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.
Which of the following is a major determinant of price elasticity of demand?
The price of the commodity
Availability of factors of production
The prices of factors of production
Income of the consumers
Correct answer is D
The Proportion of Consumer’s Income Spent:
An important determinant of the elasticity of demand is how much it accounts for in a consumer’s budget. In other words, the proportion of a consumer’s income spent on a particular commodity also influences the elasticity of demand for it. The greater the proportion of income spent on a commodity, the greater will be generally its elasticity of demand, and vice versa.
An indifference curve
An exceptional demand curve
A budget line
An isoquant map
Correct answer is A
An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
What effect would a change in price of a commodity have on its supply?
An increase in supply
No change in supply
A decrease in supply
A change in the quantity supplied
Correct answer is D
A change in the price of a good or service, holding all else constant, will result in a movement along the supply curve. A change in the cost of an input will impact the cost of producing a good and will result in a shift in supply; supply will shift outward if costs decrease and will shift inward if they increase.
One of the important features of perfect competition is_____?
Adequate knowledge of existing prices
The influence on prices by individual economic units
The restriction in terms of movement of goods and services
The administration of a centralized price system
Correct answer is A
A perfectly competition has the following characteristics:
One of the factors limiting the effectiveness of division of labour in the production process is the
Prevailing wage rate
Level of technology
Unemployment rate
Population size
Correct answer is B
FACTORS DISCOURAGING OR LIMITING DIVISION OF LABOUR
1. The nature of goods and services : Some goods and services are suitable for large scale production while others cannot produced on large scale.
2. Increase cost of production : If cost of production is increasing as a result of high cost of inputs, division of labour cannot be possible.
3. Managerial ability : Managerial ability must be duplicated as the firm expands .This causes difficulties to management in organizing and coordinating the factors of production employed.
4. The size of the market :
5. Low development of distribution.
6. Government policies.
7. Where standardisation is difficult to achieve.
8. The indivisibility of work into smaller process.
9. Technological advancement