a rational consumer will purchase a product whose price is?
- A. greater than his marginal utility
- B. less than his marginal utility
- C. equal to his marginal utility
- D. equal to his total utility
increase in the supply of a product can be caused by?
- A. change and taste and fashion of consumers
- B. increase in the income of consumers
- C. a fall in the cost of production
- D. increase in the price of a product
price elasticity of supply can be influenced by the following factors except?
- A. time period
- B. cost of production
- C. size of consumer income
- D. nature of the product
Effective supply is the total amount of a commodity
- A. from a single producer
- B. in the warehouse of producers
- C. offered for sale at a market place
- D. produced for the market
A rightward shift in the supply curve of a commodity is brought about by an increase in?
- A. the level of technology
- B. the price of the commodity
- C. cost of production
- D. taxation
which of the following is an example of derived demand
- A. textbook
- B. labour
- C. staple food
- D. mobile phone
A demand curve parallel to the Y-axis indicates
- A. fairly elastic demand
- B. perfectly elastic demand
- C. perfectly inelastic
- D. fairly inelastic demand
The difference between demand and wants is in the
- A. desire for the commodity
- B. significance of the commodity
- C. ability to pay for the commodity
- D. economic value of the commodity
if the coefficient of cross elasticity of demand for goods Y and Z is positive, the two goods are?
- A. complements
- B. substitutes
- C. luxurious
- D. inferior
if the weight of five puppies in kilograms are 3.5, 3.0, 4.2, 5.0 and 4.3, then mean weight of the puppies is?
- A. 3.5 kg
- B. 4.0 kg
- C. 4.2 kg
- D. 5.0 kg
in a market economy, the problem of what goods to produced is solved primarily by
- A. directives of the government
- B. the pattern of consumers spending
- C. producers of consumer goods
- D. people producing what they want
which of the following items is not an example of circulating capital
- A. raw material
- B. money
- C. fuel
- D. machinery
the opportunity cost of a worker going to the university is
- A. tuition, fees and books
- B. boarding and lodging
- C. the wages given up to attend the university
- D. transportation and entertainment
Economics is regarded as a science because?
- A. its issues can be easily verified by reference to facts
- B. it adopts scientific methods in making its analysis
- C. its issues are relevant for national development
- D. its subject matter studies human behaviour