economics

Which of the following producer is closest to being a monopolist?

A. A baker B. A wheat farmer C. A large chain store D. An automobile plant Correct Answer: Option D…

4 years ago

The characteristic of entry and exit ensures that firms?

A. earn excess profit B. earn normal profit C. break-even D. expand their operations Correct Answer: Option D - expand…

4 years ago

The use of modern weaving machines in the production of local fabric will result in?

A. an increase in the demand for labour B. a decrease in the demand for labour C. an increase in…

4 years ago

To protect farmers during a bumper harvest; the government usually?

A. set a maximum price B. release products from the buffer stock C. sell the excess to consumers D. set…

4 years ago

An upward movement along the same supply curve results in?

A. an increase in supply B. a decrease in price C. a decrease in quantity supplied D. an increase in…

4 years ago

The excess benefit derived from the purchase of goods over the amount paid for them is referred to as consumer?

A. rationality B. surplus C. sovereignty D. credit Correct Answer: Option B - surplus Explanation Surplus in economics refers to…

4 years ago

Diminishing marginal utility implies that?

A. total utility decreases as consumption increases B. marginal utility increases as consumption increases C. marginal utility decreases as consumption…

4 years ago

As long as marginal utility is positive; total utility must be?

A. negative B. increasing C. zero D. decreasing Correct Answer: Option B - increasing Explanation When marginal utility diminishes but…

4 years ago

If the demand elasticity coefficient of cars is 0.5; it implies that the demand for petrol is?

A. elastic B. perfectly inelastic C. inelastic D. perfect elastic Correct Answer: Option C - inelastic Explanation If the demand…

4 years ago

If income rises from N2000 to N4000 and quantity demanded increase from 80 units to 120 units; find the income elasticity of demand?

A. 0.5 B. 1.2 C. 2.5 D. 4.0 Correct Answer: Option A = 0.5 Explanation Income elasticity of demand is…

4 years ago