Economics Past Questions and Answers

Which of the following statements describes a mixed economy?

A The government and the private sector interact in solving the basic economic problems
B The invisible hand solves the basic economic problems
C The government produces and distributes all goods and services
D Society answers the 'what', 'how', and 'for whom' questions only through the market system

Question 802:

In drawing an individual's demand curve for a commodity, which of the following is not kept constant? The

A Individual's money income
B Price of subtitutes
C Price of complementary goods
D Price of the commodity under consideration

Question 803:

Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will?

A Induce greater demand for beef
B Induce greater demand for fish
C Induce lower demand for fish
D Equate demands for beef and fish

Question 804:

The main function of price mechanism is to?

A Limit consumer demand
B Enable producers make profit
C Allocate scarce resources among competing ends
D Ensure consumer sovereignty

Question 805:

Use the table below to answer question 17 and 18. Market Demand Schedule for Commodity X. \(\begin{array}{c|c} \text{ Price N} & \text{Quantity(Million units)} \\ 60 & 100 \\ 50 & 140 \\ 40 & 220 \\ 30 & 260 \\ 20 & 300 \\ 10 & 340 \\ \end{array}\) If the price of commodity X falls from N40.00 to N30.00 what is the price elasticity of demand?

A 0.62
B 0.73
C 1.00
D 1,50