Economics Past Questions and Answers

PN equals average revenue or marginal revenue cure of

A An imperfect competitive firm
B A monopoly
C A perfectly competitive firm
D A monopolistic competitive firm

Question 4587:

If the quantity demanded of a commodity increases from 20 units to 30 units when there is an increase in price from $4.00 to $5.00, the elasticity of demand is

A 0.50
B 0.65
C 2.00
D 2.50

Question 4588:

The supply curve of a locally-produced good may shift to the right if

A There is an increase in taxes on inputs
B Government increases subsidies
C Rural-urban migration is encouraged
D The price of the commodity increases

Question 4589:

In perfectly elastic supply, the supply curve

A Is vertical
B Is horizontal
C Slopes upward
D Slopes downward

Question 4590:

A country's budget allocation to various sectors of the economy is shown in the pie chart above...<br/><br/>Use it to answer this question.<br/><br/>If the budget of the country was $7,200, how much is allocated to Education?

A $2,400.00
B $2,000.00
C $1,200.00
D $1,000.00