Economics Past Questions and Answers

A major obstacle to economic development is?

A A rise in industrial output
B Low farm productivity
C Free trade
D Ineffective trade unions

Question 47:

Consider the following diagram where XYZ represents the average curve of a firm. XY shows that as out put increases the average declines. However, this decline cannot continue indefinitely because

A Managerial economies
B Indivisibilities
C The extent of the market
D The pooling of dissimilar risks

Question 48:

The firm portrayed is selling in

A A purely competitive market
B A market in which demand elastic at all prices
C An imperfectly competitive markket
D A market in which companies produce homogeneous commodities

Question 49:

Demand is relatively inelastic

A At P₂ range
B In the P₂ P ₄ price range
C At P₃ only
D At any price below P₂

Question 50:

Consider the table which shows output (o), total cost (TC)of production and marginal cost (MC) for a firm in a competitive market. Suppose price (P) = N 12, what is the maximum profit the firm can make ?

A N2000.00
B 1 200.00
C 1000.00
D 400.00