NECO Economics Past Questions & Answers - Page 37

181.

Which of these is NOT a basic economic problem of society?

A.

Efficiency of resource use

B.

For whom to produce

C.

How to produce

D.

Scale of production

E.

What to produce

Correct answer is D

Scarcity, or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants. The problem of

- What to produce
- how to produce and for 
- Whom to produce are the basic economic problems of a society.
- Efficiency of resources used

Scale of production is a secondary production function.

182.

Total revenue can be obtained by multiplying

A.

Price by quantity sold

B.

Averages revenue by the demand

C.

Marginal revenue by marginal cost

D.

Average revenue plus marginal revenue

E.

Average cost by variable cost

Correct answer is A

Total revenue can be obtained by multiplying the quantity of output sold by the market price of the product (P.Q)

183.

For a monopolist, the demand curve is

A.

Inelastic

B.

Perfectly elastic

C.

Perfectly inelastic

D.

Elastic

E.

Unitary elastic

Correct answer is C

No explanation has been provided for this answer.

184.

Of what importance is a wholesaler in the chain of distribution?

A.

Creation of artificial scarcity

B.

Bulk breaking

C.

Formation of trade unionism

D.

Hoarding of goods

E.

Making prompt payment to producers

Correct answer is B

No explanation has been provided for this answer.

185.

In a free market economy, wages are determined by

A.

The employees

B.

The employers

C.

Trade unions

D.

Interaction of demand and supply forces

E.

The government

Correct answer is D

No explanation has been provided for this answer.