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.
-
Question 721: In economics, production is complete when
Options:
A) Goods are produced in the factory
B) Goods are sold to the wholesalers
C) Goods and services are produced by the government
D) Prices are fixed for goods and services
E) Goods and services finally reach the consumer
Show Answer
The correct answer is E .
-
Question 722:
Utility is the satisfaction derived from____________
Options:
A) Production
B) Distribution
C) Consumption
D) Demand
Show Answer
The correct answer is A .
-
Question 723: When a consumer is at equilibrium, the MRSxy is equal to the
Options:
A) sum of the prices
B) product of the two prices
C) ratio of the two prices
D) difference of the two prices
Show Answer
The correct answer is A .
-
Question 724: Infant industries are
Options:
A) a baby food and a baby clothing factories
B) those which are introducing new products
C) cases of arrested development
D) industries temporarily protected by tariff barriers until mature enough to compete on world markets
E) industries that are allowed to remain permanent cases of adolescence
Show Answer
The correct answer is D .
-
Question 725:
In the diagram above, there is an excess
Options:
A) demand for 30 units
B) supply of 40 units
C) demand for 20 units
D) supply of 20 units
Show Answer
The correct answer is C .
-
Question 726: 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
Show Answer
The correct answer is A .
-
Question 727: The income elasticity of demand of normal goods is
Options:
A) negative
B) positive
C) zero
D) fixed
Show Answer
The correct answer is B .
-
Question 728: When a firm is reaping economies of large-scale production, it experiences a fall in its?
Options:
A) long-run marginal cost
B) long-run average cost
C) long-run total cost
D) short-run marginal cost
Show Answer
The correct answer is B .
-
Question 729: Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?
Options:
A) induce greater demand for beef
B) induce greater demand for fish
C) induce lower demand for fish
D) equate demands for beef and fish
Show Answer
The correct answer is B .
-
Question 730:
The basic principle underlying location of industry is the tendency for production of a commodity to be located on the basis of______
Options:
A) division of labour
B) employment trends
C) relative costs and benefits
D) immobility of skilled labour
Show Answer
The correct answer is C .