Economics Questions and Answers

An indication that there is inflation in a country is that the same amount of money buys lower quantity of goods. Inflation is a general increase in prices and a decrease in the purchasing value of money. This means that the same amount of money can buy fewer goods and services.

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.

Commercial banks collect deposits from savers and lend these deposits to borrowers. This process of intermediation allows savers to earn interest on their deposits and borrowers to obtain the funds they need to invest in businesses and other productive activities.

Commercial banks also provide other services that can help economic development, such as:

Making payments: Commercial banks facilitate payments by providing checking accounts and other payment services. This makes it easier for businesses to conduct transactions and for consumers to purchase goods and services.
Providing credit: Commercial banks provide loans to businesses and consumers. This helps businesses to expand and create jobs, and it helps consumers to purchase homes and other goods and services.
Investing in the community: Commercial banks invest in the community by making loans to small businesses, providing financial education, and supporting local charities. This helps to create jobs and improve the quality of life in the community.

Country M enjoys absolute advantage over country N in the production of commodities X and Y if country M is more efficient than country N in producing both commodities X and Y.

Absolute advantage refers to the ability of a country to produce a good or service using fewer resources than another country. In this case, country M is able to produce both commodities X and Y using fewer resources than country N. This means that country M can produce more of both commodities with the same amount of resources, or it can produce the same amount of both commodities with fewer resources.

A small scale firm located within an industrial estate will enjoy external economies of scale. This is because the firm will be able to benefit from the shared infrastructure and services that are available in the industrial estate.

External economies of scale are cost savings that are enjoyed by firms as a result of the growth of the industry as a whole. These savings can be realized through the sharing of infrastructure, such as roads, water, and electricity, and the pooling of resources, such as research and development.

In addition, the firm may also be able to benefit from the clustering of firms in the industrial estate. This clustering can lead to increased competition, which can drive down prices and improve the quality of products and services.

The total fixed cost curve is vertical. This is because the total fixed cost does not change with the level of output.

Fixed costs are costs that do not vary with the level of output. These costs are incurred regardless of how much output is produced. Examples of fixed costs include rent, insurance, and depreciation.

The total fixed cost curve is a graph that shows the relationship between total fixed cost and the level of output. The curve is vertical because the total fixed cost does not change with the level of output.

A cooperative society is a type of business organization that is owned and controlled by its members. The members of a cooperative society pool their resources together in order to provide goods and services to each other at a fair price.

In a cooperative society, the members are the ones who benefit from the pooled resources. The profits of the cooperative society are distributed to the members, and the members have a say in how the cooperative society is run.

A progressive tax is a tax system in which the tax rate increases as the amount of taxable income increases. This means that people with higher incomes pay a higher percentage of their income in taxes than people with lower incomes.

The curve labeled W shows that the tax rate increases as the amount of taxable income increases. This is the defining characteristic of a progressive tax system.

The study of economics is mainly concerned with how to make choices when resources are inadequate. This is because resources are always scarce, meaning that there is never enough to satisfy all of our wants and needs. As a result, we have to make choices about how to allocate our resources in a way that maximizes our well-being.

The other options listed are not the main focus of economics. While economics can be used to rank individuals' wants, satisfy every member of all societies, and produce all the goods needed by everyone, these are not the primary goals of the discipline. Economics is more concerned with understanding how these things are achieved in the real world, and how we can make better decisions about how to allocate our resources.

Warehousing is an economic activity that falls under intermediate production. Intermediate production is the production of goods and services that are used to produce other goods and services. In the case of warehousing, the goods and services that are produced are storage space and logistics services. These services are used by businesses to store their products and to distribute them to their customers.