Correct Answer: C. Diminishing returns has set in

Explanation

diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.

Correct Answer: A. is not affected by extreme values in a data

Explanation

The mean is an important measure because it incorporates the score from every subject in the research study. It includes all the data in a set to arrive at an answer.

Explanation

Sources of finance that are available to a public limited company are:

(i)Loan and overdrafts from Banks: Loans can be obtained from commercial or development banks.

(ii) Sales of shares: It can obtain funds from the public by issuing shares.

(iii) Sales of debentures:These are long term loans obtained from the general public at a fixed interest.

(iv) Bill of exchange: This is a document duly signed by the debtor's bank to the creditor and the creditor cashes the money with some discounts.

(v) Equipment leasing: Equipment can be leased out by companies for money.

(vi) Retained (ploughed back) profits: The profits made by the company can be set aside for re-investment

(vii) Trade credit:Raw materials can be purchased by the company on credit.

(viii) Hire purchase: Facilities can be granted to company to buy and pay on installment.

Correct Answer: B. Amount of borrowing decreases

Correct Answer: B. more by producers

Explanation

If the demand for a good is elastic it means a change in price would affect a change in quantity demanded. Now if the demand for that good is more elastic than its supply, the tax burden is borne by the producer. This is because, when there is an increase in price it will lead to a decrease in the quantity demanded, consumers would most likely move on to consume a substitute, hence the producer of that product would be left to bear the burden of any other additional increment in taxes or running cost.

Correct Answer: D. P4

Explanation

(a) Factors which encourage entrepreneurs to adopt division of labour are:

(i) Division of labour makes it possible for more workers to be employed. This leads to an increase in output.

(ii) Time is saved in division of labour because no time is lost in moving from one stage of production to the other.

(iii) Division of labour makes the use of machine possible at each stage of production. This leads to better and increased production.

(iv) Specialists handle various aspects of production in division of labour. This leads to innovations and sometimes, inventions.

(v) Since each worker on the production line does only one aspect of the production process, the worker experiences less fatigue.

(vi) In division of labour, one person is responsible for an aspect of production on which he concentrates his efforts and skill. With time, the individual's skill improves

(vii) With the use of machinery, various type of technology are developed to further facilitate production.

(b) Factors.that are capable of limiting the practice of division of labour are:

(i) The level of technology sets a limit to the extent of specialization. New technological break through may allow further specialization.

(ii) The nature of the product may not give room for division of labour e.g barbing, hairdressing and driving.

(iii) In the field of Creative art, division of labour is limited because, individual talent is all important and works cannot be mass-produced.

(iv) A small market discourages mass production and hence, division of labour. If the market is large enough to absorb sizable quantities of the product, it will encourage division of labour.

(v) Mass production requires factor inputs in suitable quantities and qualities. The extent to which these factors are available deter-mine the degree of specialization in the industry.

Correct Answer: C. market clearing price

Explanation

Market-clearing price is another term used interchangeably with equilibrium price. Equilibrium price is a common economics term that refers to the exactprice at which market supply equals market demand.

Correct Answer: B. accepts deposits

Correct Answer: D. loss of controlling interest