JAMB. Past Question CBT Economics

The main economic objective behind the production of goods and services in any economy is to
A. Maximize profits.          
B. Satisfy human wants
C. Become self-reliant  
D. Create job opportunities
E. Make people wealthy.
Demand for a commodity by a consumer is the quantity of that commodity that the consumer
Demands at a given price at a point in time
Demands at a given price
Actually digests
Produces, given its price
Can store away during bad weather

Division of labour is limited by
The size of the market.  
B. The productivity of capital
C. Cost of production
D. The factors of production
E. Government policy

The production within the domestic territory of a country is called the

A. Net national product
B. Gross domestic product
C. Net income
D. Disposable income
E. Gross national product

In discussing the reasons why wages differ between occupations, which of the following should be regarded as a cardinal point that needs to be emphasized?
Length and cost of training

Demand and supply

Attractiveness of the job

Influence fo trade unions.

Government intervention.

A rightward shift in the production possibility frontier may be due to

Use of inferior inputs

Inefficiency

Improvement in production techniques and practices

Changes in the product mix

Changes in consumers’ tastes and preferences.





The advantages that accrue to a firm as the size of the firm increases are known as

A. External diseconomies B.Internal returnes to scale

C. Internal economiesD.Internal diseconomies

E. Constant returns to scale.

One of the advantages of large-scale production is that

There is a rise in the cost of administration

Consumers sacrifice their individual tastes

The firm can use labour-saving machinery

The demand for a firm’s products become localized
Decision making takes a long time because different levels of management are involved.

Which of the following is NOT an obstacle to economic development?

Low level of investmentB. Lack of modern technology

High rate of population growth

D. Low productivityE. Dedicated leadership

An ageing population refers to the preponderance on

Middle-aged people in the population

Young people in the population

Women in ht population

Old men in the population

Old people in the population
Which of the following is NOT a determinant of the size of the economically active population?
Age structure

Occupation of workers

Proportion of men to women

Average length of the working day

Efficiency of the labour force

The population level that yields the maximum output when combined with available resources is known as
Dependent population

Maximum population

Active population

Production population

Optimum population.                
If X and Y are two goods, then the cross elasticity of demand for X with respect to Y is defined as the

Percentage change in the quantity of X divided

by thepercentage change in the price of Y

Percentage change in the quantity of X divided by change in the price of Y
Change in the quantity of X divided by change in the price of Y
Percentage change in the quantity of X divided by the price of Y
Percentage change in the quantity of Y.

For two substitute goods, the cross elasticity of demand is

Greater than one but less than two

B. ZeroC. Negative

D. PositiveE. Infinity

The control of prices by legislation usually produces a number of consequences. Which of the following is NOT an associated problem of maximum price control?

A. Excess supplyB. Favouritism

Bribery and corruption D. Black marketing

Hoarding

For a non-discriminating monopolist in Nigeria, price at the profit maximizing output is

Equal to marginal cost

Greater than marginal cost

Greater than average total cost

Equal to marginal revenue

Equal to total revenue

A demand curve slopes downwards because of

An increase in the money income of the consumer
A decrease in the money income of the consumer


The substitution effect and the rise in real income of the consumer

The rise in demand for the complementary goods

The increase in the demand for factors of production

An imperfectly competitive market is one where

A large number of firms sell homogenous products

Input and output prices are unaffected

Each firm faces a horizontal demand curve

Each firm maximizes profit by selecting an out put level at which marginal cost equals market price

Commodities are differentiated

In taxation, the benefit principle requires that

Everybody must draw benefits from taxation

All those who earn more income must pay more taxes
Only those who derive benefits from services provided from public revenue should be taxed

Taxes paid by businesses should be shifted to those consumers benefiting from such consumer commodities

Everybody pays an equal amount

A perfectly competitive firm does not influence the demand for its commodities by lowering its price below the market price because

It is illegal price cutting

Other competitors will be angry

Total revenue will decline due to its inelastic demand curve
It is able to sell all it wants at the market price

It does not maximize profit.

Pricing and output decisions of sellers are highly interdependent in markets known as

A. OligopolyB. Perfect competition

C. MonopolyD. Monopolistic competition

E. Imperfect competition.

One disadvantage of sole proprietorship is its

A. Limited liabilityB. High profits

C. High sense of ownership D. Low credit rating

Low failure rate.

The Channel for food distribution in Nigeria consists of

Farmers and their families

Producers, wholesalers and retailers

Producers and consumers

Producers and processor

Farmers. Processors and consumers.

Which of the following is NOT true of debentures and debenture holders?

Debentures are instruments for raising long-term capital by limited liability companies
Debentures are fixed interest-bearing securi ties with specifies maturity date.
Debenture holders are creditors to the company and therefore do not share in the risk of the company

Debenture holders are entitled to interest


payments whether or not profits are made.

Preference shareholders receive their share of profits before debenture holders receive their entitlements.

The economic goal of public utilities is to

A. Maximize profitsB. Expand assets

C Minimize costD.Provide essential services

E. Pay higher dividends to shareholders

The basic principles of co-operative societies are those of

Active participation of capitalists in the affairs of co-operative societies
Workers ownership and worker control

Sole proprietorship

Partnership

Denying of credit facilities to members

The most important factor determining the location of the cement industry in Nigeria today is

Capital and government policy

The nature of the product, infrastructure and government policy
Nearness to the market and source of power

Price of the product and source of labour

Raw materials

The most important characteristic of money is

A. Portability B. Intrinsic value C. Acceptability D. Usefulness

Beauty

The Central Bank instrument of control does NOT include

Open market operations

Moral suasion

A rise in cost of production.

Selective credit control

Printing banknotes

Cost push inflation takes place due to

The rapid increase in the demand for goods

An increase in productivity of the factors of production
A rise in the cost of production

A rise in the standard of living

The low wage rate of the workers.

Lord Keynes identified three motives for holding money, that is, keeping one’s resources in liquid from instead of in some form of investment. The motive which relates to making provision for the ‘rainy day’ is known as

Transaction purposes

Precautionary motive

Transactions motive

Investment motive

Rainy day motive.

If a person demands money for buying and selling sec urities it is referred to as demanding money for

Transaction purposes

Speculative purposes

Transactionary purposes

Meeting the educational expenses of children


Generally property taxes

Are borne entirely by landlords

Cannot be shifted in the long run

Are borne by all (renters, owner-occupiers and landlords)
Are borne only by renters

Are borne by a few industrialists.

One of the major effects of an increase in government expenditure on a nation’s economy is that it
Creates investment opportunities for foreign investors
Leads to indigenization of the private sector

Raises the level of total tax revenue

Raises the level of aggregate demand

Controls the spread of monopoly

Public expenditure on services, such as education and health, is known as expenditure on

A.General servicesB. Community services

C.Social servicesD. Economic services

Administrative services

Questions 39 and 40 are based o the table below:

The international production set for Nigeria and

Austria is:


Product
Nigeria
Austria





Cocoa
20 tonnes
12 tonnes

Lace
10 metres
8 metres






The opportunity cost ratio for cocoa and lace for Austria and Nigeria is

A. 2, 2
B. 2, 1, 5
C. 1, 5, 4

D. 1, 5, 2
E. 0.5, 1,5



From the table it can be deduced that

Nigeria should produce cocoa and lace

Austria should produce cocoa and lace

Nigeria can benefit from producing lace only

Nigeria should not produce any of the products
Austria should produce lace and Nigeria should produce cocoa.

The following, except ONE, are the differences between international trade and internal trade.

Differences in currencies

Governments control

Mobility of factors of production

Cultural differences.

Exchanges of goods and services

Let Px represent the price of exports and Pm the price of imports. Then the items of trade (TOT) are said to be favourable if

In market economies, resources are allocated through the

Government authorities

Price system

Banking system

Central planning bureau

Revenue allocation formula

Study the figure below

Price
S





B.
Per capita output


C.
Per capita real income


D.
Per capita revenue


E.
Growth rate

7.
The age distribution of a population is NOT influenced by


A.
Birth rates


B.
Death rates


C.
Patterns of immigration



P1H

P2

G

P3F
S

Q1Q2Q3










Quantity


D.Patterns of emigration

School leaving age

One theory of population contends that population tends to increase much faster than the supply of food, and that if the growth in population is not checked, it will be checked by natural forces like misery, disaster and food shortage. This theory was propounded by

Prof. Paul Samuelson

Adam Smith

David Richardo

Rev. Thomas Malthus

Prof. Ojetunji Aboyade


9.

Consumed
Utility
Utility





0
-
-

1
10
10

2
15
5

3
17
2

4
18
1

5
18
0


The table above illustrates the law of

Diminishing marginal utility

Diminishing marginal productivity

Diminishing returns

Increasing returns

Increase total utility

If in the short run commodity X and commodity Y are supplied jointly, which of the following is correct?
An increase in demand for X will increase the supply of Y


At point H, the price elasticity of supply is

Perfectly inelastic

Inelastic

Unit elastic

Perfectly elastic

Elastic

At every point on an indifference curve, the

Total utility is decreasing

Prices fo all goods are constant

Consumer is satiated

Level of utility is constant

Level of utility is increasing

Under perfect competition, the long-run equilibrium requires

MR = MC

MR = AC = AR

MR > MC

MR = MC = AR = AC

AR = AC

Price



T

P1



N

M

0Q1


In the figure above, the broken line labelled M is the Marginal Revenue Curve of a

Monopoly

Competitive firm

State corporation

Partnership

Monopsony

If a monopoly is attempting to maximize profit, which of the following should it attempt to do?

Select that output at which ATC is at minimum

Set price equal to TC

Maximize revenues

Maximize revenues

Equate marginal cost to marginal revenue.

The amount of labour a producer hires relatives to other factor inputs depends on the

Price of labour or its wage

Price of labour, machinery and other imputs

Price of machinery

Price of the other inputs

Type of machinery

Which of the following is NOT a feature of under-development?

Low per capita income

Vicious circle of poverty

Low level of industrialization

Greater dependence on primary production

High per capital income

The inefficient distribution of scarce commodities in Nigeria is mostly due tot he

Inefficiency of the middleman

Inefficiency in the production process

Long chain of the distribution system

Sovereignty of the consumers

Ineffectiveness of retailers

Warehousing facilities in the distribution and marketing of products are provided by

Manufacturers

Wholesalers

Retailers

Consumers

Sellers

A corporation can obtain funds by issuing bonds. A bond is a form of debt which falls due for repayment after

6 months

9 months

2 years

5 years

10 or more years

A firm is said to be a public Joint Stock Company when it

Is owned by the government

Is operated as a public corporation

Is operated in a non-democratic fashion


Sells shares to members of the public and publishes its account

Is a limited liability company

Limited liability means

The debts of a company can only be paid from business as well as private funds of the owners

The debts of the company are paid from business as well as private funds of the owners

Government cannot tax company

The debts of the company must be paid from Private funds only
The company does not have to pay its debts.

The purchasing power of the Naira will fall when

The Naira is devalued

Government cuts all salaries and wages

There is inflation

The colour of the Naira is changed

Workers are retrenched

When a business has unlimited liability

All its profits can be taxed away by the government
All its assets are owned by the members of its board of directors
The business ceases to exist at the death of one of its owners
The owners are responsible for all its financial debts
The owners are not responsible for all its financial debts.

Which of the following factors is most responsible for the concentration fo population around the oil fields in Eastern Nigeria?

Establishment of industries

Presence of mineral deposits

Transportation facilities

Favourable soil

Favourable climatic conditions

The petro-chemical industries are located in the Rivers State of Nigeria due to

Favourable climate

B.Favourable soilC. Oil deposits

D.Palm oil products E.Coal deposits

One of the functions of a commercial bank is that it is

Responsible for monetary policy

Responsible for issuing of currency notes

The lender of last resort

The banker of the government

A banker of demand and time deposits of customers.
Because money serves as a standard of deferred payments
It serves as a store of value

Goods can be bought on credit with determined value
Future trade becomes possible

It serves as a unit of account

It becomes valueable


Which of the following is a necessary prerequisite for trade by barter.

Need for double coincidence of wants

Multiple exchange rate

Impossibility of future trade

Impossibility of large-scale production

Indivisibility of commodities

A state budget is an outline of planned

Expenditures and revenues expected within a financial years
Expenditures of ministries and parastatals within a given period
Recurrent and capital expenditures within a year

Sources of revenue derivation for a financial year

Use of different kinds of taxation is a given year

Which of the following is NOT among the canons of taxation as set out by Adam Smith?

A. Equality B. Security C. Certainty D. Convenience E. Economy

An example of a regressive tax is

The personal income tax

The graduated corporation income tax

A general sales tax

The inhertance tax

The excise tax

Tax which is levied on goods manufactured, sold or used within the country is

A. Sales tax B. Excise tax C. Direct tax D. Income tax E. Poll tax

By terms of trade, we mean the

Ratio of exports to imports

Difference between exports and imports

Difference between current account and capital account
Index of export prices to import prices expressed as a percentage
Ratio of short-term capital movements

The argument of tariff protection in less developed economies is that such a measure would

Raise the price of goods affected abroad

Make consumers pay a higher price for the domestically produced output
Protect young industries from ruinous competition from abroad
Help reduce excess capacity in domestic industries
Stifle private investment initiative

Devaluation of the Naira as a condition for the International Monetary Fund loan is considered inadvisable because

It would allow for more money to be spent on luxuries
The interest rate on the loan would increase

It would decrease the demand for Nigeria’s exports


It would worsen Nigeria’s foreign exchange situation

Nigeria’s oil would sell for less in the world market

Foreign exchange control in Nigeria is administered by the

United Bank for Africa

Union Bank of Nigeria

First bank of Nigeria

Central Bank of Nigeria

National Bank of Nigeria

Under the ECOWAS agreement, a Nigerian can enter and stay in Ghana without a visa for a period of

A. 14 days B.30 days C. 60 daysD. 90 days

100days

How many National Development Plans did Nigeria have between 1960 and 1984?

One B. Two C. Four D.Five E. Six

If an economy grows at an annual rate of 6%, of which 4% is deemed to be due to improvement in the productivity of labour and capital combined, the remaining 2% is generally attributed to
Technical progress

Size of the population

Amount of natural resources

The environment

The quality of human resource

The process by which a country attempts to reduce the import of manufactured goods by encouraging firms to produce these goods at home is described as

Export promotion

Import -substitution

Industrialization

Export-diversification

Import-creation

Under normal circumstances a producer will bear the entire burden of taxation on his output if the

Demand for his product is completely elastic

Supply of his goods is more elastic than the demand
Demand for his product is more elastic than the supply
Production of his commodities is subject to diminishing returns
Production fo his commodities is subject to increasing returns to scale

Which of the following is NOT a part of the fixed cost of a limited liability company?

Interest on loans

Rent on buildings

Depreciation reserves

Management expenditure

Wages

The act of combining factor inputs in order to obtain specific output is known as

A. Factor procurementB.Manufacturing


C. InvestmentD. Industrialization

Producion

Disguised unemployment

Exists when manpower is not being utilized efficiently
Calls for the implementation of five-year plans

Can be eliminated if the press is free

Can be eliminated if the capital output ratio is increased
Is a statistical artifact with no economic meaning


47.
Output
Total Cost (N)






1
20


2
56


3
96


4
144


5
160





In the table above, the marginal cost when output is two units is,
A.N16.00
B. N20.00
C. N36.00

D. N40.00
E. N48.00




The table below illustrates the law of diminishing returns on a farm.

Fixed Unit
Variable
Total
Margin

Of land
Unit of
Output
Product

(Hectares)
Labour
(TO)
(MP)






5
1
10
10

5
2
25
15

5
3
X
21

5
4
60
14

5
5
73
13

5
6
82
Y






Which pair of the following answers is appropriate for the missing information in the spaces marked X and Y?
A.
X = 20,
Y = 6
B.
X = 38,
Y = 9

C.
X = 46,
Y = 9
D.
X = 46,
Y = 14

E.X = 10, Y = 10

The unemployment associated with a recession is called

A. Voluntary B. Frictional C. Cyclical D. Structural E. Disguise

When total revenue is a t a maximum, marginal revenue is

A. Constant B. Negative C. Zero D. Positive E. Maximum



Economics 1986




Choice in economic life is necessitated by

The need to construct scale of preference

The opportunity cost of consumption

Unlimited wants

Scarcity of economic resources

Which of these is the real cost of satisfying any want in the sense of the alternative that has to be foregone?

A.Variable costB.Opportunity cost

C.Total costD.Prime cost

Under normal circumstances the concept of consumer sovereignty implies that

The consumer and not the producer owns the means of production
The producer and not the consumer determines what is to be produced
The consumer and not the producer determines what is to be produced
Both the consumer and the producer determine what is to be produced

A firm is at its optimum size when

It produces the greatest output at the minimum cost
It has a motive to increase output

Marginal cost equals marginal revenue

Marginal cost is less than marginal revenue

The degree of specialization is limited by the

Availability of specialized skills and machinery

Marginal cost exceeding marginal revenue




Extent of the market

Disadvantage of standardization

Production in Economics can be defined as the

Totality of producing, buying and consuming

Transformation fo raw materials and services in order to provide ultimate utility
Transformation of raw materials and services in order to make maximum profit
Production of goods and services for consumption

A firm achieves least cost in production by substituting factors until

Their factor prices are equal

Their marginal-physical-products are each equal to their factor prices
Their marginal-physical-products are each zero

The ratio of their marginal-physical-products equals the ratio of their prices.

If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving

A. Rent B. ProfitC. Interest D. Period of training

Mobility of labour is NOT affected by

A. Optimum size of population B. Marriage and family C. Regulation trade unions D. Period of training

10.A country has a population distribution shown below:

Aged Group in Years
Corresponding Percentages


15 - 60

60

0 - 14

15





The dependency ratio is

A. 3 : 2B. 1 : 4
C. 2 : 3 D. 2 : 3E. `1 : 5



Population density refers to

Densely populated urban centre

The total area divided by the total population

Densely populated rural areas

The total population divided by the total area.

What fundamentally determines how much a consumer spends in a producer’s shop?

Individual’s propensity to consume

Level of his taxation

Level of his income

Individual’s taste or fashion

Which of the following statements describes a mixed economy?

The government and the private sector interact in solving the basic economic problems

The invisible hand solves the basic economic problems
The government produces and distributes all goods and services
Society answers the ‘what’, ‘how’, and ‘for whom’ questions only through the market system.

In drawing an individual’s demand curve for a commodity, which of the following is NOT kept constant? The

Individual’s money income

Price for substitutes

Price of complementary goods

Price of the commodity under consideration

Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will

Induce greater demand for beef

Induce greater demand for fish

Induce lower demand for fish

Equate demands for beef and fish

The main function of price mechanism is to

Limit consumer demand

Enable producers make profits

Allocate scarce resources among competing ends
Ensure consumer sovereignty

Use the table below to answer 17 and 18

Market Demand Schedule for Commodity X




If the price of commodity X falls from N40.00 to N3.00 what is the price elasticity of demand?

A. 0.62 B. 0.73 C. 1.00 D. 1.50

The revenue accruing to the seller of commodity X as a result of a fall in price will

A.IncreaseB.Fall

First fall but will increase later

Remain unchanged

Which of the following is an important function of prices in a market economy?

Ensuring that resources are used in the most efficient manner
Ensuring an equitable distribution of goods and services
Ensuring that all industries are perfectly competitive in the long run
Equating level of purchases with level of needs.

One major difference between monopoly and perfect competition is that

the perfect competitor is a price taker while the monopolist determines his own output

Homogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exists for the monopolist

Sellers are located all over the world in the

case of perfect competition but sellers are located only in one country in the case of the monopolist

There is free entry and exit in perfect competi tion but no free exit in monopoly

A producer sustains a loss in the short run if

Marginal revenue is less than price

Price is less than average cost

Average variable cost is less than average cost

Marginal cost is less than marginal revenue

A monopolist will practise price discrimination in two markets if

The cost of separating the markets is large

The markets have different elasticities of demand
There is free flow of information in the two markets
There is a patent of the commodity

In the normal channels of distribution the breaking of bulk is performed by the

A.ProducerB.WholesalerC.Retailer

Consumer

The most important advantage of co-operative societies is

Their high degree of democracy

The increase in the cost of marketing

That members are encouraged to save money

The possibility of raising loans for the members

In a public company, shares are

Sold to one person only

Distributed freely

Advertised to members of the public for subscription
Disposed of by the Chief Executive

Which of the following is a characteristic of a private limited liability company?

Its shares can be sold to the public

The number of shareholders ranges from fifty to one hundred
All shareholders have equal powers and responsibilities
The number fo shareholders ranges from two to fifty

One of the advantages of a partnership over a sole proprietorship is that

It is the most popular form of business organization
The partner can easily withdraw from the business
It makes an increase in the capital of the business possible
There is no limit to the number of people who may bring in capital

Which of the following is an external economy derived by a firm?

Low cost opportunities enjoyed by being in a place where other producers concentrate
Technical economies enjoyed by varying the factors of production
Economies of management by putting administrators where they are most efficient

Marketing advantages attained through preferential treatment in the purchase and distribution of produce

Which of the following advantages of localization of industries may also be a disadvantage?

External economies

Concentration of industries and of people

Development of organized markets

Reduced cost of research

The Nigerian Bank for Commerce and Industry is

A commercial bank

A development bank

An industrial bank

A merchant bank

To control inflation, the monetary authorities of a country can

Reduce taxes

Advise government to increase its expenditure
Engage in expansive monetary policy

Engage in restrictive monetary policy

Which of the following is used by the Central Bank to control the rate of interest?


Bill of Exchange

B.Banker’s order

Fixed deposit account

Open market operation

Gresham’s law in Economics shows that

Bad money drives good money out of circulation
Good money drives bad money out of circulation
Gold must be available to maintain the value of paper money
The price level varies directly with the quantity of money

Given that the cash reserve ratio is 10 percent, what is the maximum amount of money that the banking system can create from an initial cash deposit of

N1 000.00?

A. N100.00B. N1 000.00C. N9 000.00

N10 000.00

The most important economic characteristic differenti ating commercial banks from other financial institutions is their.

Function as a safe and profitable store place for savings
Role in financing balance of payments deficits
Status as an intermediary between savers and borrowers
Ability to create and destroy money

Deflation is a persistent fall in the general price level and is usually caued by

A reduction in total demand

An increase in government spending

An increase in the money supply

An increase in aggregate demand

Which of the following causes of inflation is related to demand-pull inflation?

Low productivity on farms and in firms

Poor storage facilities

Poor distribution system

Increase in government expenditure on construction

Which of the following is NOT a goal of modern budgets?

The control of inflation

The reduction in income inequlaity

The shift of all resources from the private to the public sector
Economic development

The best technical description of a progressive tax is a

Tax which takes money from the rich than from the poor
More equitable tax than a regressive one

Tax which takes higher proportion of extra naira received as income rises
Tax which falls directly on those in the high income brackets.

Tax incidence is the analysis of

How progressive a tax is

How a tax is collected

How distorting a tax is

Who ultimately pays the tax

In International trade, country specializes in the produc tion of a commodity or group of commodities for which it has

A buoyant market

Plenty of raw materials

The greatest relative advantage

Executive manpower

Balance of payments deficit in Nigeria CANNOT be solved by

Importing more goods and services

Devaluation of the currency

Imposing import duties

Imposing import bans on some commodities

The term, balance of trade, can be defined as the

Relation between value of exports and value of imports over a given period of time
Balance owed to the rest of the world in payment for imports
Price paid for imports in terms of exports

Relation between payments of all kinds made by a country to the rest of the world, over a given period of time.

The terms of trade is often measured by the ratio of the index of export prices

Divided by the index of import prices multiplied by 100
Multiplied by the index of import prices

Plus the index of import prices multiplied by 100

Minus the index of import prices

A society which forgoes present consumption

Is forced to do so because of excessive consumption within the country in the post
Is devoting new resources to new capital formation
Is merely devoting resources to the replace ment of capital
Expects to consume only that amount tomorrow which was forgone today



ECOWAS will enable the countries involved to achieve

Comparative political advantage over other countries not in the region
A large market for their products

Military superiority over countries not in the region
Lower the transportation cost of goods within the region

Which of the following methods is most likely to lead to an increase rate of growth in the national economy?
An increase in wages and profits

An increase in consumer demand

A greater fraction of the National Product going into investment
A continuous rise in bank loans

The differences between the Gross Domestic Product and the Gross National Production is the

Allowance for total depreciation

Total interest payments

Total tax and interest payments

Net income from abroad

49..
Which of the following strategies will provide more


employment opportunities for Nigerians?

Investment in social services

Industrialization

Economic planning

Eradication of illiteracy

A nation’s distribution of income shows

The value of all goods produced in the economy
How income is dividend among different groups
Where the economy system is on its production possibility curve
The consumption behaviour of the people


Economics 1987


1.
A production possibility curve shows

A. Microeconomics
B. Macroeconomics



A.
How much of the resources of society

C. Production
D. Indifference curve




are used to produce a particular commodity







B.
The rate of inflation
3.
Which of the following best describes the con



C.
The rate of unemployment in the economy

cept of opportunity cost?




D.
The various combination of two commodities

A.
A special bargain or sale at below market price




that can be produced

B.
Costs for inputs tend to go up as we use


2.
The study of the economic behaviour of individual


more of them






C.
Goods that are not produced in order to



decision-making units (consumers resources own


produce more of another good



ers and business firms) in a free-enterprise

D.
A cost that constantly decreases



economy is known as







Market is defined as

One geographical location where people meet to buy and sell
The demand and supply of goods and services
A group of people whose sole interest is to make profit