Price elasticity of demand is define as the

• A. responsiveness of demand to change in price
• B. responsiveness of price to change in demand
• C. increase in demand resulting form a rise in price
• D. unit decrease in price resulting from a a fall in demand

The most unique quality of money is its

• A. Relative scarcity
• B. Divisibility
• C. Durability
• D. General acceptability

The difference between the highest and lowest in a set of data is

• A. range
• B. median
• C. variance
• D. mode

Which of the following cannot be classified as land in economics

• A. Bauxite deposit in the ground
• B. A lake used for irrigation
• C. A bulldozer for clearing farm land
• D. Grazing field for cattle

The demand for two or more commodities to satisfy a particular want is _____?

• A. Derived
• B. Composite
• C. Competitive
• D. Joint

(a) What is supply? [5 marks]

(b) Describe any five determinants of supply. [15marks]

As the level of output increases, the average fixed cost of a firm will

• A. continue to decrease
• B. remain unchanged
• C. continue to increase
• D. be equal to the total cost

(i) What and how much will be produced (ii) How will it be produced (iii) For whom will it be produced (iv) How much will be exported and consumed?

From the above, identify the combination of basic resource allocation questions in economic analysis.

• A. i, ii and iii
• B. i, ii and iv
• C. i, iii and iv
• D. ii, iii and iv

If the price elasticity of demand for a certain commodity is less than unity, then?

• A. an increase in the price of the commodity will raise the total revenue of the producer
• B. an increase in price leaves the total revenue unchanged
• C. a decrease in price raises the total revenue of the supplier
• D. a decrease in price leaves the total revenue constant

The situation where by a government spends more than its budgets for a fiscal year is known as

• A. extra budget
• B. surplus budget
• C. mid-year budget
• D. deficit budget