Correct Answer: C. preferred stock

Correct Answer: B. positive

Explanation

Cross elasticity of demand measures the responsiveness of the quantity demanded of one good to a change in the price of another good. If two goods are substitutes, an increase in the price of one will lead to an increase in demand for the other, and vice versa. Therefore, the cross elasticity of demand for substitutes is positive.

Explanation

(a) →A specific tax is a tax that is levied on a fixed rate per unit of output i.e it is a fixed tax sum imposed per unit of a commodity.

→Value added tax are tax levied on businesses at every stage of production and distribution. VAT was introduced in 1994 to replace sales tax and it is a type of indirect taxes.

(bi) The effects of an indirect tax on a commodity when demand is perfectly inelastic is borne by the consumer. In this case, the whole tax burden can easily be shifted to the consumer by the producer or seller in the form of higher prices because the increase in price does not bring any change in quantity demand.

From the diagram above, the tax is represented by AB. This tax increases the manufacturer's cost of production. Since the same quantity is purchased irrespective of the price, the manufacturer increases the price of the production from P1 to P2. The consumer bears the full burden represented by rectangle P1BAP2.

(ii) If the demand for a commodity is perfectly elastic, the producer or seller will bear the whole burden of taxation. This is so because any attempt to increase price will make the demand for the product fall to zero. The tax burden under this condition cannot be passed to the consumer.

In the diagram above, the tax is represented by EF. Since the tax increases the manufacturer's( seller) cost of production, the quantity supplied decreased from Q1 to Q2. However, the price remains at P since any attempt to increase price will make demand to drop to zero. The manufacturer or seller, therefore, bears the whole tax burden represented by rectangle PEFG.

Correct Answer: C. downward sloping

Explanation

TheDemand Curve for a Monopolistic Market is of the same form as a regular Demand Curve. It is downward sloping because of the Substitution Effect, the Income Effect, and the Law of Declining Marginal Utility.

Correct Answer: A. level of income

Correct Answer: C. Tax

Explanation

Tax, government generate income or revenues by taxing individual and corporate bodies. This process is referred to as taxation. Taxation is the act or method of imposing a compulsory levy by the government or it's agency on individuals and firms or on goods and services. Tax is the compulsory levy imposed by the government or it's agency on individuals and firm or on goods and services

Correct Answer: A. encouraging the use of retaining schemes

Explanation

Frictional unemployment is the type of unemployment which exists in any economy due to people being in the process of moving from one job to another. It occur when people are switching between jobs or are redundant and searching for jobs.

For example, if you graduate from university, you can

Correct Answer: A. poverty alleviation

Correct Answer: D. Poll tax

Correct Answer: A. private enterprises and the government