Money would cease to be a good store of value when
Prices of goods and services are falling slowly
There is a high level of unemployment
Prices of goods and services are rising rapidly
Prices of goods and services are rising slowing
Correct answer is C
Money is considered a store of value, where it can be used as a means of saving and allocating capital. Where the value of goods and services is on the rise, the purchasing power of money drops. With this, the value of the money that was stored years back will no longer have the same value due to the change in the prices of commodities.
Rate of productivity is higher than the wage rate
Prices fluctuate during a particular season of the year
Wage increase is granted without an increase in productivity
The government embarks on restrictive monetary policies
Correct answer is C
If salaries and wages are increased without a corresponding increase in production, it will lead to inflation. This is so because they will be excess money chasing few the goods that are available in the market.
How is NNP at factor cost derived from GNP at market prices?
GNP - Depreciation + Indirect taxes + Subsidies
GNP Depreciation - Indirect taxes + Subsidies
GNP + Depreciation Indirect taxes - Subsidies
GNP+ Depreciation- Indirect taxes + Subsidies
Correct answer is D
No explanation has been provided for this answer.
Which of the following are intermediate products?
Cement and steel
Furniture and shirt
Handkerchief and shoe
Table and door
Correct answer is A
Intermediate goods are products that are used in the production process to make other goods or further production. Cement and steel from option A above are examples of intermediate goods, as they are used in building and construction.
Import substitution as a strategy of industrialization is the
Replacement of locally produced goods with imported ones
Development of locally produced goods with imported ones
Establishment of firms to process imported raw materials
Act of using local inputs to produce goods for export
Correct answer is B
Import substitution as a strategy of industrialization is a trade policy that advocates for the replacement of foreign imported goods with locally made goods.