RSUT Economics 2015/2016 Past Questions

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

If the cost of production for a firm continues to increase as its output rises, the firm is said to be experiencing

A.Large scale production
B.profit maximization
C.Economies of scale
D.Diseconomies of scale

One of the fundamental difference between a capitalist and a socialist economy is that while

A.the former is characterized by complete government ownership of resources, the latter is characterized by complete private ownership.
B.in the former, prices act as signals in the allocation of resource; it is the central authority that performs this function in the latter.
C.Taxes are levied in a capital economy; there is not taxation in a socialist economy
D.Income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy

The shape of a production possibility frontier is determined by the

A.retums to scale
B.increasing relative cost
C.increasing returns to a variable factor
D.diminishing return to a fixed factor

Normative economics deals with

A.facts and not figures
B.what is and what shall should be
C.value judgment
D.facts and figures

In a free economy the price system allocates resource

A.under government's directive
B.to their best alternative uses
C.to ensure general welfare
D.to reduce poverty

In a centrally planned economy the economic problem of deciding what to produce is dependent on

A.Average cost
B.state command
C.average profit
D.relative prices

A demand which is positively related to price is true of

A.capital goods
B.normal goods
C.giffen goods
D.ostentations goods

```Use the table below to answer the question 8 and 9```
$\table Price(N),Quantity Supplied,Quantity Demanded;10,50,450;20,150,350;30,250,250;40,350,150;50,450,50$
What is the equilibrium quantity?

A.50
B.250
C.350
D.450

```Use the table below to answer the question 8 and 9```
$\table Price(N),Quantity Supplied,Quantity Demanded;10,50,450;20,150,350;30,250,250;40,350,150;50,450,50$
Above the equilibrium point, a further rise in price tends to

A.Increase demand and restrict supply
B.Restrict demand and Restrict supply
C.Increase demand and increase supply
D.Decrease demand and increase supply

A firm faces diminishing returns when its

A.Total output diminishes
B.Average output diminishes
C.Marginal output diminishes
D.Marginal revenue diminishes