Correct Answer: A. economic factors

Correct Answer: C. rural-urban drift

Correct Answer: A. Consumer is assumed irrational

Correct Answer: D. frictional unemployment

Explanation

The government is mainly trying to solve the problem of frictional unemployment when job vacancies are publicized.

Frictional unemployment is the unemployment that occurs when people are between jobs. This can happen when people are changing jobs, when they are new to the labor market, or when they are re-entering the labor market after a period of unemployment.

Publicizing job vacancies can help to reduce frictional unemployment by making it easier for people to find jobs. This is because it increases the visibility of job opportunities and makes it easier for people to match their skills and experience with the needs of employers.

Correct Answer: B. wage rate

Explanation

The wage rate definition is the rate of compensation for a worker. it is based on the amount produced or the number of hours worked

Correct Answer: A) Changes in the quantity purchased of a good is less than proportionate changes in its price

Explanation

This Economics question is asking about what it means for a commodity to be price inelastic. The term price inelastic refers to the responsiveness of the quantity purchased of a good to changes in its price. The options given are different ways to describe this responsiveness.

Option A states that a commodity is price inelastic if changes in the quantity purchased of a good is less than proportionate changes in its price. This means that if the price of a good increases, the quantity purchased of that good will decrease by a relatively small amount. Similarly, if the price of a good decreases, the quantity purchased of that good will increase by a relatively small amount. This is the correct answer.

Option B states that a commodity is price inelastic if changes in the quantity purchased of a good is proportional to change in its price. This is actually the definition of unitary price elasticity, which is different from price inelasticity.

Option C states that a commodity is price inelastic if changes in the quantity purchased of a good is more than proportionate changes in its price. This is actually the definition of price elasticity of demand, which is the opposite of price inelasticity.

Option D states that the quantity purchased of a good never responds to change in its price. This is not correct because all goods have some level of responsiveness to price changes, even if it is very small.

It is important to understand the concept of price elasticity of demand because it affects how producers and consumers respond to changes in price. Goods that are price inelastic, like essential goods or goods with no substitutes, tend to have more stable demand and can tolerate price increases without a significant decrease in quantity purchased. On the other hand, goods that are price elastic, like luxury goods or goods with many substitutes, tend to have more volatile demand and may see a significant decrease in quantity purchased if the price increases.

Correct Answer: D. decrease in money supply

Correct Answer: D. N8 000

Explanation

Reserve = 20/100 X 10,000 = 2000 Excess reserve = 10,000 - 2000 = 8000

Correct Answer: B. avoidance

Explanation

(a)Similarities between monopolistic competition and perfect competition are:

(i) There is free entry and exit in both markets.

(ii) There is excess profit for both in the short run.

(iii) There is a large number of firms in the industry.

(iv) Profit is maximized when MC equals MR.

(b) Differences between perfect and monopolistic competition are:

(i) There is product differentiation under monopolistic competition but the goods are homogenous under perfect competition.

(ii) Perfect competition is a price taker but monopolistic competition has some degree of control over price or output.

(iii) There is idle capacity under monopolistic competition but not under perfect competition in the short run.

(iv) The equilibrium level under perfect competition is established where MC = MR = P, but under monopolistic competition, the price will be higher than both MC and MR. (v) Monopolistic competition is a reality but perfect competition does not exist in real life situation.