Indifference curve assumption where consumers aim to maximise utility given income and prices of products is called ________________________assumption. A. Ordinal util. B. Non-satiety. C. Rationality. B. Transitivity
Indifference curve assumption where consumers aim to maximise utility given income and
prices of products is called ________________________assumption.
A. Ordinal util.
B. Non-satiety.
C. Rationality.
B. Transitivity
2. Economic profit =
A. Total Revenue – Explicit costs.
B. Total Revenue – Total costs.
C. Total Revenue – Implicit Cost.
D. Total Revenue –
3. _____________________is a firm that owns, controls and manages assets in many countries.
A. Sole trader.
B. Partnership.
C. Multinational firm.
D.
4. Which one of the following is remuneration for capital?
A. Wages.
B. Interest.
C. Profit.
D. Rent
5. ____________________is market structure with one single seller.
A. Monopolistic competition.
B. Monopoly.
C.
D. Oligopoly.
6. Complete the following table to answer question 6:
|
Quantity of oranges |
Total utility |
|
|
0 |
0 |
|
|
1 |
10 |
|
|
2 |
25 |
|
|
3 |
31 |
|
|
4 |
35 |
|
|
5 |
37 |
|
|
6 |
33 |
|
At which level of quantities of oranges does diminishing marginal utility sets in?
A. 6.
B. 3.
C. 0.
D. 4.
7. An exchange of goods for goods is referred to as _________________________.
A. International trade
B. Barter trade.
C. Money trade.
D. Free trade.
8. The amount of physical cash a bank must hold to meet customer cash withdrawals
requirements is called ________________________________.
A. Cash reserve requirement.
B. Liquidity ratio.
C. Multiplier.
D. liquidity asset requirement.
9.
_______________________.
A. technological.
B. Cyclical.
C. Structural.
D. Seasonal.
10. An excess of aggregate demand over supply results in which type of inflation?
A. Structuralist theory of inflation.
B. Demand pull inflation.
C. Imported inflation.
D. Cost push inflation.
State whether each of the following statements is TRUE or FALSE.
1. An entrepreneur should choose that combination of factors of production which costs
him the most.
2. Util refers to satisfaction from consumption of a commodity.
3. Businesses are the owners of land, capital and entrepreneurship services.
4. Trade unions have the ability to force wages up more rapidly than increases in
productivity, raising unit labour costs.
5. Monopolistic firms produce differentiated products.
6. A country which does not participate in external trade is known as an autarky.
7. Money people hold for everyday purchases is referred to as precautionary money
demand.
8. GNP deflator is a good measure of inflation.
9. Fiscal policy is the use of money or its cost which is the interest rate, to fine tune some
economic variables.
10. Money as a store of value can make the operation of a price mechanism possible.
1. Define the following terms as used in economics:
i. Cardinal utility.
ii. Marginal rate of substitution.
iii. Normal profit.
2. Using a relevant diagram, explain the consumer equilibrium under ordinal utility.
3. Differentiate between monopoly and perfect competition market structures in terms of nature
of the product and its significance.
4. Using a diagram, explain the type of inflation regarded as the worst? Justify your answer.
5. Compare and contrast fiscal policy and
6. Identify and explain how any two (2) monetary policy instruments can be used to increase money supply.
7. Differentiate between standard of deferred payments and unit of account.
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