Question 1 of 20 4,545 total questions
The size of a business units tends to be small if the activity?
A involves mass production of goods
B requires a large capital
C requires division of labour
D involves the provision of direct services
One of the purposes of advertisement in marketing is to?
A change the quality of the product
B raise the quantity of the product demanded as its price falls
C shift the demand curve for the product to the right
D raise production cost
which of the following is an important function of the retailer?
A Grant credit to the wholesaler
B Breaks bulk and sales product in small units
C Reduces cost of distribution
D Generates demand for production through advertisement
The merging of firms engage in different stages of production and marketing is called?
A external economies of scale
B vertical intergration
C horizontal intergration
D economic unoin
For purely competitive industry, a fundamental requirement of the demand curve faced by individual firms is that it should be?
A downward sloping and price inelastic
B perfectly price elastic
C downward sloping but price inelastic
D perfectly price inelastic
In order to increase its profit margin, the monopolist can manipulate
A both price and output
B either price or output
C only its price
D only its output
The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal?
A utility
B productivity
C rate of substitution
D revenue
Which of the following factors is an important determinant of the magnitude of price elasticity of demand?
A The production period
B Cost of storage
C Durability of the product
D Availability of factors of production
If, as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is?
A static
B infinitely elastic
C externally determined
D perfectly inelastic
If a 10k per kg, 1000kg of yam were purchased and at 5k per kg, 1,500kg were purchased, the resultant point elasticity of demand is?
Given perfect competition in the capital market, the opportunity cost of capital is adequately reflected by the?
A interest rate
B returns on capital
C alternative capital foregone
D shadow price of foreign exchange
If the cost of production for a firm continues to increase as it output rises, the firm is said to be experiencing?
A large-scale production
B profit maximization
C economies of scale
D diseconomies of scale
if X represent the factors of production and Y represent the factor price, which of the following sets of association is correct?
A (land, rent) (capital, wage), (labour, profit)
B (land, interest) (capital,profit), (labour, wage),
C (land, wage), (capital, interest), (labour,rent),
D (land,rent), (capital, interest), (labour, wage),
Efficiency in production involves?
A reducing the size of the workforce
B producing a given output with the lowest cost combination of factors of production
C adoption of capital-intensive technology
D increasing the quantity of the fixed factor of production
The primary problem of Economics is?
A to obtain a more equitable distribution of money income
B the scarcity of productive resources relative to material needs
C how to reach prices which correctly depict that products and resources are not in abundance
D to teach people how to save so as to make more money
A shift in the production possibility frontier could result from?
A unemployment
B changes in the combination of goods produced
C inflation
D changes in production techniques
The need to construct a scale of preference is necessitated by?
A the need to satisfy wants
B scarcity and the need for choice
C scarcity of resources
D non-availability of factors of production
In its simplified form, the circular flow of income concept refers to the?
A real flow in goods and services between the product and factor markets
B monetary payment for goods and services produced by individual firms
C transactions in goods and services and payment for such transactions between individual firms and households.
D money flows associated with transactions between individual firms and households
Subsistence farming means producing food
A Mainly for the need of our immediate and extended family
B Crops for sale mainly
C Crops mainly for export
D To feed the community around
E In order to satisfy the government directives
The term marginal propensity to consume can best be explained as the
A Desire to spend more income on consumption
B Change in consumption as a percentage of change in income
C Average regularly spend on consumption
D Total expenditure on consumption
E Inclination to spend only a little on consumption
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