Correct Answer: B. Perfectly inelastic

Explanation

(a) Public debt is the total amount owed by a country that is made up of internal and external debts.

(b)(i) To finance emergencies like flood, earthquakes, etc.

(ii) To finance wars.

(iii) To service loans.

(v) To finance huge capital projects.

(v) To finance the balance of payments deficit.

(vi) To support a country's budget

(c) i. A large external debt can make a country susceptible to the whims and caprices of external creditors.

(ii) If a large internal debt is sustained by a high rate of interest, it will reduce private investment that is needed to accelerate growth and development.

(iii) A large domestic debt will influence the distribution of income in a country

iv. Reduced the availability of foreign exchange.

(v) The servicing of external debt will involve an outflow of resources that can otherwise be used in economic development.

(vi) Servicing of debt will limit the government's ability to provide social capital.

Correct Answer: B) invisible

Explanation

This question is asking what determines the price of goods and services in a capitalist economy. The options provided are government, invisible, producer, and consumer. The correct answer is B, invisible.

In a capitalist economy, the price of goods and services is determined by the forces of supply and demand, which are sometimes referred to as the invisible hand. This means that prices are not set by the government or any other central authority, but rather by the interactions between producers, who supply goods and services, and consumers, who demand them.

When there is high demand for a product but limited supply, the price tends to go up. Conversely, when there is low demand but high supply, the price tends to go down. The invisible hand of the market helps to ensure that prices are determined fairly and efficiently, based on the needs and wants of both producers and consumers.

Therefore, Option B, invisible, is the correct answer to this question. It is important to note that while the government can influence prices through policies such as taxes and subsidies, ultimately it is the market forces of supply and demand that determine the prices in a capitalist economy.

Correct Answer: C. derived demand

Correct Answer: C. accounts have to be publicized

Correct Answer: D. rise

Correct Answer: A. Distribution.

Correct Answer: B. use scientific methods to explain observed phenomena

Explanation

Economics is regarded as a science because it uses scientific methods to build theories that can help explain behaviour of individuals, groups and organisations.

Correct Answer: D. agriculture

Correct Answer: A. Recession