Economics Questions and Answers
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
The amount of money that a firm recieves from the sales of its output is called
Total profit
Total revenue
Total cost
Average revenue
Correct answer is B
Total revenue in economics refers to the total receipts/ income from sales of a given quantity of goods or services. It is the total income of a business and is calculated by multiplying the quantity of goods sold by the price of the goods.
Which of the following can be added to a firm's profit to obtain total revenue?
Total variable cost
Total fixed cost
Marginal cost
Total revenue
Correct answer is D
Total Revenue (TR) is calculated by multiplying the quantity of goods sold (Q) by the price of the goods (P).
For example, if you sold 120 pens for N2 each: To find your Profit: You will have to subtract the Total Cost (TC) from your Total Revenue(TR).
Recall that we defined a firm's short-run total costs as
Total Cost = TFC + TVC.
Now we can define economic profit as:
Profit = Total Revenue - Total Cost
The specialization of labour enhances production because people
Can concentrate on all goods
Can efficiently produce their own needs
Can save time and produce more
Become experts in all areas of production
Correct answer is D
Division of labour is the separation of tasks in any system so that people can specialize in their various fields of expertise
Division of labour leads to specialization where people can concentrate on task they perform better than others.
When a firm is enjoying internal economies of scale, its?
Total cost of production is increasing
Average fixed cost is rising continuously
Average cost of production decreases as output increases
Average revenue and marginal revenue are decreasing
Correct answer is C
Internal economies of scale are related to the shift in average production costs for a business as it boosts its overall product output and the average cost per unit falls until maximum efficiency is attained. This means that, the overall production cost decreases, while output increases
Another term for equilibrium price is?
Price floor
Demand price
Market clearing price
Satisfactory price
Correct answer is C
Market-clearing price is another term used interchangeably with equilibrium price. Equilibrium price is a common economics term that refers to the exact price at which market supply equals market demand.