Economics is the study of how societies allocate limited resources to meet the unlimited needs and wants of individuals. It focuses on the production of goods and services, economic growth, and various complex issues that are important to society.
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Question 1001:
| X | Y | Z |
| Price (₦) | Quantity (Units) | Price (₦) | Quantity (Units) | Price (₦) | Quantity (₦) |
| 0 | 20 | 0 | 15 | 0 | 40 |
| 2 | 15 | 2 | 10 | 2 | 30 |
| 5 | 10 | 5 | 5 | 5 | 15 |
| 10 | 0 | 10 | 2 | 10 | 5 |
Use the following information above to answer this question. X, Y and Z are the only three consumers of a commodity. Their respective demand schedules for the commodity are as given above. The market demand curve for the commodity cuts the quantity axis when quantity is
Options:
A) 75 units
B) 35 units
C) 7 units
D) not determinable from the schedules except when graphed
Show Answer
The correct answer is D .
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Question 1002:
In an open economy, the GNP is measured as_____________?
Options:
A) C + 1 + G(X-M)
B) C + 1 + G
C) C + 1 + G + X
D) C + 1 + G + M
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The correct answer is A .
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Question 1003:
The mining sector of an economy contributes 60% to the Gross Domestic Product(GDP). If the GDP is $540, what is the contribution of the mining sector?
Options:
A) $ 90.00
B) $ 180.00
C) $ 324.00
D) $ 350.00
Show Answer
The correct answer is C .
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Question 1004: A limited liability company is usually owned by?
Options:
A) an individual
B) a government
C) shareholders
D) two or more partners
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The correct answer is C .
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Question 1005: With a given level of money income, a consumer maximizes satisfaction from the consumption of goods and services when the?
Options:
A) total utility derived from each goods and services is increasing at an increasing rate
B) marginal utility derived from each good or service is increasing at the same rate
C) marginal utility derived per naira spent is the same for all the goods and services
D) total utility derived from all the goods and services is large
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The correct answer is C .
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Question 1006: If Mr A earns N2,000 a year while Mr B earns N8,000 but Mr a pays N200 in tax per annum while Mr B pays N400, such a tax is
Options:
A) Progressive
B) Indirect
C) Regressive
D) Proportional
E) None of the above
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The correct answer is C .
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Question 1007: When an indirect tax is levied on the producer of a good, the burden on the consumer will depend largely on the?
Options:
A) elasticity of demand for the good
B) proportion of the consumer's income spent on the good
C) elasticities of demand and supply of the commodity
D) availability of substitiutes for the commodity
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The correct answer is A .
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Question 1008: The fundamental problem of Economics is?
Options:
A) money
B) poverty
C) unemployment
D) the scarcity of resources relative to wants
E) inflation
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The correct answer is D .
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Question 1009: In its simplified form, the circular flow of income concept refers to the?
Options:
A) real flow in goods and services between the product and factor markets
B) monetary payment for goods and services produced by individual firms
C) transactions in goods and services and payment for such transactions between individual firms and households.
D) money flows associated with transactions between individual firms and households
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The correct answer is C .
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Question 1010: The effect of an increase in the personal income tax is to
Options:
A) reduce unemployment
B) raise the absolute price level
C) reduce the disposable income
D) distort the economy
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The correct answer is C .