2015 - WAEC Economics Past Questions and Answers - page 2
if a given change in price brings a proportionately larger change in quantity demanded, the
Price elasticity is a measure of the responsiveness of demand or supply of a good or service to changes in price. The price elasticity of demand measures the ratio of the proportionate change in quantity demanded to the proportionate change of theprice .
if the price of a commodity Z falls and a consumer buys less of it, then commodity Z is a
An ostentatious Good is a good where demand is often greater when the price of it is higher. These are goods we buy in order to 'keep up with the Jones'. The good may give little actual utility apart from the pride of owning something very few other people own.
In order to calculate total utility (TU) from given levels of marginal utility (MU), one has to?
“Marginal utility is addition made to total utility by consuming one more unit of a commodity”.
Total Utility is Summation of Marginal Utilities: in order to get the total utility, you will have to sum up the additional/extra utility (MU) from the given levels of consumption
which of the following will not affect the market price of a commodity
6 Factors Affecting Price Determination of...
- Product Cost
- The Utility and Demand
- Extent of Competition in the Market
- Government and Legal Regulations
- Pricing Objectives
- Marketing Methods Used
All the following are methods of determing prices except?
A maximum price occurs when a government sets a legal limit on the price of a good or service – with the aim of reducing prices below the market equilibrium price.
Minimum Prices. It is known as minimum price or pricefloor when the government sets a minimum legal limit of aprice of a particular good or service.
In economics, rationing refers to an artificial control of the supply and demand of commodities.
The law of diminishing marginal returns relate to?
Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. As a consumer consumes more units of a product, the marginal utility derived eventually drops. This relates with the law of diminishing marginal returns which states that, there will be a decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.
Total cost is obtain by?
Total cost refers to the total expense incurred in reaching a particular level of output. TC (total cost) = TFC (total fixed cost) + TVC (total variablecost).
By adding all the marginal products at each level of employment of the variable input, we obtain a value equal to
Total product is the overall quantity of output that a firm produces, usually specified in relation to a variable input. Total product is the starting point for the analysis of short-run production. It indicates how much output a firm can produce according to the law of diminishing marginal returns.
Marginal Product (MP) = Change in Total Product / Change in Variable Factor
Total Product (TP) = AP X Variable Factor
which of the following curves is not U shaped
The average fixed costs AFC curve is downward slopingbecause fixed costs are distributed over a larger volume when the quantity produced increases. AFC is equal to the vertical difference between ATC and AVC. Variable returns to scale explains why the other cost curves are U-shaped.
which of the following business organisations is likely to experience disagreements between management and shareholders
joint-stock company is a company whose stock is owned jointly by the shareholders.
A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares.