In the diagram L1L1 and L2L2 are budget lines. 1112 and 1 3 are indifference curves. Which points are optimal?
A. U and W B. V and W C. U and Z D. Y and Z Correct Answer: Option B – V and W
Commodities I and II are?
A. competitive supply B. Substitute supply C. Joint supply D. Derived supply Correct Answer: Option B – Substitute supply
The supply of commodity II increasing from S1 S1 to S2 S2
A. Moves the price below OP 2 B. Leads to a fall in price from OP 1 to OP 2 C. Increases the price from OP 2 to OP 1 D. Moves the price to OP 1 Correct Answer: Option B – Leads to a fall in price from OP 1 to OP 2
What will be United Kingdom’s exchange rate with Nigeria?
If the United Kingdom buys gold for $60 an ounce and Nigeria buys the same ounce for N500, what will be United Kingdom’s exchange rate with Nigeria? A. $0.05 = N1.00 B. $0.06 =N1.00 C. $0.11 =N1.00 D. $0.12 =N1.00 Correct Answer: Option D – $0.12...Products
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