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Economics Past Questions and Answers

Economics Questions

Question 1961:
When a consumer is at equilibrium, the MRS<sub style='font-size: smaller;'>xy</sub> is equal to the
  • A Sum of the prices
  • B Product of the two prices
  • C Ratio of the two prices
  • D Difference of the two prices
View Answer & Explanation
Question 1962:
Minimum price legislation by government will
  • A Reduce supply
  • B Increase supply
  • C Reduce demand and create surplus
  • D Increase demand and create scarcity
View Answer & Explanation
Question 1963:
Ranking is the method use in measuring
  • A Marginal utility
  • B Ordinal utility
  • C Cardinal utility
  • D Total utility
View Answer & Explanation
Question 1964:
If a firm is faced with an elastic supply curve, its revenue will
  • A Be supplied at a higher price
  • B Double at a higher price
  • C Increase by more than the percentage increase in price
  • D Equal percentage change in price
View Answer & Explanation
Question 1965:
A firm will experience diseconomies of scale when
  • A There are difficulties in coordinating production
  • B There is shortage in labour supply
  • C The size of market is small
  • D There is an increase in the price of raw materials
View Answer & Explanation