A fall in the price of a normal commodity which has elastic demand will result in
A fall in demand
A fall in quantity demanded
An increase in revenue
A decrease in revenue
Correct answer is C
A fall in the price of a normal commodity which has elastic demand will result in an increase in revenue. This is because elastic demand means that consumers are very responsive to changes in price. When the price falls, consumers will buy more of the commodity, which will increase the total revenue.
An example of government's recurrent expenditure is
Electrification projects in rural areas
The cost of building a school
Purchase of new vehicles
Paying salaries of workers
Correct answer is D
The cost of paying salaries of workers is an example of government's recurrent expenditure. Recurrent expenditure is a type of government spending that is necessary to keep the government running on a day-to-day basis. It includes costs such as salaries, benefits, and pensions for government employees, as well as the cost of operating government buildings and facilities.
An indication that there is inflation in a country is that
There is a decrease in the demand for goods and services
There are too many goods in circulation
The same amount of money buys lower quantity of goods
People prefer to lend than to borrow
Correct answer is C
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.
When job vacancies are publicized, the government is mainly trying to solve the problem of
Residual unemployment
Cyclical unemployment
Technological unemployment
Frictional unemployment
Correct answer is D
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.
Commericial banks help in economic development mainly by
Acting as trustees and executors of wills
Acting as intermediaries between government and borowers
Serving as custodians of valuables
Giving financial advice to the government
Correct answer is B
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.