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.
Palm oil and palm kernel are in
Joint supply
Competitive demand
Competitive supply
Complementary demand
Correct answer is A
Joint supply is the supply of two or more commodities from the same source or origin e.g palm oil and palm kernel are supply from the same palm tree.
An exceptional demand curve can result from
Increase in price of raw materials
Increase in the size of the population
Expectation of future price increase
Change in taste of consumer
Correct answer is C
Exceptional or Abnormal demand curve does not abide to the law of demand and it give reverse to the law of demand, which states that " At higher price, more quantity will be demanded and vice-versa" .Therefore, rise as a result of future expectation rise in price, war, consumer ignorance etc are the causes of abnornal demand curve.
If the price of commodity X rises and consumers shift to commodity Y, then commodities X and Y are
Substitutes
Complements
Inferior goods
Bought together
Correct answer is A
Substitutes goods are goods that perform the same or similar function. Increase in the price of one results to increase in the quantity demand for the other. Example is lux and joy soaps, if the price of lux soap increases, then the demand for joy soap will increase since they have direct relationship.
A downward sloping demand curve means that
Total revenue declines as price is lowered
Demand falls as output increases
Demand falls as output falls
Price must be lowered to sell more
Correct answer is D
A downward sloping demand curve means there is an inverse or negative relationship between price and quantity demanded i.e the higher the price, lower the quantity demanded and vice versa.