If workers at the school canteen sell during the holidays, this is an example of?
Structural unemployment
Frictional unemployment
Seasonal unemployment
Residual unemployment
Correct answer is C
Seasonal unemployment occurs when people are unemployed at certain times of the year, because they work in industries where they are not needed all year round. Examples of industries where demand, production and employment are seasonal include tourism and leisure, farming, construction and retailing.
Wholesalers play an important role in the distribution of goods and services because they?
Are located very close to consumers
Finance both producers and retailers
Pass information on from retailers to consumers
Sell in small units to consumers
Correct answer is B
Wholesalers either take title to the goods they purchase, or they own the goods they purchase. If there is a significant change in the value of the products between the time of the purchase from the producer and the sale to the retailer, the wholesaler will absorb that profit or loss.
In the event of bankruptcy owners of joint-stock companies lose?
Their private properties
Both company and private properties
Only the capital invested
Only their dividends
Correct answer is C
Joint stock company is a company whose stock is owned jointly by the shareholders.
In the event that a joint stock company declares bankruptcy, the company's shareholders may be entitled to a portion of the liquidated assets, depending on which shares they hold and how much liquid assets are left over. Upon bankruptcy, a firm will be required to sell all of its assets and pay off all debts.
Public limited liability companies are democratic in nature because
Government appointees are members of the board
They are run by elected public officers
Electoral principles are adopted in the day-to-day management
Shareholders elect the board of directors
Correct answer is D
The directors could not dictate the decisions in the company as the rights in decision making process also vest in the hands of shareholders. Thus democracy is maintained well.
In the the longrun, a firm must shut down if its average revenue is?
Greater than average cost
Less than average variable cost
Equal to the minimum average cost
Equal to the average cost
Correct answer is B
A firm will choose to implement a shutdown of production when the revenue received from the sale of the goods or services produced cannot even cover the variable costs of production. In that situation, the firm will experience a higher loss when it produces, compared to not producing at all.
Technically, shutdown occurs if average revenue is below average variable cost at the profit-maximizing positive level of output.