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.
If wage rate is less than the average revenue product, the firms would be earning_______
Loss
Super normal profit
Normal profit
Higher revenue
Correct answer is B
MRP = Marginal Revenue Product
ARP = Average Revenue Product
Therefore, if the wage rate is less than the ARP, the firm will make super normal profit. As a result, new forms will enter the industry and the demand for labour will increase which will push up the wage rate so as to be equal to the ARP.
Let capital formation = CF, Production = P, C = consumption. Then CF =_______
P - C
P + C
PC
P/C
Correct answer is A
Capital Formation or capital accumulation refers to increasing a country's stock of real capital. There must be increase in savings and reduction in consumption of consumer goods i.e consumption must be subtracted from production.
I only
I, II
II, III
I, II, III, IV
Correct answer is B
Secondary production is the conversion or transformation of extractive product into finished goods or semi-finished goods.
Adam Smith's Theory of value stated that the value of a commodity depended on________
The market price in a free market over a long period
The over-all cost of production of the commodity
The amount of labour expended on its production
Its relative scarcity at any given time
Correct answer is C
Value means the power that goods and services have to exchange other goods and services. The value of a commodity depends on the satisfaction it can provide and the amount of labour used in production.
If AC and MC are represented on a graph, the MC curve will cut the AC curve______
At the maximum point on the AC curve
At the highest point on the AC curve
At the minimum point on the AC curve
At the peak
Correct answer is C
MC cuts the AC curve at the minimum or lowest point at B, also MC is equal to AC at that point.