Correct Answer: B. incentives on immigration

Explanation

(a) Features of capitalist economic system;

(i) Private ownership of the means of production and properties.

(ii) Decisions on what to produce, how to produce etc. are taken by private individuals.

(iii) Allocation of productive resources is done by the price mechanism.

(iv) Distribution of consumer goods is done on the basis of the price mechanism.

(v) The profit motive is the driving force behind production.

(vi) Prices of goods and services are determined by market forces.

(vii) Consumer sovereignty exists in the capitalist system.

(viii) There is limited government intervention.

(ix) There is competition among individuals and firms in an effort to acquire wealth.

Features of socialist economic system

(i) The means of production is owned by the state.

(ii) Decisions on what to produce, how to produce etc. are taken by a planning body on behalf of the government.

(iii) The aim of production is not for profit but to maximize public welfare.

(iv) Prices are fixed by a planning body.

(v) Allocation of productive resources is done by the state.

(vi) Distribution of goods is based on need and rationing.

(vii) Consumer choices are limited in socialist system.

(viii) Dominant government influence and control.

(ix) There is no competition since government controls resources.

(b) weaknesses of capitalist economic system

(i) The price system may lead to a misallocation of resources where goods demanded by the rich are mainly produced.

(ii) The income gap between the rich and the poor widens.

(iii) The system does not promote the production of public goods. e.g. public utilities

(iv) The system may result in wastage and inefficient use of resources due to unhealthy competition.

(v) The system can lead to the exploitation of consumers as in monopoly and oligopoly.

(vi) The profit motive may result in private benefits at the expense of public welfare.

(vii) The system can cause unemployment due to the profit motive.

(viii) The system is more prone to economic instability since decisions are made by private individuals.

Correct Answer: C. in which the number of old persons is increasing

Correct Answer: A) P > AVC

Explanation

In order to understand why a firm will continue to produce in the short-run despite running at a loss, we need to discuss the relationship between a firm's price (P) and its average variable cost (AVC).

A firm has two types of costs: fixed costs and variable costs. Fixed costs, such as rent or salaries, do not change with the level of production. Variable costs, on the other hand, depend on the amount of output produced, such as raw materials or labor. Average variable cost (AVC) is calculated by dividing the total variable cost by the quantity of output.

Now, let's analyze the different options:

Option A: P > AVC (Correct)

If a firm's price is greater than its average variable cost, it means that it can cover its variable costs and contribute towards covering its fixed costs, even though it's running at a loss. Since fixed costs have to be paid regardless of production, the firm will continue to produce in the short-run, hoping to minimize its losses.

Option B: P = AVC

If a firm's price is equal to its average variable cost, it means that the firm can cover its variable costs but not its fixed costs. In this case, the firm is indifferent between producing and not producing, since there's no contribution towards fixed costs. This option is not ideal for the firm to continue producing in the short-run.

Option C: P< AVC

If a firm's price is less than its average variable cost, it means that the firm cannot cover its variable costs, let alone its fixed costs. In this situation, the firm would incur a greater loss by continuing to produce, so it should shut down production in the short-run.

Option D: P ? AVC

This option implies that price is either greater than, equal to, or less than average variable cost. It doesn't provide enough information to determine whether the firm should continue to produce in the short-run, so it's not the correct answer.

In conclusion, a firm running at a loss will continue to produce in the short-run if its price is greater than its average variable cost (Option A: P > AVC), as it can cover its variable costs and contribute towards covering its fixed costs, minimizing its losses.

Correct Answer: A. normal profit

Correct Answer: B. Forces of demand and supply

Correct Answer: C. decreases as income increases

Explanation

In economics, an inferior good is a good whose demand drops when people's incomes rise.

Correct Answer: B. hoards goods

Correct Answer: C. credit ceiling

Explanation

Credit ceiling is one of the tools or instrument of monetary policy used by central bank to control credit in an economy.

Correct Answer: B. Malthusian population theory

Explanation

The Malthusian population theory highlights the relationship between population and means of subsistence. The main features of Malthusian theory about population are; i. That population was growing at a geometric progressions such as 2,4,6,8,16,32, etc, while food production or supply was growing at an arithmetical progression such as 1,2,3,4,5, etc. ii. That there is a tendency for all living things to grow beyond the food available to them iii. That unless population increase is matched with means of subsistence, negative and positive checks will come into force. iv. That the checks can be war, diseases, epidemics and famine. v. That population is essentially limited by the means of subsistence.