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.
In the event of bankruptcy, owners of joint-stock companies lose
Their private properties
Both company and private assets
Only the capital invested
Only their dividends
Correct answer is C
In the event of bankruptcy, owner of joint stock/limited liability companies loses only the amount invested in the company. They cannot lose their personal or private properties.
In the long-run, a firm must shut down if its average revenue is
Greater than average cost
Less than average variable cost
Equal to the minimum average revenue
Equal to the average cost
Correct answer is B
In the long-run, a firm shut down if its average revenue ( price) is less than average variable cost. A firm shut down, when it is unable to cover its average variable cost or average cost or Average fixed cost is zero(0).
A firm's average cost decreases in the long-run because of
Increasing returns to scale
Diminishing average returns
Decreasing marginal returns
Decreasing average fixed cost
Correct answer is A
A firm's average cost decreases in the long-run because of the law of increasing returns to scale. Law of increasing returns to scale shows that as output increases, the average cost fall. The law is applied to the long run analysis of production.
If the marginal utility of commodity is equal to its price, then
The consumer is in equilibrium
More of the commodity can be consumed
Total utility is also equal to its price
The market is not in equilibrium
Correct answer is A
A consumer is in equilibrium when the marginal utility of a commodity is equal to its price if only one commodity is consumed i.e MU x=Px where :
MU = Marginal utility
P= Price of the commodity
x = The commodity
A supply curve parallel to the X-axis indicates
Fairly elastic supply
Infinitely elastic supply
Fairly inelastic supply
Perfectly inelastic supply
Correct answer is B
Infinitely elastic supply curve is parallel to the x-axis i.e at a fixed price, there is change in quantity supplied. es = ∞