The effect of an increase in price on the demand for a commodity with elastic demand will be
An increase in the demand for the commodity
A decrease in the demand for the commodity
A further increase in the price of the commodity
Reduction in the number of the distributors of the commodity
A general increase in the cost of the production
Correct answer is B
No explanation has been provided for this answer.
Which of the following explains marginal cost?
Overhead cost plus variable cost resulting from production
The average cost of producing more units of the products
The extra cost of producing more units of products
Overhead cost minus variable cost
The additional to total cost resulting from the production of an additional unit
Correct answer is E
No explanation has been provided for this answer.
Credit creation by banks is limited by
An increase in bank deposits
The establishment of specialized banks
The non-availability of collateral security
The use of cheques for all transactions of the banks
Abolishing the reverse ratio
Correct answer is C
No explanation has been provided for this answer.
Under the socialist economy, the decision on what to produce is determined by the
Producer
level of expected profit
Price
Government
Preference of consumers
Correct answer is D
No explanation has been provided for this answer.
The term production in Economics means
Manufacturing of goods
The creation of utilities
Giving birth to children
The distribution of goods and services
Using labour in creating something
Correct answer is B
No explanation has been provided for this answer.