Economics Past Questions and Answers

Production covers all but one of the following activities:

A Changing the position of a good in time as, for example, holding stock of goods until they are required
B The provision of some kind of service e.g retailing
C Changing the form of a good from the raw material to the finished product
D Changing the situation of a good as for example , from a factory in Lagos to a retail shop in port harcourt
E The use of good and services to satisfy individual wants

Question 442:

If two commodities are good substitutes for one another, e.g butter and margarine,an increase in the demand for one will reduce the demand for the other. This type of demand is called

A Composite demand
B Elastic demand
C Derived demand
D Competitive demand
E Inelastic demand

Question 443:

One of the reason why the condition of supply of a commodity may change is

A A change in real income
B Changes in the technique of production
C A change of fashion or taste
D Change in population

Question 444:

when the demand curve shift to the right it indicate that a larger quantity is demanded at each price. This is caused by one of the following

A A fall in income
B A rise in the price of a complement
C A fall in the price of substitute
D A change in taste against this commodity
E None of the above

Question 445:

When the price of a commodity is below the equilibrium price the quantity demanded will exceed the quantity supplied. Such a situation is referred to as

A Elastic supply
B Joint demand
C Excess supply
D Derived demand
E None of the above