Which of the following statements must hold if price discrimination is to be possible?
- A. Elasticities in the various markets must not differ
- B. The seller must recognise the possibility of resale
- C. The market must not be separated but integrated
- D. The markets should be seperable and there should be no resale.
In combining inputs x and y, the entrepreneur obtains the maximum output from a given money outlay when
- A. \( \begin{matrix} P_ x = P _ y \\ MP _ x = MP _ y \end{matrix} \)
- B. \(\begin{matrix} MP _ x = P _ x \\ MP _ y = P _ y \end{matrix}\)
- C. P x. MP x = P y. MP y
- D. P x P y = MP x. MP y
The value of total output in the economy using the value added approach is
- A. N57.00
- B. 37.00
- C. 20.00
- D. 15.00
The long-run equilibrium price and quantity for the firm are respectively
- A. OP,OY
- B. OR,OZ
- C. OR,OX
- D. OQ,OZ
The excess profit made by the firm in the short-run is represented by
- A. ORTZ
- B. OPVY
- C. ORTW
- D. ORSX
Consider the table which shows output (o), total cost (TC)of production and marginal cost (MC) for a firm in a competitive market. Suppose price (P) = N 12, what is the maximum profit the firm can make ?
- A. N2000.00
- B. 1 200.00
- C. 1000.00
- D. 400.00
Demand is relatively inelastic
- A. at P2 range
- B. in the P2 P 4 price range
- C. at P3 only
- D. at any price below P2
The firm portrayed is selling in
- A. a purely competitive market
- B. a market in which demand elastic at all prices
- C. an imperfectly competitive markket
- D. a market in which companies produce homogeneous commodities
Consider the following diagram where XYZ represents the average curve of a firm. XY shows that as out put increases the average declines. However, this decline cannot continue indefinitely because
- A. managerial economies
- B. indivisibilities
- C. the extent of the market
- D. the pooling of dissimilar risks
A major obstacle to economic development is?
- A. a rise in industrial output
- B. low farm productivity
- C. free trade
- D. ineffective trade unions
If W stands for wages/salaries, P for profit, R for interest and Z for rent on land real estate, then national income is?
- A. W -P - R - Z
- B. W + P + Z - R
- C. P - R - Z + W
- D. W + P + R + Z
In the national income and product accounts, double counting is avoided if?
- A. only final goods counted
- B. only intermediate goods are counted
- C. only intermediate and final goods are counted
- D. the value of all goods and services are added together
The Gross Domestic Product is defined as the total value of?
- A. all final goods and services produced in a country during the year
- B. all assets of a country in a particular year
- C. exports net of total value of imports
- D. all receipts
It is important to measure the National Income of a country because?
- A. it is a major determinant of the standard of living
- B. it reveals hazards of development like pollution and congestion
- C. it reveals the distribution of the citizen's savings in foreign banks
- D. its size determines the extent of political stability
The age distribution of a country’s population is of economic importance because it affects the?
- A. pattern of expenditure
- B. size of the army
- C. optimum size of firms
- D. location of industries
The higher the the dependency ratio the?
- A. larger the proportion of the employed relative to the unemployed
- B. smaller the proportion of the active labour force relative to the inactive
- C. smaller the number of the non-working age groups relative to the active labour force
- D. lower the birth rate
Under flexible exchange rates, a deficit could be corrected by?
- A. freezing the gold point
- B. appreciation of other currencies
- C. removing export subsidies
- D. removing tariffs
there is an improvement in the terms of trade of a country if?
- A. a large quantity of exports is given up to obtain a unit of imports
- B. the volume of exports is greater than the volume of imports
- C. a smaller quantity of exports is given up to obtain a unit of imports
- D. the value of exports is greater than the value of imports
One of the advantages of international trade is that it?
- A. increases world output
- B. encourages economic independence among nations
- C. restricts spread of technical knowledge
- D. promotes self-reliance and satisfaction with only what can be produced internally
Personal distribution of income implies?
- A. the way in which income is distributed among specific households or spending units
- B. the distribution of income according to basic resources
- C. dividing income according to industries
- D. dividing income between personal taxes, consumption expenditures and savings
The average tax rate is defined as
- A. total tax rate less the marginal tax rate
- B. the tax rate which applies to additional value income
- C. the ratio of total taxes paid to total income
- D. marginal tax rate for being progressive