of the weak and poor ones.

iii. There is loss of revenue which affects the growth of the poorer members.

Correct Answer: B. increasing population

Explanation

Underdevelopment in Africa is as a result of many contributing factors which include poverty, illiteracy, very large extended families, corruption and lack of accountability. Poverty is one of the causes of underdevelopment in Africa. Unfortunate events such as slave trade, wars and other bad incidents