Economics Past Questions and Answers

\(\begin{array}{c|c} \text{Units of Quantity consumed} & \text{Total utility} & \text{Marginal utility} \\ 0 & --- & --- \\ 1 & 10 & 10 \\ 2 & 15 & 5 \\ 3 & 17 & 2 \\ 4 & 18 & 1 \\ 5 & 18 & 0 \\ \end{array}\) The table above illustrates the law of?

A Diminishing marginal utility
B Diminishing marginal productivity
C Diminishing returns
D Increasing returns
E Increasing total utility

Question 747:

If in the short-run commodity X and commodity Y are supplied jointly, which of the following is correct?

A An increase in demand for X will increase the supply of Y
B An increase in demand for X will shift the supply of Y
C An increase in demand for Y will raise the price of X
D An increase in demand for X will cause less of Y to be produced
E A probable tax on Y will cause more of X to be supplied

Question 748:

In market economies, resources are allocated through the?

A Government authorities
B Price system
C Banking system
D Central planning bureau
E Revenue allocation formula

Question 749:

At every point on a indifference curve, the

A Total utility is decreasing
B Prices of all goods are constant
C Consumer is satiated
D Level of utility is constant
E Level of utility is increasing

Question 750:

Under perfect competition, the long-run equilibrium requires?

A MR = MC
B MR = AC = AR
C MR > MC
D MR = MC = AR = AC
E AR = AC