Economics Past Questions and Answers

A demand which gives rise to the reverse of the law of demand is__________

A Derived demand
B Joint demand
C Abnormal demand
D Composite demand

Question 2:

If two commodities are unrelated, a change in the price of one will____________

A Have effect on the quantity demanded of the other
B Have no effect on the quantity demanded of the other
C Increase the quantity demanded on the other
D Decrease the quantity demanded on the other

Question 3:

<table class='tbn'><tbody><tr><td> Demanded <br/> </td></tr><tr><td> 8 </td><td> 10 </td></tr><tr><td> 6 </td><td> 12 </td></tr></tbody></table><br/><br/>If we move from 8 to 6, the elasticity of demand is_______

A -1.25
B 0.62
C 1.25
D 1

Question 4:

In a perfect competition, the market price is determined by_______

A The government
B The producer
C The consumer
D The market supply and demand junctions

Question 5:

In the short-run, the monopoly makes_______

A Normal profit
B Abnormal Profit
C Loss
D Sales