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 country's budget allocation to various sectors of the economy is shown in the pie chart above...
Use it to answer this question
What is the ratio of expenditure on health to Agriculture if the yearly budget is 7200?
2:3
3:4
4:3
5:4
Correct answer is B
Health = 60/360 x 7200
= 1200
Agriculture = 80/360 x 7200
= 1600
The ratio of expenditure on health to agriculture = 1200/1600
= 3:4
In perfectly elastic supply, the supply curve
Is vertical
Is horizontal
Slopes upward
Slopes downward
Correct answer is B
A perfect elastic supply curve is the one in which the supply curve is perfectly horizontal. It is a theoretical curve and such a curve does not actually exist in practice.
The supply curve of a locally-produced good may shift to the right if
There is an increase in taxes on inputs
Government increases subsidies
Rural-urban migration is encouraged
The price of the commodity increases
Correct answer is D
One of the law of supply is, as price increases , the quantity demanded also increase due to the positive relationship. Therefore, an increase in price will shift the supply curve to the right.
PN equals average revenue or marginal revenue cure of
An imperfect competitive firm
A monopoly
A perfectly competitive firm
A monopolistic competitive firm
Correct answer is C
The figure PN in the diagram is Average revenue or marginal revenue of a perfect market or perfectly competitive firm.