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 1821: Given that Y = C + I and C = bY where b = 0.8, what is the multiplier?
Options:
A) 5
B) 10
C) 4
D) 2
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The correct answer is A .
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Question 1822: The distinction between onshore and offshore operations in oil exploration lies in the
Options:
A) location of sites
B) output generated
C) size of production
D) techniques of production
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The correct answer is A .
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Question 1823:
A downward sloping demand curve means that
Options:
A) total revenue declines as price is lowered
B) demand falls as output increases
C) demand falls as output falls
D) price must be lowered to sell more
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The correct answer is D .
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Question 1824: In certain circumstances, a centrally planned economy adopts the rationing system because of?
Options:
A) the scarcity of goods and services in the market
B) low real and money wages
C) the need for equitable distribution of goods and services
D) transportation and distribution problems
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The correct answer is C .
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Question 1825: What does the accelerator principles state?
Options:
A) Consumption is a function of the rate of change of income
B) income is a function of the rate of change of investment
C) Investment is a function of the rate of change of income
D) Investment is a function of the rate of interest
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The correct answer is C .
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Question 1826:
A major disadvantage of localization of industry is
Options:
A) the risk of structural unemployment
B) over-utilization of installed industrial capacity
C) the risk of seasonal unemployment
D) under-utilization of installed industrial capacity
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The correct answer is A .
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Question 1827: Petroleum 'glut' in international trade means
Options:
A) a fall in petroleum production
B) an over supply of petroleum
C) a higher petroleum price offered by the buyer
D) a higher petroleum price demanded by the seller
E) higher prices for the consumtion of petroleum
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The correct answer is B .
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Question 1828: Fiscal policy is the government's plan to control aggregate demand by manipulating
Options:
A) the demand and supply of money
B) revenue and expenditure
C) tastes and preferences of consumers
D) the structure of production and employment
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The correct answer is B .
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Question 1829: When a firm's average revenue curve is downward-slopping , it's price elasticity of demand will be
Options:
A) Zero
B) Greater than one
C) One
D) Between zero and infinity
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The correct answer is C .
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Question 1830:
In the diagram above, ST is the budget line while l,ll and lll represent indifference curves. A rational consumer will choose to consume at point
Options:
A) M
B) J
C) K
D) L
Show Answer
The correct answer is D .