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There are 40 questions which you are to answer in 15 minutes that gives you roughly 30 seconds per question.

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70 – 100 A

60 – 69 B

50 – 59 C

45 – 49 D

40 – 44 E

0 – 39 F

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Created on March 26, 2023 By

Ace/Undergragra

ECN 101

1 / 45

Which of the following indicates the negative slope of the indifference curve?

Marginal rate of commodity substitution

Axiom of transitivity

Budget schedule

Consumer equilibrium

Ordinal Utility

2 / 45

Which of the following statements is true of the perfectly competitive firm?

Marginal revenue is less than its price

Marginal revenue is equal to its price

Marginal cost is equal to its total cost

Marginal revenue is higher than its price

Marginal cost is equal to its fixed cost

3 / 45

Which of the following is not a possible source of finance of a sole proprietorship?

Personal savings

Borrowing from banks

Ploughing bank profits

Inherited capital

Selling shares to the public

4 / 45

Given the demand function for milk as Qd = 120 – 3P, and supply function as Qs =50 + 4P, the equilibrium quantity is

5 / 45

The demand of a product for the production of another commodity is referred to as
....................

6 / 45

Goods that have prices and their production requires scarce resources which have
alternative uses are referred to as

7 / 45

Which of the following is true of a perfectly competitive firm?

Price = AR ≠ MR at equilibrium

Demand is always greater than AR

The MR curve is downward sloping

Price = AR = MR = D at equilibrium

At equilibrium position, MR > MC

8 / 45

The graphical relationship between price and quantity purchased of a particular
commodity is called .......................

9 / 45

The economic term for the satisfaction and fulfilment that people derive from the
consumption of goods and services is referred to as ......

10 / 45

Which of the following best describes a tabular arrangement of various prices of a commodity and the corresponding quantities purchased at a given time?

Demand curve

Demand Schedule

Demand Line

Market Demand

Law of Demand

11 / 45

An increase in subsidies and reduction of taxes will shift the supply curve to the
...................

12 / 45

The economic system characterized by private ownership of resources i s.........

13 / 45

The responsiveness of the quantity demanded of one commodity to a change in the price of another commodity defines

Own price elasticity of demand

Cross-price elasticity of demand

Income elasticity of demand

Income inelasticity of demand

Perfect elasticity of demand

14 / 45

The theory of consumer behaviour is propounded primarily to I. Validate the law of demand
II. Disprove the law of demand
III. Rationalize the downward sloping demand curve

I only

II only

III only

I and II only

I and III only

15 / 45

When a 15 percent increase in the price of a product leads to a 25 percent increase in the quantity supplied of the product, then the price elasticity of supply coefficient is

0.6

1.7

1.5

0.33

0.25

16 / 45

The adjustment of demand to the relative price change alone is called

The substitution effect

The income effect

The total effect

Market demand curve

Individual demand curve

17 / 45

The following are contained in Article of Association of a limited liability company
EXCEPT:

The address of the registered office

The rights of the shareholders

Allocation of shares

Internal constitution of the company

How shares are transferred

18 / 45

The necessary condition for a firm to be at equilibrium at a given output level is
where:

The marginal cost is rising

MC = MR

AC = AR

TC < TR

TVC = TR

19 / 45

When the price elasticity of supply coefficient is greater than 1, the supply of the product
is said to be

Perfectly Elastic

Perfectly inelastic

Elastic

Inelastic

Unit Elastic

20 / 45

Increase in all inputs by a certain percentage resulting in a relatively higher percentage increase in output is referred to as:

Constant returns of scale

Decreasing returns to scale

Increasing returns to scale

Diminishing Returns

Law of variable proportion

21 / 45

The demand curve faced by a pure monopoly is

Downward sloping

Horizontal

Vertical

Upward sloping to the right

Upward sloping from the left

22 / 45

For Pair Production phenomenon to occur the photon must have energy,greater than

or equal to____________

0.51MeV

1.02MeV

0.32MeV

0.85MeV

23 / 45

The study of aggregate economic variables is the primary concern of......

24 / 45

At the levels of output where the Average Cost is falling, the marginal cost is

Falling but less than Average cost

Rising faster than the average cost

Falling but greater than the average cost

Equal to the average cost

Rising but less than average cost

25 / 45

All things being equal, the economic good whose demand decreases when the
consumer’s income increases, is classified as ......................goods.

26 / 45

Kinked demand curve is associated with:

Perfect competition

Monopolistic competition

Monopoly

Dupoly

Oligopoly

27 / 45

The economist who defined Economics as the social science which studies human
behaviour as a relationship between ends and scarce means which have alternative
uses is ...................

28 / 45

A good is described as inferior when its income elasticity of demand coefficient is

Negative

Positive

Zero

Infinity

One

29 / 45

The production possibilities curve CAN NOT be usefully employed to illustrate

Opportunity Cost

Economic Scarcity

Economic Growth

Unemployment

Scale of preference

30 / 45

When the price of a given commodity rises above the equilibrium price, the quantity
supplied of that commodity

Exceeds the demand

Equals demand

Less than the demand

Increases continuously

Cannot be determined

31 / 45

Which of the following is not responsible for a shift in supply curve?

Changes in technology

Increase in prices of related goods

A reduction in inputs prices

Prices of the good

Favourable weather conditions

32 / 45

Which of the following factors does not determine price elasticity of demand for
particular goods?

Closeness of substitute goods

The percentage of income spent on the commodity

Habit of the consumer on the commodity

The quantity of the goods demanded

The number of possible uses of the commodity

33 / 45

The monopoly firm is in short-run equilibrium when

Price equals marginal cost

Price equals average cost

Price equals marginal revenue

Marginal cost equals marginal revenue

Marginal cost equals average revenue

34 / 45

The demand curve facing each firm in perfect competition is

Perfectly price elastic

Perfectly price inelastic

Fairly price elastic

Fairly price inelastic

Unit-price elastic

35 / 45

Economics can best be defined as the study of

How society resolves the problem of scarcity

Why productive resources are scarce

How to interpret economic theories

The features of different types of economic system

How the consumers maximize their utility

36 / 45

Which of the following profit concepts does not include implicit cost elements?

Accounting profit

Economists profit

Normal profit

Super normal profit

Economic loss

37 / 45

The output per unit of the variable factor employed is called

Marginal product

Average product

Total product

Average cost

Productivity of labour

38 / 45

The following are advantages of division of labour EXCEPT:

Saves time

Increase in productivity

Monotony of work

Improves skills of workers

Increase in use of machines

39 / 45

The presumption that the average consumer will always maintain the utility
maximization position in his spending is referred to as

Cardinal utility

Consumer equilibrium

Consumer rationality

Diminishing marginal utility

Constant marginal utility of money

40 / 45

The sum of the average variable cost and average fixed cost gives

Marginal cost

Average total cost

Total cost

Total fixed cost

Total variable cost

41 / 45

The following are determinants of quantity demanded of a commodity

EXCEPT

Income of the consumer

Price of the commodity

Prices of related commodities

Prices of factors of production

Taste

42 / 45

The fundamental economic problems facing all societies arise because of

Availability of unlimited resources

The insatiable wants of man

Resources being scarce in relation to human want

Government’s passive role in the economy

Large bureaucratic structures of governments

43 / 45

Pure capitalism is an economic system characterized by: I. Private ownership of productive resources
II Freedom of choice and enterprise
III Competition

I only

II only

I and II only

III only

I,II and III

44 / 45

Which of the following is a statement in positive economics?

The pump litre price of petrol should be increased

The government ought to provide more hospitals

Anti-corruption agency is desirable in all developing countries

There is high rate of inflation in most West-African countries

Government should tax the rich more