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: An imperfect market exist where?
Options:
A) the product is homogenous
B) there is perfect information among sellers
C) both buyers and sellers have free entry into and free exits from the market
D) the location of some sellers gives them an advantage over others
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The correct answer is D .
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Question 402: An issue of bank-notes not backed by gold but by government securities is known as?
Options:
A) fiduciary isssue
B) guaranteed money
C) seignior age
D) legal tender
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The correct answer is A .
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Question 403: For a firm to break even in the long run, the marginal cost curve must cut the
Options:
A) average variable cost curve at its higest point
B) average cost cure at its lowest point
C) average cost curve at its lowest point
D) total cost cure at its lowest point
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The correct answer is C .
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Question 404:
Which of the following industries will add more value to primary products?
Options:
A) Service industry
B) Construction industry
C) Mining industry
D) Processing industry
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The correct answer is C .
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Question 405: A major problem facing all economies is how to?
Options:
A) increase consumption of imported goods
B) improve trade among nations
C) transform from a developing to a developed economy
D) allocate scarce resources
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The correct answer is D .
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Question 406: If a demand curve that intersects a perfectly inelastic supply curve shifts rightward, then?
Options:
A) the equilibrium price and quantity will increase
B) only the price will increase
C) only the quantity will increase
D) the price will remain constant
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The correct answer is B .
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Question 407: The equilibrium price clears the market; it is the price at which___________
Options:
A) Everything is sold
B) Buyers spend all their money
C) Excess demand is zero
D) None of the above
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The correct answer is C .
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Question 408: A black market can occur when
Options:
A) supply is in excess of demand
B) consumption of the commodity is restricted
C) prices are set by government above the equilibrum
D) prices are set by government below the equilibrium
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The correct answer is B .
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Question 409: Opportunity cost is an economic concept which describes the?
Options:
A) monetary equivalent of the utility of a commodity
B) amount of time or money invested on a commodity
C) sacrifice made for the satisfaction of a want
D) cost of retaining an optimum level of production of commodities
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The correct answer is C .
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Question 410:
Economics is often described as a science because it
Options:
A) employs the use of laboratory experiments
B) use scientific methods to explain observed phenomena
C) make use of controlled experiments
D) engages accurate predication of human beings
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The correct answer is B .