Economics is the study of how societies allocate limited resources to meet the unlimited needs and wants of individuals. It focuses on the production of goods and services, economic growth, and various complex issues that are important to society.
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Question 91: The main handicap of sole proprietorship is?
Options:
A) limited liability
B) lack of technical know-how
C) low profit margin
D) inadequate capital
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The correct answer is D .
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Question 92:
The basic and essential economic problems in a community are related to choice and________
Options:
A) Freedom
B) Scarcity
C) Social class
D) Politics
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The correct answer is B .
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Question 93: Which of the following is a major determinant of price elasticity of demand?
Options:
A) The price of the commodity
B) Availability of factors of production
C) The prices of factors of production
D) Income of the consumers
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The correct answer is D .
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Question 94: a debenture share entitles its holder to?
Options:
A) participate in the annual general meeting of the company
B) share in the dividends declared
C) recieve a fixed interest on sums invested
D) have a representative on the Board of Directors
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The correct answer is C .
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Question 95: If the marginal propensity to consume is 0.6 and consumption expenditure changes by N10 million, the equilibrium level of income will change by
Options:
A) N4.0 milion
B) N25. 0 milion
C) N2.5 milion
D) N15.0 milion
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The correct answer is B .
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Question 96:
The fundamental problem of economics is
Options:
A) Finding striking determinants between the forces of supply and demand
B) The scarcity of productive resources relative to society's unlimited wants
C) The establishment of a political framework to determine the what, how and for whom of production
D) To establish an equitable distribution of income
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The correct answer is B .
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Question 97:
A supply curve parallel to the X-axis indicates
Options:
A) fairly elastic supply
B) infinitely elastic supply
C) fairly inelastic supply
D) perfectly inelastic supply
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The correct answer is B .
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Question 98:
If in the graph, it is assumed that the price is initially P1, it can be deduced that price will
Options:
A) fall because there is a surplus
B) remain constant because it is the equilibrium price
C) rise because there is a shortage
D) double
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The correct answer is A .
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Question 99: One way of solving the problem of double counting is by
Options:
A) Value-added method
B) Income method
C) Output method
D) Expenditure method
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The correct answer is A .
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Question 100:
The average total cost when output is 200 units in the table aboveis
Options:
A) N1.00
B) N2.0
C) N1.40
D) N2.40
Show Answer
The correct answer is B .