Economics Past Questions And Answers
which of the following is a condition necessary for a perfect market?
- A. the goods are heterogenous
- B. there is preferential treatment
- C. there is a large number of buyers and sellers
- D. buyers and sellers are easily influenced
Monetization refers to the ratio of?
- A. total transactions to monetary transactions
- B. monetary assets to total assets
- C. monetary transactions to total transactions
- D. money in circulation to total income
The instrument used in many countries to restrict imports includes
- A. high tarrifs
- B. price index
- C. excise duties
- D. bank rate
The purpose of conducting a census is to enable a country to
- A. plan her capital inflow and outflow
- B. determine the optimum level of population
- C. determine the growth rate of population
- D. plan her growth and development
The cost incurred by using both fixed and variable factors in production is called
- A. marginal cost
- B. fixed cost
- C. total cost
- D. average cost
The table below represents the cost function of a poultry farm. The price of a crate of egg is $21. Use the information contained in the table to answer the questions that follow.
| Quantity of eggs (in crates) | Total cost (in $) |
| 0 | 50 |
| 1 | 55 |
| 2 | 62 |
| 3 | 75 |
| 4 | 96 |
| 5 | 125 |
| 6 | 162 |
| 7 | 203 |
| 8 | 248 |
(a) What Is the fixed cost of the farm? (2 marks]
(b)(i) Calculate the marginal cost at each level of output. [9 marks]
(ii) What is the profit maximizing output of the farm? [3 marks]
(c) Draw the demand curve for the farm. [6 marks].
Which of the following is an example of a fixed cost?
- A. Fuel cost
- B. Electricity bill
- C. Rent on building
- D. Transportation cost
Fixing price above equilibrium will cause
- A. demand and supply to remain constant
- B. an increase in quantity supplied
- C. an increase in supply
- D. a decrease in quantity supplied
General rise in the price level induced by increased price of inputs is referred to as
- A. run-away inflation
- B. cost -push inflation
- C. demand -pull inflation
- D. imported inflation
The division of labour requires that the task to be performed
- A. must be done in stages
- B. requires no special knowledge
- C. is simple but strenuous
- D. must be undertaken by experts