UNICAL Economics 2012/2013 Past Questions

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

The type of demand that exists between bicycle and fuel is

A.competitive demand
B.complementary demand
C.composite demand
D.independent demand

Which of these are true of a perfect competition?

A.P = AR = MR
B.P > AR = MR
C.P = MR< AR
D.P = AR = MR

Which of the following factors is not important in deciding the location of an industry?

A.the native language of the people
B.availability of suitable labour
C.sources of cheap power and raw materials
D.proximity to the location of a similar industry

The theory of consumer behavior is based on all the following assumptions except that the

A.consumer is assumed irrational
B.consumer taste remains constant
C.consumer has budget constraint
D.consumer aims at maximizing his utility

Which of the following items is NOT included in measuring national income by the income approach?

A.wages and salaries
B.students grants and scholarship
C.profits of companies
D.income earned by self-employed persons

Which of the following is not a negative effect of inflation?

A.lenders earn less
B.pensioners and salary earners on fixed incomes suffer
C.exports tend to decline
D.borrowers tend to gain

When a nation is experiencing balance of payment surplus, it is in better position to

A.increase her foreign exchange reserves
B.increase her liabilities to foreigners
C.reduce her foreign exchange reserves
D.devalue her national currency

The necessity for the study of economics arises due to

A.need to satisfy every desire of man
B.scarcity of resources
C.large population size of the world
D.opportunity cost of goods and services

The bank of industry is

A.a commercial bank
B.a development bank
C.an industrial bank
D.a merchant bank

Scarcity of Economics means that resources

A.are not enough to share among the producers of goods and services
B.need to satisfy human wants are limited
C.are never enough to share among consumers of goods and services
D.required to meet our essential wants are unlimited