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 541: A production possibility curve shows?
Options:
A) how much of the resources of society are used to produce a particular commodity
B) the rate of inflation
C) the rate of unemployment in the economy
D) the various combinations of two commodities that can be produced
Show Answer
The correct answer is D .
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Question 542:
Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.The two commodities can be classified as?
Options:
A) Substitutes
B) durable and non-durable
C) intermediate and final
D) complements
Show Answer
The correct answer is A .
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Question 543: When elasticity is zero, demand curve is
Options:
A) perfectly elastic
B) perfectly inelastic
C) down-ward sloping
D) upward sloping
Show Answer
The correct answer is B .
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Question 544: International trade is necessary because?
Options:
A) no country can live in economic isolation
B) different countries are differently endowed in natural and man-made resources
C) some countries have comparative costs advantage in the production of particular commodities over other countries
D) the word demand for and supply of various categories of commodities is expanding very fast
E) countries want to build up their foreign exchange reservers
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The correct answer is B .
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Question 545: The stock exchange is a market for the buying and selling of?
Options:
A) monetary instruments
B) new shares
C) existing shares
D) treasury bills
Show Answer
The correct answer is C .
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Question 546:
Utility is the satisfaction derived from____________
Options:
A) Production
B) Distribution
C) Consumption
D) Demand
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The correct answer is A .
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Question 547: An inverse relationship between price and quantity demanded implies that
Options:
A) the two variables change in opposite directions
B) the two variables change in the same direction
C) only one variable changes
D) the two variables remain unchanged
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The correct answer is A .
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Question 548: In a situation where Mux represent the marginal utility of product X while Px represent the price respectively. Utility can be maximized when
Options:
A) MUX = MUA
B) MUX = PX
C) PX = X
D) PX = PY
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The correct answer is B .
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Question 549: A major effect of a long distribution chain is?
Options:
A) high retail prices
B) scarcity of commodities
C) low retail prices
D) low producer earnings
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The correct answer is B .
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Question 550: A possible factor which limits the extent of growth of a firm is the?
Options:
A) existence of a monoploy
B) bureaucratic delays in decision-making
C) use of by-products
D) unwillingness to share ownership and control
Show Answer
The correct answer is D .