The tax levied on locally produced goods is
Import duty
Excise duty
Company tax
Value added tax
Correct answer is B
A tax percentage levied on manufactured, sale, or use of locally produced goods (such as alcoholic drinks or tobacco products).
The source of all economic problems arises from
Wants
Scarcity
Opportunity cost
Scale of preference
Correct answer is B
Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.
A commercial bank can create money by
Issuing currency
Increasing cash ratio
Issuing cheque
Lending to borrowers
Correct answer is D
Lending to borrowers in form of loan with an interest rate makes the commercial bank to create more money.
The industry has many differentiated products
The industry is characterized by rapid technological change
The industry consist of large number of producers
There are significant barriers to prevent firms entering the market
Correct answer is D
No explanation has been provided for this answer.
In which situation is it likely that the demand for labour would be inelastic?
Labour and capital are close substitutes
Labour costs are only a small proportion of total costs
Demand for the final product that the labour produces is elastic
A large quantity of unemployed labour is available in the economy
Correct answer is B
When specialised labour or capital is needed, then the demand for labour will be more inelastic with respect to the wage rate.