Which of the following falls continuously as output expands?
- A. Average fixed cost
- B. Marginal cost
- C. Average variable cost
- D. Average cost
Given that the total fixed cost is N1,000, total variable cost N2,500 and the output, 100 unit.
Find the average total cost of producing one units?
- A. N 60
- B. N 45
- C. N 35
- D. N 30
In a perfect competition, every firm is a price?
- A. maker
- B. taker
- C. giver
- D. bidder
A characteristic of the average fixed cost is that, it?
- A. rises and falls faster than the marginal cost
- B. is U-shaped and intersects the price axis
- C. is always higher than the average variable cost
- D. falls continuously but is never equal to zero
One of the characteristics of an imperfect market is the?
- A. large number of buyers and sellers in the market
- B. awareness of market conditions by buyers
- C. availability of substitutes
- D. heterogenetity of products
The main function of price in the economic system is to?
- A. allocate scarce resources among competing uses
- B. ensure equitable distribution of income and wealth
- C. determine the demand for and the supply of goods and services
- D. remove all the constraints on production of goods and services
The downward sloping part of the long-run average cost curve of a firm may be attributable to?
- A. diminishing returns
- B. the law of variable proportions
- C. diseconomies of scale
- D. increasing returns to scale
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
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
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
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
Normative economics deals with?
- A. what is and not what should be
- B. facts and not figures
- C. facts and figures
- D. value judgements
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
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
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
The Economic Commission for Africa was set up by the?
- A. UNO
- B. ECOWAS
- C. OAU
- D. IMF
If a country operates a freely floating exchange rate system, and suffers a balance of payments deficit can be eliminated through?
- A. a rise in the external value of its currency
- B. a fall in the external value of its currency
- C. an increase in the volume of imports
- D. the consumption of more foreign goods
If a country has a balance of payments surplus on current account, this means that?
- A. total invisible export is greater than invisible import
- B. the value of goods exported must be greater than the value of goods imported
- C. there must be a positive balance of capital account
- D. the aggregate of the balance of trade and the invisible balance must be positive
The balance of visible trade is the difference between the values of?`
- A. imported and exported goods
- B. imported and exported services
- C. current account and capital account
- D. exchange rate of local and foreign currencies
Development plans have not been successful in some developing countries largely because of?
- A. very large working population
- B. increase level of consumption
- C. scarcity of industrial raw materials
- D. shortage of skilled labour and experts
One of the major consequences of urban-biased development programmes in Nigeria is that they?
- A. led o rapid rural-urban migration
- B. led to unprecedented urban wealth
- C. transformed rural areas into urban centres
- D. increased the level of specialized manpower inthe cities