The gap between demand and supply curve below the equilibrium price indicates
- A. excess demand
- B. excess supply
- C. equilibrium quantity
- D. equilibrium price
The distribution of goods is said to be completed when it reaches the
- A. wholesalers
- B. consumers
- C. retailers
- D. manufacturers
One of the problems associated with the middlemen in the distribution of goods is that he
- A. buys in large quantities
- B. hoards goods
- C. grants credit to the retailers
- D. sells varieties of goods
A major effect of ageing population is
- A. reduced labour force
- B. rise in price of commodities
- C. reduced infrastructures
- D. neglect of agriculture
Natural growth rate is
- A. birth rate less death rate
- B. death rate less migration
- C. death rate plus birth rate
- D. birth rate plus migration
An entrepreneur is likely to make more profits when
- A. expenditure is more than revenue
- B. competitors charge lower prices
- C. costs per unit output falls
- D. quantity of output reduces
division of labour is limited by
- A. the size of the market
- B. the productivity of capital
- C. cost of production
- D. the factors of production
As a firm expand s , it enjoys some advantages called
- A. variable proportion
- B. diminishing marginal returns
- C. internal economies of scales
- D. decreasing returns to scale
The concept of opportunity cost is important to the firm because it
- A. determines the price of the firms products
- B. increases the level of output of the firm
- C. leads to maximum satisfaction of the consumers
- D. guides firms in allocating scarce resources
An economic goods is described as a good which
- A. yields utility and commands a price
- B. is useful and occupies a space
- C. is in high demand and transferable
- D. has unlimited supply
Mixed economy refers to a system in which the means of production are controlled by
- A. private enterprises and the government
- B. private indidviduals
- C. the government only
- D. the workers and businessmen
In a capitalist system, the means of production is owned and controlled by
- A. the government
- B. politicians
- C. private indidviduals
- D. the workers
A carpenter’s consumer goods includes 1. a kilogram of rice II. 3 pairs of shoes III. 4 pairs of socks IV. 3 screw drivers
- A. I and IV only
- B. I,II,III and IV
- C. I, II and IV only
- D. I, II and III and III
The three broad categories of productions are
- A. direct, secondary and extractive
- B. primary, tertiary and direct
- C. primary, secondary and tertiary
- D. secondary , primary and direct
The reward for land as a factor of production is
- A. interest
- B. rent
- C. dividends
- D. wages
Which of the following is an economic activity?
- A. attending a town's meeting
- B. a visit to the stadium
- C. payment of school fees
- D. arresting a petty thief