Economics Past Questions and Answers

for two commodities A and B, MA and MB are the respective marginal utilities while PA and PB are the respective prices. Marginal utilities of the commodities are maximized when

A MA/PA = MB/PB
B MA/PA > MB/PB
C MA/PA < MB/PB
D PA/MA < PB/MB
E PA/MA > PB/MB

Question 392:

If the price of product K declines , the demand curve for the complementary product J will

A Remain unchanged
B Shift to the right
C Decrease
D Shift to the left
E Slopes upwards

Question 393:

a stock exchange is a market that

A Deals with the exchange of commodities
B Deals with purchase and sales of securities
C Exchanges stockfish for lady fish
D Exchanges treasury bills for bills of exchange
E Sells foreign exchange

Question 394:

The situation whereby government revenue is less than government expenditure is referred to as

A Budget deficit
B Balanced budget
C Budget surplus
D Budget statement
E Unfavourable budget

Question 395:

which of the following will not increase the population of a country?

A An increase in birth rate
B A decrease in death rate
C Better medical services
D Immigration
E Emigration