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 671: If the supply of a product is elastic, a small reduction in price will
Options:
A) reduce the cost of production
B) reduce the quantity supplied
C) increase the quantity supplied
D) lead to no change in the quantity supplied
Show Answer
The correct answer is C .
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Question 672: A commercial bank is able to create money
Options:
A) by printing it
B) by maintaining reserve
C) by creating a demand deposit as it gives a new loan
D) by issuing cheques to depositors
E) by borrowing from the central bank
Show Answer
The correct answer is C .
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Question 673: One of the functions of commercial banks is
Options:
A) maintaining stable price in the economy
B) regulating monetary policies
C) granting loans to customers
D) issuing bank notes and coins
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The correct answer is C .
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Question 674:
The factor of production that has the highest degree of mobility is__________?
Options:
A) entrepreneurship
B) land
C) labour
D) capital
Show Answer
The correct answer is C .
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Question 675:
An example of a vertical combination is the merger of_________
Options:
A) a spinning firm and a wearing firm
B) two meat retailing firms
C) two very large wholesale textile distributors
D) three secretarial employment agencies in one town
Show Answer
The correct answer is A .
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Question 676:
In the diagram, the marginal propensity to consume (MPC) is equal to
Options:
A)
B)
C)
D)
Show Answer
The correct answer is B .
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Question 677: As the level of output increases, the average fixed cost of a firm will
Options:
A) continue to decrease
B) remain unchanged
C) continue to increase
D) be equal to the total cost
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The correct answer is A .
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Question 678:
A supply curve parallel to the X-axis indicates
Options:
A) fairly elastic supply
B) infinitely elastic supply
C) fairly inelastic supply
D) perfectly inelastic supply
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The correct answer is B .
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Question 679:
40 men were employed in a farm, and they produced an average of 30 tonnes of cassava per person. Calculate the total product.
Options:
A) 1,300 tonnes
B) 1,100 tonnes
C) 1,200 tonnes
D) 1,400 tonnes
Show Answer
The correct answer is C .
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Question 680: One of the ways of improving the marketing of agricultural produce is by
Options:
A) Reviewing the land tenure system
B) Ensuring even distribution of farm inputs
C) Embarking on irrigation farming
D) Establishing agricultural marketing boards
Show Answer
The correct answer is D .