Correct Answer: B. He determines both price and output

Correct Answer: C. pensions

Explanation

Examples of transfer payments include welfare, financial aid, social security, and government making subsidies for certain businesses.

Correct Answer: B. public company

Explanation

An equity share, commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. This is mainly associated with a public limited liability company

Correct Answer: D. subsistent farming

Explanation

(a) Inflation is defined as period of persistence increase in the general price level of goods and services in an economy over a period of time.

A. Demand pull-inflation:

i. Increase in bank lending on activities which do not contribute to increase in output of goods.

ii. Government adopts a deficit financing or budget to provide social infrastructure.

iii. War time expenditure which may increase purchasing power in a situation of limited supply of goods.

iv. Increase in wages and salaries of workers not accompanied by increase in output

v. Expectation of a future rise in prices

vi. Misallocation or misappropriation of funds

vii. Democratisation process which increases government expenditure

viii. Increase in population not accompanied by increase in productivity.

B. Cost-push inflation:

i. Increase in cost of production as a result of increase in wages, raw materials, transport etc.

ii. Increase in interest rate on loans will raise cost of production

iii. Increase in the prices of imported inputs

iv. Devaluation or depreciation of a local currency may also increase the costs of inputs

v. Inadequate infrastructure such as electricity, poor transportation and water supply which increase cost of production

vi. Excessive government taxes on inputs.

Correct Answer: C. public limited company

Explanation

A state-owned enterprise (SOE) is a business enterprise where the government or state has significant control through full, majority, or significant minority ownership. Defining characteristics of SOEs are their distinct legal form and operation in commercial affairs and activities. When a state owned stocks are traded in the stock exchange, they become a public limited company.

Explanation

(a) Demand and supply shedule

When price = $2, Qd = 30 - 2 =28 Qs = 15 + 2(2) = 19

When price = $4, Qd = 30 - 4 = 26 Qs = 15 + 2(4) = 23

When price = $7 Qd = 30 - 7 = 23 Qs = 15 + 2(7) = 29

(b)(i) In equilibrium, Qd = Qs

Therefore, 15 + 2p = 3- -p

2p +p = 30 - 15

3p = 15

p = 5

Equilibrium price is $5.00

Substituting for p = 5, we have

Qd = 30 - 5= 25

OR Qs = 15 + 2(5) = 25

(ii) If price is fixed at $3

Qd = 30 - 3 = 27

Qs = 15 + 2(3) = 21

Excess demand is 27 -21 = 6

(c) If the demand function changes to Qd = 40 - p

(i) When price = $2, Qd = 40 - 2 = 38

When price = $4, Qd = 40 - 4 = 36

When price = $7, Qd = 40 - 7 = 33

(ii) It represents an increase in demand

(iii) At the same prices, more quatities of apples are demanded.

Correct Answer: A. structural unemployment

Explanation

Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many workers obsolete. it is simply unemployment caused by a mismatch between jobs and skills, or other long-term changes in the economy.

Correct Answer: C. market clearing price

Explanation

Market-clearing price is another term used interchangeably with equilibrium price. Equilibrium price is a common economics term that refers to the exactprice at which market supply equals market demand.

Correct Answer: D. capital gain tax

Explanation

A direct tax is a tax, such as income tax, which is levied on the income or profits of the person who pays it, rather than on goods or services. Some of the different direct taxes are income tax, corporate tax, wealth tax, and capital gains tax.