In order to calculate total utility (TU) from given levels of marginal utility (MU), one has to?
- A. subtract MU from TU
- B. Add MU from the various levels
- C. multiply MU by the initial TU
- D. Divide current MU by previous MU
if the price of a commodity Z falls and a consumer buys less of it, then commodity Z is a
- A. necessity
- B. good of ostentation
- C. normal good
- D. giffen good
Government revenue will increase if taxes are levied on goods with?
- A. perfectly elastic demand
- B. fairly elastic demand
- C. perfectly inelastic demand
- D. unitary elastic demand
if a given change in price brings a proportionately larger change in quantity demanded, the
- A. demand is relatively price elastic
- B. demand is relatively price inelastic
- C. price elasticity of demand is unitary
- D. price elasticity of demand is constant
The market supply curve slopes upward from left to right indicating that?
- A. producers pay high taxes
- B. two commodities can be supplied at the same time
- C. at a lower price, less is supplied
- D. at a lower price, more is supplied and demanded
increase in production subsidies will shift
- A. the demand curve to the left
- B. the supply curve to the right
- C. both the supply demand curves to the left
- D. supply curve to the left and demand curve to the right
which of the following is not a reason for abnormal demand
- A. price of the commodity
- B. goods of ostentation
- C. giffen goods
- D. rare commodity
If the price of floor rises, then bread
- A. demand curve will shift to the left while supply curve will shift to the right
- B. supply curve will shift to the left
- C. supply curve will shift to the right
- D. demand curve will shift to the right while supply curve remains unchanged
which of the following is not an effect of many middlemen in the chain of production
- A. shortage of commodities
- B. low retail prices
- C. hoarding of goods
- D. high retail prices
A disadvantage of the mean as measure of central tendency is that?
- A. is affected by extreme values
- B. can only be used for continuous data
- C. cannot be used to measure the qualities of a population
- D. cannot be determined in group data
The following constitute the criteria for identifying an economic system except?
- A. ownership of resources
- B. scarcity of resources
- C. method of decision making
- D. motivation for production
An outward shift of the production possibility curve shows that?
- A. production is shifting to the left
- B. resources are under-utilized
- C. economic growth has taken place
- D. factors of production are moving outward
which of the following can be described as land
- A. forest
- B. diamond
- C. roads
- D. crude oil
Economics is regarded as a science because it?
- A. studies laws that govern human behaviour
- B. uses scientific method to explain human behaviour
- C. makes use of controlled experiments to explain human behaviour
- D. makes use of machines to study human behaviour