Correct Answer: C. a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold

Explanation

If supply increase while the demand remains constant, there will be an excess supply over demand which will lead to a decrease in the equilibrium price and an increase in equilibrium quantity.

Correct Answer: C. deflation

Correct Answer: C. a single seller

Correct Answer: C. Perfectly elastic

Explanation

The foreign market is perfectly competitive while the home market is monopolistic. Since foreign market is a perfect competitor then the monopolist is faced with average revenue or horizontal demand curve or price line.

Correct Answer: A. regressive tax

Explanation

The Central Bank uses certain instruments to control the supply of money in any economy. Such instruments are:

(i) Open market operation: OMO involves the buying and selling of securities by the central bank in order to control the volume of money in the economy.

(ii) Discount rate: This is also known as Bank Rate. It is the rate at which the central bank charges interest on commercial and other financial institutions for discounting bills of exchange or lending to commercial banks. If the central bank wants to curtail bank lending, it will raise its discount rate, thereby forcing other rates to rise. This will make lending unfavourable to the public, thereby reducing the volume of money in circulation. On the other hand, if the CBN wants to pump money into the economy, the discount rate will be reduced.

(iii) Special directives: These are special directives given to the commercial banks and other financial institutions by the central bank as to the areas of priority which their lending activities should follow.

(iv) Moral suasions: This is more or less an appeal to the commercial banks by the central bank to behave in certain ways.

(v) Special deposits:The commercial banks are compelled by law to keep certain percentages of their deposits with the central bank. If this is high, it will reduce the volume of loans given to the public and vice versa.

(vi) Cash ratio/Liquidity ratio: This is also known as cash reserve ratio or liquidity ratio. The Central bank uses this ratio to increase or decrease the volume of money in circulation in a country. Like other methods, if the central bank wants to increase the amount of money in circulation in the economy during a deflationary period, it will lower the ratio thereby expanding the lending abilities of commercial banks and vice versa.

Correct Answer: D. higher price of goods

Correct Answer: D. I,II and III only

Correct Answer: B) opportunity cost

Explanation

This Economics question is asking about a concept that explains what happens when a government decides to use resources to build a school instead of a highway. The question wants to know which of the provided options best describes this concept.

The correct answer is option B, which is opportunity cost. Opportunity cost is the value of the next best alternative that is forgone when a choice is made. This means that when the government chooses to use resources to build a school, the opportunity cost is the highway that could have been built with those same resources.

Opportunity cost is an important concept in Economics because it helps individuals and governments make better decisions by considering the costs and benefits of different choices. By understanding opportunity cost, they can make choices that maximize their resources and achieve their goals.

To learn more about opportunity cost and other important Economics concepts, please see the relevant sections of your recommended Economics textbooks.

Correct Answer: D. Oil deposits