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 251:
If the curve above shows the relationship between the price of commodity X and the quantity demanded of commodity Y then X and Y are
Options:
A) complementary goods
B) substitutes
C) inferior goods
D) luxury goods
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The correct answer is B .
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Question 252:
As a factor of production, the reward for land is?
Options:
A) Profit
B) Interest
C) Rent
D) Wage
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The correct answer is C .
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Question 253: One major factor that determines the location of an industry is
Options:
A) tax exemption grant
B) its proximity to the market
C) the capital base
D) the social responsibility of the firm
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The correct answer is B .
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Question 254:
In the diagram below, the curve which represents firm's short-run averagevariable cost is curve
Options:
A) l
B) ll
C) lll
D) IV
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The correct answer is C .
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Question 255: The effect of the demand for product A caused by a change in the price of a product B is called?
Options:
A) cross-elasticity of demand
B) elasticity of supply
C) competitive demand
D) composite demand
E) joint demand
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The correct answer is A .
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Question 256: A firm operating at full capacity will experience rising short-run total costs when
Options:
A) prices of its variable inputs rise
B) prices of its variable inputs fall
C) there is a change in management
D) labour productivity increases
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The correct answer is A .
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Question 257:
A budget with a projected revenue in excess of its expenditure is said to be?
Options:
A) balanced
B) surplus
C) deficit
D) inflationary
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The correct answer is B .
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Question 258: The rate of interest change on loans depends largely on
Options:
A) the prevailing exchange rate
B) marginal efficiency of capital
C) the risk associated with the loan
D) the prevailing tax rate
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The correct answer is C .
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Question 259:
If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is
Options:
A) 0.50
B) 0.65
C) 2.00
D) 2.50
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The correct answer is C .
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Question 260: In developing countries, it is easier to obtain accurate national income estimates through the
Options:
A) GNP
B) GDP
C) NDP
D) NNP
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The correct answer is B .