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 real money supply divided by the real GDP
The money supply multiplied by the price level
The money supply divided by the price level
The ratio of real GDP to the real money supply
Correct answer is D
Velocity of money is the total amount of money in circulation in an economy. It is calculated as Velocity of money = GDP/Money Supply
The short run can be defined as the period of time during which
All inputs are fixed
At least one of the firm's input is fixed
At least two inputs are fixed
All inputs are variable
Correct answer is B
A short run period is a period of time in which some input factors are fixed and some are variable. In the short run, it is impossible for the producer to vary the quantity of some inputs.
The marginal propensity to consume is
Options A, B and C
ΔC/ΔY
The slope of the consumption function
Coefficient c in the equation C = C + cYd
Correct answer is A
The marginal propensity to consume is the ratio of change in consumption to change in income. It is mathematically represented as: MPC = ∆C/∆Y and also the consumption function is represented as C = a +bYd ( C = C + cYd) where the b(c) is the MPC which ranges between 0 and 1. The slope of the consumption function is b or MPC.
Which of the following is an example of free good?
Free education
Water in the ocean
Dinner you did not pay for
Your rented apartment
Correct answer is B
Free goods are goods whether consumer goods or productive inputs, which are useful but not scarce i.e. they are in sufficiently abundant supply that all agents can have as much of them as they wish at zero social opportunity cost e.g. air, water, by -product etc.
The demand for a good is price inelastic if
The price elasticity is less than one
The price elasticity is one
The price elasticity is negative
The price elasticity is greater than one
Correct answer is A
Inelastic demand occurs when a change in demand is less than proportionate change in price. Inelastic demand is less than 1 i.e e < 1