Question 1 of 20 4,545 total questions
Which of the following falls continuously as output expands?
A Average fixed cost
B Marginal cost
C Average variable cost
D Average cost
Given that the total fixed cost is N1,000, total variable cost N2,500 and the output, 100 unit.
In a perfect competition, every firm is a price?
A maker
B taker
C giver
D bidder
A characteristic of the average fixed cost is that, it?
A rises and falls faster than the marginal cost
B is U-shaped and intersects the price axis
C is always higher than the average variable cost
D falls continuously but is never equal to zero
One of the characteristics of an imperfect market is the?
A large number of buyers and sellers in the market
B awareness of market conditions by buyers
C availability of substitutes
D heterogenetity of products
The main function of price in the economic system is to?
A allocate scarce resources among competing uses
B ensure equitable distribution of income and wealth
C determine the demand for and the supply of goods and services
D remove all the constraints on production of goods and services
The downward sloping part of the long-run average cost curve of a firm may be attributable to?
A diminishing returns
B the law of variable proportions
C diseconomies of scale
D increasing returns to scale
A utility maximizing household will allocate its expenditure so that?
A more naira is spent on commodities with the highest utility
B less naira is spent on commodities with the lowest utility
C the utility of the last naira spent on each commodity is equal
D the amount spent on each commodity is equal
In a planned economy, what shall be produced is determined primarily by?
A what the consumer wants
B government decisions
C price mechanism
D the pattern of consumer spending
A capitalist economy is one characterized by the?
A private ownership of factors of production
B ownership of factors of production by rich members of the society
C use of capital and labour in fixed proportions during production
D use of capital intensive methods of production
The determinants of elasticity include?
A price, time and availability of alternatives
B technology and cost of production
C time and availability of alternatives
D price, time and technology changes
Normative economics deals with?
A what is and not what should be
B facts and not figures
C facts and figures
D value judgements
The shape of a production possibility frontier is determined by the?
A increasing relative costs
B returns to scale
C diminishing returns to a fixed factor
D increasing returns to a variable factor
Abubakar has the choice of buying either a house ruining cost. If he decides to buy the Mercedes Benz car, his opportunity cost is?
A N 1.5 m
B N 2.0m
C the house
D the car
In a firm, three employees earns N5,500 each, four earn N3,300 each, two earns N5,000 each and one earn N7,000. The mean income of the employees is?
A N5,200
B N 4,760
C N4,670
D N2,080
A major setback in any mixed economy is
A that is combined both the capitalist and socialist systems
B the freedom of choice in the production and consumption of goods and services
C that government intervenes to secure full utilization of resources
D that economy decisions are determined by market forces
E that the absence of profit motive in the public sector may reduce incentives for hard work
The economic system in which the decision s about what to produce , how to produce and for whom to produce are made by private firms is called
A socialism
B Welfarism
C communism
D capitalism
E traditionalism
The instrument used in many countries to restrict imports includes
A high tarrifs
B price index
C excise duties
D bank rate
E subsidies
Which of the following countries is a major trading partner of Nigeria?
A Britain
B Canada
C Japan
D Germany
E China
The stability of Nigerian economy depends mainly on the export price of
A groundnut
B cotton
C cocoa
D mineral oil
E palm kernel
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