NECO Economics Past Questions & Answers - Page 35

171.

Which of the following is true about average cost?

A.

Fixed cost/quantity

B.

Marginal + Fixed cost

C.

Quantity × Fixed cost

D.

Total cost/quantity

E.

Total cost - fixed cost Quantity

Correct answer is D

No explanation has been provided for this answer.

172.

The most generally accepted definition of Economics was given by

A.

Adam Smith

B.

David Ricardo

C.

Lord Robinson

D.

Thomas Mathus

E.

Sam Aluko

Correct answer is C

No explanation has been provided for this answer.

173.

In a socialist economic system, decisions relating to the fundamental economic problems are taken by

A.

Academician

B.

Government

C.

Individuals

D.

Judiciary

E.

Manufacturers

Correct answer is B

No explanation has been provided for this answer.

174.

When a change in the demand for commodity A leads to a change in demand for commodity B in the same direction, demand for A & B is

A.

Competitive demand

B.

Complementary demand

C.

Composite demand

D.

Independent demand

Correct answer is B

Complementary demand occurs when the demand for a particular product leads to the demand for a related but different product. It is also known as joint demand.  For instance, the demand for computer systems would lead to a corresponding demand for software because computers cannot function without software.

When there is a change in the prices of computers, it will also affect the prices of software.

 

175.

The assumptions of the principles of comparative cost advantage is based on

I. Absence of Trade Restrictions
II. No transport costs
III. Constant technology

A.

II & III only

B.

I & II only

C.

I, II & III only

D.

II only

E.

III only

Correct answer is B

No explanation has been provided for this answer.