Correct Answer: B. Helps in the utilization of scarce resources.

Correct Answer: D. inductive reasoning

Explanation

Inductive reasoning is a type of logical thinking that involves forming generalizations based on specific incidents you've experienced, observations you've made, or facts you know to be true or false. For a fact, we all know that privatization of public enterprises leads to efficiency in those enterprises, therefore the statement above ''The privatization of public enterprises will lead to the efficient management of resources in the economy'' for fact, has been proven to be true from experience and observations.

Correct Answer: A. new and second hand shares

Correct Answer: B. growth

Correct Answer: D. that the absence of profit motive in the public sector may reduce incentives for hard work

Correct Answer: C. net national product

Explanation

(a) Gross Domestic Production (GDP): This is the total market value of final goods and services produced in a country at as particular period of time. In calculating the GDP of a country, no account is taken of the nationality of those that produce the goods and services. GDP is used in determining whether the country concerned is experiencing economic growth, decline or stagnation.

(b)Gross National Product (GNP): GNP is defined as the total market value of final goods and serv-ices produced in a country over a given period of time including the net income from abroad. Basically, GNP measures the values of final goods and services that the country's citizens produced regardless of their location.

(c) Cost of living: Cost of living is the general price level of goods and services that determine how much an average household needs to meet basic necessities of life. It is measured in terms of price index. If the price level increases, the cost of living increases and the standard of living falls and vice versa.

(d) Per capita income is the national income of a country divided by her total population. It gives the average income in a country and it serves as an economic indicator of the standard of living and development.

(e)Standard of living: The standard of living indicates the volume of available goods and services at the disposal of individuals and therefore shows the level of their welfare. It is measured by per capita income. There is an inverse relationship between standard of living and cost of living.

Explanation

(a) Labour is a factor of production that represents all human effort, both physical and mental, directed towards production while labour force refers to the employable population i e the population within the working age group who are employed plus all those who are unemployed but actively seeking work

(b) Some reasons that account for differences In earnings are;

(i) Differences in productivity among workers (II) Supply and Demand condition for skills that are relatively scarce relative to demand attract higher earnings

(iii) Working conditions. Safety, convenience, etc.

(iv) Prestige associated with Job

(v) Immobility of labour and cost of movement.

(vi) Man-made barriers e.g. trade union policies, licensing. etc

(vii) Ignorance of job opportunities

(viii) Discriminatory practices. gender discrimination.

(ix) Government policy.

(x) Natural talents e g, singers and comedians,

(xi) Cost and length of Training

Explanation

(a) Disposable Income = Income - Tax

(i) Doctor = $8,000 - (10% of $8,000)

= $8,000 - $800

= $7,200

(ii) Engineer= $7,000 - (12% of $7,000)

= $7,000 - $840

= $6,160

(iii) Civil Servant = $5,000 - (18% of $5,000)

= $5,000 - $900

= $4, 100

(iv) Nurse = $6,000 - (15% of $6,000)

= $6,000 - $900

= $5, 100

(b) Regressive system of taxation

(c) Regressive because the higher income earners pay lower rate of tax while low income earners pay higher rate of tax.

(d)

In the diagram above, the curve is negatively sloped indicating that higher income earners are levied at lower tax rate and vice versa. A regressive system of taxation is one in which the higher income earners pay a lower rate of tax while the lower income earners pay a higher rate of tax.

Correct Answer: D. people within the working age