Questions on Economics
The first problem for all of us, men and women, is not to learn, but to unlearn - Gloria Steinem
The act of unlearning is an excellent form of learning. Infact, you will need the skills of unlearning if you intend to become an expert in your desired field.
Do yourself a favor by unlearning, learning and re-learning on a daily basis
If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much - Jim Rohn
There's something special about you. It doesn't matter whether you work for a company or someone; what matters is the amount of investment you've made on yourself.
Investing in yourself is the best life plan you can design for your future
Peace begins with a smile - Mother Teresa
Never underestimate the power of your smile. It can lift up the depressed, improve the mood of the downtrodden and even discourage a suicidal attack. Also remember that your smile makes you more beautiful
Smile always for your own good and the good of others
The only person who is educated is the one who has learned how to learn …and change - Carl Rogers
To perfect your learning process, you must learn, unlearn and re-learn. Infact, we all need to learn how to unlearn those vices we know about ourselves.
Do you know that seeing the devastating consequences of vices (perhaps in movies or real-life) can initiate the unlearning processes in one who does such?
Start where you are. Use what you have. Do what you can - Arthur Ashe
Start now. You've got all it takes to achieve greatness, so no environment can limit you. Just begin something, give in your best and don't stop.
Remember, don't stop giving your best if you truly desire greatness. Nothing can stop you except yourself
A _____ market provides a platform whereby job seekers link up with employers in an attempt to be hired.
A. Wholesale market
B. Bond market
C. Physical market
D. Virtual market
E. Factor Market
F. Labor Market
ANSWER: Labor Market
A labor market provides a platform whereby job seekers link up with employers in an attempt to be hired.
Understand that the labor market platform may occur virtually or physically.
Which of the following is not a type of market based on commodities bought and sold?
A. Wholesale market
B. Bond market
C. Physical market
D. Virtual market
E. Factor Market
F. Labor Market
ANSWER: Wholesale Market
Wholesale market is a type of market based on channel of distribution and not the commodity bought and sold. Another market based on channel of distribution is the retail market.
Apart from the correct options above, other examples of market based on commodities bought and sold include primary market, consumer goods market, auction market and knowledge market.
According to economists, a market refers to a/an _____ comprising of various buyers and sellers carrying out business transactions.
C. Entire area
D. Online platform
ANSWER: Entire area
According to economists, a market goes beyond a place. It spans an entire area where buyers and sellers carry out business transactions. For this reason, the prices of commodities will be quite similar in an economists definition of market.
The image below shows the concept of an economists definition of market:
Primary market is a type of market based on _____.
A. Market structure
D. Commodities bought and sold
E. Channel of distribution
F. Internet and world wide web
ANSWER: Commodities bought and sold
Market can be classified based on the commodities bought and sold. Examples of such markets include primary market, consumer goods market, auction market, knowledge market, black market and so on.
The above diagram on the quantity supplied against a change in price is _____.
C. Perfectly Elastic
D. Perfectly Inelastic
E. Zero Elastic
F. Unitary Elastic
ANSWER: Unitary Elastic
The graph above shows a Unitary Price Elasticity.
A unitary price elasticity of supply is seen when a change in price brings about a corresponding and proportional change in the quantity of goods and and services supplied. Its value is always equal to one (1)
The rate at which an increase in the price of a product translate into the product's increased production and availability in the market is termed _____.
C. Demand Elasticity
D. Supply Elasticity
E. Demand Curve
F. Supply Curve
ANSWER: Supply Elasticity
Supply elasticity (also termed elasticity of supply or price elasticity of supply) is defined as the rate at which an increase in the price of a product translate into the product's increased production and availability in the market.
Understand that apart from price, other factors may also be used to measure the elasticity of supply, but ideally, price is always preferred as it's tool of measurement.
Concerning demand curve, which of the following statement is incorrect?
A. It is a graphical represention of a table showing the price of commodities and quantity demanded
B. It can be an individual demand curve
C. The x-axis shows the price of commodities
D. The price and quantity demanded are expressed on different axis of the graph
E. It can be a market demand curve
F. All the options are correct
ANSWER: The x-axis shows the price of commodities
Demand curve is graphical represention of a table showing the price of commodities and quantity demanded.
The x-axis of the graph shows the demand for a commodity while the y-axis shows the price of the commodity.
A table that shows the price of a commodity and the quantity demanded is termed _____.
A. Price table
B. Demand table
C. Demanded-price table
D. Demand preference table
E. Demand graph
F. Demand schedule
ANSWER: Demand schedule
Demand schedule is a table that shows the relationship between prices and the quantities of commodity demanded. We have two types. These are:
Individual demand schedule
Market demand schedule
The concept of Ceteris Paribus Assumption in economics states that _____.
A. Supply and Demand are antagonistic
B. When given two choice of similar products with the same price (assuming all other factors are constant), you will prefer to buy that with a lower price
C. Supply and Demand are agonistic
D. When given two choice of dissimilar products with the same price (assuming all other factors are constant), you will prefer to buy that which you need most
E. When given two choice of similar products with the different prices (assuming all other factors are constant), you will prefer to buy that with a lower price
F. When given two choice of dissimilar products with the different prices (assuming all other factors are constant), you will prefer to buy that with a lower price
ANSWER: When given two choice of similar products with the same price (assuming all other factors are constant), you will prefer to buy that with a lower price
Ceteris Paribus is a latin phrase which means 'with other things the same' or 'other things being equal' or 'held constant'.
Ceteris Paribus Assumption is applicable to demand in economics and in this case, the choice of product have to be similar or same and with equal prices.
The willingness of a person to buy a specific quantity of goods or services at a given price and time is termed _____.
A. Scale of preference
B. Economies of scale
C. Opportunity Cost
Demand is defined as the ability of a person, buyer or consumer to buy a specific quantity of goods or services at a given price and time. It is one of the forces that govern the market.
Costs generally treated as expenses in business are termed _____.
A. Fixed cost
B. Variable cost
C. Sunk cost
D. Direct cost
E. Private cost
F. Outlay cost
ANSWER: Outlay cost
Outlay cost are considered as expenditures in business. For this reason, they are treated as expenses.
When an entrepreneur pays cash (money) for materials needed for production, such money is termed as an _____ cost.
Accounting costs are typically recorded as money spent on goods or rendered services or received services. They include the following instances:
Money paid for the purchase of raw materials
Money paid to workers
Money paid as rent
Money paid for electricity and so on
A government mandated maximum price for goods or services is termed _____.
A. Price height
B. Price maxima
C. Price ceiling
D. Price level
E. Price finale
F. Price top-zone
ANSWER: Price ceiling
Price ceiling is a government mandated maximum price for goods or services while price floor is a government mandated minimum price for goods or services.
Price ceiling and price floor are important concepts towards understanding the supply curve.
The quantity of supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.
The above statement is attributed to the _____.
A. Law of price increase and price decrease
B. Law of product quantity
C. Law of demand
D. Law of supply
E. Law of quantity demanded and supplied in relation to price
F. Law of purchases on services and goods
ANSWER: Law of supply
The law of supply states that the quantity of supplied services or goods will increase as the price increases and they will decrease as the price decreases provided all other factors remain constant.
Some of the constant factors from the above law include:
The price of input resources
The kind of technology used during production
The number of suppliers
The number of buyers and so on
The following statements are true concerning explicit opportunity cost except _____.
A. They are recorded in the accounts book
B. It is a type of cost
C. They may also be referred to as 'out of pocket' cost
D. They are utilized as factors of production
E. Money spent on wages, salaries and raw materials are examples of explicit opportunity cost
F. Explicit opportunity cost are always utilized for investment
ANSWER: It is a type of cost
Explicit opportunity cost is not a type of cost; rather it's a type of opportunity cost.
Needs / Wants
Which of the following statement is incorrect concerning the table?
A. Ipod is the least important need of the individual
B. If the individual has 200,000 Naira at hand, then the laptop, iPad, smart watch and iPod will all be considered as opportunity cost
C. If the individual has 480,000 Naira, he or she will purchase all the items in the table
D. Console game is the most important need of the individual
E. The table shows a scale of preference
F. The individual needs an ipod
ANSWER: Console game is the most important need of the user
Although console game has the highest price value, it isn't the most important need of the user. This is true because the table (which shows a scale of preference) identifies the person's needs or wants in their order of importance. For this reason, the phone is the most important need and not the console game.
Note: The fact that an iPod makes it to the table implies that the person needs it; although he or she will not purchase it if there was a limitation of cash at hand. In short, the iPod is the least important need on the table (but it's still a need though)
Which of the following statement is false concerning scale of preference?
A. It is brought about by the insatiability of human wants
B. It is brought about by the limitation of cash at hand
C. It is a list of a person's needs or wants written in an order of importance
D. Scale of preference cost is the value of the best alternative a person could have achieved but did not achieve it after the best choice had been made
E. Opportunity cost is a term associated with scale of preference
F. None of the above
ANSWER: Scale of preference cost is the value of the best alternative a person could have achieved but did not achieve it after the best choice had been made
There is nothing like 'scale of preference cost'. Rather, we have opportunity cost and it's defined as the value of the best alternative a person could have achieved but did not achieve it after the best choice had been made
Eonomies of scale in economics means _____.
A. The prices of goods will remain the same because producers manufacture similar goods
B. The prices of goods will fall because producers manufacture more goods
C. The prices of goods will rise because producers manufacture less goods
D. The prices of goods will rise and producers will manufacture more goods
E. The prices of goods will fall and producers will manufacture less goods
F. Equilibrium is achieved in the economy
ANSWER: The prices of goods will fall because producers manufacture more goods
In an economies of scale, more units of goods are produced (or services rendered) with lesser cost of production. In short, a company increases its production with a decreased cost. This therefore implies that consumers will pay a lower price for such goods.
Note: The wholesaler can bring about an economies of scale.
Budget deficit refers to the amount by which _____.
ANSWER: Capital expenditure exceeds revenue
Budget Deficit can be described as a financial situation when the expenditures exceed the revenues.
Generally, Budget Deficit relates to the government’s expenditure where capital expenditure or spending exceeds the money generated by the government (that is; the government's revenue).
Note: Budget deficit does not apply to an individual or business spending.
Capital expenditure made by government involves spending on physical assets like educational structures, roads, bridges, power grids, hospital buildings and equipment.
Note: Capital expenditure is usually long term and thus, does not have to be renewed each year
What are infant industries in Economics?
ANSWER: They are industries that are allowed enough time to mature for recognition
In economics, an infant industry is a newly established industry, which in its early stages experiences relative difficulty, thus making it difficult to compete with established competitors abroad.
An infant industry will need to be given enough time for its growth and recognition
Total Questions (21) Paged
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Economics topicsAdvantages of Inflation Disadvantages of Inflation Concept of Inflation in Economics Scheme of work for Economics, SS1, First Term Scheme of work for Economics, SS1, Second Term Scheme of Work for Economics, SS1, Third Term Functions of the Wholesaler Advantages and Disadvantages of the Wholesaler Wholesale Market: Who is a Wholesaler? Characteristics of the Wholesaler
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