UNICAL Economics 2017/2018 Past Questions

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

Economic goods are termed scarce goods when

A.not available in sufficient quantities to satisfy all wants for them
B.not produced in sufficient quantities to satisfy the effective demand for them
C.of high quality
D.of primary importance in satisfying needs of a society

The demand of a commodity is affect by

A.the consumer of the commodity
B.the price of the commodity alone
C.the price of the commodity, income of the consumer, prices of other commodities and preferences of the consumer
D.government policy

The demand curve can be derived from

A.the total utility curve
B.the cardinal utility theory
C.marginal utility curve
D.all of the above

Which of the following statements is true of the effect of changes in demand and supply on price?

A.a decrease in supply will lead to the fall in price and a fall in the quantity bought and sold
B.an increase in demand will lead to a fall in price and in the quantity bought and sold
C.a decrease in demand will lead to a rise in price and in the quantity bought and sold
D.an increase in supply will lead to a fall in price and a rise in the quantity bought and sold

The basic idea behind the brand differentiation under an imperfect market arrangement is to

A.stimulate demand for rival product
B.create demand for the particular product
C.enable the produce to penetrate the market
D.enable the product to compete with other products

It is important to measure the national income of a country because

A.it is a major determinant of the standard of living
B.it reveals hazard of development like pollution and congestion
C.it reveals the distribution of the citizen’s saving in foreign bank
D.its size determines the extent of political stability

Adding government and foreign sector to the circular flow of income and product.

A.does not disturb the basic qualities of the circular flow
B.does alter the basic qualities of the circular flow
C.is the basic for understanding the circular flow
D.disturbs the understanding of the circular flow

Consumption plus investment plus government purchases plus net exports make up

A.national income
B.net national income
C.net national product
D.national product