What happens when a minimum price is imposed in a market?
- A. Shortage occurs
- B. Surplus occurs
- C. market maintains its equilibrium
- D. Many firms will close down
When the price of a good is above the equilibrium, there will be
- A. a shortage
- B. a surplus.
- C. unemployment
- D. inflation
| Units of quantity consumed | Total utility | Marginal utility |
| 0 | – | – |
| 1 | 10 | 10 |
| 2 | 15 | 5 |
| 3 | 17 | 2 |
| 4 | 18 | 1 |
| 5 | 18 | 0 |
The table above illustrates the law of?
- A. diminishing returns
- B. diminishing marginal productivity
- C. diminishing marginal utility
- D. variable proportion
Two commodities X and Y are in joint supply when
- A. X is a by-product of Y
- B. X and Y are produced by the same firm
- C. increase in the quantity of X leads to a decrease in Y
- D. X and Y cannot be produced in the same process
Supply of agricultural products is likely to be elastic in the
- A. intermediate period
- B. long-run
- C. market period
- D. short-run
Which of the following factors is not a condition for a change in the supply of a commodity
- A. improved technoly
- B. cost of production
- C. the price of the commodity
- D. government tax policies
What effect will an increase in the supply of fish have on the meat market
- A. a fall in equilibrium price and quantity
- B. an increase in equilibrium price and quantity
- C. an increase in equilibrium price and a fall in quantity
- D. both equilibrium price and quantity will remain unchanged
The demand for coffee and tea is
- A. joint
- B. competitive
- C. composite
- D. derived
If less of a good is bought as one’s income increases, such a good is
- A. a normal good
- B. a luxury
- C. a necessity
- D. an inferior good
If the demand function is Qd = -0.5 + 20, calculate the quantity demanded when price is $15.0
- A. -%27.50
- B. -%12.50
- C. $12.50
- D. -$27.50
If the coefficient of price elasticity of demand of a product is zero, then its demand curve will be
- A. parallel to the quantity axis
- B. parallel to the price axis
- C. negatively sloped
- D. positively sloped
The desire for profits is a major feature of
- A. traditional economy
- B. mixed economy
- C. market economy
- D. command economy
The wages of a group of workers in dollars is stated below;
40, 30, 70, 20, 60, 10, 10, 80, 30, and 10.
What is the mean wage
- A. $35
- B. $36
- C. $37
- D. $38
The major employer of labour in developing countries is the
- A. tertiary sector
- B. secondary sector
- C. primary sector
- D. industrial sector
A point X inside the production possibility curve indicates that
- A. resources are fully utilized
- B. the country is poor
- C. some resources are idle
- D. resources are not available
The fundamental economic problem in every society is
- A. the large number of the unemployed
- B. Limited supply of productive resources
- C. inadequate supply of money
- D. corruption and mismanagement
(a) What is public debt?
(b) Outline any three reasons why countries borrow.
(c) Highlight any three effects of a huge national debt on the economy of a country.
(a) Distinguish between the following pairs of concepts:
(i) elastic demand and inelastic demand
(ii) income elasticity of demand and cross elasticity of demand.
(b) Using diagrams, explain how an increase in price will affect the total revenue of a producer if the demand for his product is:
(i) price elastic;
(ii) price elastic
(a) Define joint venture.
(b) Identify any three merits of a private company over a partnership.
(c) State any three sources of finance to a public enterprise.
(a) What is an industry?
(b) Explain the following:
(i) division of labour;
(ii) economies of scale.
(c) Outline any four internal economies of scale.
(a) (i) Define distribution of goods.
(ii) Illustrate the normal chain of distribution of goods.
(b) Describe a consumers’ cooperative society.
(c) Outline any four roles performed by a consumers’ cooperative society