Take your time to read instructions before taking this test.

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

If you can get at least 60%, you can be rest assured that you’ll ace ECN 205 exam

In a normal exam you will be asked between 40 – 60 questions but I only arranged 40 questions

Note

Do not be in a hurry to answer the questions

Do not waste time on a question you don’t know

Move as fast as possible and starting with questions that don’t have calculation first to save time

Always crosscheck

Don’t be in a hurry to submit, you are not in a competition

Don’t be scared. Getting an A is easy

Don’t be over confident, you can end up a D, E or F. Calm your blood, no be only you sabi book

Please do well to use our comment box incase there’s a message you want to pass to us

70 – 100 A

60 – 69 B

50 – 59 C

45 – 49 D

40 – 44 E

0 – 39 F

I wish you success

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ECN 205

1 / 50

1. Consumption function refers to the relationship between:

A. Supply and demand

B. Income and consumption

C. Cost and revenue

D. Price and supply

2 / 50

2. The function representing revenue in economics is:

A. R = Q × Q

B. R = P × Q

C. R = TC × Q

D. R = MC × P

3 / 50

3. Cobb-Douglas production function represents:

A. Fixed inputs and outputs

B. Constant returns to scale only

C. A specific form of a production function

D. A linear relationship between inputs and outputs

4 / 50

4. Returns to scale are constant if:

A. The sum of the exponents in the Cobb-Douglas function equals one

B. Inputs are doubled and output doubles

C. Exponents are greater than one

D. Technology is constant

5 / 50

5. The income effect is seen when

A. Demand increases despite a price hike

B. Sellers reduce production costs

C. Consumers feel wealthier due to a price decrease

D. Consumers switch to higher-priced goods

6 / 50

6. Profit is defined as the difference between:

A. Supply and demand

B. Revenue and quantity

C. Revenue and cost

D. Price and cost

7 / 50

7. A linear demand curve shows:

A. Inelastic demand only

B. Perfect elasticity

C. Varying elasticity

D. Constant elasticity

8 / 50

8. Marginal cost is calculated as:

A. The difference between fixed and variable costs

B. Average cost of all units

C. Total cost divided by quantity

D. The first derivative of the cost function

9 / 50

9. The law of demand states that

A. Demand increases with price

B. Demand remains constant

C. Demand decreases as price increases

D. Demand is unrelated to price

10 / 50

10. Linear programming is a technique used for:

A. Market forecasting

B. Profit estimation

C. Constrained optimization

D. Historical analysis

11 / 50

11. An indifference curve represents:

A. Profit maximization levels

B. Total revenue

C. Supply and demand equilibrium

D. Combinations of goods providing equal utility

12 / 50

12. Indifference curves are:

A. Constant for all preferences

B. Downward sloping and convex to the origin

C. Parallel to each other

D. Upward sloping and concave

13 / 50

13. Market supply refers to:

A. Goods produced without cost consideration

B. Total goods sellers are willing to provide at various prices

C. Buyers' willingness to purchase at different prices

D. Supply affected only by income changes

14 / 50

14. Consumer surplus is the area:

A. Above the supply curve

B. Below the demand curve and above the price

C. Outside the demand curve

D. Above the equilibrium price

15 / 50

15. saddle point in calculus represents

A. A local minimum

B. A point of inflection

C. A local maximum

D. Neither maximum nor minimum

16 / 50

16. The saving function shows:

A. The total demand for goods

B. Revenue trends in the economy

C. The cost of producing goods

D. The relationship between income and savings

17 / 50

17. Elasticity of demand can be defined as:

A. Revenue divided by cost

B. Constant consumer behavior

C. The slope of the supply curve

D. Responsiveness of demand to price changes

18 / 50

18. Excess demand occurs when:

A. Supply exceeds demand

B. Demand exceeds supply

C. Markets are saturated

D. Prices are above equilibrium

19 / 50

19. A linear demand curve shows

A. Constant elasticity

B. Inelastic demand only

C. Perfect elasticity

D. Varying elasticity

20 / 50

20. A demand curve typically:

A. Slopes upwards

B. Slopes downwards

C. Shifts unpredictably

D. Remains constant

21 / 50

21. Mathematical economics primarily uses:

A. Literary methods

B. Computational methods

C. Historical analysis

D. Philosophical arguments

22 / 50

22. The slope of an isoquant curve represents:

A. Profit maximization

B. Marginal cost

C. Marginal rate of technical substitution

D. Revenue generation

23 / 50

23. Price elasticity of demand is typically:

A. Zero

B. Infinite

C. Positive

D. Negative

24 / 50

24. Marginal Propensity to Save (MPS) is defined as:

A. Change in income due to a change in savings

B. Average savings per income

C. Change in savings due to a change in income

D. The total savings in the economy

25 / 50

25. Taxation typically leads to:

A. Elimination of producer surplus

B. An increase in equilibrium price

C. Higher demand for goods

D. A deadweight loss

26 / 50

26. Price ceilings lead to:

A. Market surpluses

B. Shortages

C. Revenue increases

D. Excess supply

27 / 50

27. Buyers and sellers in a perfectly competitive market are known as:

A. Arbitrators

B. Price makers

C. Price controllers

D. Price takers

28 / 50

28. The market equilibrium price is determined when:

A. Buyers control the market

B. Quantity demanded equals quantity supplied

C. Sellers maximize profits

D. Government imposes price controls

29 / 50

29. The law of supply indicates that:

A. Higher prices increase supply

B. Higher prices reduce supply

C. Lower prices increase supply

D. Prices do not affect supply

30 / 50

30. The degree of homogeneity in production function indicates:

A. The level of input required

B. The type of returns to scale

C. The efficiency of labor

D. The elasticity of substitution

31 / 50

31. In the Lagrange method, the multiplier represents:

A. Total cost

B. The optimal quantity

C. The rate of change in the objective function

D. Market equilibrium

32 / 50

32. Isoquants that are right-angled indicate:

A. Increasing returns to scale

B. Perfect substitutes

C. Fixed-proportions production

D. Variable proportions production

33 / 50

33. Input-output analysis examines:

A. The elasticity of demand

B. Consumer behavior

C. The interaction of various economic sectors

D. Utility maximization

34 / 50

34. A perfectly competitive market involves:

A. Homogeneous goods

B. A single seller

C. Price-making sellers

D. A government monopoly

35 / 50

35. Elasticity measures:

A. The absolute change in demand due to price

B. Fixed supply trends

C. Total revenue

D. Sensitivity of one variable to another

36 / 50

36. Producer surplus measures:

A. Gains above the supply curve up to the price

B. The total market surplus

C. Revenue minus production costs

D. Losses below the demand curve

37 / 50

37. A utility function represents:

A. Consumer preferences and satisfaction

B. Market supply schedules

C. Costs of production

D. Revenue generated by producers

38 / 50

38. The marginal utility of a commodity is:

A. The average utility per unit

B. Always constant

C. The total utility of consuming all units

D. The change in total utility from consuming one more unit

39 / 50

39. Price floors result in:

A. Equilibrium prices

B. Surpluses

C. Reduced supply

D. Shortages

40 / 50

40. The marginal cost is derived from

A. Total revenue divided by price

B. Average cost curves

C. Total cost divided by quantity

D. The slope of the total cost curve

41 / 50

41. The budget constraint equation is primarily used in:

A. Cost minimization problems

B. Elasticity calculation

C. Consumer utility maximization

D. Input-output analysis

42 / 50

42. Differential calculus in economics is used to study:

A. Static relationships

B. Market structures

C. Constant changes

D. Marginal analysis

43 / 50

43. The pioneer in applying mathematics to economics was:

A. Vilfredo Pareto

B. Alfred Marshall

C. John von Neumann

D. Cournot

44 / 50

44. Marginal revenue is defined as:

A. Total revenue divided by quantity

B. Revenue per unit sold

C. Total cost minus profit

D. The slope of the total revenue curve

45 / 50

45. Substitution effect occurs when

A. Buyers switch to cheaper alternatives

B. Demand remains unaffected by price

C. Sellers increase supply

D. Prices of substitutes remain unchanged

46 / 50

46. Total revenue is maximized when:

A. Marginal cost is minimized

B. Marginal revenue equals zero

C. Price elasticity equals zero

D. Average cost equals price

47 / 50

47. Lagrange multipliers are used to:

A. Measure consumer surplus

B. Solve unconstrained problems

C. Analyze market equilibrium

D. Optimize under constraints

48 / 50

48. Utility functions are used to measure:

A. Cost reductions

B. Profit margins

C. Production levels

D. Consumer satisfaction

49 / 50

49. The marginal utility of a good is the

A. Revenue from selling additional units

B. Additional satisfaction from consuming one more unit

C. Cost of producing one unit

D. Total satisfaction derived from all units consumed

50 / 50

50. A demand function expresses the relationship between:

A. Supply and cost

B. Price and quantity demanded

C. Price and utility

D. Income and savings

Your score is

The average score is 46%

ECN 205 CBT PRACTICE

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