Which of the following factors is not a cause of diminishing returns?
- A. Increase in variable inputs
- B. Land fragmentation
- C. Constant technology
- D. Technological innovations
A minimum price legislation is also called
- A. price ceiling
- B. price floor
- C. price control
- D. price mechanism
If the government imposes a minimum price on a commodity
- A. market surplus occurs
- B. the market will be cleared in the short-run
- C. excess demand occurs
- D. government regulation is no longer needed
A consumer of a single commodity is in equilibrium when
- A. he can equate his demand with price
- B. he equates marginal utility and price
- C. he can equate his marginal and total utilities
- D. his marginal utility is equal to zero
A country’s budget allocation to various sectors of the economy is shown in the pie chart above…
Use it to answer this question
What is the ratio of expenditure on health to Agriculture if the yearly budget is 7200?
- A. 2: 3
- B. 3:4
- C. 4:3
- D. 5:4
A country’s budget allocation to various sectors of the economy is shown in the pie chart above…
Use it to answer this question.
If the budget of the country was $7,200, how much is allocated to Education?
- A. $2,400.00
- B. $2,000.00
- C. $1,200.00
- D. $1,000.00
In perfectly elastic supply, the supply curve
- A. is vertical
- B. is horizontal
- C. slopes upward
- D. slopes downward
The supply curve of a locally-produced good may shift to the right if
- A. there is an increase in taxes on inputs
- B. government increases subsidies
- C. rural-urban migration is encouraged
- D. the price of the commodity increases
If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is
- A. 0.50
- B. 0.65
- C. 2.00
- D. 2.50
PN equals average revenue or marginal revenue cure of
- A. An imperfect competitive firm
- B. a monopoly
- C. a perfectly competitive firm
- D. a monopolistic competitive firm
The demand curve for goods of ostentation is usually
- A. negatively sloped
- B. positively sloped
- C. vertical
- D. horizontal
The increase in the demand for a commodity may lead to a decrease in the demand for another if both are
- A. in complementary demand
- B. of the same quality
- C. in composite demand
- D. in competitive demand
The mining sector of an economy contributes 60% to the Gross Domestic Product(GDP). If the GDP is $540, what is the contribution of the mining sector?
- A. $ 90.00
- B. $ 180.00
- C. $ 324.00
- D. $ 350.00
A major disadvantage of a capitalist economy is that it
- A. leads to low production of goods and services
- B. requires large number of officials to operate
- C. considers individual consumers' satisfaction
- D. worsens income inequality among the citizens
A major characteristic of natural resources is they
- A. are unlimited in supply
- B. have high cost of production
- C. are free gifts of nature
- D. do not command any price
There is unemployment of resources when production is
- A. within the production possibility curve
- B. outside the production possibility curve
- C. along the production possibility curve
- D. adequate to meet market demand
Scale of preference shows
- A. incomes of consumers in order of size
- B. utilities enjoyed by consumers
- C. opportunity cost of goods consumed
- D. consumer's wants in order of priority
In a free market economy, the rationing of scarce goods is done principally by?
- A. the government
- B. business organizations
- C. the price mechanism
- D. consumers
The price mechanism
- A. regulates supply and demand
- B. rations the consumers
- C. rewards the producers
- D. allocates scarce resources
- E. does all of the above
Marginal cost is?
- A. the lowest cost of producing goods
- B. the cost of production of the most efficient firm in an industry
- C. the cost of production of the most inefficient firm in an industry
- D. the cost of production of the last or extra unit of goods produced by a firm