Economics Questions and Answers
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
What type of price elasticity of demand is the diagram above representing?
Perfectly inelastic demand
Perfectly elastic demand
Fairly elastic demand
Composite demand
Correct answer is A
The diagram above shows that it is a perfectly inelastic demand. It is also known as Zero demand and it is an abnormal demand curve. The curve is vertical to the "Y-axis".
The pie chart above represent the total population of a school of 1,200. The shaded area of 60∘ shows the population of the underaged pupils.
What is the population of the matured students?
600
800
1000
1200
Correct answer is C
Matured student = 60/360 x 1200
= 1000
Nation engage in external trade because of difference in
Comparative cost
Absolute cost
Fixed cost
Variable cost
Correct answer is A
Comparative cost advantage is a reason for nations engage in external trade. The principle of comparative cost advantage was propounded by David Ricardo.
The figure above shows change in demand for commodity X which is a normal good. Use it to answer the questions that follows
Which of the following caused the change in demand from D0 D0 to D2 D2?
Fall in income of consumer
Rise in the price of a substitute
Rise in the price of a complement
Fall in the supply of commodity X
Correct answer is B
A change in the demand from D0 D0 to D2 D2 is caused by the rise in the price of substitute, for example, if the price of milo increases, consumer will buy more of bournvita which will make the demand for bournvita to increase.