Economics Past Questions and Answers

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 7:

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 8:

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

Question 9:

The central bank controls the activities of other banks by all but one of the following

A The use of bank rate
B The purchase or sale of government bonds on the open market
C Special deposite
D The use of directives
E Taxation

Question 10:

which of these alternative is wrong? central banks are

A Bankers to the government
B Bankers to commercial banks
C Merchant banks
D Controllers and regulators of money supply
E Issuers of bank note