43
A utility maximizing household will allocate its expenditure so that?
- A. more naira is spent on commodities with the highest utility
- B. less naira is spent on commodities with the lowest utility
- C. the utility of the last naira spent on each commodity is equal
- D. the amount spent on each commodity is equal
44
In a planned economy, what shall be produced is determined primarily by?
- A. what the consumer wants
- B. government decisions
- C. price mechanism
- D. the pattern of consumer spending
45
A capitalist economy is one characterized by the?
- A. private ownership of factors of production
- B. ownership of factors of production by rich members of the society
- C. use of capital and labour in fixed proportions during production
- D. use of capital intensive methods of production
46
The determinants of elasticity include?
- A. price, time and availability of alternatives
- B. technology and cost of production
- C. time and availability of alternatives
- D. price, time and technology changes
47
Normative economics deals with?
- A. what is and not what should be
- B. facts and not figures
- C. facts and figures
- D. value judgements
48
The shape of a production possibility frontier is determined by the?
- A. increasing relative costs
- B. returns to scale
- C. diminishing returns to a fixed factor
- D. increasing returns to a variable factor
49
Abubakar has the choice of buying either a house ruining cost. If he decides to buy the Mercedes Benz car, his opportunity cost is?
- A. N 1.5 m
- B. N 2.0m
- C. the house
- D. the car
50
In a firm, three employees earns N5,500 each, four earn N3,300 each, two earns N5,000 each and one earn N7,000. The mean income of the employees is?
- A. N5,200
- B. N 4,760
- C. N4,670
- D. N2,080