Explanation

The difference between National Income and Personal Income is that:

(a) Personal income is the amount of money received by individuals or households over a given period of time received by individuals or household over a given period. While National income is the money value of the total volume of goods and services produced or the total income earned in a given country over a period of time, usually a year.

(b)Uses of National Income data are as follows:

(i)Economic planning: It provides basic and comprehensive data on the contribution of various sectors of the economy to national output.

(ii)Influences foreign investors: It attracts foreign investment to a country, based on the level of its national income, as investors usually seek countries with rich or fast growing markets

(iii)Assessment of economic performance: The national income statistics are used in assessing the performance of the economy, in other to know the effectiveness or utilization of the productive resources.

(iv) Measurement of standard of living: It shows the general level and prosperity of the people over a given period of time, usually a year.

(v)Redistribution of income: It enables governments to design policy towards redistributing national income and the allocation of resources and revenue among

sectors, within the nation

(vi)Index for classification: It is used for classifying nations into the developed nations and the developing ones in respect of their standard of living

(vii)Estimation of Assets and liabilities: It is also used to estimate the liabilities and assets of nations.

(viii) It equally determines the level of contribution into the international organizations as countries with more per capital income are expected to contribute

more than the poor ones.

(ix) It can also be used as the basis of supply of technical aid and assistance to the needy countries. The international organizations tends to give more technical assistance to poorer nations and this is usually identified by comparing the per capital income of nations.

Correct Answer: A. a favourable balance of trade exists

Explanation

(a) A discriminating monopolist is the one that charges different prices for the same commodity in different markets.

(b) Price discrimination may be possible and profitable under certain conditions. These are:

(i) Market segmentation: it must be possible to separate the markets into different segments or classes.

(ii) Different price elasticities of demand should exist in the different markets.

(iii) Little cost of separating the markets: the cost of separating the markets should be minimal so that it does not erode the profit.

(iv) Ignorance on the part of the consumer: if the consumer is not aware of the price in other markets, the monopolists can charge higher prices.

(v) Higher transport cost: if the transportation cost is high, it will stop consumers from moving from one market to the other.

(vi) No possibility of resale of product: the two markets must be distinct such that buyers in one market cannot resell to those being asked a higher price in another market.

(c)(i) Increase in revenue earnings.

(ii) Reduction in wastage: since the monopolist sells in different markets, the possibility of wastage is reduced.

(iii) Decrease in cost of production: since the monopolist can produce on a large scale, average cost of production is reduced.

(iv) Increase in sale/wider market.

Correct Answer: D. make rational decisions

Correct Answer: A. determine how income is to shared

Explanation

The level of sectoral performance is important because it can indicate the strength of the economy and the potential for future growth. By measuring the level of sectoral performance, governments can identify areas where the economy is doing well and areas where it needs improvement.

Correct Answer: A. K

Correct Answer: B. capital account transaction

Explanation

Capital account transaction is the net balance of international investments. In order words, it keeps track of the flow of money between a nation and its foreign partners

Correct Answer: A. experiencing a high rate of emigration

Explanation

Emigration; is the act of leaving one's own country to settle permanently in another; moving abroad. A population decline (or depopulation) in humans is a reduction in a human population caused by events such as long-term demographic trends, as in sub-replacement fertility, urban decay, white flight, or rural flight, or due to violence, disease, or other catastrophes.

Correct Answer: D. borrow more money

Explanation

In a period of rapid economic growth, demand in the economy could be growing faster than its capacity can grow to meet it. This leads to inflationary pressures as firms respond to shortages by putting up the price. We can term this demand-pull inflation. Therefore, reducing the growth of aggregate demand (AD) should reduce inflationary pressures.The Central bank could increase interest rates. Higher rates make borrowing more expensive and saving more attractive. with this, individuals would be discouraged from borrowing and rather be lenders so as to enjoy high return on investment.

Explanation

Advantages of Joint Stock company are:

(i) There is easy transfer of shares.

(ii) There is continuity of existence.

(iii) There is limited liability of shareholders.

(iv) Access to larger capital (in the case of a PLC, sales of shares, stocks and debentures).

(v)It has separate legal entity, which makes it possible for the enterprise to sue and be sued in its own name.

(vi) It enjoys internal economies since it can produce on a large scale.

(vii) Joint stock company attracts men of ability and skill to work for it.

Disadvantages of Joint Stock company are:

(i) Less flexibility arising from size.

(ii) There is high cost of incorporation.

(iii) Due to its size, there may be delays in the making of decisions.

(iv) Separation of ownership from control.

(v) Shareholders' interest not always identical with those of paid managers who exercise the function of control.