NECO Economics Past Questions & Answers - Page 40

196.

Abdul is faced with a choice between buying a new NOTE book and a pen with N10. Since the N10 can NOT give him both items he decide to buy NOTE book. The money cost to him is

A.

N10

B.

N20

C.

N30

D.

N40

E.

N50

Correct answer is A

Money cost is the cost of acquiring a product or service in available cash. N10 is the money cost.

197.

Which of the following is NOT an internal dis-economy of scales?

A.

Easy management and less administrative cost

B.

Large firm suffers from bureaucracy or red tapism

C.

Less personal relationship between management and employees

D.

Motivation may be lacking in the large firm

E.

Slow response to changes

Correct answer is A

No explanation has been provided for this answer.

198.

Using functional relationship in economics QX = f (px, po, y, T); po stand for

A.

Level of income of the consumer

B.

Price of x

C.

Price of other commodities

D.

Production function of x

E.

Price index

Correct answer is C

No explanation has been provided for this answer.

199.

Which of the following is NOT a function of taxation?

A.

Make few people rich in the country

B.

Raise revenue for the government

C.

Redistribution of income

D.

Reduces production and consumption of harmful goods

E.

Used as anti-inflationary device

Correct answer is D

No explanation has been provided for this answer.

200.

Price legislation means

A.

Directing market specialist to fix prices

B.

Interplay of either demand or supply

C.

Producers are prices givers

D.

Regulating the price system by the government

E.

The use of market forces

Correct answer is A

No explanation has been provided for this answer.