Economics Questions and Answers

Trade restriction policies are government interventions that are designed to restrict the flow of goods and services between countries. They can be used to protect domestic industries from foreign competition, to raise revenue for the government, or to achieve other policy objectives.

Tariffs are taxes that are imposed on imported goods. Quotas are limits on the quantity of goods that can be imported. Embargoes are bans on the import or export of certain goods.

The median mark is the middle mark when the marks are arranged in ascending order. First, let's arrange the marks in ascending order: 5, 6, 7, 7, 7, 8, 8, 9, 9

Since there are 9 students, the median mark is the average of the 4th and 5th marks. The 4th mark is 7 and the 5th mark is also 7, so the median mark is 7.

Therefore, the answer is 7.

The answer is inelastic demand. When the demand for a commodity is inelastic, the buyers are less sensitive to changes in price. This means that they will continue to buy the same amount of the commodity even if the price increases. As a result, the burden of the tax will be borne by the buyers.

The fixing of maximum prices by government is mainly on selected essential goods. This is because the government wants to ensure that these goods are affordable for everyone, especially the poor.

Inferior goods are goods that people demand less of as their income increases. Luxury goods are goods that people demand more of as their income increases. Imported capital goods are goods that are used to produce other goods.

The government is less likely to fix maximum prices on these goods because they are not essential for everyone's survival.

Here are some examples of selected essential goods that the government may fix maximum prices on:

Food
Water
Electricity
Medicine
Housing
The government may also fix maximum prices on other goods that are considered to be essential, such as gasoline and public transportation.

The goal of fixing maximum prices on essential goods is to prevent prices from rising too high, which could make these goods unaffordable for some people. This can help to protect the poor and vulnerable from the effects of inflation.

However, there are also some potential drawbacks to fixing maximum prices. For example, it can lead to shortages of goods, as suppliers may be reluctant to sell their goods at a lower price. It can also lead to black markets, where goods are sold at prices above the maximum price.

The government must carefully consider the pros and cons of fixing maximum prices before making a decision

If the supply of petrol increases, the supply of kerosene will rise. This is because petrol and kerosene are jointly supplied, meaning that they are produced from the same source. When the supply of petrol increases, it means that there is more crude oil available to be used to produce kerosene. As a result, the supply of kerosene will also increase.

The cost of crude oil production has no bearing on the supply of kerosene. The cost of production will only affect the supply of kerosene if it becomes too expensive to produce kerosene. However, in this case, the supply of kerosene would fall, not rise.

Liquidity refers to how easily an asset can be converted into cash without loss of value. Cash is the most liquid asset because it can be used to purchase goods and services immediately. Shares, bonds, and cheques are less liquid because they cannot be converted into cash as easily.

The average revenue curve of a firm in a perfect market is the same as the demand curve of the firm. This is because in a perfect market, the firm is a price taker, meaning that they cannot influence the market price. As a result, the firm's demand curve is also the market demand curve, and the average revenue curve is equal to the demand curve.

Taxes levied on goods and services by the government are called indirect taxes. Indirect taxes are taxes that are collected from businesses when they sell goods or services. The businesses then pass the tax on to consumers in the form of higher prices.

Many workers are employed in the agricultural sector of developing countries because labour intensive method is mostly adopted.

In developing countries, the agricultural sector is often the most labor-intensive sector of the economy. This is because the land is often not suitable for mechanized farming, and the labor force is often abundant and relatively inexpensive.

As a result, the agricultural sector employs a large number of people, even though it is not the most productive sector of the economy. This is why many workers are employed in the agricultural sector of developing countries.

If a firm retrenches some of its factory workers, its variable cost will decline. This is because variable costs are costs that vary with the level of output. When the number of workers is reduced, the amount of variable costs will also be reduced.