Correct Answer: A. income effect is negative

Correct Answer: C. marginal utility deceases as consumption increase

Explanation

diminishing marginal utility explains that as a person consumes an item or a product, the satisfaction or utility that they derive from the product reduces as they consume more and more of that product. This means that the satisfaction that is meant to be derived from consuming an additional unit of a commodity reduces as you consume more of that commodity.

Correct Answer: B. A standard of diferred payment

Correct Answer: D. machinery

Correct Answer: A. Relations with Colonial Masters

Explanation

One of the major problem of West African state is the relation of West African states with the colonial masters.

Correct Answer: A. increasing returns to scale

Explanation

In the long run, all the factors of production are variable and the cost is accumulated as a result of changes in the various levels of production. Average cost decreases in the longrun due to increasing economies of scale. This refers to the situation where, as the quantity of output goes up, the cost per unit reduces.

Explanation

A country may impose restriction on trade for the following reasons:

(i) To raise revenue.

(ii) To protect infant industries.

(iii) To maintain high level of employment.

(iv) To prevent the country from becoming a dumping ground.

(v) Restriction may serve as a retaliatory measure.

(vi) To prevent the importation of harmful goods.

(vii) To correct a deficit in the balance of payment.

(viii) To promote self - sufficiency

Correct Answer: B. currencies

Correct Answer: C. the non-availability of clllateral security

Correct Answer: A. less than normal profit

Explanation

The long run is a phase where all factors of production are variable and firms are able to adjust all costs. If its earnings are less than the normal profits, it will shut down. A firm should earn enough to cover its total cost per unit in order to remain in business.