BUK Economics 2018/2019 Past Questions

Practice each question, then open it to see the full details.

The need to obstruct a scale of preference is necessitated by

A.the need to satisfy wants
B.scarcity and the need for choice
C.scarcity of resources
D.non-availability of factors of production

If a 10k per kg, 1000 kg of yam were purchased and at 5k per kg 1500kg were purchased, the resultant point elasticity of demand is

A.0.33
B.0.0001
C.1.00
D.10.000

If a wage increase is granted to a cement manufacturer's worker, the supply curve of cement will

A.move to the right
B.move to the left
C.move to the opposite side
D.move to nowhere

The elasticity of supply of perishable goods is

A.inelastic
B.elastic
C.unitary
D.zero

The average product of labour in a given period is obtained by dividing the

A.the number of workers by the total product
B.total product by the number of hours actually
C.change in total product by the change in the total number of workers
D.total product by the number of workers

A possible factor which limits the extent of growth of a firm is the

A.existence of a monopoly
B.bureaucratic delays in decision-making
C.use of by-products
D.unwillingness to share ownership and control

A major difference between a state-owned enterprise and a private enterprise is that the former

A.is not expected to cover its cost of production while the latter is
B.is not always expected to maximize profits while the latter is
C.has shareholders while the latter does not
D.has a board of directors while the latter does not

The main handicap of sole proprietorship is

A.limited liability
B.lack of technical know-how
C.low profit margin
D.inadequate capital

Taxes and government expenditures are instruments

A.monetary policy
B.tax policy
C.economic policy
D.fiscal policy

If C stands for consumption, I for investment, X for exports, and M for imports, then national income is

A.C + I + X + M
B.C + I + X - M
C.C + I - X + M
D.C + i + X