Correct Answer: D. Mixed economy

Explanation

(a)Meaning of international trade: International trade is the exchange of goods and services among countries

(b)Advantages of international trade:

(i) Increase in the total world output of goods and services. According to the principles of comparative advantage, countries would specialize and so use their resources

more effectively,

(ii) Greater varieties: The people of one country can import and therefore enjoy what they cannot produce themselves.

(iii) A source of foreign exchange of earnings.

(iv) It leads to the exchange of skills and technology.

(v) It opens up the world market for local producers.

(vi) It generates employment or those engage in international trade

(vii) It leads to various forms of co-operation among countries

(viii) It is a source of revenue to the government.

(ix) Income to traders

Correct Answer: B. B - D = O and M > X

Explanation

(a) A supply schedule is a table showing the various quantities of a commodity sellers are willing to sell at various prices, at a particular time.

(b) A market supply schedule shows the total quantities of a commodity which all the sellers of that commodity are willing to sell at various prices at a particular time. It is obtained by summing the individual supply schedules of all the sellers of the product. In the table below the individual supply schedule of Messrs P, Q and R are summed to obtain the market supply for the commodity.

(c) Exceptional demand:

(i) Fixed demand or perfectly inelastic demand e.g. salt.

(ii) Perfectly elastic demand.

(iii) Expectation of future increase in price.

(iv) Articles of ostentation: These are goods bought at higher prices because buyers believe such goods put them in high class in the society.

(v) Giffen goods: These are goods for which quantity demanded diminish when price falls.

Explanation

(a) Total amount budgeted: $6,250 + $2,150 + $4,300 + $2,400 + $2,900 = $18,000.

Education = \(\frac{6,250}{18,000}\) x 360 = 125°

Mining = \(\frac{2,150}{18,000}\) x 360 = 43°

Agriculture = \(\frac{4,300}{18,000}\) x 360 = 86°

Communication = \(\frac{2,400}{18,000}\) x 360 = 48°

Health = \(\frac{2,900}{18,000}\) x 360 = 58°

A pie chart showing budgetary allocations of a country for selected sectors of the economy.

(b) A budget surplus occurs when a governments planned revenue is more that its planned expenditure.

While a budget deficit occurs when the planned expenditure is more than the planned revenue.

Correct Answer: D. silver

Explanation

Commodity money are money who has value has money and commodity e.g. gold, silver coin, diamond, cattle, bead etc.

Correct Answer: B. its imports to rise

Correct Answer: D. sells its shares to members of the public

Explanation

A public limited company is a company that sells its shares to members of the public and whose liabilities don't affect the private properties of its owners in the event of a liquidation. It means that the liability is limited to the amount invested

Correct Answer: C. are free gifts of nature

Explanation

(a) A minimum price is a price fixed by legislation above the equilibrium, below which it is illegal to buy or sell.