Economics Past Questions and Answers

If labour productivity in the cement industry is increasing as output of cement is expanded, then the amount of labour per unit of output produced must be?

A Less than zero
B Decreasing
C Constant
D Increasing

Question 12:

If profit maximization is assumed to be the objective of a business enterprise, labour must be paid a wage rate equal to the?

A Marginal revenue of the enterprise
B Marginal revenue product of labour in the enterprise
C Average revenue of the enterprise
D Marginal cost of production

Question 13:

If the equilibrium price of a certain commodity is N120.00 and the government fixed its price at N110.00, the supply will be?

A Greater than the equilibrium supply
B Smaller than the equilibrium supply
C The same as the equilibrium supply
D A determinant of the market forces of equilibrium

Question 14:

If the price elasticity of demand for a certain commodity is less than unity, then?

A An increase in the price of the commodity will raise the total revenue of the producer
B An increase in price leaves the total revenue unchanged
C A decrease in price raises the total revenue of the supplier
D A decrease in price leaves the total revenue constant

Question 15:

At equilibrium, one of the distinctive features of monopoly compared with perfect competition is that in the former?`

A Price is always equal to marginal cost
B Supply is always equal to demand
C Price is always higher than marginal cost
D There are always many buyers and many sellers