NECO Past Questions and Answers - Page 155

771.

If goods P and Q are purchased by a consumer, a fall in the price P with the price Q unchanged will cause the budget line to

A.

Shift parallel inwards

B.

Rotate outwards away from the origin

C.

Rotate inwards towards the origin

D.

Shift parallel outwards

Correct answer is C

No explanation has been provided for this answer.

772.

Inflation is a ……………

A.

General increase in the price of a single product

B.

Period of economic recession

C.

Period of hunger

D.

Period of excessive money

E.

Persistent rise in the general price level

Correct answer is E

No explanation has been provided for this answer.

773.

Entrepreneur is associated more with

A.

Capital management

B.

Production of beverage

C.

Profit making

D.

Profit sharing

E.

Risk bearing

Correct answer is E

No explanation has been provided for this answer.

774.

Which of the following is a determinant of elasticity of supply?

A.

Consumer’s income

B.

Degree of necessities

C.

Durability of the product

D.

Number of uses of the commodity

E.

Proportion of income spent on the product

Correct answer is C

No explanation has been provided for this answer.

775.

When the value of a country’s export exceeds her imports, there will be a

A.

Deficit current account

B.

Excess visible imports only

C.

Favourable balance of trade

D.

Favourable capital account

E.

Surplus current account

Correct answer is C

A favorable balance of trade occurs when a country's value of commodity exports exceeds the value of commodity imports.