A movement from M to T implies that there has been
- A. A decrease in supply
- B. An increase in demand
- C. A decrease in price
- D. An increase in price
When there is a change from T to N, it implies that
- A. Supply has increased
- B. Quantity supplied has increased
- C. Quantity demanded has increased
- D. Price has fallen
The diagram above shows the shifts in both demand supply curves. What is the new equilibrium point after the shifts?
- A. E3
- B. E1
- C. E4
- D. E2
The table above shows the combinations of beans and rice that can be purchased by a consumer. The opportunity cost of moving from K to L is
- A. 2 units of rice
- B. 5 units of beans
- C. 17 units of rice
- D. 20 units of beans
In the diagram above, ST is the budget line while l,ll and lll represent indifference curves. A rational consumer will choose to consume at point
- A. M
- B. J
- C. K
- D. L
The diagram above represents the short-run position of a monopolist. The profit-maximizing output is
- A. Q3
- B. Q4
- C. Q1
- D. Q2
A black market can occur when
- A. supply is in excess of demand
- B. consumption of the commodity is restricted
- C. prices are set by government above the equilibrum
- D. prices are set by government below the equilibrium
In a textile factory, the cost of cotton used is a typical example of
- A. an average cost
- B. a variable cost
- C. a fixed cost
- D. a total cost
A firm operating at full capacity will experience rising short-run total costs when
- A. prices of its variable inputs rise
- B. prices of its variable inputs fall
- C. there is a change in management
- D. labour productivity increases
A necessary condition for specialization in an economy is the existence of
- A. a regulated market
- B. a competitive market
- C. a medium of exchange
- D. adequate capital
If an increase in the price of good X leads to an increase in the supply of good Y, X and Y are said to be
- A. jointly supplied
- B. competitive
- C. composite
- D. jointly demanded
Given the cost function C = 160 + 36Q, what is the average cost at 20 units of output?
- A. N720.00
- B. N216.00
- C. N44.00
- D. N880.00
A major characteristic of a mixed economy is that
- A. economic decisions are made by both the rich and the poor
- B. both primary and secondary production are undertaken
- C. the federal and the state governments undertaken joint projects
- D. economic activities are undertaken by both the public and private sectors
A large standard deviation is an indication of
- A. the size of the sample
- B. a wide spread around the mean
- C. a wide difference between the mean and the mode
- D. the difference between the highest and the lowest values
One of the assumptions of ordinal utility in consumer behaviour is that
- A. consumers are irrational
- B. marginal utility rises continuously
- C. utility is measurable
- D. utility can only be ranked
In any set of data, median represents the
- A. value that is most representative of the data
- B. mid-position when the values are arranged in ascending or descending order
- C. mid-position when the values are arranged randomly
- D. difference between the highest and the lowest values when arranged in ascending order
In order to increase revenue, the seller of a commodity whose demand is fairly elastic is advised to
- A. increase price
- B. reduce output
- C. reduce price
- D. retain price
A change in demand for a normal good means
- A. a shift in the demand curve
- B. a change in the price changes
- C. a movement along a given demand curve
- D. a change in the price elasticity
The final stage in the production process of any commodity involves its movement from the
- A. retailer to the wholesaler
- B. producer to the wholesaler
- C. retailer to the consumer
- D. wholesaler to the retailer
One of the causes of the present high rate of inflation in Nigeria is
- A. increasing budget surplus
- B. increasing factor costs
- C. exchange rate appreciation
- D. high capacity utilization
The difference between payments and receipts for visible trade is called
- A. bilateral trade
- B. current balance
- C. balance of payments
- D. balance of trade