A business outfit is said to be a public limited company when it
- A. is owned by the government
- B. operates as a public corporations
- C. is run by the public
- D. sells its shares to members of the public
Revenue is the
- A. cost of good multiplied by the quantity sold
- B. price of goods multiplied by the quantity sold
- C. quantity of goods plus purchase price
- D. quantity supplied less quantity sold
Which of the following is regarded as fixed cost?
- A. expenditure on raw materials
- B. expenditure on fuel
- C. expenditure on power
- D. rent on land
The transformation curve slopes indicate that
- A. opportunity cost of producing one commodity for another
- B. opportunity cost of producing two commodities at a time
- C. sales of the plants to other investors
- D. decrease in the cost of production
In the long run all factors of production are
- A. expensive
- B. variable
- C. durable
- D. fixed
Small scale enterprises are important in a country because
- A. they usually produce goods for the dependants
- B. they provide after-sales service only to the rich
- C. the price of their products are fixed
- D. they render personalized service to the consumers
If the co-efficient of elasticity of demand is 1.5, then the demand is
- A. fairly inelastic
- B. perfectly elastic
- C. elastic
- D. inelastic
Which of the following determinants of supply cannot be predicted easily?
- A. price of the commodity
- B. new techniques of production
- C. national emergencies
- D. mobility of labour
A major function of the price mechanism is that it determines the
- A. allocation of resources
- B. amount of national savings
- C. population of the country
- D. number of goods to be taxed
The gap between demand and supply curves above the equilibrium price is
- A. normal demand
- B. excess supply
- C. equil;ibrium quantity
- D. abnormal demand
If good P and Q are jointly demanded, an increase in the price of P will likely
- A. leave the demand for Q constant but reduce the quantity demanded of P
- B. reduce the quantity of P but increase the Price of Q
- C. Increase the quantity supplied of Q
- D. decrease the quantity demanded of Q
Which of the following factors does not cause a change in demand
- A. Taste and fashion
- B. vagaries of weather
- C. price of other commodities
- D. price of commodity
The theory of diminishing marginal utility states that as more units of a commodity are consumed, the
- A. satisfaction from an extra unit decreases
- B. satisfaction from an extra unit rises
- C. satisfaction from an extra units remains constant
- D. total satisfaction from the goods remains the same
Data presented in tables are usually arranged in
- A. charts and graphs
- B. rows and columns
- C. graph and rows
- D. columns and charts
Production covers all the following except when
- A. utility is created
- B. a good is manufactured
- C. a commodity is consumed
- D. individual wants are satisfied
Productive resources can also be called
- A. principle of production
- B. factors of production
- C. items of production
- D. labour and material resources
The main concern of economists is to
- A. allocate scarce resouces to satisfy human wants
- B. satisfy all human wants
- C. redistribute income between the rich and the poor
- D. control the growth of population