Economics Past Questions and Answers

If the equilibrium price of a certain commodity is N120.00 and the government fixed its price at N110.00, the supply will be?

A Greater than the equilibrium supply
B Smaller than the equilibrium supply
C The same as the equilibrium supply
D A determinant of the market forces of equilibrium

Question 1157:

If the price elasticity of demand for a certain commodity is less than unity, then?

A An increase in the price of the commodity will raise the total revenue of the producer
B An increase in price leaves the total revenue unchanged
C A decrease in price raises the total revenue of the supplier
D A decrease in price leaves the total revenue constant

Question 1158:

At equilibrium, one of the distinctive features of monopoly compared with perfect competition is that in the former?`

A Price is always equal to marginal cost
B Supply is always equal to demand
C Price is always higher than marginal cost
D There are always many buyers and many sellers

Question 1159:

Which of the following functions does the wholesaler perform to save the retailer burden of carrying large stocks?`
i Breaking the bulk
ii Packing the goods in smaller containers
iii Providing vital information
iv Grant credit facilities

A I and ii
B I and iv
C Ii and iii
D I, ii, iii and iv

Question 1160:

Production is said to be completed when?

A Goods and services reach the consumers
B Prices of goods and services are determined
C Goods are sold to the wholesaler
D Goods are packaged