Economics Entrance Examination

Economic problems arises because

• resource are scarce relative to wants

• man is insatiable

• money is scarce

• man engages in too many economic activities.

Scarcity implies that

• goods cannot be produced efficiently

• human wants are unlimited

• goods and services are limited in supply

• commodities are evenly distributed within the economy.

Dividing total variable cost by quantity of output gives

• Total cost (TC)

• Total Fixed Cost (TFC)

• Variable cost (VC)

• Average Variable Cost (AVC)

The supply of labour can be influenced by the

• size of the population

• stage of economic development

• size of the country

• extent of the market.

Wages are to some extent, determined by the

• Marginal utility of labour

• average utility of labour

• marginal productivity of labour

• total output of labour

The movement along the same curve is a

• change in demand

• change in quantity demanded

• shift in demand

• market demand

The income elasticity of a normal goods is

• positive

• negative

• zero

• fixed

The charging of different prices to different group of buyers for the same goods or services is called

• monopolistic competition

• price determination

• price discrimination

• monopoly

A tax on a commodity whose demand is perfectly inelastic will fall heavily on the

• consumer

• manufacturer

• wholesaler

• retailer.

The demand for a commodity not directly for immediate consumption but for the production of another commodity is

• competitive demand

• derived demand

• composite demand

• joint demand.