Economics Quiz for year 10

Price fixed above the equilibrium is to

• protect agricultural producers

• discourage agricultural producers

• lower the prices of agricultural produce

• favour consumers

The types of production that involves the tapping and harnessing of natural resources is

• primary production

• secondary production

• tertiary production

• industrial production

A firm’s main aim is to

• survive in business

• maximize profits

• increase its market share

• satisfy the ambitions its managers.

Human wants are unlimited because

• production is inadequate

• resources have alternative uses

• new wants always arise

• resources are limited

The profit of a producer is the difference between

• total cost and marginal cost

• total revenue and total cost

• average cost and total cost

• price and total cost

Any price below the equilibrium price will lead to

• increase in supply

• excess demand

• equality of demand and supply

• decrease in demand

Given the demand function Qd = 20 – 1/2 P, what is Qd when P is $12?

• 6 units

• 10 units

• 12 units

• 14 units

Which of the following is a function of money?

• medium of communication

• measure of securities

• store of value

• discounting bills of exchange

Which of the following is an asset of a commercial bank?

• reserve funds

• shareholders’ capital

• customers’ deposits

• treasury bills

The central bank controls money supply through all the following except

• lending to the public

• bank rate

• legal reserve requirements

• open market operation