The relationship between Marginal Product (MP) and Average Product (AP) is such that they are equal when
- A. average product is maximum
- B. Average product is minimum
- C. Marginal Product is maximum
- D. Marginal Product is increasing
A consumer maximizes his utility in consuming a good ‘X’ when
- A. Mux = Px
- B. Px > Mux
- C. price is falling
- D. Mux > Px
Government fixing of prices below the equilibrium point is aimed at protecting the
- A. sellers
- B. industries
- C. distributors
- D. consumers
The interaction of supply and demands for labour determines
- A. production
- B. income
- C. wage
- D. profits
If an increase in earning leads to more of of a commodity being demanded, the good is said to have
- A. positive income elasticity
- B. negative income elasticity
- C. positive cross elasticity
- D. negative cross elasticity
In the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?
- A. An increase in demand for X will increase supply of Y
- B. An increase in demand for X will leave the supply of Y unchanged
- C. An increase in demand for Y will raise the price of X
- D. An increase in demand for X will cause less of Y to be produced
At a co-efficient of price elasticity of supply of 0.5, supply is
- A. perfectly inelastic
- B. inelastic
- C. perfectly elastic
- D. elastic
If a fall in price of one commodity leads to an increase supply of another commodity, both commodities have
- A. composite supply
- B. joint supply
- C. competitive supply
- D. short run supply
When the price of a commodity increases and the quantity demanded also increases, this is a case of
- A. exceptional demand
- B. derived demand
- C. competitive demand
- D. joint demand
The type of demand that exist between torchlight and battery is
- A. competitive demand
- B. complemetary demand
- C. composite demand
- D. joint demand
The demand and supply function of a commodity are given as below.
Qd = 20 – 2p
Qs = 6p – 12
Where p = price in naira, Qd = Quantity demanded and Qs = Quantity supplied. The equilibrium price is
- A. 2 Naira
- B. 4 Naira
- C. 6 Naira
- D. 20 Naira
The main objective of setting up a private business organization is to
- A. protect the interest of the owners
- B. promote exports
- C. provide infrastructure
- D. maximize profits
An economic system where the central planning authority determines what goods to produce and in what quantity is known as
- A. market economy
- B. socialist economy
- C. welfare economy
- D. Traditional economy
In a capitalist economy, resources are
- A. collectively owned
- B. jointly owned
- C. privately owned
- D. communally owned
the economic system which relies mainly on the price mechanism for the allocation of scarce resources is known as
- A. capital economic system
- B. command economic system
- C. combined economic system
- D. traditional
All the following are features of market economies except
- A. competition among producers
- B. demand and supply force guiding production decision
- C. that profit motive is paramount
- D. public ownership of capital
A type of unemployment which occurs due to technological progress is called
- A. frictional unemployment
- B. residual unemployment
- C. structural unemployment
- D. mass unemployment
choice is necessitated by
- A. demand and supply
- B. cost of production
- C. production possibility curve
- D. scarcity of resources
The concept of opportunity cost is also referred to as
- A. social cost
- B. real cost
- C. fixed cost
- D. variable cost
» the study of economics becomes necessary because of the
- A. large population size of the world
- B. scarcity of resources
- C. opportunity cost of goods and services
- D. needs to satisfy every desire of man