NECO Economics Past Questions & Answers - Page 26

126.

Under perfect competition, a profit maximizing firm will hire labour up to the point where the last unit of labor adds

A.

As much to TR as to TC

B.

Less to TR as to TC

C.

Less to TC than to TR

D.

More to TC than to TR

E.

More to TR than to T

Correct answer is E

No explanation has been provided for this answer.

127.

The following are rewards for factors of production EXCEPT

A.

Interest

B.

Profit

C.

Rent

D.

Subsidy

E.

Wages

Correct answer is D

No explanation has been provided for this answer.

128.

Which of the following is the correct order in the chain of distribution?

A.

Consumer —> Distributor → Retailer → Producer

B.

Producer → Consumer → Retailer → Wholesaler

C.

Producer → Wholesaler → Retailer → Consumer

D.

Retailer → Consumer → Producer → Wholesaler

E.

Wholesaler → Retailer → Producer → Consumer

Correct answer is C

No explanation has been provided for this answer.

129.

At the equilibrium price,

A.

Demand is greater than supply

B.

Demand equates supply

C.

Demand is less than supply

D.

Price is equal to demand only

E.

Price is equal to supply only

Correct answer is B

No explanation has been provided for this answer.

130.

Which of the following is a disadvantage of localization of industries?

A.

Aiding cooperation among firms

B.

Creating structural unemployment

C.

Encouraging subsidiary industries

D.

Encouraging the growth of skilled labour

E.

Reducing cost of production

Correct answer is B

No explanation has been provided for this answer.