1

When two variables are positively related, the graph of the relationship?

A

is a downward-sloping curve

B

has a negative intercept

C

is a straight line

D

is an upward-sloping curve

CORRECT OPTION:
d

2

For an inferior good, a decreased in real income will lead to?

A

a lower equilibrium price

B

a change in quantity demanded

C

an outward shift of the demand curve

D

an inward shift of the demand curve

CORRECT OPTION:
c

3

In economic analysis, a statement is said to be normative if it?

A

relates to value judgement

B

is incorrect

C

can be tested scientifically

D

is contradictory

CORRECT OPTION:
a

4

Utility is the satisfaction derived from?

A

demand

B

production

C

distribution

D

consumption

CORRECT OPTION:
d

5

The price of a good rises from N5 to N8 and the quantity demanded falls from 200 to 190 units Over this price range, the demand curve is

A

perfectly inelastic

B

fairly inelastic

C

perfectly elastic

D

fairly elastic

CORRECT OPTION:
b

6

If there is an increase in demand without a corresponding increase in supply, there will be a

A

rise in price

B

shift in demand curve to the left

C

fall in price

D

shift in supply curve to the right

CORRECT OPTION:
a

7

In a planned economy, the emphasis is on

A

public ownership and control

B

prices and competition

C

individual choices and decisions

D

private ownership and control

CORRECT OPTION:
a

8

\(\begin{array}{c|c} \text{Out put produced per day (Units)} & \text{Fixed cost per day (N)} & \text{Total cost per day (N)} \ \hline 20 & 60 & 100 \ \hline 30 & 60 & 120 \ \hline 40 & 60 & 130 \ \hline 50 & 60 & 135 \ \hline 60 & 60 & 150 \ \hline 70 & 60 & 170 \ \hline 80 & 60 & 190\end{array}\)

At 60 units of output, the AVC is

At 60 units of output, the AVC is

A

₦2.50

B

₦1.50

C

₦90.00

D

₦150.00

CORRECT OPTION:
b

9

\(\begin{array}{c|c} \text{Out put produced per day (Units)} & \text{Fixed cost per day (N)} & \text{Total cost per day (N)} \ \hline 20 & 60 & 100 \ \hline 30 & 60 & 120 \ \hline 40 & 60 & 130 \ \hline 50 & 60 & 135 \ \hline 60 & 60 & 150 \ \hline 70 & 60 & 170 \ \hline 80 & 60 & 190\end{array}\)

Using the table above. The ATC at 30 units of output is

Using the table above. The ATC at 30 units of output is

A

₦3.00

B

₦4.00

C

₦60.00

D

₦120.00

CORRECT OPTION:
b

10

If the demand curve facing a firm is sharply downward-sloping, the firm is likely to be

A

a monopolistic competitor as it can have a limited influence on price

B

a monopolist as it can have a great influence on price

C

a perfect competitor as it cannot influence the market price

D

an oligopolist as it can collude with other firms to have some influence on price

CORRECT OPTION:
b

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