Correct Answer: A. zero and decreasing

Correct Answer: B. public company

Explanation

An equity share, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. This is mainly associated with a public limited liability company

Correct Answer: B. Water in the ocean

Explanation

Free goods are goods whether consumer goods or productive inputs, which are useful but not scarce i.e. they are in sufficiently abundant supply that all agents can have as much of them as they wish at zero social opportunity cost e.g. air, water, by -product etc.

Correct Answer: D) Price control is prominent in me commodity and input markets

Explanation

This Economics question is asking which statement is not true about price mechanism. Price mechanism refers to the way prices of goods and services are determined by the forces of demand and supply in the market. The options given are:

Option A: Equilibrium price is determined by forces of demand and supply

Option B: Individual households and firms pursue personal interest

Option C: Producers and consumers are rational in decision making

Option D: Price control is prominent in me commodity and input markets (Correct)

Option A is true because equilibrium price is the price at which quantity demanded equals quantity supplied in the market.

Option B is also true because firms aim to maximize profit while households aim to maximize utility.

Option C is also true because producers and consumers make decisions based on their own self-interest, and they do so rationally by weighing the costs and benefits of their decisions.

Option D is the correct answer because price control is not prominent in commodity and input markets. Price control refers to the government setting prices for goods and services, which is not common in these types of markets.

In summary, the correct answer is D because price control is not common in commodity and input markets. The other options are true statements about price mechanism.

Explanation

(a)(i) Cost-push inflation; occurs when increases in cost of production are passed on to consumers in form of high prices while Demand — pull inflation occurs when consumers have high purchasing power, aggregate demand increases without corresponding increase in supply.

(b) Inflation can be controlled in the following ways:

(i) It can be controlled by increasing the output to bring down the prices.

(ii) It can be controlled with the use of fiscal measures to reduce the amount of money in circulation e.g. increase in direct taxation.

(iii) The use of contractionary monetary measure, by increasing the bank rate, open market operation, etc. can also control inflation.

(iv) The use of price control by government officials and the application of rationing to maintain the price level is also another inflation control measure.

(v) Another way is by granting subsidy to enterprises and companies producing essential products to reduce cost of production and the products' prices.

(vi) Removing bottlenecks in the distribution system i.e. provision of good roads, storage facilities, etc is another means of controlling it.

(vii) Government should discourage importation from countries already experiencing inflation, as a way of controlling it.

(viii) Use of income policies such as wage freeze, delay in promotions, etc. is a way of controlling inflation.

Correct Answer: C. resources are not in adequate supply

Explanation

Goods and services that satisfy human wants are produced with the help of resources such as land, labour, capital and enterprise. These resources are scarce while wants are unlimited. Due to scarcity of these resources, an economy cannot produce all that goods and services as required by its citizens.

Correct Answer: D. wages increase

Explanation

Increment in wages and salaries will lead to inflation. This happens when business owners raise the minimum wage, leading to a corresponding rise in the prices of their goods or services, thereby causing inflation. Remember inflation happens when there is excess money in the economy, thereby causing a general rise in prices.

Correct Answer: B. prices of essential goods

Correct Answer: D. N1,200 Million

Correct Answer: D. 18 and 60