Economics Past Questions and Answers

In the process of shopping, Mr. X whose wages per month does not exceed N200, finds that the price of a commodity he used to purchase with a fixed amount of N200 has risen to N230,. He therefore decides not to buy this commodity at all. Mr. X is thus affected by the?

A Substitution effect of a price change
B Income effect of a price change
C Opportunity cost of a price change
D Inflation effect of a price change

Question 852:

Price can be defined as?

A A rate of exchange
B A mediumof exchange
C The cost of product
D The standard of accounting

Question 853:

In the operation of market forces, the market is in equilibrium at the point where?

A Demand and supply curve intersect in more than one point provided the market is cleared
B The excess in market can be conveniently stored
C Excess demand is negative
D Demand and supply curves intersect

Question 854:

A shift in the demand curve for commodity when the supply curve is vertical will lead to a change in the?

A Price only
B Quantity only
C Quality only
D Price and quantity

Question 855:

Given an original price of N3.50 per kilogram of rice and a change in price of 1.40, and given the quantity purchase at the old price as 10kg and a change in the quality as 5kg after the price change, the elasticity is equal to?

A 10.20
B 3.57
C 1.25
D 0.80