The supply of mangoes is represented as P=0.3Q, where P is the price ($) and Q is the quantity. What is P when Q is 50?
- A. $1.50
- B. $15.00
- C. $150.03
- D. $166.67
When market supply increases , the equilibrium price_________
- A. Rises and quantity falls.
- B. Falls and quantity rises.
- C. And quantity increase
- D. And quantity fall.
Government can increase farmers’ incomes by__________
- A. Fixing maximum prices.
- B. Fixing minimum prices.
- C. Encouraging them to produce surplus output.
- D. Increasing taxes on inputs.
Market supply may increase if there is an increase in the________
- A. Price of the product
- B. Prices of factors of production.
- C. Tax paid on raw materials
- D. Subsidies on raw materials.
The leftward shift in the supply curve for a commodity indicates_________
- A. An increase in quantity supplied
- B. A decrease in supply.
- C. A reduction in quantity supplied.
- D. An increase in supply.
The price of soap rose from $10 to $20 causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply_________
- A. Unitary elastic.
- B. Perfectly inelastic.
- C. Fairly elastic.
- D. Inelastic.
The coefficient of price elasticity of supply of land is usually____________
- A. One
- B. Greater than one
- C. Zero
- D. Less than one.
An increase in market supply is caused by the following factors except_________
- A. An improvement in innovation and technology.
- B. An increase in the price of the commodity
- C. A reduction in the cost of raw materials.
- D. A favourable weather condition.
What will be the reaction of consumers in a market if there is a fall in the price of the substitute commodity X?
- A. Price of commodity X will increase
- B. Demand for the substitute of commodity X will decrease
- C. Demand for commodity X will decrease
- D. Supply of both commodity X and its substitute will increase.
The demand for wood and labour is an example of______
- A. Effective demand.
- B. Complementary demand
- C. Derived demand
- D. Competitive demand
An increase in the rice harvest, all things being equal, may cause____________
- A. Price to increase substantially.
- B. Price to fall substantially.
- C. Demand to fall substantially.
- D. Farmer's incomes to be more than doubled
One way of obtaining the median of a given data is to__________
- A. Sum the value and divide by the number of items.
- B. Arrange the data in ascending order and subtract each item from the mean.
- C. Arrange the data in descending order and add each item to the least.
- D. Arrange the data in either ascending or descending order and find what item divides the set in two equal parts.
When a commodity market operates without government interference, commodities are distributed through_______
- A. A government distribution agencies.
- B. The operation of price mechanism.
- C. A central planning committee
- D. Retailers only.
The distinguishing function of an entrepreneur is_______
- A. Planning.
- B. Control.
- C. Risk-bearing.
- D. Management.
A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes Is the________
- A. Dress.
- B. Jewelry.
- C. Handbag and Jewelry.
- D. Dress and Jewelry
The study of economics IS Important to every society because it______
- A. Enables individuals to satisfy all their wants
- B. Helps in the utilization of scarce resources.
- C. Helps producers to know what to produce.
- D. Restores equilibrium between producers and consumers