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 131: If the demand for a good is more elastic than its supply, the tax burden is borne
Options:
A) equally by consumers and producers
B) more by producers
C) more by consumers
D) more by retailers and producers
Show Answer
The correct answer is B .
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Question 132:
| 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
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The correct answer is D .
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Question 133:
Crude petroleum is a good example of a
Options:
A) lasting asset
B) wasting asset
C) synthetic product
D) costless resources
Show Answer
The correct answer is B .
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Question 134:
Given the table demonstrating the law of diminishing marginal utility below, what is the value of X?
No. of oranges Consumed | Total Utility | Average Utility | Marginal Utility |
| 1 | 9 | 9 | - |
| 2 | 16 | 8 | x |
| 3 | 24 | 8 | 6 |
| 4 | 30 | 7.5 | 4 |
| 5 | 34 | 6.8 | y |
| 6 | 36 | 6 | 2 |
| 7 | 36 | 5.1 | 0 |
Options:
A) 0.5
B) 7
C) 0
D) 8
Show Answer
The correct answer is B .
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Question 135: One of the problems arising from the localization of industries is?
Options:
A) high prices of output
B) the exportation of output
C) the scarcity of foreign exchange
D) structural unemployment
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The correct answer is D .
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Question 136: The division of labour requires that the task to be performed
Options:
A) must be done in stages
B) requires no special knowledge
C) is simple but strenuous
D) must be undertaken by experts
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The correct answer is A .
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Question 137: Divorce of ownership from control is a characteristic of?
Options:
A) sole properitorship
B) a limited liability company
C) partnership
D) a private limited company
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The correct answer is B .
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Question 138: When demand is elastic, it means that consumers
Options:
A) react more proportionately to price change
B) are not sensitive to price changed
C) will stop buying when price increases
D) react less proportionately to price change
E) react equally to price change
Show Answer
The correct answer is A .
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Question 139: The purpose of import duties does NOT include the?
Options:
A) generation of revenue for government
B) protection of domestic industries
C) promotion of international trade
D) conservation of foreign exchange earnings
E) control of comsuption pattern
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The correct answer is C .
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Question 140:
A situation in which a commodity is sold abroad below its cost of production in the home country is known as?
Options:
A) dumping
B) counter trade
C) bilateral trade
D) trade liberalization
Show Answer
The correct answer is A .