NECO Economics Past Questions & Answers - Page 50

246.

To discourage the consumption of harmful commodities, government should tax such commodities if they have

A.

Elastic demand

B.

Inelastic demand

C.

Negative demand

D.

Positive demand

E.

Unitary demand

Correct answer is B

No explanation has been provided for this answer.

247.

An economic system in which the decision on what and how to produce is determined by the individual is called

A.

Capitalism

B.

Communism

C.

Socialism

D.

Traditionalism

E.

Welfarism

Correct answer is A

Capitalism is an economic system in which private individuals or businesses own capital goods, and decide what and how to produce goods. 

248.

Long-run in economic mean a period of time in which

A.

All factor inputs are not being used

B.

All factor inputs are variable

C.

All factor inputs are fixed

D.

Only few factor inputs are variable

E.

Firms are not producing at all

Correct answer is B

No explanation has been provided for this answer.

249.

When combination of two goods which a consumer derive equal satisfaction is plotted on a graph, the graph is known as

A.

Demand curve

B.

Indifference curve

C.

Opportunity curve

D.

Utility curve

E.

Supply curve

Correct answer is B

No explanation has been provided for this answer.