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 401: The European Union was formed to
Options:
A) promote free trade within member nations
B) promote economic integration in non-member countries
C) assist countries to achieve their economic goals
D) finance development projects in member nations
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The correct answer is A .
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Question 402: The rising portion of the long-run average cost curve of a firm is an indication that it is experiencing
Options:
A) increasing efficiency
B) economies of scale
C) diseconomies of scale
D) increasing marginal returns
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The correct answer is C .
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Question 403:
From the table above, the elasticity of supply is _____?
Options:
A) Inelastic supply
B) Perfectly elastic
C) Elastic supply
D) Unitary elastic
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The correct answer is C .
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Question 404: The principle of comparative advantage or comparativecost is NOT based on one of the following assumptions
Options:
A) there are restrictions in trade
B) there are no cost of transportations
C) ther is perfect competition
D) there are no tariff or import and export quota
E) there are only two countries and only two commodities entering into international trade
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The correct answer is A .
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Question 405:
The demand curve for goods of ostentation is usually
Options:
A) negatively sloped
B) positively sloped
C) vertical
D) horizontal
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The correct answer is B .
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Question 406: The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?
Options:
A) utility
B) productivity
C) rate of substitution
D) revenue
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The correct answer is B .
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Question 407: A good measure of the standard of living usually used for international comparison is
Options:
A) gross natioal income (GNI)
B) net national income (NNI)
C) gross national product (GNP)
D) gross domestic product (GDP)
E) per capital income (PCI)
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The correct answer is E .
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Question 408: One of the assumptions of ordinal utility theory is that
Options:
A) choice is not consistent
B) utility can be ranked
C) total utility is a function of price
D) satisfaction is measurable
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The correct answer is B .
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Question 409:

What is the marginal productivity when the number of workers is increased from 2 to 3?
Options:
A) 8kg
B) 20kg
C) 60kg
D) 180kg
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The correct answer is A .
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Question 410:
When of the following matters may account for changes in supply?
I - technological advances in an industry
II - changes in labour costs
III - changes in source of supply
IV - changes in levels of taxation
Options:
A) I, II
B) I, III
C) II, III, IV
D) I, II, III, IV
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The correct answer is D .