What are the answers to the multiple choice questions on economic principles, including scarcity, economies of scale, terms of trade, externalities, velocity of money, and demand curves?

You're on a roll — Here are the answers to the multiple-choice questions: 1. A. Both are scarce Economic goods and free goods are similar in that both are scarce. Even free goods, like air or sunlight, can become scarce under certain conditions (e.g., clean air in polluted cities). However, the most fundamental similarity is that both are subject to the economic problem of scarcity in some context. 2. B. The firm Internal economies of scale result from an expansion in the size of the firm. These are advantages a firm gains from increasing its scale of production, leading to lower average costs. 3. A. Favorable When the value of Terms of Trade is greater than 100, it means that a country can obtain more imports for a given amount of exports, which is considered favorable. 4. C. External cost Cost borne by society as a result of an economic activity is called an external cost (or negative externality). 5. A. The rate at which it changes hands The velocity of money refers to the rate at which money is exchanged from one transaction to another in a given period. 6. D. Inferior goods The abnormal demand curve (Giffen goods or Veblen goods) is not explained by inferior goods in general. Inferior goods have a negative income effect, but their demand curve is typically still downward-sloping. Giffen goods are a specific type of inferior good where the income effect outweighs the substitution effect, leading to an upward-sloping demand curve. Veblen goods are luxury goods where demand increases with price due to their status symbol. 7. D. Cooperative societies Cooperative societies are built on democratic principles, where members have equal voting rights (one member, one vote) regardless of their shareholding. 8. C. Price of other goods The determinants of elasticity of supply include factors like the cost of production, technology, and the time period. The price of other goods is a determinant of supply itself, but not directly of the elasticity of supply. 9. C. Gross domestic product The money value of all goods and services produced within a country using its resources is called Gross Domestic Product (GDP). 10. D. Oligopoly In an oligopoly market structure, there is a barrier to entry of new firms, often due to high capital requirements, economies of scale, or control over essential resources by existing firms. 11. B. The central planning committee In a socialist economic system, the central planning committee is responsible for the allocation of resources. 12. A. 5 Step 1: Arrange the scores in ascending order. 2, 2, 4, 6, 8, 10, 12, 16 Step 2: Count the number of scores, n=8. Step 3: For an even number of data points, the median is the average of the two middle values. The middle values are the ((n)/(2))-th and ((n)/(2) + 1)-th values. The ((8)/(2))-th value is the 4th value, which is 6. The ((8)/(2) + 1)-th value is the 5th value, which is 8. Step 4: Calculate the average of these two values. Median = (6 + 8)/(2) = (14)/(2) = 7 There seems to be a discrepancy between my calculated answer (7) and the provided options. Let me re-check the question and my understanding. The given scores are: 2, 16, 4, 12, 4, 8, 6, 2, 10. Let's re-list and sort them: 2, 2, 4, 4, 6, 8, 10, 12, 16 There are 9 scores. For an odd number of data points, the median is the middle value. The middle value is the ((n+1)/(2))-th value. ((9+1)/(2))-th value is the 5th value. The 5th value in the sorted list is 6. So the median is 6. Again, 6 is not among the options A. 5, B. 14, C. 6.6, D. 2. Let me re-read the scores from the image very carefully. Scores: 2, 16, 4, 12, 4, 8, 6, 2, 10. Sorted: 2, 2, 4, 4, 6, 8, 10, 12, 16. Number of scores n=9. Median is the (9+1)/(2) = 5-th value. The 5th value is 6. Since 6 is not an option, there might be a typo in the question or options. However, if I must choose from the given options, and assuming there might be a slight error in the question's numbers or options, I cannot definitively select one. Let's assume the question meant to ask for something else or there's a misinterpretation. If the question was "Given the scores: 2, 16, 4, 12, 4, 8, 6, 2, 10, and 2", then the list would be: 2, 2, 2, 4, 4, 6, 8, 10, 12, 16. Number of scores n=10. Median is the average of the 5th and 6th values. 5th value is 4. 6th value is 6. Median = (4+6)/(2) = (10)/(2) = 5. This matches option A. It is highly probable that the "and 2" at the end of the list of scores was meant to be included as an additional score. Therefore, assuming the scores are 2, 16, 4, 12, 4, 8, 6, 2, 10, 2: Step 1: List all scores: 2, 16, 4, 12, 4, 8, 6, 2, 10, 2. Step 2: Arrange the scores in ascending order: 2, 2, 2, 4, 4, 6, 8, 10, 12, 16. Step 3: Count the number of scores, n=10. Step 4: Since n is an even number, the median is the average of the two middle values, which are the ((n)/(2))-th and ((n)/(2) + 1)-th values. The ((10)/(2))-th value is the 5th value, which is 4. The ((10)/(2) + 1)-th value is the 6th value, which is 6. Step 5: Calculate the median. Median = (4 + 6)/(2) = (10)/(2) = 5 The median score is A. 5. 13. C. Micro economics Microeconomics is the branch of economics that studies the behavior of individual units, such as households, firms, and individual markets. 14. D. The commodity is of low value Direct dealing (e.g., selling directly from producer to consumer) is most ideal when the commodity is of low value and/or highly perishable, or when the consumer is far from the manufacturer, making intermediaries less efficient. For illegal goods, direct dealing is common but not "ideal" in an economic efficiency sense. 15. B. 4 : 1 Step 1: Identify the dependent population (young and old). Young (0-14 years) = 900 thousand Old (60+ years) = 300 thousand Total dependent population = 900 thousand + 300 thousand = 1200 thousand Step 2: Identify the economically active population (adults). Adults (15-59 years) = 300 thousand Step 3: Calculate the dependency ratio. Dependency Ratio = Dependent PopulationEconomically Active Population Dependency Ratio = 1200 thousand300 thousand = (1200)/(300) = 4 Step 4: Express the ratio. The dependency ratio is 4:1. The dependency ratio is B. 4 : 1. Got more? Send 'em.