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.
A disadvantage of a jont-stock company is
Unlimited liability
Limited liability
Lack of continuity when a shareholder dies
Limited control in management by shareholders
Correct answer is D
The owners of the business (shareholders) have little or no say in the affairs of the business, while the people at the helm of affairs who are not the owners may not put in their best.
Cooperative societies are formed mainly to
Assist producers to maximize their profits
Encourage thrift and credit among members
Promote and maintain the welfare of members
Break the monopolies of private companies
Correct answer is C
Cooperative societies are formed with the aim of helping their members. It is often a voluntary association of individuals who come together with the intention of work together and to promote their economic interest.
The sufficient condition for a firm to be in equilibrium is that the
Firm must show that it is profitable
Marginal cost must be equal to average revenue
Marginal revenue curve is above the average revenue curve
Marginal cost curve cuts the marginal revenue curve from below
Correct answer is D
A firm is said to be in equilibrium when it satifies the following conditions:
- the first conditon for the equilibrium of the firm is that its profit should be maximum
- Marginal cost should be equal to marginal revenue
- Marginal cost must cut Marginal revenue from below
A firm that closes down will still incur
Variable cost
Fixed cost
Total cost
Marginal cost
Correct answer is B
A firm that shut down will earn zero revenue and its variable cost of producion is also zero, so the firm's total cost of production is equal to its fixed cost. However, the firm will still incur fixed cost.
The production cost that varies inversely with output is the
Total fixed cost
Marginal cost
Average fixed cost
Average cost
Correct answer is D
Average cost is directly proportional to the total cost of goods and inversely proportional to the number of goods, so average cost decreases when the number of goods increases.