Economics Past Questions and Answers

In a free market economy, available resources are more efficiently allocated by complete reliance on?

A Development planning
B Strategic planning
C Capital budgeting
D Price system

Question 17:

In order to maximize his profit, a businessman who faces a very elastic demand for his product is advised to?

A Slightly increase the price of his product
B Slightly reduce the price of his products
C Leaves his price unchanged
D Discriminate his prices

Question 18:

What is the elasticity of demand for commodity X, if at a price of N25 the quantity demanded is 80 and when the price is reduced to N20 the quantity demanded is 100?

A 1.25
B 1.45
C 0.25
D 0.15

Question 19:

If y represents the income earned by workers in a factory, find the range of their income which satisfies the following inequality: 4Y - 300 > 500.

A Y > 300
B Y > 250
C Y > 200
D Y > 150

Question 20:

Both in the short run and in the long run, a firm maximizes its profits when?

A MC = MR
B AC = MC
C AVC = AC
D MC = AVC