Both in the short run and in the long run, a firm maximizes its profits when?
- A. MC = MR
- B. AC = MC
- C. AVC = AC
- D. MC = AVC
If y represents the income earned by workers in a factory, find the range of their income which satisfies the following inequality: 4Y – 300 > 500.
- A. y > 300
- B. y > 250
- C. y > 200
- D. y > 150
What is the elasticity of demand for commodity X, if at a price of N25 the quantity demanded is 80 and when the price is reduced to N20 the quantity demanded is 100?
- A. 1.25
- B. 1.45
- C. 0.25
- D. 0.15
In order to maximize his profit, a businessman who faces a very elastic demand for his product is advised to?
- A. slightly increase the price of his product
- B. slightly reduce the price of his products
- C. leaves his price unchanged
- D. discriminate his prices
In a free market economy, available resources are more efficiently allocated by complete reliance on?
- A. development planning
- B. strategic planning
- C. capital budgeting
- D. price system
Which of the following statement is TRUE of the effect of changes in demand and supply on price?
- A. A decrease in supply will lead to fall in price and a fall in the quantity bought and sold
- B. An increase in demand will lead to a fall in price and quantity bought and sold
- C. A decrease in demand will lead to a rise in price and in the quantity bought and sold
- D. An increase in supply will lead to a fall price and a rise in the quantity bought and sold
The effect of changes in the condition of demand on a demand schedule with the price constant is?
- A. A movement along the demand curve
- B. deflation of the demand curve
- C. hyperbola formation by the demand curve
- D. shift of the demand curve
The opportunity cost of the use of productive resources which a producer owns and so does not pay constitutes?
- A. a fixed cost
- B. an implicit cost
- C. a variable cost
- D. a prime cost
Any payment to a factor of production in excess of what is necessary to keep that factor in its present employment is known as?
- A. real income
- B. profit
- C. economic rent
- D. real wage
The factor of production that has the highest degree of mobility is?
- A. land
- B. labour
- C. capital
- D. enterpreneurship
The advantages which firms obtain directly from expanding their operations are referred to as?
- A. internal economies of scale
- B. external economies of scale
- C. economics of localization
- D. economies of resources allocation
What is meant by labour supply?
- A. Number of people in working population
- B. Number of men and hours they work
- C. Number of hours during which the middle aged persons work
- D. Number of workforce multiplied by the hours they work
The population of Oh-aha L.G.A. WAS 480 000 in December 1980, out of which 60% were females . If within one year no birth were recorded, but 5% of the L.G.A. in December 1981?
- A. 96 000
- B. 192 000
- C. 288 000
- D. 470 400
An aging population is a population?
- A. with a high dependency ratio
- B. with many young people
- C. in which the number of old persons is increasing
- D. that is dominated by very old people
The problems of conducting census include?
- A. high rate of rural-urban migration
- B. poor geographical distribution of population
- C. high birth rate in tthe coutry
- D. poor town planning in urban areas
The active intervention of the central authorities in the management of a country’s economy rest upon the?
- A. failure of the market force to produce satisfactory result
- B. superiority of the centrally planned economy over the private enterprise economy
- C. result-oriented nature of the private enterprise economy
- D. cost-minimization strategy of a mixed economy
What to produce in any society is determined by the?
- A. expenditure of the people on different commodities
- B. competition among the different producers
- C. competition among the different consumers
- D. supply and demand in the factor markets
A student in Obu’pu Secondary School discovers that he simultaneously needs a pen, an exercise book, an eraser and a ruler, but that he can purchase only one of these items. What is the first thing he is expected to do?
- A. Check how much he has
- B. Find out which is the cheapest of the items
- C. Draw up a scale of preference
- D. Weigh the opportunity cost of each item against the other
The ultimate objective of Economics is to?
- A. make effort to understand how the Economy works
- B. make the best use of scarce resources
- C. organize production at the lowest cost
- D. decide under what circumstances the government should intervene inthe economy
The borrowing rights of a member country of the international Monetary Fund are determined by?
- A. the seriousness of the country's economic problems
- B. its balance of payments position
- C. its quota to the fund
- D. the size of gold reserve
A situation in which a commodity is sold abroad below its cost of production in the home country is known as?
- A. dumping
- B. counter trade
- C. bilateral trade
- D. trade liberalization