Economics Past Questions and Answers

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 57:

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 58:

In perfectly elastic supply, the supply curve

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

Question 59:

A country's budget allocation to various sectors of the economy is shown in the pie chart above...

Use it to answer this question.

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

Question 60:

A country's budget allocation to various sectors of the economy is shown in the pie chart above...
Use it to answer this question

What is the ratio of expenditure on health to Agriculture if the yearly budget is 7200?

A 2: 3
B 3:4
C 4:3
D 5:4