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 short-run in production is the time period when
Techniques of production can easily be changed
All factors of production are vaiable
At least a factor is fixed while others are variable
Variable factors cannot be changed
Correct answer is C
The short-run production phase refers to a production cycle in which at least one factor of production is fixed.
When an increase in inputs leads to a more than proportionate increase in output, there is
Decreasing returns to scale
Increase in marginal product
Increasing retums to scale
Constant retums to scale
Correct answer is C
Increasing returns to scale happens when the output increases in a greater proportion than the increase in input.
What happens when a minimum price is imposed in a market?
Shortage occurs
Surplus occurs
Market maintains its equilibrium
Many firms will close down
Correct answer is B
A minimum price is when the government doesn't allow prices to go below a certain level. At this point, suppliers will be willing to supply more in the market because they are certain to sell above a particular price. This will lead to a surplus in the market.
The minimum price policy has been used in agriculture to increase farmer's income.
When the price of a good is above the equilibrium, there will be
A shortage
A surplus.
Unemployment
Inflation
Correct answer is B
If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the goods on the market.
Two commodities X and Y are in joint supply when
X is a by-product of Y
X and Y are produced by the same firm
Increase in the quantity of X leads to a decrease in Y
X and Y cannot be produced in the same process
Correct answer is B
No explanation has been provided for this answer.