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 additional cost incurred by producing an additional unit of output is known as
Fixed cost
Total cost
Average cost
Marginal cost
Correct answer is D
Marginal cost is the additional cost incurred in the production of one more unit of a good or service.
From the graph above P2 in price control situation is referred
Minimum price
Shut-down price
Maximum price
Mark-up price
Correct answer is A
Price control is a limit set by a government on the price that can be charged by companies for particular products or services. From the diagram above, P2 represents the minimum price at which firms can sell their products.
The minimum price is the lowest amount companies are allowed by law to charge for their products. It is usually above the equilibrium price.
Total product starts declining
Average product has become zero
Diminishing returns has set in
Increasing returns is operating
Correct answer is C
Diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.
A country that is over-populated will face the problem of
Low birth rate
Low per capita income
High wage rate
Full employment
Correct answer is B
No explanation has been provided for this answer.
The interest charged on loans is determined by the __________?
Exchange rate
Fiscal policy
Risk associated with the loan
Rate of production in the country
Correct answer is C
They make money on the interest they charge on loans because that interest is higher than the interest they pay on depositors' accounts. The interest rate a bank charges its borrowers depends on both the number of people who want to borrow and the amount of money the bank has available to lend.