Given that the prices and quantities supplied in litres of petrol is expressed as Qs = 25 + 0.25P. Qs is the quantity supplied and P is the price. Determine the quantity supplied when the price per liter is N30
- A. 50litres
- B. 32.5litres
- C. 30litres
- D. 35litres
From the diagram, determine the profit-maximizing output
- A. 600
- B. 800
- C. 900
- D. 1000
If the quantity supplied of a commodity increases from 20 to 30 units when there is an increase in price from N4 to N5, the elasticity of supply is
- A. 4
- B. 1
- C. 2
- D. 5
The theory of comparative cost advantage is associated with
- A. Adam Smith
- B. Reverend Thomas Malthus
- C. Professor trum fisher
- D. David Ricardo
In a situation when a firm is operating in a perfectly competitive firm and the total cost is given perfectly competitive firm and the total cost is given as N75.00. If the market price is N7.00 determine the profit. When 25 units are produced
- A. N75.00
- B. N100
- C. N175.00
- D. N125.00
The practice of selling goods overseas and often below the cost of production is known as
- A. retailing
- B. dumping
- C. internal trade
- D. advertising
The demand and supply functions of commodity x are given as follows: Qd = 20- 2p, Qs = 6p – 12 where p = price, Qd = quantity demanded and Qs = quantity supplied. Determine the equilibrium price
- A. N4
- B. N8
- C. N2
- D. N10
What would encourage the growth of international division of labour?
- A. Improvement in transport system
- B. Instability in international exchange rate
- C. Restrictions on the movement of resources
- D. increase in tariff
In the diagram, the consumer budget line shift from JK to GH. What can definitely be deduced from the diagram?
- A. There has been an increase in the consumer’s money income
- B. There has been a reduction in the price of both A and B
- C. There has been no change in the price of A or B
- D. There has been no change in the price of A relative to the price of B
A smaller industry that grows to cater for the need of the major industry is
- A. subsidiary industry
- B. constructive industry
- C. manufacturing industry
- D. infant industry
How can a firm benefit from external economies?
- A. Increasing its expenditure on advertising
- B. Increasing the workforce
- C. Locating in an area in which the industry is already established
- D. Merging with another domestic firm engaged in the same industry
Which of the following could be used to measure the efficiency of labour?
- A. rate of inflation
- B. input-output ratio
- C. buying more machines
- D. unemployment rate
In a situation where Mux represent the marginal utility of product X while Px represent the price respectively. Utility can be maximized when
- A. MUX = MUA
- B. MUX = PX
- C. PX = X
- D. PX = PY
When elasticity is zero, demand curve is
- A. perfectly elastic
- B. perfectly inelastic
- C. down-ward sloping
- D. upward sloping
A major limiting factor of mass production is
- A. efficient management
- B. adequate labour supply
- C. small size of the market
- D. adequate supply of raw materials
What does the accelerator principles state?
- A. Consumption is a function of the rate of change of income
- B. income is a function of the rate of change of investment
- C. Investment is a function of the rate of change of income
- D. Investment is a function of the rate of interest
The total stock of money available for use in an economy is
- A. supply of money
- B. value of money
- C. demand for money
- D. attribute of money
The situation whereby the government of a country spends more than its budgets for a given financial year is known as
- A. surplus budget
- B. deficit budget
- C. balanced budget
- D. minus budget
In which of the following economic systems do we have the means of production and exchange controlled by private individuals
- A. socialist system
- B. mixed system
- C. capitalist system
- D. traditional system
Disposable income is total income
- A. less tax
- B. divided by tax
- C. plus tax
- D. multiplied by tax
The study of broad economic aggregates is
- A. Macro economics
- B. deductive method of economic analysis
- C. micro economics
- D. Inductive method of economics analysis