Economics Past Questions And Answers
When market supply increases , the equilibrium price_________
- A. Rises and quantity falls.
- B. Falls and quantity rises.
- C. And quantity increase
- D. And quantity fall.
If the standard deviation of a given data is 8.2, find its variance_______________
- A. 82.0
- B. 91.8
- C. 67.2
- D. 4.1
When the marginal product is negative,the total product will be
- A. constant
- B. at a maximum
- C. increasing
- D. decreasing
The comparative cost of doctrine of international trade means specialization in production according to
- A. absolute cost advantage
- B. absolute cost disadvantage
- C. comparative cost disadvantage
- D. comparative cost advantage
if the price of commodity X rises and consumers shift to commodity Y, then commodity X and Y are?
- A. substitutes
- B. complements
- C. inferior goods
- D. bought goods
An advantage of the range as a measure of dispersion is that it
- A. can be used to calculate open-ended distribution
- B. make use of all values of observations in a distribution
- C. takes all values into consideration
- D. is useful for further statistical calculation
The utility schedule of a consumer for a brand of ice cream is shown in the table below. Use the information to answer the questions that follow:
| Units Consumed (Q) | Total Utility (TU) | Marginal Utility (MU) |
| 0 | 0 | - |
| 1 | 10 | 10 |
| 2 | 19 | R |
| 3 | P | 6 |
| 4 | 30 | 5 |
| 5 | 31 | S |
| 6 | Q | 0 |
| 7 | 29 | -2 |
(a) Calculate the values of P,Q,and S. (8 marks).
(b) Given that the jprice of ice cream is $ 1.00 per unit, at what level of consumption is the consumer in equilibrium? Explain your answer. (3 marks).
(c) Use a graph sheet, draw the marginal utility curve.(3 marks).
(d) State the law of diminishing marginal utility. (3 marks).
Which of the following are the most liquid assets to a commercial bank?
- A. Money at call and short notice
- B. Treasury Bills
- C. Commercial Bills
- D. Cash
Inflation can best be checked by
- A. allowing supply to remain constant
- B. decreasing supply and incresing wages
- C. increasing supply and holding wages constant
- D. decreasing supply and wages
Land is often distinguished as a factor of production because it
- A. is a free gift of nature
- B. constitutes one-third of the entire world
- C. is unlimited in supply
- D. is owned by individuals