43
The coefficient of the price elasticity of supply is always
- A. positive
- B. negative
- C. constant
- D. zero
44
A commodity is described as inferior when the
- A. income effect is negative
- B. income effect is positive
- C. substitution effect is negative
- D. substitution effect is positive
45
The major determinant of cross elasticity of demand is the
- A. price of the good
- B. degree of necessity of the good
- C. level of income of consumers
- D. closeness of the substitutes
46
A firm operating at full capacity will have a
- A. perfectly inelastic supply curve
- B. perfectly elastic supply curve
- C. fairly elastic supply curve
- D. fairly inelastic supply curve
47
When the demand for a good increases owing to an increase in income, it means that
- A. there is an increase in quantity demanded
- B. inflation has taken place
- C. demand has exceeded supply
- D. there is an increase in demand
48
The range is used to
- A. estimate the mean from grouped data
- B. calculate the standard deviation
- C. determine the spread of a set of data
- D. measure the difference between the mean and the mode
49
The choice of what to produce in a command economy is determined by
- A. industrial establishments
- B. labour unions
- C. the government and labour unions
- D. the central government
50
An economic system in which the producer and the consumer are the same is referred to as a
- A. mixed economy
- B. subsistence economy
- C. capitalist economy
- D. socialist economy