Correct Answer: B. an increase in the level of aggregate demand

Correct Answer: C. new wants always rise

Explanation

It means that people never get enough, that there's always something else that they would want or need. Unlimited wants and needs are one half of the fundamental problem of scarcity that has plagued humanity since the beginning of time. The other half of the scarcity problem is limited resources.

Correct Answer: D) one input, at least, is varied

Explanation

This question is asking about the short run horizon of production. The short run horizon refers to a period of time where some inputs to production cannot be changed, while others can be changed. The question is asking which inputs can be varied in the short run horizon of production.

Option A says that all inputs can be varied in the short run horizon of production. However, this is incorrect as some inputs cannot be changed in the short run.

Option B says that one input is varied in the short run horizon of production. This is partially correct, but not entirely.

Option C says that all inputs are fixed in the short run horizon of production. This is also incorrect, as some inputs can be changed in the short run.

Option D, which is the correct answer, says that at least one input is varied in the short run horizon of production. This means that while some inputs cannot be changed in the short run, at least one input can be changed.

It is important to note that in the long run, all inputs can be changed. However, in the short run, at least one input remains fixed while others can be changed.

To learn more about this, please read the relevant sections of the recommended textbooks.

Explanation

(a)(i) Textbook and shirt

(ii) Because the textbook and the shirt are the items at the top of his scale of preference which can be purchased with his $7.00

(b)(i) The shoes, the trouser and the notebook

(ii) Because those three items are the next best alternatives, which can be purchased with $7.00

(c)(i) Textbook, shirt and shoes

(ii) Trouser, the notebook and pay $6.0 out of his school fees.

(d) A scale of preference is a list of wants arranged in order of importance. Opportunity cost is the alternative want or commodity forgone

(e) A scale of preference helps an individual, a firm or a government to make rational use of available resources to satisfy the most important wants.

Correct Answer: A. exports of such a country become cheaper

Correct Answer: B. acting as intermediaries between government and borrowers

Explanation

Commercial banks collect deposits from savers and lend these deposits to borrowers. This process of intermediation allows savers to earn interest on their deposits and borrowers to obtain the funds they need to invest in businesses and other productive activities. Commercial banks also provide other services that can help economic development, such as:

Making payments: Commercial banks facilitate payments by providing checking accounts and other payment services. This makes it easier for businesses to conduct transactions and for consumers to purchase goods and services. Providing credit: Commercial banks provide loans to businesses and consumers. This helps businesses to expand and create jobs, and it helps consumers to purchase homes and other goods and services. Investing in the community: Commercial banks invest in the community by making loans to small businesses, providing financial education, and supporting local charities. This helps to create jobs and improve the quality of life in the community.

Correct Answer: C. value added

Explanation

The output approach measures national output called gross domestic products (GDP) in terms of the values added by each of the sectors of the economy.

Correct Answer: D. wage rate

Explanation

(a)(i) The intermediate input is the raw materials.

(ii) In the calculation of the national income, the value of intermediate input is deducted from the value of sales in order to avoid double counting or the value of intermediate input is not added using the value added approach.

(iii) The Gross Domestic Product (GDP) of the country is calculated as the Value of Sales - Intermediate Input,

i.e $(200,000 + 400,000) - $(100,000 + 60, 000) = GDP $600,000 - $160,000 = $440,000)

or

Firm A: $80,000 + $16,000 + $4,000 = $100,000.

Firm B: $160,000 + $40,000 + $140,000 = $340,000

GDP = $100,000 + $340,000 = $440,000

(b)(i)The total amount of depreciation of the country can be calculated as Firm A's Depreciation + Firm B's Depreciation

$16,000 + $40,000 = $56,000.

Total Depreciation = $56,000

(ii) The net domestic product (NDP) is calculated as GDP - Depreciation i.e.,

$440,000 - $56,000 = $384,000, NDP = $384,000.

Correct Answer: C. Make the best use of scarce resources