UI Economics 2014/2015 Past Questions

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

........... is the term that describes the cost of one product in terms of forgone production/acquisition of others.

A.Marginal cost
B.Production/acquisition cost
C.Optimum cost
D.Opportunity cost
E.Implicit cost

An activity does not have a cost when

A.the activity does not require the giving up of any other activity or thing
B.the government pays for it
C.it is carried out by a nongovernmental organisation
D.it is not priced
E.it is easy to undertake

Choices arise on account of ...........

A.numerous wants
B.enough money to undertake effective demand
C.scale of preference
D.human wants being numerous but the time, money and influence to satisfy them are limited.
E.needs

ECONOMICS is best defined as

A.the study of allocation of resources to satisfy human wants
B.the study of human behaviour in the process of buying and selling
C.study of how nations grow and improve their welfare
D.the study of how to allocate scarce resources to satisfy human wants
E.all of the above

ECONOMICS may be described as

A.the study of demand and supply of things in our environment
B.the study of production and distribution
C.the study of human behaviour in the allocation of scarce resources
D.the study of the employment of labour, capital, land and capital
E.the study of money and banking

From an ECONOMICS point of view, an activity does not have cost when

A.someone else pays for it
B.the returns are greater than costs
C.the choice involves giving up nothing
D.government pays for it
E.it is paid for from gift

Opportunity cost is a term which describes

A.initial cost of setting up a business venture
B.a study of the ways man devices to satisfy his unlimited wants from limited resources
C.cost of one product in terms of forgone production of others
D.the mandatory equivalent of the utility of a commodity
E.cost related to an optimum level of production

Scarcity in ECONOMICS means

A.a period of scarce things
B.when things are costly to acquire
C.monopolisation of available resources by a few
D.nationalisation of natural resources such as petroleum in Venezuela
E.none of the above

Which of these is the real cost of satisfying any want in the sense of the alternative that has to be forgone

A.variable cost
B.opportunity cost
C.total cost
D.prime cost
E.marginal cost

Economic analyses and conclusions can be divided into

A.consumption and production
B.positive and normative
C.micro ECONOMICS and macro ECONOMICS
D.demand and supply
E.none of the above

Which of the following is NOT a measure of central tendency?

A.mean
B.median
C.Mode
D.average
E.standard deviation

Which of the following is NOT a measure of dispersion

A.standard deviation
B.mean deviation
C.variance
D.range
E.mean

A normal good with close substitutes is likely to have its price elasticity of demand

A.between zero and one
B.equal to unity
C.greater than unity
D.less than unity
E.none of the above

Demand for a factor of production is

A.A composite demand
B.a joint demand
C.a derived demand
D.an elasticity of demand
E.cross elasticity of demand

Given Demand function: Qd = 5P + 10; Supply function: Qs = 7P - 5. If the price is at N5, the excess demand is

A.35
B.30
C.10
D.5
E.65

If an increase in the price of a commodity leads to an increase in total revenue, then it follows that the demand for the commodity is

A.normal
B.elastic
C.inelastic
D.abnormal
E.unitary

If the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is

A.static
B.infinitely elastic
C.externally determined
D.perfectly inelastic
E.perfectly elastic

The impact of a change in the price of commodity A on the quantity demanded of commodity B is best explained using the concept of

A.price-elasticity of demand
B.cross-price elasticity of demand
C.income elasticity of demand
D.elasticity of substitution
E.A-price elasticity of demand for B

The change that is due to a movement from one supply curve to another along the same price is called

A.change in supply
B.change in quantity supplied
C.elasticity change
D.control price effect
E.change in equilibrium quantity

When the supply of a commodity is fixed, its price elasticity of supply is said to be

A.perfectly elastic
B.perfectly inelastic
C.undefined
D.elastic
E.inelastic

Given Demand function: Qd = 5P + 10; Supply function: Qs = 7P - 5. The equilibrium quantity is

A.50
B.55
C.75.5
D.47.5
E.55.5

In market economies, resources are allocated through the

A.government authorities
B.price system
C.banking system
D.central planning bureau
E.revenue allocation formula

In the operation of market forces, the market is in equilibrium at the point where

A.demand and supply curve intersects in more than one point
B.the excess in the market can be conveniently stored
C.excess demand is positive
D.demand and supply curves intersect
E.excess demand is negative

The basic feature of a market economy is

A.the reduction in the power of sellers
B.the enthronement of consumer sovereignty
C.the dismantling of barriers to trade
D.the perfectly elastic price for every transaction
E.the intersection of demand and supply curves

The following are the conditions that must be fulfilled for price determination EXCEPT

A.market merger
B.market segmentation
C.demand elasticities
D.product differentiation
E.none of the above