Correct Answer: D. rises and later falls

Correct Answer: B. unlimited amount of unexploited resources

Explanation

optimum population yields highest quality of life, which means each person has access to adequate food, water, energy and air of highest quality, adequate medical care, recreational facilities and cultural outlets. It does not include unlimited amount of unexploited resources

Correct Answer: A. all of its fixed cost and variable cost

Correct Answer: C. legal monopoly

Explanation

(a) Economic activities are what people do to earn a living. For example, people are engaged in farming and trading. Economic system on the other hand refers to the mode of production and the distribution of goods and services within which economic activities take place.

(b)(i) Production is an activity that involves the creation of goods and services which satisfy human wants. For example activities of a doctor and musician.

(ii) Distribution: This is the process of storing and moving goods to consumers through intermediaries such as wholesalers and retailers.

(iii) Consumption means the use of economic goods and services to satisfy human wants. Such goods may be consumer or producer goods e.g. consumption of foodstuffs and the services of a doctor.

Correct Answer: C. limited liability

Explanation

(a)(i) Direct taxes: Company income tax 150.00

Personal income tax \(\frac{ 80.00}{230.00}\)

(ii) Indirect taxes: Customs & Excise duties 300.20

Value Added Tax \(\frac{ 100.00}{400.20}\)

(iii) Revenue from non-tax sources:

Rent, Royalties and Profits 75.00

Fees and specific charges \(\frac{ 60.80}{135.80}\)

(b)(i) Capital expenditure:

Building of schools and hospitals 200.00

Road construction \(\frac{ 180.90}{380.90}\)

(ii) Recurrent expenditure:

General administration 220.10

Maintenance of foreign missions 50.00

Transfer payments \(\frac{ 65.00}{335.10}\)

(c) Total revenue $766.00 million

Total expenditure $716.00 million

Surplus $766 - $716 = $50 million

The budget is a surplus because total revenue exceeds the total expenditure.

Correct Answer: B. equity shares

Explanation

Public limited company can finance its operation by raising equity capital with initial public offering This is done by issuing new shares to the public or the existing shareholders can sell off their shares to other people without raising any fresh capital.

Correct Answer: C. creation of agro-service stations

Explanation

Agro Service Centres are an innovative idea and interesting experiment which holds the great promises to increase agricultural production. They are geared towards agricultural development. It isnt a reason for agricultural failure.

Correct Answer: A. the price system

Explanation

In a free market economy, the price mechanism regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services.