Which of the following is NOT illustrated by the production possibility curve?
Risk
Scarcity
Opportunity cost
Allocative efficiency
Correct answer is A
Production possibilities curve demonstrates that:
• There is a limit to what the society/individual can achieve, given the existing institutions, technology and resources.
• Every choice the society/individual makes has an opportunity cost – to get more of one good, we need to give up some of another good – every choice has a tradeoff.
PPF also illustrates the concept of efficiency. The combination of goods depicted on the curve are attainable only if all the resources are fully employed, with the most efficient means of production possible. All of the points on the frontier are said to be productively efficient, because they are fully utilizing the economic resources that they have.
One of the functions of the price system is that it
Encourages high volume of production
Dictates what the citizens will consume
Discourages the consumption of harmful goods
Regulates production and consumption
Correct answer is D
The price system function such a manner that the adjustments in the System take place almost automatically without and direction or dictation from a central authority, Price is the coordinator both of production and Consumption. The consumer’s are able to convey their preferences through the prices they are willing to offer. Similarly, the producers are able to indicate the accuracy or abundance of a commodity by mean of the price they are willing to accept, If price rise it changes demand and stimulates supply and vice versa. If there is a greater demand for a commodity than the supply thereof, then the adjustment between the two will be brought about. Conversely, if the supply is greater than the demand, the price will fall and bring about an equilibrium between the two.
When the government fix the price of essential commodities, this is referred to as
Price equilibrium
Price control
Demanded price
Asking price
Correct answer is B
Price control policy refers to how the government or its agency fixes the price of essential commodities. Price control is carried out in Nigeria by the price control board.
Which of the following source of income is spectacular only to Government?
Payment from business transfer
Bonuses
Tax
Wages
Correct answer is C
Tax, government generate income or revenues by taxing individual and corporate bodies. This process is referred to as taxation. Taxation is the act or method of imposing a compulsory levy by the government or it's agency on individuals and firms or on goods and services. Tax is the compulsory levy imposed by the government or it's agency on individuals and firm or on goods and services.
One of the major causes of farmer's unstable income in Nigeria is _________
The effect of diseases and pests
Industrial pollution
Mining and extraction activities
Population growth
Correct answer is A
The most direct economic impact of a trans-boundary pest or disease is the loss or reduced efficiency of agricultural production weather of reduced productivity on crops or animals can be long lasting. Although the loss of output from a trans-boundary pest or diseases may appear easy to identify, it can nevertheless be difficult to measure in precise economic terms.