At the point where the marginal revenue of a monopolist is equal to zero, its total revenue will be?
- A. falling
- B. rising
- C. equal to zero
- D. maximum
The short-run equilibrium in a perfectly competitive market requires that?
- A. marginal cost be equal to total revenue
- B. marginal cost and marginal revenue be equal
- C. costs are mutually determined by buyers and sellers
- D. the marginal cost curve cuts the total cost curve
If a total cost curve is plotted, marginal cost can be illustrated by the?
- A. slope of the tangent to the curve at any given output
- B. U-shaped curve cutting the total cost curve at its lowest point
- C. straight line from the origin to the mid-point of the curve
- D. straight line cutting the curve at its highest point
External dis-economies of scale result from excessive growth of?
- A. the whole industry
- B. some sectors of the industry
- C. external factors
- D. internal factors
In a small scale business, the fixed cost is N5,000, variable cost is N15,000 and the output is 500 units. What will be the unit cost of the goods?
- A. N400.00
- B. N80.00
- C. N40.00
- D. N20.00
The condition for equilibrium price and quantity under perfect competition is?
- A. MC = AR = TR
- B. TC =AR = P
- C. MC = AR = P
- D. MC = AR = TC
In a free market system, trading can only take place when the?
- A. market is not working effectively
- B. equilibrium price is attained
- C. price of a commodity tends to attract consumers
- D. consumers sovereignty is lacking
A central argument of cardinal utility is that utility is?
- A. measurable
- B. psychological
- C. ranked
- D. intangible
Use the information below to answer questions.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
The two commodities can be classified as?
- A. Substitutes
- B. durable and non-durable
- C. intermediate and final
- D. complements
Use the information below to answer the question that follows.
When commodity X sold for N25 per unit, 50 units of commodity Y were purchased. With an increase in the price of commodity X to N50 per unit, the demand for commodity Y fell to 20 units.
Determined the cross elasticity of demand?
- A. 1.7
- B. 0.6
- C. -0.6
- D. -1.7
Which of the following is an example of derived demand?
- A. Tax relief
- B. Labour
- C. Wage increase
- D. Entertainment
In a capitalist economy, the economic problem of what goods to produce is decided mainly by?
- A. shadow prices
- B. profit level
- C. relative prices
- D. a central planner
(i) What and how much will be produced
(ii) How will it be produced
(iii) For whom will it be produced
(iv) How much will be exported and consumed?
From the above, identify the combination of basic resource allocation questions in economic analysis.
- A. i, ii and iii
- B. i, ii and iv
- C. i, iii and iv
- D. ii, iii and iv
Economic can be defined as?
- A. reduction in spending in the face of competing alternative
- B. allocation of resources to alternative uses
- C. economic behaviour of small units like the household and the firm
- D. the study of economic aggregates like inflation and national income
The most acceptable economic measure for trade protection is to?
- A. improve standards of living
- B. protect infant industries
- C. safegard strategic industries
- D. promote foreign trade
Favorable terms of trade is important to a country because it facilities?
- A. economic prosperity for importers and exporters
- B. export of hard currency by the government
- C. economic prosperity for country
- D. import of hard currency by the government
Gains from trade depends on?
- A. comparative advantage
- B. absolute advantage
- C. distributive cost advantage
- D. absolute cost advantage
De valuation helps in checking adverse balance of payments if the?
- A. demand for imports is elastic
- B. demand for imports is inelastic
- C. supply of exports is elastic
- D. demand for exports is inelastic
A free trade area emerges when?
- A. traders from one part of the country can move freely to other parts
- B. customs regulation are harmonized among countries
- C. a group of countries decide to remove restrictions on imports from one another
- D. the UNCTAD is in force
The price of a good will not be affected by the imposition of a sales tax on it if the?
- A. supply is inelastic
- B. demand is inelastic
- C. supply is perfectly elastic
- D. demand is perfectly elastic
Economic development may be defined as economic growth?
- A. in a given country
- B. over a long period
- C. and improved health facilities
- D. and improved distribution of wealth