If an increase in the price of a commodity leads to increase in total revenue, then it means that the demand for this commodity is?
- A. normal
- B. elastic
- C. inelastic
- D. abnormal
When a firm is reaping economies of large-scale production, it experiences a fall in its?
- A. long-run marginal cost
- B. long-run average cost
- C. long-run total cost
- D. short-run marginal cost
Which of the following statements best describes the relationship between average product and marginal products?
- A. Marginal product and average product curves rise and falls together
- B. Marginal product equals average product at the minimum point of the latter
- C. Average product curve will rise as product is greater than average product
- D. Marginal product at the maximum point of the fomer
Specialization often improves economic performance because it?
- A. permits exploitation of economies of scale
- B. incorporates external economies
- C. is based on the law of variable proportions
- D. allocates resources according to absolute advantage
The short-run period in production is defined as a period when?
- A. there is at least one fixed factor
- B. all costs of production must be covered
- C. the output cannot be varied
- D. current output is not profitable
Given that
B = Births
D = Death
X = Emigrants
M = Immigration
The population of a country over a period of time will rise if?
- A. B = D and X > M
- B. B - D = O and M > X
- C. D - B = O and M = X
- D. X > M and D > B
In certain circumstances, a centrally planned economy adopts the rationing system because of?
- A. the scarcity of goods and services in the market
- B. low real and money wages
- C. the need for equitable distribution of goods and services
- D. transportation and distribution problems
One of the economic problems of Nigeria today arises from?
- A. the over utilization of human and natural resources
- B. unavailability of mineral resources
- C. inadequate manpower resources
- D. the under-utilization of human and natural resources