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.
If the government imposes a minimum price on a commodity
Market surplus occurs
The market will be cleared in the short-run
Excess demand occurs
Government regulation is no longer needed
Correct answer is A
Minimum price is often called price floor and it is fixed by the government to protect the producer or seller. Minimum price is set above the equilibrium price and when this occur, there will be excess supply over demand i.e surplus.
The production of rice and yam on the same farmland is an example of
Joint supply
Composite supply
Competitive supply
Market supply
Correct answer is A
Joint supply is a type of supply in which the production of one article in itself leads to the production of other article as well. for example, leather and beef etc. It is also a process that can yield two or more outputs.
A benefit that is present in all forms of economic integration is that
Common agricultural policy is in place
The size of the market is widened
Factors of production are free to move and be moved
Common currency is in use
Correct answer is C
Economic integration forms international co-operation among nations to foster their economic interests. Countries with common interests form themselves into an organisation whose major objectives are to remove trade barriers and other obstacles that reduce the free flow of goods and service between them.
Foreign investment and long term securities in the balance of payment accounts are recorded as
Current account transaction
Capital account transaction
Balance of trade account transaction
Invisible balance account transaction
Correct answer is B
Capital account transaction is the net balance of international investments. In order words, it keeps track of the flow of money between a nation and its foreign partners.
A consumer of a single commodity is in equilibrium when
His marginal utility is equal to zero
He can equate his demand with price
He equates marginal utility and price
He can equate his marginal and total utilities
Correct answer is C
A consumer is in equilibrium when the marginal utility equal to the price of the commodity i.e MUx = Px.
Where : X = the commodity
MU = Marginal utility
P = price of the commodity
Therefore, a consumer who consume a single commodity such as apple will be at equilibrium when MUa = Pa