The situation where government revenue in a fiscal year is less than its expenditure is referred to as

• A. budget deficit
• B. balanced budget
• C. budget surplus
• D. budget statement

A company's expenditure on raw materials is regarded as?

• A. explicit cost
• B. implicit cost
• C. prime cost
• D. average cost

Explain how the following factors will affect the demand for a commodity X:

(a) a decrease in the price of a implement Y; [5 marks]

(b) an increase in consumers' disposable income; [5 marks]

(c) a decrease in the apply of a substitute P; [5 marks]

(d) an increase in income tax. [5 marks]

Which of the following will increase the nominal value of national income?

• A. High rate of inflation
• B. increase in the value of money
• C. Increase in import
• D. High rate of subsistence production

A society that operates below the production possibility curve is using its productive resources

• A. optimally
• B. efficiently
• C. inefficiently
• D. maximally

An accurate census is important to a country because it helps?

• A. in solving unemployment problem
• B. to ensure equitable population redistribution relative to natural resources
• C. in deciding on the creation of more local government
• D. in providing a second basis for formulating development policy

In which situation is it likely that the demand for labour would be inelastic?

• A. Labour and capital are close substitutes
• B. Labour costs are only a small proportion of total costs
• C. Demand for the final product that the labour produces is elastic
• D. A large quantity of unemployed labour is available in the economy

Personal distribution of income implies?

• A. the way in which income is distributed among specific households or spending units
• B. the distribution of income according to basic resources
• C. dividing income according to industries
• D. dividing income between personal taxes, consumption expenditures and savings

Fiduciary issue is that part of?

• A. the issue of notes backed entirely by gold
• B. a country's currency that is not negotiable
• C. the issue of notes not backed by gold
• D. a country's currency officially issued

Which of the following statement is TRUE of the effect of changes in demand and supply on price?

• A. A decrease in supply will lead to fall in price and a fall in the quantity bought and sold
• B. An increase in demand will lead to a fall in price and quantity bought and sold
• C. A decrease in demand will lead to a rise in price and in the quantity bought and sold
• D. An increase in supply will lead to a fall price and a rise in the quantity bought and sold