Division of labour requires that, the tasks in a production line be performed
By specialists
In stages
By all workers
By unskilled labourers
Correct answer is B
Division of labour; the assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.
If the production of a large firm is higher than that of a small firm, it is experiencing
External economies of scale
External diseconomies of scale
Internal economies of scale
Internal diseconomies of scale
Correct answer is C
Internal economies are those economies in production which occur to the firm itself when it expands its output or enlarge its scale of production.
Price mechanism determines the prices of commodities through
Auctioning
Market forces
The sales of treasury bills
Government legislation
Correct answer is B
Price mechanism refers to the system where the market forces of demand and supply determine the prices of commodities and the changes therein. It is the buyers and sellers who actually determine the price of a commodity.
When price is set below equilibrium, this will lead to
An increase in the quantity supplied
A new equilibrium
A decrease in the quantity supplied
A fall in price
Correct answer is C
If the market price is below the equilibrium price, quantity supplied is less than quantity demanded, because producers will not be willing to supply more goods when the price being paid is too small thereby creating a shortage.
A rightward shift of the budget line is caused by a
Fall in consumer income
Change in consumer taste
Fall in the commodity relative price
Rise in the consumer income
Correct answer is D
When there is an increase in income, a consumer can buy more of both goods and this shows an outward i.e. rightward shift in the budget line.