a. Define economic system
b. Distinguish between a capitalist economy and a socialist economy under the following:
i. aim of production
ii. consumer sovereignty
iii. competition
c. State three features of land as a factor of production
a.
i. Distinguish between:
money cost and opportunity cost
ii. Distinguish between:
normal good and inferior goods
b.
i. Explain how the scale of preference assists the following economic groups in making efficient allocation of their resources:
individuals
ii. Explain how the scale of preference assists the following economic groups in making efficient allocation of their resources:
firms
iii. Explain how the scale of preference assists the following economic groups in making efficient allocation of their resources:
government
a.
i. Table 1 below represents the output levels of a firm producing hand sanitizer. Use the information to answer the questions that follow.
Table 1
| Output (units) | 0 | 10 | 18 | 28 | 36 | 45 |
If the cost function of the firm is given as C = 30 + 4q, where C is the total cost and q is the units produced, calculate the:
total cost in dollars of producing:
18 units
ii. Table 1 below represents the output levels of a firm producing hand sanitizer. Use the information to answer the questions that follow.
Table 1
| Output (units) | 0 | 10 | 18 | 28 | 36 | 45 |
If the cost function of the firm is given as C = 30 + 4q, where C is the total cost and q is the units produced, calculate the:
total cost in dollars of producing:
36 units
b.
i. Average costs in dollars of producing:
28 units
ii. Average costs in dollars of producing:
45 units
c. What is the marginal cost in dollars of producing 28 units?
d. Determine the profit made from producing 45 units when the market price is fixed at $5.00 per unit.
e. Determine the fixed cost of the firm. Explain your answer.
a. The equilibrium position of a firm is illustrated in the diagram above. Study the diagram and answer the questions that follows:
i. equilibrium output level
ii. equilibrium price
b. At equilibrium output level, calculate the firm’s
i. total cost
ii. total revenue
iii. total profit
c. At equilibrium output level, calculate the firm’s
Is the firm operating is the long-run or short-run? Explain your answer.
d. At equilibrium output level, calculate the firm’s
i. What type of market is the firm operating in?
ii. List three features of the market type identified in d(i)
Which of the following is not a problem facing Economic Community of West African States (ECOWAS)?
- A. Language barriers
- B. Inadequate supply of labour
- C. Production of the same commodities
- D. Poor transportation and communication
A joint stock company enjoys perpetual existence because
- A. there is a higher degree of specialization
- B. it is a corporate entity
- C. it is formed by a minimum of seven members
- D. its shares are easily
A country is described as developing if
- A. the income per head is low
- B. the contribution of tertiary sector to national income is high
- C. the population is decreasing
- D. there is low labour supply
Trade protection will assit economic growth in developing countries if it can
- A. allow the importation of cheaper goods people want
- B. effectively safeguard newly established firms
- C. eliminate importation of all commodities
- D. generate enough revenue through export duties
Tariffs, quotas and embargoes are examples of
- A. trade restriction policies
- B. monetary policies
- C. fiscal policies
- D. foreign exchange policies
The marks obtained by 9 students in a class test are recorded below: 9, 8, 7, 5,7, 6, 8, 9 and 7. What is the median mark?
- A. 7
- B. 8.5
- C. 8
- D. 7.5
When more of tax on a product is borne by the buyer than the seller, the commodity involved has
- A. perfectly elastic demand
- B. perfectly inelastic demand
- C. fairly inelastic demand
- D. elastic demand
The fixing of maximum prices by government is mainly on
- A. imported capital goods
- B. inferior goods
- C. selected essential goods
- D. luxury goods
Petrol and Kerosene are jointly obtained from crude oil. If the supply of petrol increases, the
- A. cost of crude oil production has increased
- B. supply of kerosene will rise
- C. supply of kerosene will remain unchanged
- D. supply of kerosene will fall
The most liquid asset among the following is
- A. bonds
- B. cheque
- C. cash
- D. shares
The average revenue curve of a firm in a perfect market is the same as the
- A. supply curve of the firm
- B. average cost curve of the firm
- C. demand curve of the firm
- D. total revenue curve of the firm
Taxes levied on goods and services by government are called
- A. indirect taxes
- B. direct taxes
- C. coporate taxes
- D. poll taxes
Many workers are employed in the agricultural sector of developing countries because
- A. labour intensive method is mostly adopted
- B. abnormal profits are made
- C. wages in the sector is high
- D. they practice mechanized system of farming
If a firm retrenches some of its factory workers its
- A. average fixed cost may increase
- B. variable cost will decline
- C. marginal cost may increase
- D. fixed cost is likely to increase
One of the factor that may not promote industrial development is
- A. local firms entering into partnerships with foreign firms
- B. granting capital to firms at reasonable interest rates
- C. setting up industrial estates with modern amenities
- D. granting old firms tax exemptions
The price level and the value of money are
- A. positively related
- B. directly related
- C. not related
- D. inversely related
The rate of growth of population is
- A. initial population plus number of births and net migration
- B. the difference between birth rate and death rate
- C. birth rate less death rate plus net migration
- D. the number of immigrants plus number of births