Which of the following statements is correct?
As total utility increases, the marginal utility also increases
The marginal utility is a always zero whenever the total utility reaches the maximum
The total utility is at maximum whenever marginal utility is at it's maximum
There is no relationship between total utility and the marginal utility
Correct answer is B
Marginal utility is the slope of the total utility curse. At maximum point slope of total utility is equal to zero. Therefore the marginal utility is also zero when total utility reaches its maximum level. Total utility is the sum of utility which consumer gains from consumption of certain goods and services.
West African countries are experiencing worsening terms of trade because
They are primary producers
Their currencies are overvalued
They import less machines
They are tertiary producers
Correct answer is A
No explanation has been provided for this answer.
Provision of short-term loans to solve balance of payments problems is done by the
International Finance Corporation
International Monetary Fund
International Bank for Reconstruction and Development
African Development Bank
Correct answer is B
It strives to ensure the international monetary system's stability. The IMF functions in three main areas: overseeing the economies of member countries, lending to countries with balance of payments issues and offering technical assistance to its member countries.
Which of the following is not a reason countries import goods?
Differences in natural endowments
The law of absolute advantage
Differences in tastes
The love for other nations
Correct answer is D
Reasons for importing goods might include:
Technological unemploment
Stuctural unemployment
Frictional unemployment
Seasonal unemployment
Correct answer is D
Seasonal unemployment occurs when people are unemployed at particular times of the year when demand for labour is lower than usual.